A03009 Summary:
| BILL NO | A03009C |
| SAME AS | SAME AS UNI. S03009-C |
| SPONSOR | Budget |
| COSPNSR | |
| MLTSPNSR | |
| Amd Various Laws, generally | |
| Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2025-2026 state fiscal year; relates to establishing an inflation refund credit (Part A); provides for a middle-class tax cut; extends the temporary personal income tax high income surcharge (Part B); enhances the empire state child credit for three years (Part C); relates to the eligibility for the New York state low income housing tax credit program; increases the aggregate amount of the allocable tax credit (Part D); relates to tax credits for the rehabilitation of historic properties (Part E); establishes a 90-day waiting period for the purchase of residential real property by certain purchasers (Subpart A); provides for depreciation and interest deduction adjustments for properties owned by institutional investors in residential properties (Subpart B); requires the secretary of state to provide public notice of real property solicitation cease and desist zones (Subpart C)(Part F); relates to the excelsior jobs program; establishes the semiconductor research and development program; establishes tax credits for participation in such program; establishes the semiconductor manufacturing workforce training incentive program; establishes tax credits for participation in such program; repeals the employee training incentive program (Subpart A); amends provisions relating to application of the empire state jobs retention program on or after June 1, 2025 (Subpart B) (Part H); relates to film production and post-production credits; creates the Empire state independent film production credit (Part I); relates to eligibility under the newspaper and broadcast media jobs program (Part J); relates to calculation and application of the empire state digital gaming media production credit; permits carryover of unused credits (Part K); extends portions of the New York city musical and theatrical production tax credit (Part L); clarifies that the accessing of notices by a taxpayer shall not give the taxpayer the right to a hearing in the division of tax appeals (Part M); relates to tax warrants and warrant-related records (Part N); provides that where property is owned solely by a person or persons who received the STAR exemption for three consecutive years without having filed returns for the applicable income tax years, but who demonstrated their eligibility for the exemption to the commissioner of taxation and finance's satisfaction by filing statements, such person or persons shall be presumed to satisfy the applicable income-eligibility requirements each year thereafter and shall not be required to continue to file such statements in the absence of a specific request therefor from such commissioner (Part O); increases the estimated tax threshold under article nine-a of the tax law to five thousand dollars beginning January 1, 2026 (Part R); establishes a tax credit for organ donation (Part S); relates to extending the estate tax three-year gift addback rule (Part T); expands the credit for employment of persons with disabilities to the first five thousand dollars of first-year wages (Part U); provides for reporting of federal partnership adjustments for state personal income tax (Subpart A); provides for reporting of federal partnership adjustments for city personal income tax (Subpart B)(Part V); establishes a credit against the tax on personal income of certain residents of a city having a population of one million or more inhabitants beginning in the 2025 tax year (Part W); extends the clean heating fuel tax credit for three years (Part Y); extends the alternative fuels and electric vehicle recharging property credit for three years (Part Z); extends the sales tax exemption for vending machine transactions (Part AA); extends the workers with disabilities tax credit (Part BB); extends the hire a vet tax credit until 2029 (Part CC); extends the musical and theatrical production credit (Part DD); relates to extending the financial institution data match system for state tax collection purposes (Part EE); simplifies the parimutuel tax rate system; repeals provisions relating thereto (Subpart A); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; extends certain provisions relating to simulcasting, and the imposition of certain taxes (Subpart B); provides for amounts of market origin credits and fees, and the state's use of funds collected thereunder (Subpart C)(Part FF); sets rates for tax on certain gaming revenues (Part GG); relates to the utilization of funds in the Capital off-track betting corporation's capital acquisition fund for certain purposes (Part HH); provides for research to enhance the health and safety of thoroughbred race horses (Part II); extends the farm workforce retention credit (Part JJ); relates to the farm employer overtime credit (Part KK); provides technical corrections relating to amended returns under Article 28 (Part LL); relates to vendor fees paid to certain vendor tracks; provides for the repeal of such provisions upon expiration thereof (Part MM); relates to the terms of members of the franchised corporation appointed by the New York racing association, and licensing requirements of such members (Part NN); provides that the amount of mobile sports tax revenue used for problem gambling education and treatment shall be equal to six million dollars for each fiscal year through fiscal year 2026 and twelve million dollars for each fiscal year thereafter, provided that this amount may only be expended pursuant to a plan approved by the director of the budget (Part OO); extends the duration of certain brownfield redevelopment and remediation tax credits with respect to a site located within the Renaissance Commerce Park situate within the city of Lackawanna, Erie county (Part PP); relates to the commissioner's authority to deny certain relief from sales tax liability provided to certain limited partners and members of limited liability companies (Part QQ); simplifies the real property tax credit (Part RR); authorizes an occupancy tax in the city of Auburn not to exceed 5%; provides for the expiration and repeal of such provisions on December 31, 2027 (Part SS); authorizes a hotel and motel tax in the city of Buffalo, in the county of Erie (Part TT); relates to geothermal energy systems tax credits; allows excess amounts to be received as refunds for certain taxpayers (Part UU); relates to the metropolitan commuter transportation mobility tax and the rates of tax and the distribution of revenue therefrom (Part VV); divides revenues from the sales and compensating use taxes for the metropolitan commuter transportation district; directs that 85% of the certified revenues be deposited in the dedicated mass transportation fund with 85% of such amount being allocated to the New York city transit authority and its subsidiaries and 15% of such amount shall be allocated to the Long Island Rail Road Company and Metro North commuter railroad company (Part WW); relates to the aggregate principal amount of bonds, notes or other obligations for the metropolitan transit authority, the Triborough bridge and tunnel authority and the New York city transit authority (Part XX). | |
A03009 Actions:
| BILL NO | A03009C | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/22/2025 | referred to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
| 02/21/2025 | amend (t) and recommit to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
| 02/21/2025 | print number 3009a | |||||||||||||||||||||||||||||||||||||||||||||||||
| 03/10/2025 | amend (t) and recommit to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
| 03/10/2025 | print number 3009b | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/07/2025 | amend (t) and recommit to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/07/2025 | print number 3009c | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | reported referred to rules | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | rules report cal.184 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | ordered to third reading rules cal.184 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | message of necessity - 3 day message | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | REFERRED TO FINANCE | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | SUBSTITUTED FOR S3009C | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | 3RD READING CAL.974 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | MESSAGE OF NECESSITY - 3 DAY MESSAGE | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/08/2025 | delivered to governor | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/09/2025 | signed chap.59 | |||||||||||||||||||||||||||||||||||||||||||||||||
A03009 Committee Votes:
| Pretlow | Aye | Ra | Nay | ||||||
| Glick | Aye | Fitzpatrick | Nay | ||||||
| Colton | Aye | Hawley | Nay | ||||||
| Cook | Excused | Blankenbush | Nay | ||||||
| Benedetto | Aye | Palmesano | Excused | ||||||
| Weprin | Aye | Walsh | Nay | ||||||
| Ramos | Excused | DeStefano | Nay | ||||||
| Braunstein | Aye | Manktelow | Nay | ||||||
| McDonald | Excused | Smullen | Nay | ||||||
| Rozic | Aye | Giglio | Nay | ||||||
| Dinowitz | Aye | ||||||||
| Magnarelli | Aye | ||||||||
| Bronson | Aye | ||||||||
| Dilan | Aye | ||||||||
| Seawright | Aye | ||||||||
| Hyndman | Aye | ||||||||
| Walker | Aye | ||||||||
| Bichotte Hermel | Aye | ||||||||
| Simon | Aye | ||||||||
| Cruz | Aye | ||||||||
| Otis | Aye | ||||||||
| Solages | Aye | ||||||||
| Hunter | Aye | ||||||||
| Epstein | Aye | ||||||||
| Septimo | Aye | ||||||||
| Heastie | Excused | Barclay | Nay | ||||||
| Pretlow | Aye | Hawley | Nay | ||||||
| Cook | Aye | Blankenbush | Nay | ||||||
| Glick | Aye | Ra | Nay | ||||||
| Dinowitz | Aye | Brabenec | Nay | ||||||
| Colton | Aye | Palmesano | Excused | ||||||
| Magnarelli | Aye | Reilly | Nay | ||||||
| Paulin | Excused | Smith | Nay | ||||||
| Peoples-Stokes | Aye | Jensen | Aye | ||||||
| Benedetto | Aye | ||||||||
| Lavine | Aye | ||||||||
| Lupardo | Aye | ||||||||
| Braunstein | Aye | ||||||||
| Davila | Aye | ||||||||
| Hyndman | Aye | ||||||||
| Rozic | Aye | ||||||||
| Bronson | Aye | ||||||||
| Hevesi | Aye | ||||||||
| Hunter | Aye | ||||||||
| Taylor | Aye | ||||||||
| Cruz | Aye | ||||||||
| Vanel | Aye | ||||||||
Go to top
A03009 Floor Votes:
Yes
Alvarez
Yes
Carroll P
No
Friend
Yes
Lee
Yes
Peoples-Stokes
No
Slater
Yes
Anderson
Yes
Carroll RC
Yes
Gallagher
No
Lemondes
Yes
Pheffer Amato
No
Smith
No
Angelino
Yes
Chandler-Waterm
No
Gallahan
Yes
Levenberg
No
Pirozzolo
No
Smullen
No
Bailey
No
Chang
No
Gandolfo
Yes
Lucas
Yes
Pretlow
Yes
Solages
No
Barclay
Yes
Chludzinski
Yes
Gibbs
Yes
Lunsford
No
Ra
Yes
Steck
Yes
Barrett
Yes
Clark
No
Giglio
Yes
Lupardo
Yes
Raga
No
Stern
No
Beephan
Yes
Colton
Yes
Glick
Yes
Magnarelli
Yes
Rajkumar
Yes
Stirpe
No
Bendett
Yes
Conrad
Yes
Gonzalez-Rojas
No
Maher
ER
Ramos
No
Tague
Yes
Benedetto
Yes
Cook
Yes
Gray
Yes
Mamdani
No
Reilly
No
Tannousis
Yes
Berger
Yes
Cruz
Yes
Griffin
No
Manktelow
Yes
Reyes
Yes
Tapia
Yes
Bichotte Hermel
Yes
Cunningham
No
Hawley
Yes
McDonald
Yes
Rivera
Yes ‡
Taylor
No
Blankenbush
Yes ‡
Dais
Yes
Hevesi
No ‡
McDonough
Yes
Romero
Yes
Torres
No
Blumencranz
Yes
Davila
Yes
Hooks
Yes
McMahon
Yes
Rosenthal
Yes
Valdez
No
Bologna
Yes
De Los Santos
Yes
Hunter
Yes
Meeks
Yes
Rozic
Yes
Vanel
Yes
Bores
No
DeStefano
Yes
Hyndman
No
Mikulin
Yes
Santabarbara
Yes
Walker
No
Brabenec
Yes
Dilan
Yes
Jackson
No
Miller
Yes
Sayegh
No
Walsh
Yes
Braunstein
Yes
Dinowitz
Yes
Jacobson
Yes
Mitaynes
Yes
Schiavoni
Yes
Weprin
Yes
Bronson
No ‡
DiPietro
Yes
Jensen
No
Molitor
Yes
Seawright
Yes
Wieder
No
Brook-Krasny
No
Durso
Yes
Jones
No
Morinello
No
Sempolinski
Yes
Williams
No
Brown EA
Yes
Eachus
Yes
Kassay
No
Norber
Yes
Septimo
Yes
Woerner
No
Brown K
Yes
Eichenstein
Yes
Kay
No
Novakhov
Yes
Shimsky
Yes
Wright
Yes
Burdick
Yes
Epstein
Yes
Kelles
Yes
O'Pharrow
Yes
Shrestha
No
Yeger
Yes
Burke
Yes
Fall
Yes
Kim
Yes
Otis
Yes
Simon
Yes
Zaccaro
Yes
Burroughs
No
Fitzpatrick
Yes
Lasher
No ‡
Palmesano
Yes
Simone
Yes
Zinerman
Yes
Buttenschon
Yes
Forrest
Yes
Lavine
Yes
Paulin
No
Simpson
Yes
Mr. Speaker
‡ Indicates voting via videoconference
A03009 Memo:
Memo not availableGo to top
A03009 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ S. 3009--C A. 3009--C SENATE - ASSEMBLY January 22, 2025 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to the inflation refund credit (Part A); to amend the tax law, in relation to providing for a middle-class tax cut and extending the temporary personal income tax high income surcharge (Part B); to amend the tax law, in relation to enhancing the empire state child credit for three years (Part C); to amend the public housing law, in relation to certain eligibility for the New York state low income housing tax credit program and increases to the aggregate amount of the allocable tax credit (Part D); to amend the tax law, in relation to credits for the rehabilitation of historic properties (Part E); to amend the real property law, in relation to the purchase of residential real property by certain purchasers (Subpart A); to amend the tax law, in relation to depreciation and interest deduction adjustments for properties owned by institutional investors in residential properties (Subpart B); and to amend the real property law, in relation to public notice of real property solicita- tion cease and desist zones (Subpart C) (Part F); intentionally omit- ted (Part G); to amend the economic development law and the tax law, in relation to the excelsior jobs program; and to repeal article 22 of the economic development law relating to the employee training incen- tive program (Subpart A); and to amend the economic development law, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-05-5S. 3009--C 2 A. 3009--C in relation to the empire state jobs retention program (Subpart B) (Part H); to amend the tax law, in relation to film production and post-production credits (Part I); to amend the economic development law and the tax law, in relation to the newspaper and broadcast media jobs program (Part J); to amend the tax law, in relation to the empire state digital gaming media production credit (Part K); to amend subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to establishing the New York city musical and theatrical production tax credit and establish- ing the New York state council on the arts cultural program fund, in relation to the effectiveness thereof; and to amend the tax law, in relation to the New York city musical and theatrical production tax credit (Part L); to amend the tax law, in relation to clarifying the notices afforded protest rights (Part M); to amend the tax law, in relation to the filing of tax warrants and warrant-related records (Part N); to amend the real property tax law and the tax law, in relation to simplifying STAR income determinations; and to repeal certain provisions of such laws relating thereto (Part O); inten- tionally omitted (Part P); intentionally omitted (Part Q); to amend the tax law, in relation to increasing the estimated tax threshold under article nine-A of the tax law (Part R); to amend the tax law, in relation to establishing a tax credit for organ donation (Part S); to amend the tax law, in relation to extending the estate tax three-year gift addback rule (Part T); amend the tax law, in relation to expand- ing the credit for employment of persons with disabilities (Part U); to amend the tax law, in relation to reporting of federal partnership adjustments (Subpart A); and to amend the administrative code of the city of New York, in relation to reporting of federal partnership adjustments (Subpart B) (Part V); to amend the tax law and the admin- istrative code of the city of New York, in relation to establishing a credit against the tax on personal income of certain residents of a city having a population of one million or more inhabitants (Part W); intentionally omitted (Part X); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part Y); to amend the tax law, in relation to extending the alternative fuels and electric vehicle recharging property credit for three years (Part Z); to amend the tax law, in relation to extending the sales tax exemption for certain sales made through vending machines (Part AA); to amend the labor law, in relation to extending the workers with disabilities tax credit (Part BB); to amend the tax law, in relation to extending the hire a vet credit (Part CC); to amend part HH of chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatri- cal production credit, in relation to the effectiveness thereof (Part DD); to amend part U of chapter 59 of the laws of 2017, amending the tax law, relating to the financial institution data match system for state tax collection purposes, in relation to extending the effective- ness thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to simplifying the pari-mutuel tax rate system; and to repeal section 908 of the racing, pari-mutuel wagering and breeding law relating thereto (Subpart A); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of- state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, in relation toS. 3009--C 3 A. 3009--C the effectiveness thereof; and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to the effectiveness thereof (Subpart B); and to amend the racing, pari-mutuel wagering and breeding law and the state finance law, in relation to market origin credits and fees (Subpart C)(Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to the tax on gaming revenues in certain regions; to amend part OOO of chapter 59 of the laws of 2021 amending the racing, pari-mutuel wagering and breeding law relating to the tax on gaming revenues, in relation to the effectiveness thereof; and providing for the repeal of certain provisions upon expiration thereof (Part GG); to amend the racing, pari-mutuel wagering and breeding law, in relation to the utilization of funds in the Capital off-track betting corpo- rations' capital acquisition funds (Part HH); to amend the racing, pari-mutuel wagering and breeding law, in relation to enhancing the health and safety of thoroughbred horses; and providing for the repeal of such provisions upon expiration thereof (Part II); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, in relation to extend- ing the provisions thereof (Part JJ); to amend the agriculture and markets law and the tax law, in relation to the farm employer overtime credit (Part KK); to amend part H of chapter 59 of the laws of 2024 amending the tax law relating to the filing of amended returns under article 28 thereof, in relation to making technical corrections there- to (Part LL); to amend the tax law, in relation to vendor fees paid to certain vendor tracks; and providing for the repeal of such provisions upon expiration thereof (Part MM); to amend the racing, pari-mutuel wagering and breeding law, in relation to members of the franchised corporation appointed by the New York racing association (Part NN); to amend the racing, pari-mutuel wagering and breeding law, in relation to mobile sports tax revenue be used for problem gambling (Part OO); to extend the duration of certain brownfield redevelopment and remedi- ation tax credits for certain sites (Part PP); to amend the tax law, in relation to the relief from sales tax liability provided to certain limited partners and members of limited liability companies (Part QQ); to amend the tax law, in relation to simplifying the property tax credit; and to repeal certain provisions of such law relating thereto (Part RR); to amend the tax law, in relation to authorizing an occu- pancy tax in the city of Auburn; and providing for the repeal of such provisions upon expiration thereof (Part SS); to amend the tax law, in relation to authorizing the city of Buffalo to impose a hotel and motel tax; and providing for the repeal of such provisions upon the expiration thereof (Part TT); to amend the tax law, in relation to geothermal energy systems tax credits (Part UU); to amend the tax law, in relation to the metropolitan commuter transportation mobility tax; and to amend the public authorities law, in relation to amending the rates of tax and the distribution of revenue therefrom (Part VV); to amend the tax law, in relation to sales and compensating use taxes for the metropolitan commuter transportation district; to amend the state finance law, in relation to the mass transportation operating assist- ance fund and the dedicated mass transportation trust fund; and to amend the public authorities law, in relation to the metropolitan transportation authority dedicated tax fund (Part WW); and to amend the public authorities law, in relation to the aggregate principal amount of bonds, notes or other obligations issued by the metropolitanS. 3009--C 4 A. 3009--C transit authority, the triborough bridge and tunnel authority and the New York city transit authority (Part XX) 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 2025-2026 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through XX. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, 7 including the effective date of the Part, which makes a reference to a 8 section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act. 12 PART A 13 Section 1. Section 606 of the tax law is amended by adding a new 14 subsection (qqq) to read as follows: 15 (qqq) Inflation refund credit. (1) A taxpayer who meets the eligibil- 16 ity standards in paragraph two of this subsection shall be allowed a 17 credit against the taxes imposed by this article in the amount specified 18 in paragraph three of this subsection for tax year two thousand twenty- 19 five. 20 (2) To be eligible for the credit, the taxpayer (or taxpayers filing 21 joint returns)(a) must have been a full-year resident in the state of 22 New York in tax year two thousand twenty-three, (b) (i) must have had 23 New York adjusted gross income of three hundred thousand dollars or less 24 in tax year two thousand twenty-three if they filed a New York state 25 resident income tax return as married taxpayers filing jointly or a 26 qualified surviving spouse, or (ii) must have had New York adjusted 27 gross income of one hundred fifty thousand dollars or less in tax year 28 two thousand twenty-three if they filed a New York state resident income 29 tax return as a single taxpayer, married taxpayer filing a separate 30 return, or head of household, and (c) must not have been claimed as a 31 dependent by another taxpayer in tax year two thousand twenty-three. 32 (3) Amount of credit. (a) For taxpayers who meet the eligibility stan- 33 dards in paragraph two who filed a New York state resident income tax 34 return as married taxpayers filing jointly or a qualified surviving 35 spouse, (i) with New York adjusted gross income of greater than one 36 hundred fifty thousand dollars but no greater than three hundred thou- 37 sand dollars in tax year two thousand twenty-three, the credit amount 38 shall be three hundred dollars, or (ii) with New York adjusted gross 39 income of no greater than one hundred fifty thousand dollars in tax year 40 two thousand twenty-three, the credit amount shall be four hundred 41 dollars, and (b) for taxpayers who meet the eligibility standards in 42 paragraph two who filed a New York state resident income tax return as a 43 single taxpayer, married taxpayer filing a separate return, or head of 44 household, (i) with New York adjusted gross income of greater than 45 seventy-five thousand dollars but no greater than one hundred fifty 46 thousand dollars in tax year two thousand twenty-three, the credit 47 amount shall be one hundred fifty dollars, or (ii) with New YorkS. 3009--C 5 A. 3009--C 1 adjusted gross income of no greater than seventy-five thousand dollars 2 in tax year two thousand twenty-three, the credit amount shall be two 3 hundred dollars. 4 (4) The amount of the credit shall be treated as an overpayment of tax 5 to be credited or refunded in accordance with the provisions of section 6 six hundred eighty-six of this article, provided, however, that no 7 interest shall be paid thereon. The commissioner shall determine the 8 taxpayer's eligibility for this credit utilizing the information avail- 9 able to the commissioner on the taxpayer's personal income tax return 10 filed for tax year two thousand twenty-three. For those taxpayers whom 11 the commissioner has determined eligible for this credit, the commis- 12 sioner shall advance a payment in the amount specified in paragraph 13 three of this subsection. A taxpayer who failed to receive an advance 14 payment that they believe was due, or who received an advance payment 15 that they believe is less than the amount that was due, may request 16 payment of the claimed deficiency in a manner prescribed by the commis- 17 sioner. 18 § 2. Notwithstanding any provision of law to the contrary, any credit 19 paid pursuant to this act, to the extent includible in gross income for 20 federal income tax purposes, shall not be subject to state or local 21 income tax. 22 § 3. This act shall take effect immediately. 23 PART B 24 Section 1. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 25 of subsection (a) of section 601 of the tax law, as amended by section 1 26 of subpart A of part A of chapter 59 of the laws of 2022, are amended to 27 read as follows: 28 (vi) For taxable years beginning in two thousand twenty-three and 29 before two thousand [twenty-eight] twenty-six the following rates shall 30 apply: 31 If the New York taxable income is: The tax is: 32 Not over $17,150 4% of the New York taxable income 33 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 34 $17,150 35 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 36 $23,600 37 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 38 $27,900 39 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 40 $161,550 41 Over $323,200 but not over $18,252 plus 6.85% of excess over 42 $2,155,350 $323,200 43 Over $2,155,350 but not over $143,754 plus 9.65% of excess over 44 $5,000,000 $2,155,350 45 Over $5,000,000 but not over $418,263 plus 10.30% of excess over 46 $25,000,000 $5,000,000 47 Over $25,000,000 $2,478,263 plus 10.90% of excess over 48 $25,000,000 49 (vii) For taxable years beginning after two thousand [twenty-seven] 50 twenty-five and before two thousand twenty-seven the following rates 51 shall apply:S. 3009--C 6 A. 3009--C 1 [If the New York taxable income is: The tax is:2Not over $17,150 4% of the New York taxable income3Over $17,150 but not over $23,600 $686 plus 4.5% of excess over4$17,1505Over $23,600 but not over $27,900 $976 plus 5.25% of excess over6$23,6007Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over8$27,9009Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess10over $161,55011Over $323,200 but not over $18,252 plus 6.85% of excess12$2,155,350 over $323,20013Over $2,155,350 $143,754 plus 8.82% of excess14over $2,155,350] 15 If the New York taxable income is: The tax is: 16 Not over $17,150 3.90% of the New York taxable 17 income 18 Over $17,150 but not over $23,600 $669 plus 4.40% of excess over 19 $17,150 20 Over $23,600 but not over $27,900 $953 plus 5.15% of excess over 21 $23,600 22 Over $27,900 but not over $161,550 $1,174 plus 5.40% of excess over 23 $27,900 24 Over $161,550 but not over $323,200 $8,391 plus 5.90% of excess over 25 $161,550 26 Over $323,200 but not over $17,928 plus 6.85% of excess 27 $2,155,350 over $323,200 28 Over $2,155,350 but not over $143,430 plus 9.65% of excess 29 $5,000,000 over $2,155,350 30 Over $5,000,000 but not over $417,939 plus 10.30% of excess 31 $25,000,000 over $5,000,000 32 Over $25,000,000 $2,477,939 plus 10.90% of excess 33 over $25,000,000 34 § 2. Subparagraph (B) of paragraph 1 of subsection (a) of section 601 35 of the tax law is amended by adding two new clauses (viii) and (ix) to 36 read as follows: 37 (viii) For taxable years beginning after two thousand twenty-six and 38 before two thousand thirty-three the following rates shall apply: 39 If the New York taxable income is: The tax is: 40 Not over $17,150 3.80% of the New York taxable 41 income 42 Over $17,150 but not over $23,600 $652 plus 4.30% of excess over 43 $17,150 44 Over $23,600 but not over $27,900 $929 plus 5.05% of excess over 45 $23,600 46 Over $27,900 but not over $161,550 $1,146 plus 5.30% of excess over 47 $27,900 48 Over $161,550 but not over $323,200 $8,229 plus 5.80% of excess 49 over $161,550 50 Over $323,200 but not over $17,605 plus 6.85% of excess 51 $2,155,350 over $323,200 52 Over $2,155,350 but not over $143,107 plus 9.65% of excess 53 $5,000,000 over $2,155,350 54 Over $5,000,000 but not over $417,616 plus 10.30% of excessS. 3009--C 7 A. 3009--C 1 $25,000,000 over $5,000,000 2 Over $25,000,000 $2,477,616 plus 10.90% of excess 3 over $25,000,000 4 (ix) For taxable years beginning after two thousand thirty-two the 5 following rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $17,150 3.80% of the New York taxable 8 income 9 Over $17,150 but not over $23,600 $652 plus 4.30% of excess over 10 $17,150 11 Over $23,600 but not over $27,900 $929 plus 5.05% of excess over 12 $23,600 13 Over $27,900 but not over $161,550 $1,146 plus 5.30% of excess over 14 $27,900 15 Over $161,550 but not over $323,200 $8,229 plus 5.80% of excess 16 over $161,550 17 Over $323,200 but not over $17,605 plus 6.85% of excess 18 $2,155,350 over $323,200 19 Over $2,155,350 $143,107 plus 8.82% of excess 20 over $2,155,350 21 § 3. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of 22 subsection (b) of section 601 of the tax law, as amended by section 2 of 23 subpart A of part A of chapter 59 of the laws of 2022, are amended to 24 read as follows: 25 (vi) For taxable years beginning in two thousand twenty-three and 26 before two thousand [twenty-eight] twenty-six the following rates shall 27 apply: 28 If the New York taxable income is: The tax is: 29 Not over $12,800 4% of the New York taxable income 30 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 31 $12,800 32 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 33 $17,650 34 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 35 $20,900 36 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 37 $107,650 38 Over $269,300 but not over $15,371 plus 6.85% of excess over 39 $1,616,450 $269,300 40 Over $1,616,450 but not over $107,651 plus 9.65% of excess over 41 $5,000,000 $1,616,450 42 Over $5,000,000 but not over $434,163 plus 10.30% of excess over 43 $25,000,000 $5,000,000 44 Over $25,000,000 $2,494,163 plus 10.90% of excess over 45 $25,000,000 46 (vii) For taxable years beginning after two thousand [twenty-seven] 47 twenty-five and before two thousand twenty-seven the following rates 48 shall apply: 49 [If the New York taxable income is: The tax is:50Not over $12,800 4% of the New York taxable income51Over $12,800 but not over $512 plus 4.5% of excess over52$17,650 $12,80053Over $17,650 but not over $730 plus 5.25% of excess overS. 3009--C 8 A. 3009--C 1$20,900 $17,6502Over $20,900 but not over $901 plus 5.5% of excess over3$107,650 $20,9004Over $107,650 but not over $5,672 plus 6.00% of excess5$269,300 over $107,6506Over $269,300 but not over $15,371 plus 6.85% of excess7$1,616,450 over $269,3008Over $1,616,450 $107,651 plus 8.82% of excess9over $1,616,450] 10 If the New York taxable income is: The tax is: 11 Not over $12,800 3.90% of the New York taxable 12 income 13 Over $12,800 but not over $499 plus 4.40% of excess over 14 $17,650 $12,800 15 Over $17,650 but not over $712 plus 5.15% of excess over 16 $20,900 $17,650 17 Over $20,900 but not over $879 plus 5.40% of excess over 18 $107,650 $20,900 19 Over $107,650 but not over $5,564 plus 5.90% of excess 20 $269,300 over $107,650 21 Over $269,300 but not over $15,101 plus 6.85% of excess 22 $1,616,450 over $269,300 23 Over $1,616,450 but not over $107,381 plus 9.65% of excess 24 $5,000,000 over $1,616,450 25 Over $5,000,000 but not over $433,894 plus 10.30% of excess 26 $25,000,000 over $5,000,000 27 Over $25,000,000 $2,493,894 plus 10.90% of excess 28 over $25,000,000 29 § 4. Subparagraph (B) of paragraph 1 of subsection (b) of section 601 30 of the tax law is amended by adding two new clauses (viii) and (ix) to 31 read as follows: 32 (viii) For taxable years beginning after two thousand twenty-six and 33 before two thousand thirty-three the following rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $12,800 3.80% of the New York taxable 36 income 37 Over $12,800 but not over $486 plus 4.30% of excess over 38 $17,650 $12,800 39 Over $17,650 but not over $695 plus 5.05% of excess over 40 $20,900 $17,650 41 Over $20,900 but not over $859 plus 5.30% of excess over 42 $107,650 $20,900 43 Over $107,650 but not over $5,457 plus 5.80% of excess 44 $269,300 over $107,650 45 Over $269,300 but not over $14,833 plus 6.85% of excess 46 $1,616,450 over $269,300 47 Over $1,616,450 but not over $107,113 plus 9.65% of excess 48 $5,000,000 over $1,616,450 49 Over $5,000,000 but not over $433,626 plus 10.30% of excess 50 $25,000,000 over $5,000,000 51 Over $25,000,000 $2,493,626 plus 10.90% of excess 52 over $25,000,000S. 3009--C 9 A. 3009--C 1 (ix) For taxable years beginning after two thousand thirty-two the 2 following rates shall apply: 3 If the New York taxable income is: The tax is: 4 Not over $12,800 3.80% of the New York taxable 5 income 6 Over $12,800 but not over $486 plus 4.30% of excess over 7 $17,650 $12,800 8 Over $17,650 but not over $695 plus 5.05% of excess over 9 $20,900 $17,650 10 Over $20,900 but not over $859 plus 5.30% of excess over 11 $107,650 $20,900 12 Over $107,650 but not over $5,457 plus 5.80% of excess 13 $269,300 over $107,650 14 Over $269,300 but not over $14,833 plus 6.85% of excess 15 $1,616,450 over $269,300 16 Over $1,616,450 $107,113 plus 8.82% of excess 17 over $1,616,450 18 § 5. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of 19 subsection (c) of section 601 of the tax law, as amended by section 3 of 20 subpart A of part A of chapter 59 of the laws of 2022, are amended to 21 read as follows: 22 (vi) For taxable years beginning in two thousand twenty-three and 23 before two thousand [twenty-eight] twenty-six the following rates shall 24 apply: 25 If the New York taxable income is: The tax is: 26 Not over $8,500 4% of the New York taxable income 27 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 28 $8,500 29 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 30 $11,700 31 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 32 $13,900 33 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 34 $80,650 35 Over $215,400 but not over $12,356 plus 6.85% of excess over 36 $1,077,550 $215,400 37 Over $1,077,550 but not over $71,413 plus 9.65% of excess over 38 $5,000,000 $1,077,550 39 Over $5,000,000 but not over $449,929 plus 10.30% of excess over 40 $25,000,000 $5,000,000 41 Over $25,000,000 $2,509,929 plus 10.90% of excess over 42 $25,000,000 43 (vii) For taxable years beginning after two thousand [twenty-seven] 44 twenty-five and before two thousand twenty-seven the following rates 45 shall apply: 46 [If the New York taxable income is: The tax is:47Not over $8,500 4% of the New York taxable income48Over $8,500 but not over $11,700 $340 plus 4.5% of excess over49$8,50050Over $11,700 but not over $13,900 $484 plus 5.25% of excess over51$11,70052Over $13,900 but not over $80,650 $600 plus 5.50% of excess over53$13,90054Over $80,650 but not over $215,400 $4,271 plus 6.00% of excessS. 3009--C 10 A. 3009--C 1over $80,6502Over $215,400 but not over $12,356 plus 6.85% of excess3$1,077,550 over $215,4004Over $1,077,550 $71,413 plus 8.82% of excess5over $1,077,550] 6 If the New York taxable income is: The tax is: 7 Not over $8,500 3.90% of the New York taxable income 8 Over $8,500 but not over $11,700 $332 plus 4.40% of excess over 9 $8,500 10 Over $11,700 but not over $13,900 $473 plus 5.15% of excess over 11 $11,700 12 Over $13,900 but not over $80,650 $586 plus 5.40% of excess over 13 $13,900 14 Over $80,650 but not over $215,400 $4,191 plus 5.90% of excess 15 over $80,650 16 Over $215,400 but not over $12,141 plus 6.85% of excess 17 $1,077,550 over $215,400 18 Over $1,077,550 but not over $71,198 plus 9.65% of excess 19 $5,000,000 over $1,077,550 20 Over $5,000,000 but not over $449,714 plus 10.30% of excess 21 $25,000,000 over $5,000,000 22 Over $25,000,000 $2,509,714 plus 10.90% of excess 23 over $25,000,000 24 § 6. Subparagraph (B) of paragraph 1 of subsection (c) of section 601 25 of the tax law is amended by adding two new clauses (viii) and (ix) to 26 read as follows: 27 (viii) For taxable years beginning after two thousand twenty-six and 28 before two thousand thirty-three the following rates shall apply: 29 If the New York taxable income is: The tax is: 30 Not over $8,500 3.80% of the New York taxable income 31 Over $8,500 but not over $11,700 $323 plus 4.30% of excess over 32 $8,500 33 Over $11,700 but not over $13,900 $461 plus 5.05% of excess over 34 $11,700 35 Over $13,900 but not over $80,650 $572 plus 5.30% of excess over 36 $13,900 37 Over $80,650 but not over $215,400 $4,110 plus 5.80% of excess 38 over $80,650 39 Over $215,400 but not over $11,926 plus 6.85% of excess 40 $1,077,550 over $215,400 41 Over $1,077,550 but not over $70,983 plus 9.65% of excess 42 $5,000,000 over $1,077,550 43 Over $5,000,000 but not over $449,499 plus 10.30% of excess 44 $25,000,000 over $5,000,000 45 Over $25,000,000 $2,509,499 plus 10.90% of excess 46 over $25,000,000 47 (ix) For taxable years beginning after two thousand thirty-two the 48 following rates shall apply: 49 If the New York taxable income is: The tax is: 50 Not over $8,500 3.80% of the New York taxable income 51 Over $8,500 but not over $11,700 $323 plus 4.30% of excess over 52 $8,500 53 Over $11,700 but not over $13,900 $461 plus 5.05% of excess over 54 $11,700 55 Over $13,900 but not over $80,650 $572 plus 5.30% of excess overS. 3009--C 11 A. 3009--C 1 $13,900 2 Over $80,650 but not over $215,400 $4,110 plus 5.80% of excess 3 over $80,650 4 Over $215,400 but not over $11,926 plus 6.85% of excess 5 $1,077,550 over $215,400 6 Over $1,077,550 $70,983 plus 8.82% of excess 7 over $1,077,550 8 § 7. The opening paragraph of subsection (d-4) of section 601 of the 9 tax law, as added by section 3 of subpart B of part A of chapter 59 of 10 the laws of 2022, is amended to read as follows: 11 Alternative tax table benefit recapture. Notwithstanding the 12 provisions of subsection (d), (d-1), (d-2) or (d-3) of this section, for 13 taxable years beginning on or after two thousand twenty-three and before 14 two thousand [twenty-eight] twenty-six, there is hereby imposed a 15 supplemental tax in addition to the tax imposed under subsections (a), 16 (b) and (c) of this section for the purpose of recapturing the benefit 17 of the tax tables contained in such subsections. During these taxable 18 years, any reference in this chapter to subsection (d), (d-1), (d-2) or 19 (d-3) of this section shall be read as a reference to this subsection. 20 § 8. Section 601 of the tax law is amended by adding three new 21 subsections (d-5), (d-6) and (d-7) to read as follows: 22 (d-5) Alternative tax table benefit recapture. Notwithstanding the 23 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-6) or (d-7) 24 of this section, for taxable years beginning on or after two thousand 25 twenty-six and before two thousand twenty-seven, there is hereby imposed 26 a supplemental tax in addition to the tax imposed under subsections (a), 27 (b) and (c) of this section for the purpose of recapturing the benefit 28 of the tax tables contained in such subsections. During these taxable 29 years, any reference in this chapter to subsection (d), (d-1), (d-2), 30 (d-3), (d-4), (d-6) or (d-7) of this section shall be read as a refer- 31 ence to this subsection. 32 (1) For resident married individuals filing joint returns and resident 33 surviving spouses: 34 (A) If New York adjusted gross income is greater than $107,650, but 35 not over $25,000,000: 36 (i) the recapture base and incremental benefit shall be determined by 37 New York taxable income as follows: 38 Greater than Not over Recapture Base Incremental Benefit 39 $27,900 $161,550 $0 $333 40 $161,550 $323,200 $333 $807 41 $323,200 $2,155,350 $1,140 $3,071 42 $2,155,350 $5,000,000 $4,211 $60,350 43 $5,000,000 $25,000,000 $64,561 $32,500 44 (ii) the applicable amount shall be determined by New York taxable 45 income as follows: 46 Greater than Not over Applicable Amount 47 $27,900 $161,550 New York adjusted gross income minus $107,650 48 $161,550 $323,200 New York adjusted gross income minus $161,550 49 $323,200 $2,155,350 New York adjusted gross income minus $323,200 50 $2,155,350 $5,000,000 New York adjusted gross income minus $2,155,350 51 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 52 (iii) the phase-in fraction shall be a fraction, the numerator of 53 which shall be the lesser of fifty thousand dollars or the applicable 54 amount and the denominator of which shall be fifty thousand dollars; andS. 3009--C 12 A. 3009--C 1 (iv) the supplemental tax due shall equal the sum of the recapture 2 base and the product of (i) the incremental benefit and (ii) the phase- 3 in fraction. Provided, however, that if the New York taxable income of 4 the taxpayer is less than twenty-seven thousand nine hundred dollars, 5 the supplemental tax shall equal the difference between the product of 6 5.40 percent and New York taxable income and the tax table computation 7 on the New York taxable income set forth in paragraph one of subsection 8 (a) of this section, multiplied by a fraction, the numerator of which is 9 the lesser of fifty thousand dollars or New York adjusted gross income 10 minus one hundred seven thousand six hundred fifty dollars, and the 11 denominator of which is fifty thousand dollars. 12 (B) If New York adjusted gross income is greater than twenty-five 13 million dollars, the supplemental tax due shall equal the difference 14 between the product of 10.90 percent and New York taxable income and the 15 tax table computation on the New York taxable income set forth in para- 16 graph one of subsection (a) of this section. 17 (2) For resident heads of households: 18 (A) If New York adjusted gross income is greater than $107,650, but 19 not over $25,000,000: 20 (i) the recapture base and incremental benefit shall be determined by 21 New York taxable income as follows: 22 Greater than Not over Recapture Base Incremental Benefit 23 $107,650 $269,300 $0 $787 24 $269,300 $1,616,450 $787 $2,559 25 $1,616,450 $5,000,000 $3,346 $45,260 26 $5,000,000 $25,000,000 $48,606 $32,500 27 (ii) the applicable amount shall be determined by New York taxable 28 income as follows: 29 Greater than Not over Applicable Amount 30 $107,650 $269,300 New York adjusted gross income minus $107,650 31 $269,300 $1,616,450 New York adjusted gross income minus $269,300 32 $1,616,450 $5,000,000 New York adjusted gross income minus $1,616,450 33 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 34 (iii) the phase-in fraction shall be a fraction, the numerator of 35 which shall be the lesser of fifty thousand dollars or the applicable 36 amount and the denominator of which shall be fifty thousand dollars; and 37 (iv) the supplemental tax due shall equal the sum of the recapture 38 base and the product of (i) the incremental benefit and (ii) the phase- 39 in fraction. Provided, however, that if the New York taxable income of 40 the taxpayer is less than one hundred seven thousand six hundred fifty 41 dollars, the supplemental tax shall equal the difference between the 42 product of 5.90 percent and New York taxable income and the tax table 43 computation on the New York taxable income set forth in paragraph one of 44 subsection (b) of this section, multiplied by a fraction, the numerator 45 of which is the lesser of fifty thousand dollars or New York adjusted 46 gross income minus one hundred seven thousand six hundred fifty dollars, 47 and the denominator of which is fifty thousand dollars. 48 (B) If New York adjusted gross income is greater than twenty-five 49 million dollars, the supplemental tax due shall equal the difference 50 between the product of 10.90 percent and New York taxable income and the 51 tax table computation on the New York taxable income set forth in para- 52 graph one of subsection (b) of this section. 53 (3) For resident unmarried individuals, resident married individuals 54 filing separate returns and resident estates and trusts: 55 (A) If New York adjusted gross income is greater than $107,650, but 56 not over $25,000,000:S. 3009--C 13 A. 3009--C 1 (i) the recapture base and incremental benefit shall be determined by 2 New York taxable income as follows: 3 Greater than Not over Recapture Base Incremental Benefit 4 $80,650 $215,400 $0 $567 5 $215,400 $1,077,550 $567 $2,047 6 $1,077,550 $5,000,000 $2,614 $30,172 7 $5,000,000 $25,000,000 $32,786 $32,500 8 (ii) the applicable amount shall be determined by New York taxable 9 income as follows: 10 Greater than Not over Applicable Amount 11 $80,650 $215,400 New York adjusted gross income minus $107,650 12 $215,400 $1,077,550 New York adjusted gross income minus $215,400 13 $1,077,550 $5,000,000 New York adjusted gross income minus $1,077,550 14 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 15 (iii) the phase-in fraction shall be a fraction, the numerator of 16 which shall be the lesser of fifty thousand dollars or the applicable 17 amount and the denominator of which shall be fifty thousand dollars; and 18 (iv) the supplemental tax due shall equal the sum of the recapture 19 base and the product of (i) the incremental benefit and (ii) the phase- 20 in fraction. Provided, however, that if the New York taxable income of 21 the taxpayer is less than eighty thousand six hundred fifty dollars, the 22 supplemental tax shall equal the difference between the product of 5.90 23 percent and New York taxable income and the tax table computation on the 24 New York taxable income set forth in paragraph one of subsection (c) of 25 this section, multiplied by a fraction, the numerator of which is the 26 lesser of fifty thousand dollars or New York adjusted gross income minus 27 one hundred seven thousand six hundred fifty dollars, and the denomina- 28 tor of which is fifty thousand dollars. 29 (B) If New York adjusted gross income is greater than twenty-five 30 million dollars, the supplemental tax due shall equal the difference 31 between the product of 10.90 percent and New York taxable income and the 32 tax table computation on the New York taxable income set forth in para- 33 graph one of subsection (c) of this section. 34 (d-6) Alternative tax table benefit recapture. Notwithstanding the 35 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-7) 36 of this section, for taxable years beginning on or after two thousand 37 twenty-seven and before two thousand thirty-three, there is hereby 38 imposed a supplemental tax in addition to the tax imposed under 39 subsections (a), (b) and (c) of this section for the purpose of recap- 40 turing the benefit of the tax tables contained in such subsections. 41 During these taxable years, any reference in this chapter to subsection 42 (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-7) of this section shall be 43 read as a reference to this subsection. 44 (1) For resident married individuals filing joint returns and resident 45 surviving spouses: 46 (A) If New York adjusted gross income is greater than $107,650, but 47 not over $25,000,000: 48 (i) the recapture base and incremental benefit shall be determined by 49 New York taxable income as follows: 50 Greater than Not over Recapture Base Incremental Benefit 51 $27,900 $161,550 $0 $333 52 $161,550 $323,200 $333 $808 53 $323,200 $2,155,350 $1,141 $3,393 54 $2,155,350 $5,000,000 $4,534 $60,350 55 $5,000,000 $25,000,000 $64,884 $32,500S. 3009--C 14 A. 3009--C 1 (ii) the applicable amount shall be determined by New York taxable 2 income as follows: 3 Greater than Not over Applicable Amount 4 $27,900 $161,550 New York adjusted gross income 5 minus $107,650 6 $161,550 $323,200 New York adjusted gross income 7 minus $161,550 8 $323,200 $2,155,350 New York adjusted gross income 9 minus $323,200 10 $2,155,350 $5,000,000 New York adjusted gross income 11 minus $2,155,350 12 $5,000,000 $25,000,000 New York adjusted gross income 13 minus $5,000,000 14 (iii) the phase-in fraction shall be a fraction, the numerator of 15 which shall be the lesser of fifty thousand dollars or the applicable 16 amount and the denominator of which shall be fifty thousand dollars; and 17 (iv) the supplemental tax due shall equal the sum of the recapture 18 base and the product of (i) the incremental benefit and (ii) the phase- 19 in fraction. Provided, however, that if the New York taxable income of 20 the taxpayer is less than twenty-seven thousand nine hundred dollars, 21 the supplemental tax shall equal the difference between the product of 22 5.30 percent and New York taxable income and the tax table computation 23 on the New York taxable income set forth in paragraph one of subsection 24 (a) of this section, multiplied by a fraction, the numerator of which 25 is the lesser of fifty thousand dollars or New York adjusted gross 26 income minus one hundred seven thousand six hundred fifty dollars, and 27 the denominator of which is fifty thousand dollars. 28 (B) If New York adjusted gross income is greater than twenty-five 29 million dollars, the supplemental tax due shall equal the difference 30 between the product of 10.90 percent and New York taxable income and the 31 tax table computation on the New York taxable income set forth in para- 32 graph one of subsection (a) of this section. 33 (2) For resident heads of households: 34 (A) If New York adjusted gross income is greater than $107,650, but 35 not over $25,000,000: 36 (i) the recapture base and incremental benefit shall be determined by 37 New York taxable income as follows: 38 Greater than Not over Recapture Base Incremental Benefit 39 $107,650 $269,300 $0 $787 40 $269,300 $1,616,450 $787 $2,827 41 $1,616,450 $5,000,000 $3,614 $45,260 42 $5,000,000 $25,000,000 $48,874 $32,500 43 (ii) the applicable amount shall be determined by New York taxable 44 income as follows: 45 Greater than Not over Applicable Amount 46 $107,650 $269,300 New York adjusted gross income 47 minus $107,650 48 $269,300 $1,616,450 New York adjusted gross income 49 minus $269,300 50 $1,616,450 $5,000,000 New York adjusted gross income 51 minus $1,616,450 52 $5,000,000 $25,000,000 New York adjusted gross income 53 minus $5,000,000 54 (iii) the phase-in fraction shall be a fraction, the numerator of 55 which shall be the lesser of fifty thousand dollars or the applicable 56 amount and the denominator of which shall be fifty thousand dollars; andS. 3009--C 15 A. 3009--C 1 (iv) the supplemental tax due shall equal the sum of the recapture 2 base and the product of (i) the incremental benefit and (ii) the phase- 3 in fraction. Provided, however, that if the New York taxable income of 4 the taxpayer is less than one hundred seven thousand six hundred fifty 5 dollars, the supplemental tax shall equal the difference between the 6 product of 5.80 percent and New York taxable income and the tax table 7 computation on the New York taxable income set forth in paragraph one of 8 subsection (b) of this section, multiplied by a fraction, the numerator 9 of which is the lesser of fifty thousand dollars or New York adjusted 10 gross income minus one hundred seven thousand six hundred fifty dollars, 11 and the denominator of which is fifty thousand dollars. 12 (B) If New York adjusted gross income is greater than twenty-five 13 million dollars, the supplemental tax due shall equal the difference 14 between the product of 10.90 percent and New York taxable income and the 15 tax table computation on the New York taxable income set forth in para- 16 graph one of subsection (b) of this section. 17 (3) For resident unmarried individuals, resident married individuals 18 filing separate returns and resident estates and trusts: 19 (A) If New York adjusted gross income is greater than $107,650, but 20 not over $25,000,000: 21 (i) the recapture base and incremental benefit shall be determined by 22 New York taxable income as follows: 23 Greater than Not over Recapture Base Incremental Benefit 24 $80,650 $215,400 $0 $568 25 $215,400 $1,077,550 $568 $2,261 26 $1,077,550 $5,000,000 $2,829 $30,172 27 $5,000,000 $25,000,000 $33,001 $32,500 28 (ii) the applicable amount shall be determined by New York taxable 29 income as follows: 30 Greater than Not over Applicable Amount 31 $80,650 $215,400 New York adjusted gross income 32 minus $107,650 33 $215,400 $1,077,550 New York adjusted gross income 34 minus $215,400 35 $1,077,550 $5,000,000 New York adjusted gross income 36 minus $1,077,550 37 $5,000,000 $25,000,000 New York adjusted gross income 38 minus $5,000,000 39 (iii) the phase-in fraction shall be a fraction, the numerator of 40 which shall be the lesser of fifty thousand dollars or the applicable 41 amount and the denominator of which shall be fifty thousand dollars; and 42 (iv) the supplemental tax due shall equal the sum of the recapture 43 base and the product of (i) the incremental benefit and (ii) the phase- 44 in fraction. Provided, however, that if the New York taxable income of 45 the taxpayer is less than eighty thousand six hundred fifty dollars, the 46 supplemental tax shall equal the difference between the product of 5.80 47 percent and New York taxable income and the tax table computation on the 48 New York taxable income set forth in paragraph one of subsection (c) of 49 this section, multiplied by a fraction, the numerator of which is the 50 lesser of fifty thousand dollars or New York adjusted gross income minus 51 one hundred seven thousand six hundred fifty dollars, and the denomina- 52 tor of which is fifty thousand dollars. 53 (B) If New York adjusted gross income is greater than twenty-five 54 million dollars, the supplemental tax due shall equal the difference 55 between the product of 10.90 percent and New York taxable income and theS. 3009--C 16 A. 3009--C 1 tax table computation on the New York taxable income set forth in para- 2 graph one of subsection (c) of this section. 3 (d-7) Alternative tax table benefit recapture. Notwithstanding the 4 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-6) 5 of this section, for taxable years beginning on or after two thousand 6 thirty-three, there is hereby imposed a supplemental tax in addition to 7 the tax imposed under subsections (a), (b) and (c) of this section for 8 the purpose of recapturing the benefit of the tax tables contained in 9 such subsections. During these taxable years, any reference in this 10 chapter to subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-6) of 11 this section shall be read as a reference to this subsection. 12 (1) For resident married individuals filing joint returns and resident 13 surviving spouses: 14 (A) If New York adjusted gross income is greater than $107,650: 15 (i) the recapture base and incremental benefit shall be determined by 16 New York taxable income as follows: 17 Greater than Not over Recapture Base Incremental Benefit 18 $27,900 $161,550 $0 $333 19 $161,550 $323,200 $333 $808 20 $323,200 $2,155,350 $1,141 $3,393 21 $2,155,350 $4,534 $42,461 22 (ii) the applicable amount shall be determined by New York taxable 23 income as follows: 24 Greater than Not over Applicable Amount 25 $27,900 $161,550 New York adjusted gross income minus $107,650 26 $161,550 $323,200 New York adjusted gross income minus $161,550 27 $323,200 $2,155,350 New York adjusted gross income minus $323,200 28 $2,155,350 New York adjusted gross income minus $2,155,350 29 (iii) the phase-in fraction shall be a fraction, the numerator of 30 which shall be the lesser of fifty thousand dollars or the applicable 31 amount and the denominator of which shall be fifty thousand dollars; and 32 (iv) the supplemental tax due shall equal the sum of the recapture 33 base and the product of (i) the incremental benefit and (ii) the phase- 34 in fraction. Provided, however, that if the New York taxable income of 35 the taxpayer is less than twenty-seven thousand nine hundred dollars, 36 the supplemental tax shall equal the difference between the product of 37 5.30 percent and New York taxable income and the tax table computation 38 on the New York taxable income set forth in paragraph one of subsection 39 (a) of this section, multiplied by a fraction, the numerator of which is 40 the lesser of fifty thousand dollars or New York adjusted gross income 41 minus one hundred seven thousand six hundred fifty dollars, and the 42 denominator of which is fifty thousand dollars. 43 (2) For resident heads of households: 44 (A) If New York adjusted gross income is greater than $107,650: 45 (i) the recapture base and incremental benefit shall be determined by 46 New York taxable income as follows: 47 Greater than Not over Recapture Base Incremental Benefit 48 $107,650 $269,300 $0 $787 49 $269,300 $1,616,450 $787 $2,827 50 $1,616,450 $3,614 $31,844 51 (ii) the applicable amount shall be determined by New York taxable 52 income as follows: 53 Greater than Not over Applicable Amount 54 $107,650 $269,300 New York adjusted gross income minus $107,650 55 $269,300 $1,616,450 New York adjusted gross income minus $269,300 56 $1,616,450 New York adjusted gross income minus $1,616,450S. 3009--C 17 A. 3009--C 1 (iii) the phase-in fraction shall be a fraction, the numerator of 2 which shall be the lesser of fifty thousand dollars or the applicable 3 amount and the denominator of which shall be fifty thousand dollars; and 4 (iv) the supplemental tax due shall equal the sum of the recapture 5 base and the product of (i) the incremental benefit and (ii) the phase- 6 in fraction. Provided, however, that if the New York taxable income of 7 the taxpayer is less than one hundred seven thousand six hundred fifty 8 dollars, the supplemental tax shall equal the difference between the 9 product of 5.80 percent and New York taxable income and the tax table 10 computation on the New York taxable income set forth in paragraph one of 11 subsection (b) of this section, multiplied by a fraction, the numerator 12 of which is the lesser of fifty thousand dollars or New York adjusted 13 gross income minus one hundred seven thousand six hundred fifty dollars, 14 and the denominator of which is fifty thousand dollars. 15 (3) For resident unmarried individuals, resident married individuals 16 filing separate returns and resident estates and trusts: 17 (A) If New York adjusted gross income is greater than $107,650: 18 (i) the recapture base and incremental benefit shall be determined by 19 New York taxable income as follows: 20 Greater than Not over Recapture Base Incremental Benefit 21 $80,650 $215,400 $0 $568 22 $215,400 $1,077,550 $568 $2,261 23 $1,077,550 $2,829 $21,228 24 (ii) the applicable amount shall be determined by New York taxable 25 income as follows: 26 Greater than Not over Applicable Amount 27 $80,650 $215,400 New York adjusted gross income minus $107,650 28 $215,400 $1,077,550 New York adjusted gross income minus $215,400 29 $1,077,550 New York adjusted gross income minus $1,077,550 30 (iii) the phase-in fraction shall be a fraction, the numerator of 31 which shall be the lesser of fifty thousand dollars or the applicable 32 amount and the denominator of which shall be fifty thousand dollars; and 33 (iv) the supplemental tax due shall equal the sum of the recapture 34 base and the product of (i) the incremental benefit and (ii) the phase- 35 in fraction. Provided, however, that if the New York taxable income of 36 the taxpayer is less than eighty thousand six hundred fifty dollars, the 37 supplemental tax shall equal the difference between the product of 5.80 38 percent and New York taxable income and the tax table computation on the 39 New York taxable income set forth in paragraph one of subsection (c) of 40 this section, multiplied by a fraction, the numerator of which is the 41 lesser of fifty thousand dollars or New York adjusted gross income minus 42 one hundred seven thousand six hundred fifty dollars, and the denomina- 43 tor of which is fifty thousand dollars. 44 § 9. This act shall take effect immediately. 45 PART C 46 Section 1. Paragraph 1 of subsection (c-1) of section 606 of the tax 47 law, as amended by section 1 of part HH of chapter 56 of the laws of 48 2023, is amended to read as follows: 49 (1) [A] For taxable years beginning before January first, two thousand 50 twenty-five, and taxable years beginning on or after January first, two 51 thousand twenty-eight, a resident taxpayer shall be allowed a credit as 52 provided herein equal to the greater of one hundred dollars times the 53 number of qualifying children of the taxpayer or the applicable percent- 54 age of the child tax credit allowed the taxpayer under section twenty-S. 3009--C 18 A. 3009--C 1 four of the internal revenue code for the same taxable year for each 2 qualifying child. Provided, however, in the case of a taxpayer whose 3 federal adjusted gross income exceeds the applicable threshold amount 4 set forth by section 24(b)(2) of the Internal Revenue Code, the credit 5 shall only be equal to the applicable percentage of the child tax credit 6 allowed the taxpayer under section 24 of the Internal Revenue Code for 7 each qualifying child. For the purposes of this subsection, a qualifying 8 child shall be a child who meets the definition of qualified child under 9 section 24(c) of the internal revenue code. The applicable percentage 10 shall be thirty-three percent. For purposes of this subsection, any 11 reference to section 24 of the Internal Revenue Code shall be a refer- 12 ence to such section as it existed immediately prior to the enactment of 13 Public Law 115-97. 14 § 2. Subsection (c-1) of section 606 of the tax law is amended by 15 adding a new paragraph 1-a to read as follows: 16 (1-a) (A) For taxable years beginning on and after January first, two 17 thousand twenty-five, and before January first, two thousand twenty-six, 18 a resident taxpayer shall be allowed a credit as provided herein, equal 19 to the sum of: 20 (i) one thousand dollars times the number of qualifying children of 21 the taxpayer aged three or younger, and 22 (ii) three hundred thirty dollars times the number of qualifying chil- 23 dren of the taxpayer who have attained age four and not yet attained age 24 seventeen. 25 (B) For taxable years beginning on and after January first, two thou- 26 sand twenty-six, and before January first, two thousand twenty-eight, a 27 resident taxpayer shall be allowed a credit as provided herein, equal to 28 the sum of: 29 (i) one thousand dollars times the number of qualifying children of 30 the taxpayer aged three or younger, and 31 (ii) five hundred dollars times the number of qualifying children of 32 the taxpayer who have attained age four and not yet attained age seven- 33 teen. 34 (C) The amount of the credit allowable under subparagraphs (A) and (B) 35 of this paragraph shall be reduced (but not below zero) by sixteen 36 dollars and fifty cents for each one thousand dollars by which the 37 taxpayer's federal adjusted gross income exceeds the threshold amount. 38 For the purposes of this subparagraph, the term "threshold amount" shall 39 mean: (i) one hundred ten thousand dollars in the case of married 40 taxpayers filing jointly; (ii) seventy-five thousand dollars in the case 41 of a taxpayer filing as single, head of household, or qualified surving 42 spouse; and (iii) fifty-five thousand dollars in the case of a married 43 taxpayer filing a separate return. 44 (D) For the purposes of this paragraph, a qualifying child shall be an 45 individual who: (i) is a child, sibling, or stepsibling of the taxpayer, 46 or a descendent of any such relative; (ii) has the same principal place 47 of abode as the taxpayer for more than one-half of the taxable year; 48 (iii) has not attained age seventeen; (iv) has not provided over one- 49 half of such individual's own support for the calendar year in which the 50 taxable year of the taxpayer begins; (v) has not filed a joint return 51 (other than only for a claim of refund) with the individual's spouse 52 under section six hundred fifty-one of this article for the taxable 53 year; and (vi) is a citizen or national of the United States, or an 54 individual with an individual taxpayer identification number issued by 55 the internal revenue service.S. 3009--C 19 A. 3009--C 1 (E) For the purposes of this paragraph, the term "child" shall mean an 2 individual who is the offspring or stepchild of the taxpayer, or an 3 eligible foster child of the taxpayer, or a legally adopted individual 4 of the taxpayer, or an individual who is lawfully placed with the 5 taxpayer for legal adoption by the taxpayer. 6 (F) (i) Except as provided in subparagraph (C) of this paragraph, if 7 an individual may be claimed as a qualifying child by two or more 8 taxpayers for a taxable year, such individual shall be treated as the 9 qualifying child of the taxpayer who is: (I) a parent of the individual, 10 or (II) if subclause (I) does not apply, the taxpayer with the highest 11 federal adjusted gross income for such taxable year. 12 (ii) If the parents claiming any qualifying child do not file a joint 13 return together, such child shall be treated as the qualifying child of: 14 (I) the parent with whom the child resided for the longest period of 15 time during the taxable year, or (II) if the child resides with both 16 parents for the same amount of time during such taxable year, the parent 17 with the highest federal adjusted gross income who files a return pursu- 18 ant to section six hundred fifty-one of this article. 19 (iii) If the parents of an individual may claim such individual as a 20 qualifying child but no parent so claims the individual, such individual 21 may be claimed as the qualifying child of another taxpayer, but only if 22 the federal adjusted gross income of such taxpayer is higher than the 23 highest federal adjusted gross income of any parent of the individual, 24 regardless of a requirement to file a return pursuant to section six 25 hundred fifty-one of this article. 26 § 3. This act shall take effect immediately. 27 PART D 28 Section 1. Subdivision 3 of section 22 of the public housing law, as 29 added by section 1 of part CC of chapter 63 of the laws of 2000, is 30 amended to read as follows: 31 3. Amount of credit. Except as provided in subdivisions four and five 32 of this section, the amount of low-income housing credit shall be the 33 applicable percentage of the qualified basis of each eligible low-income 34 building. Buildings financed by refunded bonds using the rules of 35 section 146(i)(6) of the internal revenue code, shall be eligible for 36 credit pursuant to the rules of section 42(b)(2) of the internal revenue 37 code. 38 § 2. Subdivision 4 of section 22 of the public housing law, as amended 39 by section 4 of part J of chapter 59 of the laws of 2022, is amended to 40 read as follows: 41 4. Statewide limitation. The aggregate dollar amount of credit which 42 the commissioner may allocate to eligible low-income buildings under 43 this article shall be one hundred [seventy-two] eighty-seven million 44 dollars. The limitation provided by this subdivision applies only to 45 allocation of the aggregate dollar amount of credit by the commission- 46 er[,] and does not apply to allowance to a taxpayer of the credit with 47 respect to an eligible low-income building for each year of the credit 48 period. 49 § 3. Subdivision 4 of section 22 of the public housing law, as amended 50 by section two of this act, is amended to read as follows: 51 4. Statewide limitation. The aggregate dollar amount of credit which 52 the commissioner may allocate to eligible low-income buildings under 53 this article shall be [one] two hundred [eighty-seven] seventeen million 54 dollars. The limitation provided by this subdivision applies only toS. 3009--C 20 A. 3009--C 1 allocation of the aggregate dollar amount of credit by the commissioner 2 and does not apply to allowance to a taxpayer of the credit with respect 3 to an eligible low-income building for each year of the credit period. 4 § 4. Subdivision 4 of section 22 of the public housing law, as amended 5 by section three of this act, is amended to read as follows: 6 4. Statewide limitation. The aggregate dollar amount of credit which 7 the commissioner may allocate to eligible low-income buildings under 8 this article shall be two hundred [seventeen] forty-seven million 9 dollars. The limitation provided by this subdivision applies only to 10 allocation of the aggregate dollar amount of credit by the commissioner 11 and does not apply to allowance to a taxpayer of the credit with respect 12 to an eligible low-income building for each year of the credit period. 13 § 5. Subdivision 4 of section 22 of the public housing law, as amended 14 by section four of this act, is amended to read as follows: 15 4. Statewide limitation. The aggregate dollar amount of credit which 16 the commissioner may allocate to eligible low-income buildings under 17 this article shall be two hundred [forty-seven] seventy-seven million 18 dollars. The limitation provided by this subdivision applies only to 19 allocation of the aggregate dollar amount of credit by the commissioner 20 and does not apply to allowance to a taxpayer of the credit with respect 21 to an eligible low-income building for each year of the credit period. 22 § 6. Subdivision 4 of section 22 of the public housing law, as amended 23 by section five of this act, is amended to read as follows: 24 4. Statewide limitation. The aggregate dollar amount of credit which 25 the commissioner may allocate to eligible low-income buildings under 26 this article shall be [two] three hundred [seventy-seven] seven million 27 dollars. The limitation provided by this subdivision applies only to 28 allocation of the aggregate dollar amount of credit by the commissioner 29 and does not apply to allowance to a taxpayer of the credit with respect 30 to an eligible low-income building for each year of the credit period. 31 § 7. This act shall take effect immediately; provided, however, 32 section two of this act shall take effect on the same date and in the 33 same manner as section 4 of part J of chapter 59 of the laws of 2022 34 takes effect; section three of this act shall take effect April 1, 2026; 35 section four of this act shall take effect April 1, 2027; section five 36 of this act shall take effect April 1, 2028; and section six of this act 37 shall take effect April 1, 2029. 38 PART E 39 Section 1. Subdivision 26 of section 210-B of the tax law, as added by 40 section 17 of part A of chapter 59 of the laws of 2014, paragraphs (a) 41 and (c) as amended by section 2 of part RR of chapter 59 of the laws of 42 2018, subparagraph (i) of paragraph (a) as amended by section 2, subpar- 43 agraph (ii) of paragraph (a) as amended by section 4 and paragraph (a-1) 44 as amended by section 3 of subpart B of part I of chapter 59 of the laws 45 of 2023, paragraph (e) as amended by section 1 of part U of chapter 59 46 of the laws of 2019, paragraph (f) as added by section 2 of part CCC of 47 chapter 59 of the laws of 2021, is amended to read as follows: 48 26. Credit for rehabilitation of historic properties. (a) Application 49 of credit. (i) For taxable years beginning on or after January first, 50 two thousand ten, and before January first, two thousand thirty, a 51 taxpayer, or a transferee of such a taxpayer as described in paragraph 52 (g) of this subdivision, shall be allowed a credit as hereinafter 53 provided, against the tax imposed by this article, in an amount equal to 54 one hundred percent of the amount of credit allowed the taxpayer for theS. 3009--C 21 A. 3009--C 1 same taxable year with respect to a certified historic structure, and 2 one hundred fifty percent of the amount of credit allowed the taxpayer 3 with respect to a certified historic structure that is a small project, 4 under internal revenue code section 47(c)(3), determined without regard 5 to ratably allocating the credit over a five year period as required by 6 subsection (a) of such section 47, with respect to a certified historic 7 structure located within the state. Provided, however, the credit shall 8 not exceed five million dollars. 9 (ii) For taxable years beginning on or after January first, two thou- 10 sand thirty, a taxpayer, or a transferee of such a taxpayer as described 11 in paragraph (g) of this subdivision, shall be allowed a credit as here- 12 inafter provided, against the tax imposed by this article, in an amount 13 equal to thirty percent of the amount of credit allowed the taxpayer for 14 the same taxable year determined without regard to ratably allocating 15 the credit over a five year period as required by subsection (a) of 16 section 47 of the internal revenue code, with respect to a certified 17 historic structure under subsection (c)(3) of section 47 of the internal 18 revenue code with respect to a certified historic structure located 19 within the state. Provided, however, the credit shall not exceed one 20 hundred thousand dollars. 21 (a-1) If the taxpayer or transferee is a partner in a partnership or a 22 shareholder in a New York S corporation, then the credit caps imposed in 23 paragraph (a) of this subdivision shall be applied at the entity level, 24 so that the aggregate credit allowed to all the partners or shareholders 25 of each such entity in the taxable year does not exceed the credit cap 26 that is applicable in that taxable year. 27 (b) Tax credits allowed pursuant to this subdivision shall be allowed 28 in the taxable year that the qualified rehabilitation is placed in 29 service under section 167 of the federal internal revenue code. 30 (c) If the taxpayer is allowed a credit pursuant to section 47 of the 31 internal revenue code with respect to a qualified rehabilitation that is 32 also the subject of the credit allowed by this subdivision and that 33 credit pursuant to such section 47 is recaptured pursuant to subsection 34 (a) of section 50 of the internal revenue code, a portion of the credit 35 allowed under this subdivision must be added back by the taxpayer or 36 transferee in the same taxable year and in the same proportion as the 37 federal credit. 38 (d) The credit allowed under this subdivision for any taxable year 39 shall not reduce the tax due for such year to less than the amount 40 prescribed in paragraph (d) of subdivision one of section two hundred 41 ten of this article. However, if the amount of the credit allowed under 42 this subdivision for any taxable year reduces the tax to such amount or 43 if the taxpayer otherwise pays tax based on the fixed dollar minimum 44 amount, any amount of credit thus not deductible in such taxable year 45 shall be treated as an overpayment of tax to be recredited or refunded 46 in accordance with the provisions of section one thousand eighty-six of 47 this chapter. Provided, however, the provisions of subsection (c) of 48 section one thousand eighty-eight of this chapter notwithstanding, no 49 interest shall be paid thereon. 50 (e) [Except in the case of a qualified rehabilitation project under-51taken within a state park, state historic site, or other land owned by52the state, that is under the jurisdiction of the office of parks, recre-53ation and historic preservation, to] To be eligible for the credit 54 allowable under this subdivision, the rehabilitation project shall be in 55 whole or in part located within a census tract which is identified as 56 being at or below one hundred percent of the state median family incomeS. 3009--C 22 A. 3009--C 1 as calculated as of April first of each year using the most recent five 2 year estimate from the American community survey published by the United 3 States Census bureau. If there is a change in the most recent five year 4 estimate, a census tract that qualified for eligibility under this 5 program before information about the change was released will remain 6 eligible for a credit under this subdivision for an additional two 7 calendar years. The eligibility restrictions set forth in this paragraph 8 shall not be applicable if: 9 (i) a qualified rehabilitation project is undertaken within a state 10 park, state historic site, or other land owned by the state, that is 11 under the jurisdiction of the office of parks, recreation and historic 12 preservation; or 13 (ii) a qualified rehabilitation project is undertaken for the 14 provision of affordable housing and the taxpayer has entered into a 15 regulatory agreement with any state or federal agency or authority, or 16 any other government entity that is authorized to engage in the financ- 17 ing, construction or oversight of affordable housing within such enti- 18 ty's jurisdiction, and where such regulatory agreement sets forth 19 affordability requirements applicable for a period of not less than 20 thirty years and that is binding on all successors of the taxpayer. 21 (f) For purposes of this subdivision "small project" means qualified 22 rehabilitation expenditures totaling two million five hundred thousand 23 dollars or less. 24 (g)(i) A taxpayer allowed a credit pursuant to this subdivision may 25 transfer the credit, in whole or in part, to another person or entity, 26 who shall be referred to as the transferee, without regard to how any 27 tax credit authorized pursuant to section forty-seven of the internal 28 revenue code with respect to a qualified rehabilitation project may be 29 allocated and notwithstanding that such other person or entity owns no 30 interest in the qualified rehabilitation project or in an entity with an 31 ownership interest in the qualified rehabilitation project. A transferee 32 may not transfer any credit, or portion thereof, acquired by transfer. 33 (ii) A taxpayer seeking to transfer a credit allowed pursuant to this 34 subdivision must enter into a transfer contract with the transferee. The 35 transfer contract must specify: 36 (A) the building identification numbers for all buildings in the 37 project; 38 (B) the date each building was placed into service; 39 (C) the schedule of years for which the transfer credit may be claimed 40 and the amount of credit previously claimed; 41 (D) the amount of consideration received by the taxpayer for the 42 transfer credit; and 43 (E) the amount of credit being transferred. 44 (iii) No transfer shall be effective unless the taxpayer allowed a 45 credit pursuant to this subdivision and seeking to transfer the credit 46 files a transfer application with the commissioner of parks, recreation 47 and historic preservation prior to the transfer and such transfer appli- 48 cation is approved. The transfer application shall include the name and 49 federal identification numbers of the taxpayer and each proposed trans- 50 feree, the amount of credit proposed to be transferred to each proposed 51 transferee, a copy of the transfer contract, and such other information 52 as the commissioner or the commissioner of parks, recreation and histor- 53 ic preservation may require. The commissioner of parks, recreation and 54 historic preservation shall approve or deny each transfer application 55 and, if an application is denied, shall issue a written determination to 56 the taxpayer. If the transfer is approved, the commissioner of parks,S. 3009--C 23 A. 3009--C 1 recreation and historic preservation shall issue a transfer approval 2 certificate that provides the name of the transferor and all transfer- 3 ees, the amount of credit being transferred and such other information 4 as the commissioner of parks, recreation and historic preservation and 5 the commissioner deem necessary. A copy of the transfer approval certif- 6 icate must be attached to each transferee's tax return. The commissioner 7 of parks, recreation and historic preservation, in consultation with the 8 commissioner, may establish such other procedures and standards deemed 9 necessary for the transferability of credits allowed under this subdivi- 10 sion. 11 (iv) The commissioner of parks, recreation and historic preservation 12 shall forward copies of all transfer applications and attachments there- 13 to and approval certificates to the commissioner within thirty days 14 after the transfer is approved. 15 (v) A taxpayer allowed a credit pursuant to section forty-seven of the 16 internal revenue code with respect to a qualified rehabilitation that is 17 also the subject of the credit allowed by this subdivision shall remain 18 solely liable for all obligations and liabilities imposed on the taxpay- 19 er with respect to the credit allowed by this subdivision, none of which 20 shall apply to a party to whom the credit has been subsequently trans- 21 ferred. 22 § 2. Subsection (oo) of section 606 of the tax law, as amended by 23 chapter 239 of the laws of 2009, paragraph 1 as amended by chapter 472 24 of the laws of 2010, subparagraph (A) of paragraph 1 as amended by 25 section 1 of subpart B of part I of chapter 59 of the laws of 2023, 26 paragraph 3 as amended by section 1 of part RR of chapter 59 of the laws 27 of 2018, paragraph 4 as amended by section 1 of part F of chapter 59 of 28 the laws of 2013, paragraph 5 as amended by section 2 of part U of chap- 29 ter 59 of the laws of 2019, paragraph 6 as added by section 1 of part 30 CCC of chapter 59 of the laws of 2021, is amended to read as follows: 31 (oo) Credit for rehabilitation of historic properties. (1) (A) For 32 taxable years beginning on or after January first, two thousand ten and 33 before January first, two thousand thirty, a taxpayer, or a transferee 34 of such a taxpayer as described in paragraph seven of this subsection, 35 shall be allowed a credit as hereinafter provided, against the tax 36 imposed by this article, in an amount equal to one hundred percent of 37 the amount of credit allowed the taxpayer with respect to a certified 38 historic structure, and one hundred fifty percent of the amount of cred- 39 it allowed the taxpayer with respect to a certified historic structure 40 that is a small project, under internal revenue code section 47(c)(3), 41 determined without regard to ratably allocating the credit over a five 42 year period as required by subsection (a) of such section 47, with 43 respect to a certified historic structure located within the state. 44 Provided, however, the credit shall not exceed five million dollars. For 45 taxable years beginning on or after January first, two thousand thirty, 46 a taxpayer, or a transferee of such a taxpayer as described in paragraph 47 seven of this subsection, shall be allowed a credit as hereinafter 48 provided, against the tax imposed by this article, in an amount equal to 49 thirty percent of the amount of credit allowed the taxpayer with respect 50 to a certified historic structure under internal revenue code section 51 47(c)(3), determined without regard to ratably allocating the credit 52 over a five year period as required by subsection (a) of such section 53 47, with respect to a certified historic structure located within the 54 state; provided, however, the credit shall not exceed one hundred thou- 55 sand dollars.S. 3009--C 24 A. 3009--C 1 (B) If the taxpayer or transferee is a partner in a partnership or a 2 shareholder of a New York S corporation, then the credit cap imposed in 3 subparagraph (A) of this paragraph shall be applied at the entity level, 4 so that the aggregate credit allowed to all the partners or shareholders 5 of each such entity in the taxable year does not exceed the credit cap 6 that is applicable in that taxable year. 7 (2) Tax credits allowed pursuant to this subsection shall be allowed 8 in the taxable year that the qualified rehabilitation is placed in 9 service under section 167 of the federal internal revenue code. 10 (3) If the taxpayer is allowed a credit pursuant to section 47 of the 11 internal revenue code with respect to a qualified rehabilitation that is 12 also the subject of the credit allowed by this subsection and that cred- 13 it pursuant to such section 47 is recaptured pursuant to subsection (a) 14 of section 50 of the internal revenue code, a portion of the credit 15 allowed under this subsection must be added back by the taxpayer or 16 transferee in the same taxable year and in the same proportion as the 17 federal recapture. 18 (4) If the amount of the credit allowed under this subsection for any 19 taxable year shall exceed the taxpayer's tax for such year, the excess 20 shall be treated as an overpayment of tax to be credited or refunded in 21 accordance with the provisions of section six hundred eighty-six of this 22 article, provided, however, that no interest shall be paid thereon. 23 (5) [Except in the case of a qualified rehabilitation project under-24taken within a state park, state historic site, or other land owned by25the state, that is under the jurisdiction of the office of parks, recre-26ation and historic preservation, to] To be eligible for the credit 27 allowable under this subsection the rehabilitation project shall be in 28 whole or in part located within a census tract which is identified as 29 being at or below one hundred percent of the state median family income 30 as calculated as of April first of each year using the most recent five 31 year estimate from the American community survey published by the United 32 States Census bureau. If there is a change in the most recent five year 33 estimate, a census tract that qualified for eligibility under this 34 program before information about the change was released will remain 35 eligible for a credit under this subsection for an additional two calen- 36 dar years. The eligibility restrictions set forth in this paragraph 37 shall not be applicable if: 38 (A) a qualified rehabilitation project is undertaken within a state 39 park, state historic site, or other land owned by the state, that is 40 under the jurisdiction of the office of parks, recreation and historic 41 preservation; or 42 (B) a qualified rehabilitation project is undertaken for the provision 43 of affordable housing and the taxpayer has entered into a regulatory 44 agreement with any state or federal agency or authority, or any other 45 government entity that is authorized to engage in the financing, 46 construction or oversight of affordable housing within such entity's 47 jurisdiction, and where such regulatory agreement sets forth affordabil- 48 ity requirements applicable for a period of not less than thirty years 49 and that is binding on all successors of the taxpayer. 50 (6) For purposes of this subsection the term "small project" means 51 qualified rehabilitation expenditures totaling two million five hundred 52 thousand dollars or less. 53 (7)(A) A taxpayer allowed a credit pursuant to this subsection may 54 transfer the credit, in whole or in part, to another person or entity, 55 who shall be referred to as the transferee, without regard to how any 56 tax credit authorized pursuant to section forty-seven of the internalS. 3009--C 25 A. 3009--C 1 revenue code with respect to a qualified rehabilitation project may be 2 allocated and notwithstanding that such other person or entity owns no 3 interest in the qualified rehabilitation project or in an entity with an 4 ownership interest in the qualified rehabilitation project. A transferee 5 may not transfer any credit, or portion thereof, acquired by transfer. 6 (B) A taxpayer seeking to transfer a credit allowed pursuant to this 7 subsection must enter into a transfer contract with the transferee. The 8 transfer contract must specify: 9 (i) the building identification numbers for all buildings in the 10 project; 11 (ii) the date each building was placed into service; 12 (iii) the schedule of years for which the transfer credit may be 13 claimed and the amount of credit previously claimed; 14 (iv) the amount of consideration received by the taxpayer for the 15 transfer credit; and 16 (v) the amount of credit being transferred. 17 (C) No transfer shall be effective unless the taxpayer allowed a cred- 18 it pursuant to this subsection and seeking to transfer the credit files 19 a transfer application with the commissioner of parks, recreation and 20 historic preservation prior to the transfer and such transfer applica- 21 tion is approved. The transfer application shall include the name and 22 federal identification numbers of the taxpayer and each proposed trans- 23 feree, the amount of credit proposed to be transferred to each proposed 24 transferee, a copy of the transfer contract, and such other information 25 as the commissioner or the commissioner of parks, recreation and histor- 26 ic preservation may require. The commissioner of parks, recreation and 27 historic preservation shall approve or deny each transfer application 28 and, if an application is denied, shall issue a written determination to 29 the taxpayer. If the transfer is approved, the commissioner of parks, 30 recreation and historic preservation shall issue a transfer approval 31 certificate that provides the name of the transferor and all transfer- 32 ees, the amount of credit being transferred and such other information 33 as the commissioner of parks, recreation and historic preservation and 34 the commissioner deem necessary. A copy of the transfer approval certif- 35 icate must be attached to each transferee's tax return. The commissioner 36 of parks, recreation and historic preservation, in consultation with the 37 commissioner, may establish such other procedures and standards deemed 38 necessary for the transferability of credits allowed under this 39 subsection. 40 (D) The commissioner of parks, recreation and historic preservation 41 shall forward copies of all transfer applications and attachments there- 42 to and approval certificates to the commissioner within thirty days 43 after the transfer is approved. 44 (E) A taxpayer allowed a credit pursuant to section forty-seven of the 45 internal revenue code with respect to a qualified rehabilitation that is 46 also the subject of the credit allowed by this subsection shall remain 47 solely liable for all obligations and liabilities imposed on the taxpay- 48 er with respect to the credit allowed by this subsection, none of which 49 shall apply to a party to whom the credit has been subsequently trans- 50 ferred. 51 § 3. Subdivision (y) of section 1511 of the tax law, as added by chap- 52 ter 472 of the laws of 2010, subparagraph (A) of paragraph 1 as amended 53 by section 5 of subpart B of part I of chapter 59 of the laws of 2023, 54 paragraph 3 as amended by section 3 of part RR of chapter 59 of the laws 55 of 2018, paragraph 4 as amended by section 4 of part F of chapter 59 of 56 the laws of 2013, paragraph 5 as amended by section 3 of part U of chap-S. 3009--C 26 A. 3009--C 1 ter 59 of the laws of 2019, paragraph 6 as added by section 3 of part 2 CCC of chapter 59 of the laws of 2021, is amended to read as follows: 3 (y) Credit for rehabilitation of historic properties. (1) (A) For 4 taxable years beginning on or after January first, two thousand ten and 5 before January first, two thousand thirty, a taxpayer, or a transferee 6 of such a taxpayer as described in paragraph seven of this subdivision, 7 shall be allowed a credit as hereinafter provided, against the tax 8 imposed by this article, in an amount equal to one hundred percent of 9 the amount of credit allowed the taxpayer with respect to a certified 10 historic structure, and one hundred fifty percent of the amount of cred- 11 it allowed the taxpayer with respect to a certified historic structure 12 that is a small project, under internal revenue code section 47(c)(3), 13 determined without regard to ratably allocating the credit over a five 14 year period as required by subsection (a) of such section 47, with 15 respect to a certified historic structure located within the state. 16 Provided, however, the credit shall not exceed five million dollars. For 17 taxable years beginning on or after January first, two thousand thirty, 18 a taxpayer, or a transferee of such a taxpayer as described in paragraph 19 seven of this subdivision, shall be allowed a credit as hereinafter 20 provided, against the tax imposed by this article, in an amount equal to 21 thirty percent of the amount of credit allowed the taxpayer with respect 22 to a certified historic structure under internal revenue code section 23 47(c)(3), determined without regard to ratably allocating the credit 24 over a five year period as required by subsection (a) of such section 47 25 with respect to a certified historic structure located within the state. 26 Provided, however, the credit shall not exceed one hundred thousand 27 dollars. 28 (B) If the taxpayer or transferee is a partner in a partnership, then 29 the cap imposed in subparagraph (A) of this paragraph shall be applied 30 at the entity level, so that the aggregate credit allowed to all the 31 partners of such partnership in the taxable year does not exceed the 32 credit cap that is applicable in that taxable year. 33 (2) Tax credits allowed pursuant to this subsection shall be allowed 34 in the taxable year that the qualified rehabilitation is placed in 35 service under section 167 of the federal internal revenue code. 36 (3) If the taxpayer is allowed a credit pursuant to section 47 of the 37 internal revenue code with respect to a qualified rehabilitation that is 38 also the subject of the credit allowed by this subdivision and that 39 credit pursuant to such section 47 is recaptured pursuant to subsection 40 (a) of section 50 of the internal revenue code, a portion of the credit 41 allowed under this subdivision in the taxable year the credit was 42 claimed must be added back by the taxpayer or transferee in the same 43 taxable year and in the same proportion as the federal recapture. 44 (4) The credit allowed under this subdivision for any taxable year 45 shall not reduce the tax due for such year to less than the minimum 46 fixed by paragraph four of subdivision (a) of section fifteen hundred 47 two or section fifteen hundred two-a of this article, whichever is 48 applicable. However, if the amount of credits allowed under this subdi- 49 vision for any taxable year reduces the tax to such amount, any amount 50 of credit thus not deductible in such taxable year shall be treated as 51 an overpayment of tax to be credited or refunded in accordance with the 52 provisions of section one thousand eighty-six of this chapter. Provided, 53 however, the provisions of subsection (c) of section one thousand eight- 54 y-eight of this chapter notwithstanding, no interest shall be paid ther- 55 eon.S. 3009--C 27 A. 3009--C 1 (5) [Except in the case of a qualified rehabilitation project under-2taken within a state park, state historic site, or other land owned by3the state, that is under the jurisdiction of the office of parks, recre-4ation and historic preservation, to] To be eligible for the credit 5 allowable under this subdivision, the rehabilitation project shall be in 6 whole or in part located within a census tract which is identified as 7 being at or below one hundred percent of the state median family income 8 as calculated as of April first of each year using the most recent five 9 year estimate from the American community survey published by the United 10 States Census bureau. If there is a change in the most recent five year 11 estimate, a census tract that qualified for eligibility under this 12 program before information about the change was released will remain 13 eligible for a credit under this subdivision for an additional two 14 calendar years. The eligibility restrictions set forth in this paragraph 15 shall not be applicable if: 16 (A) a qualified rehabilitation project is undertaken within a state 17 park, state historic site, or other land owned by the state, that is 18 under the jurisdiction of the office of parks, recreation and historic 19 preservation; or 20 (B) a qualified rehabilitation project is undertaken for the provision 21 of affordable housing and the taxpayer has entered into a regulatory 22 agreement with any state or federal agency or authority, or any other 23 government entity that is authorized to engage in the financing, 24 construction or oversight of affordable housing within such entity's 25 jurisdiction, and where such regulatory agreement sets forth affordabil- 26 ity requirements applicable for a period of not less than thirty years 27 and that is binding on all successors of the taxpayer. 28 (6) For purposes of this subdivision "small project" means qualified 29 rehabilitation expenditures totaling two million five hundred thousand 30 dollars or less. 31 (7)(A) A taxpayer allowed a credit pursuant to this subdivision may 32 transfer the credit, in whole or in part, to another person or entity, 33 who shall be referred to as the transferee, without regard to how any 34 tax credit authorized pursuant to section forty-seven of the internal 35 revenue code with respect to a qualified rehabilitation project may be 36 allocated and notwithstanding that such other person or entity owns no 37 interest in the qualified rehabilitation project or in an entity with an 38 ownership interest in the qualified rehabilitation project. A transferee 39 may not transfer any credit, or portion thereof, acquired by transfer. 40 (B) A taxpayer seeking to transfer a credit allowed pursuant to this 41 subdivision must enter into a transfer contract with the transferee. The 42 transfer contract must specify: 43 (i) the building identification numbers for all buildings in the 44 project; 45 (ii) the date each building was placed into service; 46 (iii) the schedule of years for which the transfer credit may be 47 claimed and the amount of credit previously claimed; 48 (iv) the amount of consideration received by the taxpayer for the 49 transfer credit; and 50 (v) the amount of credit being transferred. 51 (C) No transfer shall be effective unless the taxpayer allowed a cred- 52 it pursuant to this subdivision and seeking to transfer the credit files 53 a transfer application with the commissioner of parks, recreation and 54 historic preservation prior to the transfer and such transfer applica- 55 tion is approved. The transfer application shall include the name and 56 federal identification numbers of the taxpayer and each proposed trans-S. 3009--C 28 A. 3009--C 1 feree, the amount of credit proposed to be transferred to each proposed 2 transferee, a copy of the transfer contract, and such other information 3 as the commissioner or the commissioner of parks, recreation and histor- 4 ic preservation may require. The commissioner of parks, recreation and 5 historic preservation shall approve or deny each transfer application 6 and, if an application is denied, shall issue a written determination to 7 the taxpayer. If the transfer is approved, the commissioner of parks, 8 recreation and historic preservation shall issue a transfer approval 9 certificate that provides the name of the transferor and all transfer- 10 ees, the amount of credit being transferred and such other information 11 as the commissioner of parks, recreation and historic preservation and 12 the commissioner deem necessary. A copy of the transfer approval certif- 13 icate must be attached to each transferee's tax return. The commissioner 14 of parks, recreation and historic preservation, in consultation with the 15 commissioner, may establish such other procedures and standards deemed 16 necessary for the transferability of credits allowed under this subdivi- 17 sion. 18 (D) The commissioner of parks, recreation and historic preservation 19 shall forward copies of all transfer applications and attachments there- 20 to and approval certificates to the commissioner within thirty days 21 after the transfer is approved. 22 (E) A taxpayer allowed a credit pursuant to section forty-seven of the 23 internal revenue code with respect to a qualified rehabilitation that is 24 also the subject of the credit allowed by this subdivision shall remain 25 solely liable for all obligations and liabilities imposed on the taxpay- 26 er with respect to the credit allowed by this subdivision, none of which 27 shall apply to a party to whom the credit has been subsequently trans- 28 ferred. 29 § 4. This act shall take effect immediately and shall apply to taxable 30 years beginning on and after January 1, 2026. 31 PART F 32 Section 1. This Part enacts into law major components of legislation 33 relating to the purchase of residential real property by certain 34 purchasers, taxation relating thereto, and notice regarding nonsolicita- 35 tion orders adopted by the secretary of state. Each component is wholly 36 contained within a Subpart identified as Subparts A through C. The 37 effective date for each particular provision contained within such 38 Subpart is set forth in the last section of such Subpart. Any provision 39 in any section contained within a Subpart, including the effective date 40 of the Subpart, which makes a reference to a section "of this act", when 41 used in connection with that particular component, shall be deemed to 42 mean and refer to the corresponding section of the Subpart in which it 43 is found. Section three of this Part sets forth the general effective 44 date of this Part. 45 SUBPART A 46 Section 1. The real property law is amended by adding a new article 16 47 to read as follows: 48 ARTICLE 16 49 NINETY-DAY WAITING PERIOD FOR 50 SALE OF SINGLE-FAMILY AND TWO-FAMILY 51 RESIDENCES TO CERTAIN PURCHASERS 52 Section 520. Definitions.S. 3009--C 29 A. 3009--C 1 521. Ninety-day waiting period. 2 522. Enforcement. 3 § 520. Definitions. As used in this article, the following terms shall 4 have the following meanings: 5 1. "Community land trust" shall mean a nonprofit organization exempt 6 from certain taxes pursuant to section 501 (c) (3) or section 501(c) (4) 7 of the United States internal revenue code and/or that is incorporated 8 under the not-for-profit corporation law whose primary purpose is to 9 provide affordable housing by owning land and leasing or selling resi- 10 dential housing situated on that land to households that meet certain 11 income requirements. 12 2. (a) "Covered entity" shall mean an institutional real estate inves- 13 tor or an entity that receives funding from an institutional real estate 14 investor for the purchase of a single-family residence or two-family 15 residence. A loan provided in exchange for a mortgage of the residence 16 that is being purchased shall not be considered funding for the purposes 17 of this subdivision, provided that such mortgage must be of a type for 18 which members of the general public can apply. 19 (b) "Covered entity" shall not include: 20 (i) an organization which is described in section 501(c)(3) of the 21 Internal Revenue Code and exempt from tax under section 501(a) of the 22 Internal Revenue Code; 23 (ii) a land bank; 24 (iii) a community land trust; or 25 (iv) a creditor or its loan servicer acquiring ownership of real prop- 26 erty in full or partial satisfaction of a secured debt. 27 3. (a) "Institutional real estate investor" shall mean an entity or 28 combined group that, directly or indirectly: 29 (i) owns ten or more single-family residences and/or two-family resi- 30 dences; 31 (ii) manages or receives funds pooled from investors and acts as a 32 fiduciary with respect to one or more investors; and 33 (iii) has thirty million dollars or more in net value or assets under 34 management on any day during the taxable year. 35 (b) An entity is considered owning a single-family residence or two- 36 family residence if it directly owns the single-family residence or 37 two-family residence or indirectly owns ten percent or more of the 38 single-family residence or two-family residence. 39 4. "Land bank" shall mean an entity created in accordance with article 40 sixteen of the not-for-profit corporation law. 41 5. "Single-family residence" shall mean a residential property 42 consisting of one dwelling unit; provided that such term shall not 43 include: 44 (a) any single-family residence that is to be used as the principal 45 residence of any person who has an ownership interest in the covered 46 entity that seeks to purchase the single-family residence; or 47 (b) any single-family residence constructed, acquired, or operated 48 with federal, state, or local appropriated funding sources. 49 6. "Two-family residence" shall mean a residential property consisting 50 of two dwelling units; provided that such term shall not include: 51 (a) any two-family residence in which one of the dwelling units is to 52 be used as the principal residence of any person who has an ownership 53 interest in the covered entity that seeks to purchase the two-family 54 residence; or 55 (b) any two-family residence constructed, acquired, or operated with 56 federal, state, or local appropriated funding sources.S. 3009--C 30 A. 3009--C 1 § 521. Ninety-day waiting period. 1. Notwithstanding any other 2 provision of law, on and after July first, two thousand twenty-five, it 3 shall be unlawful for a covered entity to purchase, acquire, or offer to 4 purchase or acquire any interest in a single-family residence or two-fa- 5 mily residence unless the single-family residence or two-family resi- 6 dence has been listed for sale to the general public for at least ninety 7 days. 8 2. The ninety-day waiting period set forth in subdivision one of this 9 section shall restart if the seller changes the asking price for the 10 single-family residence or two-family residence, and a covered entity 11 shall be prohibited from purchasing, acquiring, or offering to purchase 12 or acquire any interest in the single-family residence or two-family 13 residence until it has been listed for sale to the general public at the 14 new asking price for at least an additional ninety days. 15 3. A covered entity that violates subdivision one or two of this 16 section may be subject to civil damages and penalties in an amount not 17 to exceed two hundred fifty thousand dollars. 18 4. (a) At the time an offer is made by a covered entity purchasing 19 such residence, such covered entity shall be required to submit to the 20 seller or anyone acting as an agent for such seller, a form that has 21 been signed by the covered entity purchaser, or an authorized agent 22 thereof, and notarized, stating that the purchaser is a covered entity. 23 (b) Within three days of submitting a form to a seller or seller's 24 agent pursuant to paragraph (a) of this subdivision, a covered entity 25 shall file such form with the department of law. The department of law 26 may issue regulations or guidance regarding the procedure for making 27 such filing. 28 (c) Any covered entity or covered entity's agent that violates this 29 subdivision may be subject to civil damages and penalties in an amount 30 not to exceed ten thousand dollars. 31 5. The following form shall be completed by a covered entity purchas- 32 ing a single-family residence or two-family residence: 33 "COMPLIANCE WITH REAL PROPERTY LAW ARTICLE 16 34 Pursuant to Article 16 of the New York State Real Property Law, 35 covered entities are required to wait at least 90 days after a single- 36 family residence or two-family residence has been listed for sale to the 37 general public to purchase, acquire, or offer to purchase or acquire any 38 interest in the single-family residence or two-family residence. At the 39 time an offer is made, the covered entity or its agent is required to 40 complete this form and submit it to the seller stating that the purchas- 41 er is a covered entity. Within three days of submitting the form to the 42 seller, the covered entity or its agent is required to file this form 43 with the New York state office of the attorney general, in accordance 44 with any regulations or guidance that the attorney general may issue 45 with respect to such filing. 46 The buyer of this single-family residence or two-family residence is a 47 covered entity as defined in New York State Real Property Law § 520. The 48 buyer is subject to the statutory 90-day waiting period. Failure to 49 comply with the 90-day waiting period may result in civil fines and 50 penalties. 51 Any covered entity or covered entity's agent that does not complete 52 and submit this form as required by statute, or abide by the statutory 53 waiting period, may be liable for civil damages. 54 IDENTIFYING INFORMATION 55 BUYER OR BUYERS OF THIS RESIDENCE: 56 ____________________________S. 3009--C 31 A. 3009--C 1 Printed Name and Mailing Address 2 ____________________________ 3 Printed Name and Mailing Address 4 By signing this form, the buyer or its agent affirms that the statements 5 herein are true under the penalties of perjury. 6 SIGNATURE OF BUYER(S) OR ITS AGENT OF THIS SINGLE-FAMILY RESIDENCE OR 7 TWO-FAMILY RESIDENCE: 8 ____________________________ 9 Signature Date 10 ____________________________ 11 Signature Date 12 ____________________________ 13 SIGNATURE OF WITNESSES 14 ____________________________ 15 Signature Date 16 ____________________________ 17 Signature Date 18 ____________________________ 19 NOTARY ACKNOWLEDGEMENT 20 (insert notary acknowledgement for this form here)" 21 § 522. Enforcement. Notwithstanding any other provision of law, the 22 attorney general of the state of New York shall have the authority to 23 enforce the provisions of section five hundred twenty-one of this arti- 24 cle by applying, in the name of the people of the state of New York, to 25 the supreme court of the state of New York, on notice of five days, for 26 an order enjoining the continuance of such violative activity, including 27 but not limited to by bringing an action for injunctive or declaratory 28 relief if a single-family residence or two-family residence is in the 29 process of being or has been sold in a manner that contravenes the 30 requirements of section five hundred twenty-one of this article, and 31 imposing civil damages and penalties pursuant to subdivisions three and 32 four of section five hundred twenty-one of this article, as applicable. 33 § 2. Severability. If any provision of this act, or any application of 34 any provision of this act, is held to be invalid, that shall not affect 35 the validity or effectiveness of any other provision of this act, or of 36 any other application of any provision of this act, which can be given 37 effect without that provision or application; and to that end, the 38 provisions and applications of this act are severable. 39 § 3. This act shall take effect on the one hundred twentieth day after 40 it shall have become a law. Effective immediately, the addition, amend- 41 ment and/or repeal of any rule or regulation necessary for the implemen- 42 tation of this act on its effective date are authorized to be made and 43 completed on or before such effective date. 44 SUBPART B 45 Section 1. Subdivision 9 of section 208 of the tax law is amended by 46 adding a new paragraph (c-4) to read as follows: 47 (c-4) Depreciation and interest deduction adjustments for covered 48 properties owned by an institutional real estate investor. (1) Notwith- 49 standing any other provision of this section, in the case of a corpo- 50 ration or combined group that is an institutional real estate investor 51 or a partner, member or shareholder of an entity that is an institu- 52 tional real estate investor, entire net income shall be computed with 53 the adjustments for depreciation and interest related to covered proper- 54 ties as set forth in this paragraph.S. 3009--C 32 A. 3009--C 1 (2) Definitions. (A) "Institutional real estate investor" means an 2 entity or combined group that, directly or indirectly (i) owns ten or 3 more covered properties, (ii) manages funds pooled from investors and 4 acts as a fiduciary with respect to one or more investors, and (iii) has 5 thirty million dollars or more in net value or assets under management 6 on any day during the taxable year. An entity is considered owning a 7 covered property if it directly owns the covered property or indirectly 8 owns ten percent or more of the covered property. 9 (B) "Covered property" means a residential property consisting of no 10 more than two dwelling units located in New York state. 11 (3) Depreciation deductions. With respect to covered properties, no 12 deduction for depreciation allowed under the internal revenue code or 13 this section shall be allowed. 14 (4) Interest deductions. With respect to covered properties, the 15 interest deduction for federal income tax purposes allowed under section 16 one hundred sixty-three of the internal revenue code shall not be 17 allowed and must be added back in the computation of entire net income, 18 except with respect to interest paid or accrued in the taxable year when 19 such covered property is sold to an individual for use as the principal 20 residence of such individual or sold to a nonprofit organization that 21 has as its principal purpose the creation, development, or preservation 22 of affordable housing. For purposes of this subparagraph, any amount of 23 interest that would have been allowed under section one hundred sixty- 24 three of the internal revenue code in connection with a covered property 25 but for an election to treat such interest as chargeable to capital 26 account shall be treated as an amount allowed under section one hundred 27 sixty-three of the internal revenue code. 28 § 2. Section 612 of the tax law is amended by adding a new subsection 29 (y) to read as follows: 30 (y) Depreciation and interest adjustments for covered properties owned 31 by an institutional real estate investor. (1) Notwithstanding any other 32 provision of this section, in the case of a taxpayer that is a partner, 33 member or shareholder of an entity that is an institutional real estate 34 investor as defined in paragraph (c-4) of subdivision nine of section 35 two hundred eight of this chapter, New York adjusted gross income shall 36 be computed with adjustments for depreciation and interest related to 37 covered properties as set forth in this subsection. 38 (2) Depreciation deductions. With respect to covered properties, no 39 deduction for depreciation allowed under the internal revenue code or 40 this section shall be allowed. 41 (3) Federal interest deductions. With respect to covered properties, 42 the interest deduction for federal income tax purposes allowed under 43 section one hundred sixty-three of the internal revenue code shall not 44 be allowed and must be added back in the computation of New York 45 adjusted gross income, except with respect to interest paid or accrued 46 in the taxable year when such covered property is sold to an individual 47 for use as the principal residence of such individual or sold to a 48 nonprofit organization that has as its principal purpose the creation, 49 development, or preservation of affordable housing. For purposes of this 50 paragraph, any amount of interest that would have been allowed under 51 section one hundred sixty-three of the internal revenue code in 52 connection with a covered property but for an election to treat such 53 interest as chargeable to capital account shall be treated as an amount 54 allowed under section one hundred sixty-three of the internal revenue 55 code.S. 3009--C 33 A. 3009--C 1 § 3. Subdivision (b) of section 1503 of the tax law is amended by 2 adding a new paragraph 17 to read as follows: 3 (17) Depreciation and interest adjustments for covered properties 4 owned by an institutional real estate investor. (A) Notwithstanding any 5 other provision of this section, in the case of a taxpayer that is an 6 institutional real estate investor or partner, member or shareholder of 7 an entity that is an institutional real estate investor as defined in 8 paragraph (c-4) of subdivision nine of section two hundred eight of this 9 chapter, entire net income shall be computed with adjustments for depre- 10 ciation and interest related to covered properties as set forth in this 11 paragraph. 12 (B) Depreciation deductions. With respect to covered properties, no 13 deduction for depreciation allowed under the internal revenue code or 14 this section shall be allowed. 15 (C) Federal interest deductions. With respect to covered properties, 16 the interest deduction for federal income tax purposes allowed under 17 section one hundred sixty-three of the internal revenue code shall not 18 be allowed and must be added back in the computation of entire net 19 income, except with respect to interest paid or accrued in the taxable 20 year when such covered property is sold to an individual for use as the 21 principal residence of such individual or sold to a nonprofit organiza- 22 tion that has as its principal purpose the creation, development, or 23 preservation of affordable housing. For purposes of this subparagraph, 24 any amount of interest that would have been allowed under section one 25 hundred sixty-three of the internal revenue code in connection with a 26 covered property but for an election to treat such interest as chargea- 27 ble to capital account shall be treated as an amount allowed under 28 section one hundred sixty-three of the internal revenue code. 29 § 4. This act shall take effect immediately and shall apply to taxable 30 years beginning on or after January 1, 2025. 31 SUBPART C 32 Section 1. Paragraph (a) of subdivision 3 of section 442-h of the real 33 property law, as amended by chapter 505 of the laws of 2001, is amended 34 to read as follows: 35 (a) If the secretary of state determines that some owners of residen- 36 tial real property within a defined geographic area are subject to 37 intense and repeated solicitation by real estate brokers and salesper- 38 sons to place their property for sale with such real estate brokers or 39 salespersons, or are subject to intense and repeated solicitation by 40 other persons regularly engaged in the trade or business of buying and 41 selling real estate to sell their real estate, the secretary of state 42 may adopt a rule establishing a cease and desist zone, which zone shall 43 be bounded or otherwise specifically defined in the rule. After the 44 secretary of state has established a cease and desist zone, the owners 45 of residential real property located within the zone may file an owner's 46 statement with the secretary of state expressing their wish not to be 47 solicited by real estate brokers, salespersons or other persons regular- 48 ly engaged in the trade or business of buying and selling real estate. 49 The form and content of the statement shall be prescribed by the secre- 50 tary of state. After a cease and desist zone has been established by 51 the secretary of state, the secretary of state shall provide public 52 notice on its website of such zone, shall publish notice of such zone at 53 least once annually in a newspaper of general circulation in the area 54 affected by the cease and desist zone, and shall provide such furtherS. 3009--C 34 A. 3009--C 1 public notice of such cease and desist zone as the secretary of state 2 deems necessary to maximize awareness to owners of residential real 3 property located within the cease and desist zone that they may file a 4 statement pursuant to this paragraph. After a cease and desist zone has 5 been established by the secretary of state, no real estate broker, 6 salesperson or other person regularly engaged in the trade or business 7 of buying and selling real estate shall solicit a listing from any owner 8 who has filed a statement with the secretary of state if such owner's 9 name appears on the current cease and desist list prepared by the secre- 10 tary of state. The prohibition on solicitation shall apply to direct 11 forms of solicitation such as the use of the telephone, the mail, 12 personal contact and other forms of direct solicitation as may be speci- 13 fied by the secretary of state. 14 § 2. This act shall take effect on the one hundred twentieth day after 15 it shall have become a law. Effective immediately, the addition, amend- 16 ment and/or repeal of any rule or regulation necessary for the implemen- 17 tation of this act on its effective date are authorized to be made and 18 completed on or before such effective date. 19 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 20 sion, section or part of this act shall be adjudged by any court of 21 competent jurisdiction to be invalid, such judgment shall not affect, 22 impair, or invalidate the remainder thereof, but shall be confined in 23 its operation to the clause, sentence, paragraph, subdivision, section 24 or part thereof directly involved in the controversy in which such judg- 25 ment shall have been rendered. It is hereby declared to be the intent of 26 the legislature that this act would have been enacted even if such 27 invalid provisions had not been included herein. 28 § 3. This act shall take effect immediately, provided, however, that 29 the applicable effective date of Subparts A through C of this act shall 30 be as specifically set forth in the last section of such Subparts. 31 PART G 32 Intentionally Omitted 33 PART H 34 Section 1. This Part enacts into law major components of legislation 35 relating to the excelsior jobs program and the empire state jobs 36 retention program. Each component is wholly contained within a Subpart 37 identified as Subpart A and Subpart B. The effective date for each 38 particular provision contained within such Subpart is set forth in the 39 last section of such Subpart. Any provision in any section contained 40 within a Subpart, including the effective date of the Subpart, which 41 makes a reference to a section "of this act", when used in connection 42 with that particular component, shall be deemed to mean and refer to the 43 corresponding section of the Subpart in which it is found. Section three 44 of this Part sets forth the general effective date of this Part. 45 SUBPART A 46 Section 1. Section 352 of the economic development law is amended by 47 adding a new subdivision 25 to read as follows: 48 25. "Semiconductor supply chain project" means a project deemed by the 49 commissioner to make products or develop technologies that are primarilyS. 3009--C 35 A. 3009--C 1 aimed at supporting the growth of the semiconductor manufacturing and 2 related equipment and material supplier sector. "Semiconductor supply 3 chain project" shall include, but need not be limited to, semiconductor 4 device manufacturing, producers of component parts, direct input materi- 5 als and equipment necessary for the manufacture of semiconductor chips, 6 machinery, equipment, and materials necessary for the operational effi- 7 ciency of semiconductor manufacturing facilities, other such inputs 8 directly supportive of the domestic production of semiconductor chips, 9 and companies engaged in the assembly, testing, packaging and advanced 10 packaging semiconductor value chain. "Semiconductor supply chain 11 project" shall not include a project primarily composed of: (i) machin- 12 ery, equipment, or materials that are inputs to manufacturing generally, 13 but are not direct inputs to semiconductor manufacturing in specific; 14 (ii) the production of products or development of technologies that 15 would produce only marginal and incremental benefits to the semiconduc- 16 tor manufacturing sector; (iii) projects that would otherwise qualify as 17 a Green CHIPS project as defined in section twenty-four of this section. 18 § 2. Paragraphs (m) and (n) of subdivision 1 of section 353 of the 19 economic development law, as amended by chapter 494 of the laws of 2022, 20 are amended and a new paragraph (o) is added to read as follows: 21 (m) as a participant operating in one of the industries listed in 22 paragraphs (a) through (k) of this subdivision and operating or sponsor- 23 ing child care services to its employees as defined in section three 24 hundred fifty-two of this article; [or] 25 (n) as a Green CHIPS project[.]; or 26 (o) as a company operating in one of the industries listed in para- 27 graphs (a) through (k) of this subdivision and engaging in a semiconduc- 28 tor supply chain project as defined in section three hundred fifty-two 29 of this article. 30 § 3. Subdivisions 1, 2 and 3 of section 355 of the economic develop- 31 ment law, as amended by chapter 494 of the laws of 2022, are amended to 32 read as follows: 33 1. Excelsior jobs tax credit component. A participant in the excelsior 34 jobs program shall be eligible to claim a credit for each net new job it 35 creates in New York state. In a project that is not a green project, the 36 amount of such credit per job shall be equal to the product of the gross 37 wages paid and up to 6.85 percent. In a green project, or a Green CHIPS 38 project, the amount of such credit per job shall be equal to the product 39 of the gross wages paid and up to 7.5 percent. Provided, however, given 40 the transformational nature of Green CHIPS projects, only the first two 41 hundred thousand dollars of gross wages per job shall be eligible for 42 this credit. The maximum amount of gross wages per job for a Green CHIPS 43 project may be adjusted for inflation at an annual amount determined by 44 the commissioner in a manner substantially similar to the cost of living 45 adjustments calculated by the United States Social Security Adminis- 46 tration based on changes in consumer price indices or a rate of four 47 percent per year, whichever is higher. In a semiconductor supply chain 48 project, the amount of such credit per job shall be equal to the product 49 of the gross wages paid and up to seven percent. 50 2. Excelsior investment tax credit component. A participant in the 51 excelsior jobs program shall be eligible to claim a credit on qualified 52 investments. In a project that is not a green project, the credit shall 53 be equal to two percent of the cost or other basis for federal income 54 tax purposes of the qualified investment. In a green project, the credit 55 shall be equal to five percent of the cost or other basis for federal 56 income tax purposes of the qualified investment. In a project for childS. 3009--C 36 A. 3009--C 1 care services or a Green CHIPS project, the credit shall be up to five 2 percent of the cost or other basis for federal income tax purposes of 3 the qualified investment in child care services or in the Green CHIPS 4 project as applicable. In a semiconductor supply chain project, the 5 credit shall be up to three percent of the cost or other basis for 6 federal income tax purposes of the qualified investment. A participant 7 may not claim both the excelsior investment tax credit component and the 8 investment tax credit set forth in subdivision one of section two 9 hundred ten-B, subsection (a) of section six hundred six, the former 10 subsection (i) of section fourteen hundred fifty-six, or subdivision (q) 11 of section fifteen hundred eleven of the tax law for the same property 12 in any taxable year, except that a participant may claim both the 13 excelsior investment tax credit component and the investment tax credit 14 for research and development property. In addition, a taxpayer who or 15 which is qualified to claim the excelsior investment tax credit compo- 16 nent and is also qualified to claim the brownfield tangible property 17 credit component under section twenty-one of the tax law may claim 18 either the excelsior investment tax credit component or such tangible 19 property credit component, but not both with regard to a particular 20 piece of property. A credit may not be claimed until a business enter- 21 prise has received a certificate of tax credit, provided that qualified 22 investments made on or after the issuance of the certificate of eligi- 23 bility but before the issuance of the certificate of tax credit to the 24 business enterprise, may be claimed in the first taxable year for which 25 the business enterprise is allowed to claim the credit. Expenses 26 incurred prior to the date the certificate of eligibility is issued are 27 not eligible to be included in the calculation of the credit. 28 3. Excelsior research and development tax credit component. A partic- 29 ipant in the excelsior jobs program shall be eligible to claim a credit 30 equal to fifty percent of the portion of the participant's federal 31 research and development tax credit that relates to the participant's 32 research and development expenditures in New York state during the taxa- 33 ble year; provided however, if not a green project, the excelsior 34 research and development tax credit shall not exceed six percent of the 35 qualified research and development expenditures attributable to activ- 36 ities conducted in New York state, or, if a green project or a Green 37 CHIPS project, the excelsior research and development tax credit shall 38 not exceed eight percent of the research and development expenditures 39 attributable to activities conducted in New York state, or if a semicon- 40 ductor supply chain project, the excelsior research and development tax 41 credit shall not exceed seven percent of the qualified research and 42 development expenditures attributable to activities conducted in New 43 York state. If the federal research and development credit has expired, 44 then the research and development expenditures relating to the federal 45 research and development credit shall be calculated as if the federal 46 research and development credit structure and definition in effect in 47 two thousand nine were still in effect. Notwithstanding any other 48 provision of this chapter to the contrary, research and development 49 expenditures in this state, including salary or wage expenses for jobs 50 related to research and development activities in this state, may be 51 used as the basis for the excelsior research and development tax credit 52 component and the qualified emerging technology company facilities, 53 operations and training credit under the tax law. 54 § 4. Section 359 of the economic development law, as amended by chap- 55 ter 494 of the laws of 2022, is amended to read as follows:S. 3009--C 37 A. 3009--C 1 § 359. Cap on tax credit. 1. Except with respect to tax credits issued 2 to Green CHIPS projects as articulated in subdivision four of this 3 section, the total amount of tax credits issued by the commissioner for 4 any taxable year may not exceed the limitations set forth in this subdi- 5 vision. Except with respect to tax credits issued to Green CHIPS 6 projects as articulated in subdivision four of this section, one-half of 7 any amount of tax credits not awarded for a particular taxable year may 8 be used by the commissioner to award tax credits in another taxable 9 year. 10 Credit components in the aggregate With respect to taxable 11 shall not exceed: years beginning in: 12 $ 50 million 2011 13 $ 100 million 2012 14 $ 150 million 2013 15 $ 200 million 2014 16 $ 250 million 2015 17 $ 183 million 2016 18 $ 183 million 2017 19 $ 183 million 2018 20 $ 183 million 2019 21 $ 183 million 2020 22 $ 183 million 2021 23 $ 133 million 2022 24 $ 83 million 2023 25 $ 36 million 2024 26 $ 200 million 2025 27 $ 200 million 2026 28 $ 200 million 2027 29 $ 200 million 2028 30 $ 200 million 2029 31 $ 200 million 2030 32 $ 200 million 2031 33 $ 200 million 2032 34 $ 200 million 2033 35 $ 200 million 2034 36 2. Twenty-five percent of tax credits shall be allocated to businesses 37 accepted into the program under subdivision four of section three 38 hundred fifty-three of this article and seventy-five percent of tax 39 credits shall be allocated to businesses accepted into the program under 40 subdivision three of section three hundred fifty-three of this article. 41 3. Provided, however, if by September thirtieth of a calendar year, 42 the department has not allocated the full amount of credits available in 43 that year to either: (i) businesses accepted into the program under 44 subdivision four of section three hundred fifty-three of this article or 45 (ii) businesses accepted into the program under subdivision three of 46 section three hundred fifty-three of this article, the commissioner may 47 allocate any remaining tax credits to businesses referenced in this 48 paragraph as needed; provided, however, that under no circumstances may 49 the aggregate statutory cap for all program years be exceeded. One 50 hundred percent of the unawarded amounts remaining at the end of two 51 thousand twenty-nine may be allocated in subsequent years, notwithstand- 52 ing the fifty percent limitation on any amounts of tax credits not 53 awarded in taxable years two thousand eleven through two thousand twen-S. 3009--C 38 A. 3009--C 1 ty-nine. Provided, however, no tax credits may be allowed for taxable 2 years beginning on or after January first, two thousand [forty] fifty. 3 4. The total amount of tax credits issued by the commissioner for the 4 taxable years two thousand twenty-two to two thousand forty-one for 5 Green CHIPS projects shall not exceed five hundred million per year. One 6 hundred percent of any amount of tax credits not awarded for a partic- 7 ular taxable year may be used by the commissioner to award tax credits 8 in another taxable year. Notwithstanding the foregoing, Green CHIPS 9 projects may be allowed to claim credits for taxable years up to January 10 first, two thousand fifty. 11 § 5. Article 22 of the economic development law is REPEALED. 12 § 6. Paragraph (a) of subdivision 50 of section 210-B of the tax law, 13 as added by section 2 of part O of chapter 59 of the laws of 2015, is 14 amended to read as follows: 15 (a) [A] For taxable years beginning before January first, two thousand 16 twenty-nine, a taxpayer that has been approved by the commissioner of 17 economic development to participate in the employee training incentive 18 program and has been issued a certificate of tax credit pursuant to 19 section four hundred forty-three of the economic development law shall 20 be allowed to claim a credit against the tax imposed by this article. 21 The credit shall equal fifty percent of a taxpayer's eligible training 22 costs, up to a credit of ten thousand dollars per employee completing 23 eligible training pursuant to paragraph (a) of subdivision three of 24 section four hundred forty-one of the economic development law. The 25 credit shall equal fifty percent of the stipend paid to an intern, up to 26 a credit of three thousand dollars per intern completing eligible train- 27 ing pursuant to paragraph (b) of subdivision three of section four 28 hundred forty-one of the economic development law. In no event shall a 29 taxpayer be allowed a credit greater than the amount of credit listed on 30 the certificate of tax credit issued by the commissioner of economic 31 development. The credit will be allowed in the taxable year in which the 32 eligible training is completed. 33 § 7. Paragraph 1 of subsection (ddd) of section 606 of the tax law, as 34 added by section 3 of part O of chapter 59 of the laws of 2015, is 35 amended to read as follows: 36 (1) [A] For taxable years beginning before January first, two thousand 37 twenty-nine, a taxpayer that has been approved by the commissioner of 38 economic development to participate in the employee training incentive 39 program and has been issued a certificate of tax credit pursuant to 40 section four hundred forty-three of the economic development law shall 41 be allowed to claim a credit against the tax imposed by this article. 42 The credit shall equal fifty percent of a taxpayer's eligible training 43 costs, up to a credit of ten thousand dollars per employee completing 44 eligible training pursuant to paragraph (a) of subdivision three of 45 section four hundred forty-one of the economic development law. The 46 credit shall equal fifty percent of the stipend paid to an intern, up to 47 a credit of three thousand dollars per intern completing eligible train- 48 ing pursuant to paragraph (b) of subdivision three of section four 49 hundred forty-one of the economic development law. In no event shall a 50 taxpayer be allowed a credit greater than the amount listed on the 51 certificate of tax credit issued by the commissioner of economic devel- 52 opment. In the case of a taxpayer who is a partner in a partnership, 53 member of a limited liability company or shareholder in an S corpo- 54 ration, the taxpayer shall be allowed its pro rata share of the credit 55 earned by the partnership, limited liability company or S corporation.S. 3009--C 39 A. 3009--C 1 The credit will be allowed in the taxable year in which the eligible 2 training is completed. 3 § 8. The economic development law is amended by adding a new article 4 17-A to read as follows: 5 ARTICLE 17-A 6 SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM 7 Section 359-a. Short title. 8 359-b. Statement of legislative findings and declaration. 9 359-c. Definitions. 10 359-d. Eligibility criteria. 11 359-e. Application and approval process. 12 359-f. Powers and duties of the commissioner. 13 359-g. Semiconductor research and development tax credit. 14 359-h. Reporting. 15 § 359-a. Short title. This article shall be known and may be cited as 16 the "semiconductor research and development project act". 17 § 359-b. Statement of legislative findings and declaration. It is 18 hereby found and declared that New York state needs, as a matter of 19 public policy, to create competitive financial incentives to attract 20 large scale semiconductor research and development projects to New York 21 state, and to position New York state to be at the center of cutting 22 edge innovations in the semiconductor industry. 23 § 359-c. Definitions. For the purposes of this article: 24 1. "Certificate of eligibility" means the document issued by the 25 department to an applicant that has completed an application to be 26 admitted into the semiconductor research and development project program 27 and has been accepted into the program by the department. Possession of 28 a certificate of eligibility does not by itself guarantee the eligibil- 29 ity to claim the tax credit. 30 2. "Certificate of tax credit" means the document issued to a partic- 31 ipant by the department, after the department has verified that the 32 participant has met all applicable eligibility criteria in this article. 33 The certificate shall be issued annually if such criteria are satisfied 34 and shall specify the exact amount of the tax credit under this article 35 that a participant may claim and shall specify the taxable year in which 36 such credit may be claimed. 37 3. "Participant" means a business entity that: 38 (a) has completed an application prescribed by the department to be 39 admitted into the program; 40 (b) has been issued a certificate of eligibility by the department; 41 (c) has demonstrated that it meets the eligibility criteria in section 42 three hundred fifty-nine-d and subdivision two of section three hundred 43 fifty-nine-e of this article; and 44 (d) has been certified as a participant by the commissioner. 45 4. "Preliminary schedule of benefits" means the aggregate amount of 46 the tax credit that a participant in the semiconductor research and 47 development project program may be eligible to receive pursuant to this 48 article. The schedule shall indicate the annual amount of the credit a 49 participant may claim in each of its ten years of eligibility. The 50 preliminary schedule of benefits shall be issued by the department when 51 the department approves the application for admission into the program. 52 5. "Qualified investment" means an investment in tangible property 53 (including a building or a structural component of a building) owned by 54 a business enterprise which:S. 3009--C 40 A. 3009--C 1 (a) is depreciable pursuant to section one hundred sixty-seven of the 2 internal revenue code; 3 (b) has a useful life of four years or more; 4 (c) is acquired by purchase as defined in section one hundred seven- 5 ty-nine (d) of the internal revenue code; 6 (d) has a situs in this state; and 7 (e) is placed in service in the state on or after the date the certif- 8 icate of eligibility is issued to the business enterprise. 9 6. "Semiconductor research and development project" means a project 10 for a physical research and development facility, deemed by the commis- 11 sioner as being primarily aimed at supporting research and development 12 within the semiconductor manufacturing and related equipment and materi- 13 al supplier sector. Such project shall incur at least one hundred 14 million dollars in qualified investment in New York state. Such project 15 must lead to the establishment and operation of a research and develop- 16 ment facility separate and apart from new or existing semiconductor or 17 semiconductor supply chain manufacturing facilities. 18 § 359-d. Eligibility criteria. 1. To be a participant in the semicon- 19 ductor research and development project program, a business entity shall 20 operate in New York state and be undertaking a semiconductor research 21 and development project as defined in section three hundred fifty-nine-c 22 of this article. 23 2. A business entity must be in compliance with all worker protection 24 and environmental laws and regulations. In addition, a business entity 25 may not owe past due state taxes or local property taxes unless the 26 business entity is making payments and complying with an approved bind- 27 ing payment agreement entered into with the taxing authority. 28 § 359-e. Application and approval process. 1. A business enterprise 29 must submit a completed application as prescribed by the commissioner. 30 2. As part of such application, each business enterprise must: 31 (a) Agree to allow the department of taxation and finance to share the 32 business enterprise's tax information with the department. However, any 33 information shared as a result of this agreement shall not be available 34 for disclosure or inspection under the state freedom of information law; 35 (b) Agree to allow the department of labor to share its employer 36 information with the department. However, any information shared as a 37 result of this agreement shall not be available for disclosure or 38 inspection under the state freedom of information law; 39 (c) Allow the department and its agents access to any and all books 40 and records the department may require to monitor compliance; 41 (d) Provide to the department, upon request, a plan outlining the 42 schedule for meeting the investment requirements as set forth in subdi- 43 vision six of section three hundred fifty-nine-c of this article. Such 44 plan must include the amount and description of projected qualified 45 investments for which it plans to claim the semiconductor research and 46 development tax credit; 47 (e) Agree to allow the department and the department of taxation and 48 finance to share and exchange information contained in or derived from 49 the applications for admission into the semiconductor research and 50 development project program and the credit claim forms submitted to the 51 department of taxation and finance. However, any information shared as a 52 result of this agreement shall not be available for disclosure or 53 inspection under the state freedom of information law. 54 (f) Certify, under penalty of perjury, that it is in substantial 55 compliance with all environmental, worker protection, and local, state, 56 and federal tax laws.S. 3009--C 41 A. 3009--C 1 3. After reviewing a business enterprise's completed application and 2 determining that the business enterprise will meet the condition set 3 forth in subdivision six of section three hundred fifty-nine-c of this 4 article, the department may admit the applicant into the program and 5 provide the applicant with a certificate of eligibility and a prelimi- 6 nary schedule of benefits by year based on the applicant's projections 7 as set forth in its application. This preliminary schedule of benefits 8 delineates the maximum possible benefits an applicant may receive. 9 4. In order to become a participant in the program, an applicant must 10 submit evidence that it satisfies the eligibility criteria specified in 11 section three hundred fifty-nine-d of this article and subdivision two 12 of this section in such form as the commissioner may prescribe. After 13 reviewing such evidence and finding it sufficient, the department shall 14 certify the applicant as a participant and issue to that participant a 15 certificate of tax credit for one taxable year. To receive a certificate 16 of tax credit for subsequent taxable years, the participant must submit 17 to the department a performance report demonstrating that the partic- 18 ipant continues to satisfy the eligibility criteria specified in this 19 article. 20 5. A participant may claim tax benefits commencing in the first taxa- 21 ble year that the business enterprise receives a certificate of tax 22 credit. A participant may claim such benefits for the next nine consec- 23 utive taxable years, provided that the participant demonstrates to the 24 department that it continues to satisfy the eligibility criteria speci- 25 fied in section three hundred fifty-nine-d of this article and subdivi- 26 sion two of this section in each of those taxable years. 27 § 359-f. Powers and duties of the commissioner. 1. The commissioner 28 may promulgate regulations establishing an application process and 29 eligibility criteria, that will be applied consistent with the purposes 30 of this article, so as not to exceed the annual cap on tax credits set 31 forth in section three hundred fifty-nine-g of this article which, 32 notwithstanding any provisions to the contrary in the state administra- 33 tive procedure act, may be adopted on an emergency basis. 34 2. The commissioner shall, in consultation with the department of 35 taxation and finance, develop a certificate of tax credit that shall be 36 issued by the commissioner to participants. Participants must include 37 the certificate of tax credit with their tax return to receive any tax 38 benefits under this article. 39 3. The commissioner shall solely determine the eligibility of any 40 applicant applying for entry into the program and shall remove any 41 participant from the program for failing to meet any of the requirements 42 set forth in subdivision six of section three hundred fifty-nine-c of 43 this article and section three hundred fifty-nine-d of this article. 44 § 359-g. Semiconductor research and development tax credit. 1. A 45 participant in the semiconductor research and development project 46 program shall be eligible to claim a credit on qualified investments in 47 semiconductor research and development projects in New York state. The 48 amount of such credit shall be equal to fifteen percent of the cost or 49 other basis for federal income tax purposes of the qualified investment. 50 2. The total amount of tax credits listed on certificates of tax cred- 51 it issued by the commissioner shall be allotted from the funds available 52 for Green CHIPS tax credits as provided under subdivision four of 53 section three hundred fifty-nine of this chapter. 54 § 359-h. Reporting. The corporation, beginning February first, two 55 thousand twenty-seven, and annually thereafter provided program funds 56 remain, shall submit a report to the governor, the temporary presidentS. 3009--C 42 A. 3009--C 1 of the senate, and the speaker of the assembly. Such annual report shall 2 include, but need not be limited to: the number of participants approved 3 for the program; names of business entities admitted to the program; 4 regional economic development council region wherein the project 5 resides; the total amount of benefits approved per business and in total 6 for the program; total private sector co-investment provided by each 7 approved business and in total for the program; total jobs created at 8 the project location for all years in which the recipient is receiving 9 benefits under the program, including the median wage paid to employees 10 at the project location and types of jobs created; and such other infor- 11 mation as the commissioner determines is necessary and appropriate. 12 Additionally, in all years in which the program is fully operational, 13 such report shall include noteworthy projects which serve to highlight 14 the developments occurring in New York state as a result of the program. 15 Such report shall be included on the corporation's website and all 16 program participants shall also be included in the database of economic 17 incentives as defined in section fifty-eight of section one of chapter 18 one hundred seventy-four of the laws of nineteen hundred sixty-eight 19 constituting the urban development corporation act. 20 § 9. Section 210-B of the tax law is amended by adding a new subdivi- 21 sion 61 to read as follows: 22 61. Semiconductor research and development tax credit. (a) Allowance 23 of credit. A taxpayer that has been approved by the commissioner of 24 economic development to participate in the semiconductor research and 25 development program and has been issued a certificate of tax credit 26 pursuant to section three hundred fifty-nine-e of the economic develop- 27 ment law shall be allowed to claim a credit against the tax imposed by 28 this article. The credit shall equal up to fifteen percent of the cost 29 or other basis for federal income tax purposes of the qualified invest- 30 ment and shall be allowable in each taxable year for which the commis- 31 sioner of economic development has issued a certificate of tax credit, 32 for up to ten consecutive taxable years. In no event shall a taxpayer be 33 allowed a credit greater than the amount of credit listed on the certif- 34 icate of tax credit issued by the commissioner of economic development. 35 No cost or expense paid or incurred by the taxpayer that is the basis 36 for this credit shall be the basis for any other tax credit provided by 37 this chapter. 38 (b) Application of credit. The credit allowed under this subdivision 39 for any taxable year may not reduce the tax due for such year to less 40 than the amount prescribed in paragraph (d) of subdivision one of 41 section two hundred ten of this article. However, if the amount of cred- 42 it allowed under this subdivision for any taxable year reduces the tax 43 to such amount, or if the taxpayer otherwise pays tax based on the fixed 44 dollar minimum amount, any amount of credit thus not deductible in that 45 taxable year will be treated as an overpayment of tax to be credited or 46 refunded in accordance with the provisions of section one thousand 47 eighty-six of this chapter. Provided, however, the provisions of 48 subsection (c) of section one thousand eighty-eight of this chapter 49 notwithstanding, no interest will be paid thereon. 50 (c) Reporting. The taxpayer shall attach to its tax return its certif- 51 icate of tax credit issued by the commissioner of economic development 52 pursuant to section three hundred fifty-nine-e of the economic develop- 53 ment law. In no event shall the taxpayer be allowed a credit greater 54 than the amount of the credit listed on the certificate of tax credit, 55 or in the case of a taxpayer who is a partner in a partnership, a member 56 of a limited liability company, or shareholder in an S corporation, itsS. 3009--C 43 A. 3009--C 1 pro rata share of the amount of credit listed on the certificate of tax 2 credit. 3 (d) Credit recapture. If a certificate of eligibility or a certificate 4 of tax credit issued by the department of economic development under 5 article seventeen-A of the economic development law is revoked by such 6 department because the taxpayer does not meet the eligibility require- 7 ment set forth in subdivision six of section three hundred fifty-nine-c 8 of the economic development law, the amount of credit described in this 9 subdivision and claimed by the taxpayer prior to that revocation shall 10 be added back to tax in the taxable year in which any such revocation 11 becomes final. 12 § 10. Section 606 of the tax law is amended by adding a new subsection 13 (rrr) to read as follows: 14 (rrr) Semiconductor research and development tax credit. (1) Allowance 15 of credit. A taxpayer that has been approved by the commissioner of 16 economic development to participate in the semiconductor research and 17 development tax credit program and has been issued a certificate of tax 18 credit pursuant to section three hundred fifty-nine-e of the economic 19 development law shall be allowed to claim a credit against the tax 20 imposed by this article. The credit shall equal up to fifteen percent of 21 the cost or other basis for federal income tax purposes of the qualified 22 investment and shall be allowable in each taxable year for which the 23 commissioner of economic development has issued a certificate of tax 24 credit, for up to ten consecutive taxable years. In no event shall a 25 taxpayer be allowed a credit greater than the amount listed on the 26 certificate of tax credit issued by the commissioner of economic devel- 27 opment. In the case of a taxpayer who is a partner in a partnership, 28 member of a limited liability company or shareholder in an S corpo- 29 ration, the taxpayer shall be allowed its pro rata share of the credit 30 earned by the partnership, limited liability company or S corporation. 31 No cost or expense paid or incurred by the taxpayer that is the basis 32 for this credit shall be the basis for any other tax credit provided by 33 this chapter. 34 (2) Application of credit. If the amount of the credit allowed under 35 this subsection for any taxable year exceeds the taxpayer's tax for the 36 taxable year, the excess shall be treated as an overpayment of tax to be 37 credited or refunded in accordance with the provisions of section six 38 hundred eighty-six of this article, provided, however, no interest will 39 be paid thereon. 40 (3) Reporting. The taxpayer shall attach to its tax return its certif- 41 icate of tax credit issued by the commissioner of economic development 42 pursuant to section three hundred fifty-nine-e of the economic develop- 43 ment law. In no event shall the taxpayer be allowed a credit greater 44 than the amount of the credit listed on the certificate of tax credit, 45 or in the case of a taxpayer who is a partner in a partnership, a member 46 of a limited liability company, or shareholder in an S corporation, its 47 pro rata share of the amount of credit listed on the certificate of tax 48 credit. 49 (4) Credit recapture. If a certificate of eligibility or a certificate 50 of tax credit issued by the department of economic development under 51 article seventeen-A of the economic development law is revoked by such 52 department because the taxpayer does not meet the eligibility require- 53 ment set forth in subdivision six of section three hundred fifty-nine-c 54 of economic development law, the amount of credit described in this 55 subdivision and claimed by the taxpayer prior to that revocation shallS. 3009--C 44 A. 3009--C 1 be added back to tax in the taxable year in which any such revocation 2 becomes final. 3 § 11. The economic development law is amended by adding a new article 4 28 to read as follows: 5 ARTICLE 28 6 SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCENTIVE PROGRAM 7 Section 501. Definitions. 8 502. Eligibility criteria. 9 503. Application and approval process. 10 504. Powers and duties of the commissioner. 11 505. Recordkeeping requirements. 12 506. Cap on tax credit. 13 507. Reporting. 14 § 501. Definitions. As used in this article, the following terms shall 15 have the following meanings: 16 1. "Approved provider" means an entity approved by the commissioner 17 that may provide eligible training to employees of a business entity 18 participating in the semiconductor manufacturing workforce training 19 incentive program. Such criteria shall ensure that any approved provider 20 possesses adequate credentials to provide the training described in an 21 application by a business entity to the commissioner to participate in 22 the semiconductor manufacturing workforce training incentive program. 23 2. "Eligible training" means training provided to an employee hired 24 within twelve months of the business entity applying for this program by 25 the business entity or an approved provider that is: 26 (a) to upgrade, retrain or improve the productivity of employees; 27 (b) determined by the commissioner to satisfy a business need on the 28 part of a participating business entity; 29 (c) not designed to train or upgrade skills as required by a federal 30 or state entity; and 31 (d) structured to result in measurable advancements in skills and 32 competencies that will contribute to opportunities for advancement for 33 employees who complete the training. 34 3. "Manufacturing business" means a business that is engaged in the 35 process of working raw materials into products suitable for use or which 36 gives new shapes, new quality or new combinations to matter which has 37 already gone through some artificial process by the use of machinery, 38 tools, appliances, or other similar equipment. "Manufacturing" does not 39 include an operation that involves only the assembly of components, 40 provided, however, that the assembly of motor vehicles or other high 41 value-added products shall be considered manufacturing. 42 4. "Semiconductor manufacturing business" means a business deemed by 43 the commissioner to make products or develop technologies that are 44 primarily aimed at supporting the growth of the semiconductor manufac- 45 turing and related equipment and material supplier sector. This shall 46 include, but need not be limited to, semiconductor device manufacturing, 47 producers of component parts, direct input materials and equipment 48 necessary for the manufacture of semiconductor chips, machinery, equip- 49 ment, and materials necessary for the operational efficiency of semicon- 50 ductor manufacturing facilities, other such inputs directly supportive 51 of the domestic production of semiconductor chips, and companies engaged 52 in the assembly, testing, packaging and advanced packaging semiconductor 53 value chain. The "semiconductor and supply chain" tier shall not 54 include a project primarily composed of: (a) machinery, equipment, or 55 materials that are inputs to manufacturing generally, but are not direct 56 inputs to semiconductor manufacturing in specific; or (b) the productionS. 3009--C 45 A. 3009--C 1 of products or development of technologies that would produce only 2 marginal and incremental benefits to the semiconductor manufacturing 3 sector. 4 5. "Wrap around services" means transportation, childcare, case 5 management and other services designed to maximize the economic impact 6 of workforce development training for participants, and to provide the 7 support services necessary to ensure trainees can access training. 8 § 502. Eligibility criteria. In order to participate in the manufac- 9 turing workforce training incentive program, a business entity must 10 satisfy the following criteria: 11 1. The business entity must operate in the state as a semiconductor 12 manufacturing business or a manufacturing business as defined in this 13 article; 14 2. The business entity must demonstrate that it is conducting eligible 15 training or obtaining eligible training from an approved provider; and 16 3. The business entity must be in compliance with all worker 17 protection and environmental laws and regulations. In addition, the 18 business entity may not owe past due state taxes or local property 19 taxes. 20 4. The business entity must submit a report upon completion of the 21 eligible training that specifies the total amount of eligible training 22 costs covered, including a breakdown between training expenses, wages, 23 and wraparound services; the total number of employees that begin train- 24 ing; the total number of employees that finish training; the skills or 25 type of training provided, including a list of applicable transferrable 26 credentialing opportunities that were provided and information on wheth- 27 er or not the program is a registered apprenticeship program; informa- 28 tion on any formalized agreements or partnerships with community or 29 labor organizations to support the training program; the name of the 30 training provider; and whether the covered employee is retained one year 31 after the completion of the funded training. 32 § 503. Application and approval process. 1. A business entity must 33 submit a completed application in such form and with such information as 34 prescribed by the commissioner. 35 2. As part of such application, each business entity must: 36 (a) provide such documentation as the commissioner may require in 37 order for the commissioner to determine that the business entity intends 38 to conduct eligible training or procure eligible training for its 39 employees from an approved provider; 40 (b) agree to allow the department of taxation and finance to share its 41 tax information with the department. However, any information shared as 42 a result of this agreement shall not be available for disclosure or 43 inspection under the state freedom of information law; 44 (c) agree to allow the department of labor to share its tax and 45 employer information with the department. However, any information 46 shared as a result of this agreement shall not be available for disclo- 47 sure or inspection under the state freedom of information law; 48 (d) allow the department and its agents access to any and all books 49 and records the department may require to monitor compliance; and 50 (e) agree to allow the department and the department of taxation and 51 finance to share and exchange information contained in or derived from 52 the applications for admission into the semiconductor manufacturing 53 workforce training incentive program and the credit claim forms submit- 54 ted to the department of taxation and finance. However, any information 55 shared as a result of this agreement shall not be available for disclo- 56 sure or inspection under the state freedom of information law.S. 3009--C 46 A. 3009--C 1 3. The commissioner may approve an application from a business entity 2 upon determining that such business entity meets the eligibility crite- 3 ria established in section five hundred two of this article. Following 4 approval by the commissioner of an application by a business entity to 5 participate in the semiconductor manufacturing workforce training incen- 6 tive program, the commissioner shall issue a certificate of tax credit 7 to the business entity upon its demonstrating successful completion of 8 such eligible training to the satisfaction of the commissioner. For 9 eligible training as defined by subdivision two of section five hundred 10 one of this article the amount of the credit shall be equal to seventy- 11 five percent of wages, salaries or other compensation, training costs, 12 and wrap around services, up to a credit of twenty-five thousand dollars 13 per employee receiving eligible training, up to one million dollars per 14 eligible non-semiconductor manufacturing business and up to five million 15 dollars per eligible semiconductor manufacturing business. The tax cred- 16 its shall be claimed by the qualified employer as specified in subdivi- 17 sion sixty-two of section two hundred ten-B and subsection (rrr) of 18 section six hundred six of the tax law. 19 § 504. Powers and duties of the commissioner. 1. The commissioner 20 shall promulgate regulations consistent with the purposes of this arti- 21 cle that, notwithstanding any provisions to the contrary in the state 22 administrative procedure act, may be adopted on an emergency basis. Such 23 regulations shall include, but not be limited to, eligibility criteria 24 for business entities desiring to participate in the semiconductor manu- 25 facturing workforce training incentive program, procedures for the 26 receipt and evaluation of applications from business entities to partic- 27 ipate in the program, and such other provisions as the commissioner 28 deems to be appropriate in order to implement the provisions of this 29 article. 30 2. The commissioner shall, in consultation with the department of 31 taxation and finance, develop a certificate of tax credit that shall be 32 issued by the commissioner to participating business entities. Partic- 33 ipants may be required by the commissioner of taxation and finance to 34 include the certificate of tax credit with their tax return to receive 35 any tax benefits under this article. 36 3. The commissioner shall solely determine the eligibility of any 37 applicant applying for entry into the program and shall remove any 38 participant from the program for failing to meet any of the requirements 39 set forth in section five hundred two of this article or for making a 40 material misrepresentation with respect to its participation in the 41 program. 42 § 505. Recordkeeping requirements. Each business entity participating 43 in the program shall maintain all relevant records for the duration of 44 its program participation plus three years. 45 § 506. Cap on tax credit. The total amount of tax credits listed on 46 certificates of tax credit issued by the commissioner for any taxable 47 year may not exceed twenty million dollars, and shall be allotted from 48 the funds available for tax credits under the excelsior jobs program act 49 pursuant to section three hundred fifty-nine of this chapter. 50 § 507. Reporting. The corporation, beginning October first, two thou- 51 sand twenty-seven, and annually thereafter provided program funds 52 remain, shall submit a report to the governor, the temporary president 53 of the senate, and the speaker of the assembly. Such annual report shall 54 include, but need not be limited to: the number of business participants 55 in the program, the total number of workers trained under the program in 56 total and per participating business including an articulation of theS. 3009--C 47 A. 3009--C 1 number of workers that begin training, complete training, and are still 2 employed with the participating business one year after training is 3 completed, the total program funding level allocated in total and per 4 participating business, the regional economic development council region 5 wherein each participating business resides, a breakdown between funding 6 allocated to training, wages, and wraparound services, a summary of the 7 skills or type of training provided per participating business, and such 8 other information as the commissioner determines is necessary and appro- 9 priate. Additionally, in all years in which the program is fully opera- 10 tional, such report shall include noteworthy projects which serve to 11 highlight the developments occurring in New York state as a result of 12 the program. Such report shall be included on the corporation's website 13 and all program participants shall also be included in the database of 14 economic incentives as defined in section fifty-eight of section one of 15 chapter one hundred seventy-four of the laws of nineteen hundred sixty- 16 eight constituting the urban development corporation act. 17 § 12. Section 210-B of the tax law is amended by adding a new subdivi- 18 sion 62 to read as follows: 19 62. Semiconductor manufacturing workforce training program tax credit. 20 (a) Allowance of tax credit. A taxpayer that has been approved by the 21 commissioner of economic development to participate in the semiconductor 22 manufacturing workforce training program and has been issued a certif- 23 icate of tax credit pursuant to section five hundred three of the 24 economic development law shall be allowed to claim a credit against the 25 tax imposed by this article. The credit shall equal seventy-five percent 26 of wages, salaries or other compensation, training costs, and wrap 27 around services, up to a credit of twenty-five thousand dollars per 28 employee receiving eligible training, up to one million dollars per 29 eligible non-semiconductor manufacturing business and up to five million 30 dollars per eligible semiconductor manufacturing business pursuant to 31 subdivision three of section five hundred three of the economic develop- 32 ment law. In no event shall a taxpayer be allowed a credit greater than 33 the amount of credit listed on the certificate of tax credit issued by 34 the commissioner of economic development. The credit shall be allowed in 35 the taxable year in which the eligible training is completed. No cost or 36 other expense paid or incurred by the taxpayer that is the basis for 37 this credit shall be the basis for any other tax credit provided by this 38 chapter. 39 (b) Application of credit. The credit allowed under this subdivision 40 for any taxable year may not reduce the tax due for such year to less 41 than the amount prescribed in paragraph (d) of subdivision one of 42 section two hundred ten of this article. However, if the amount of cred- 43 it allowed under this subdivision for any taxable year reduces the tax 44 to such amount, or if the taxpayer otherwise pays tax based on the fixed 45 dollar minimum amount, any amount of credit thus not deductible in that 46 taxable year will be treated as an overpayment of tax to be credited or 47 refunded in accordance with the provisions of section one thousand 48 eighty-six of this chapter. Provided, however, the provisions of 49 subsection (c) of section one thousand eighty-eight of this chapter 50 notwithstanding, no interest will be paid thereon. 51 (c) Reporting. The taxpayer shall attach to its tax return its certif- 52 icate of tax credit issued by the commissioner of economic development 53 pursuant to section five hundred three of the economic development law. 54 In no event shall the taxpayer be allowed a credit greater than the 55 amount of the credit listed on the certificate of tax credit, or in the 56 case of a taxpayer who is a partner in a partnership, a member of aS. 3009--C 48 A. 3009--C 1 limited liability company, or shareholder in an S corporation, its pro 2 rata share of the amount of credit listed in the certificate of tax 3 credit. 4 (d) Credit recapture. If a certificate of eligibility or a certificate 5 of tax credit issued by the department of the economic development under 6 article twenty-eight of the economic development law is revoked by such 7 department because the taxpayer does not meet the eligibility require- 8 ment set forth in subdivision three of section five hundred three of the 9 economic development law, the amount of credit described in this subdi- 10 vision and claimed by the taxpayer prior to that revocation shall be 11 added back to tax in the taxable year in which any such revocation 12 becomes final. 13 § 13. Section 606 of the tax law is amended by adding a new subsection 14 (sss) to read as follows: 15 (sss) Semiconductor workforce training program tax credit. (1) Allow- 16 ance of tax credit. A taxpayer that has been approved by the commission- 17 er of economic development to participate in the semiconductor workforce 18 training program and has been issued a certificate of tax credit pursu- 19 ant to section five hundred three of the economic development law shall 20 be allowed to claim a credit against the tax imposed by this article. 21 The credit shall equal seventy-five percent of wages, salaries or other 22 compensation, training costs, and wrap around services, up to a credit 23 of twenty-five thousand dollars per employee receiving eligible train- 24 ing, up to one million dollars per eligible non-semiconductor manufac- 25 turing business and up to five million dollars per eligible semiconduc- 26 tor manufacturing business pursuant to subdivision three of section five 27 hundred three of the economic development law. In no event shall a 28 taxpayer be allowed a credit greater than the amount listed on the 29 certificate of tax credit issued by the commissioner of economic devel- 30 opment. In the case of a taxpayer who is a partner in a partnership, 31 member of a limited liability company or shareholder in an S corpo- 32 ration, the taxpayer shall be allowed its pro rata share of the credit 33 earned by the partnership, limited liability company or S corporation. 34 The credit shall be allowed in the taxable year in which the eligible 35 training is completed. No cost or expense paid or incurred by the 36 taxpayer that is the basis for this credit shall be the basis for any 37 other tax credit provided by this chapter. 38 (2) Application of credit. If the amount of the credit allowed under 39 this subsection for any taxable year exceeds the taxpayer's tax for the 40 taxable year, the excess shall be treated as an overpayment of tax to be 41 credited or refunded in accordance with the provisions of section six 42 hundred eighty-six of this article, provided, however, no interest will 43 be paid thereon. 44 (3) Reporting. The taxpayer shall attach to its tax return its certif- 45 icate of tax credit issued by the commissioner of economic development 46 pursuant to section five hundred three of the economic development law. 47 In no event shall the taxpayer be allowed a credit greater than the 48 amount of the credit listed on the certificate of tax credit, or in the 49 case of a taxpayer who is a partner in a partnership, a member of a 50 limited liability company, or shareholder in an S corporation, its pro 51 rata share of the amount of credit listed on the certificate of tax 52 credit. 53 (4) Credit recapture. If a certificate of eligibility or a certificate 54 of tax credit issued by the department of economic development under 55 article twenty-eight of the economic development law is revoked by such 56 department because the taxpayer does not meet the eligibility require-S. 3009--C 49 A. 3009--C 1 ment set forth in subdivision three of section five hundred three of the 2 economic development law, the amount of credit described in this 3 subsection and claimed by the taxpayer prior to that revocation shall be 4 added back to tax in the taxable year in which any such revocation 5 becomes final. 6 § 14. This act shall take effect immediately and apply to taxable 7 years beginning on or after January 1, 2025; provided, however, that 8 section five of this act shall take effect December 31, 2028. 9 SUBPART B 10 Section 1. Section 421 of the economic development law, as added by 11 section 1 of part E of chapter 56 of the laws of 2011, is amended to 12 read as follows: 13 § 421. Statement of legislative findings and declaration. It is hereby 14 found and declared that New York state needs, as a matter of public 15 policy, to create competitive financial incentives to retain [strategic] 16 businesses, including small businesses and jobs that are at risk of 17 leaving the state or closing operations due to the impact on its busi- 18 ness operations of an event leading to an emergency declaration by the 19 governor. The empire state jobs retention program is created to support 20 the retention of the state's [most strategic] businesses, including 21 small businesses in the event of an emergency. 22 This legislation creates a jobs tax credit for each job of a [strate-23gic] business, including a small business directly impacted by an emer- 24 gency and protects state taxpayers' dollars by ensuring that New York 25 provides tax benefits only to businesses that can demonstrate substan- 26 tial physical damage and economic harm resulting from an event leading 27 to an emergency declaration by the governor. 28 § 2. Section 422 of the economic development law, as added by section 29 1 of part E of chapter 56 of the laws of 2011, is amended to read as 30 follows: 31 § 422. Definitions. For the purposes of this article: 32 1. ["Agriculture" means both agricultural production (establishments33performing the complete farm or ranch operation, such as farm owner-op-34erators, tenant farm operators, and sharecroppers) and agricultural35support (establishments that perform one or more activities associated36with farm operation, such as soil preparation, planting, harvesting, and37management, on a contract or fee basis).382. "Back office operations" means a business function that may include39one or more of the following activities: customer service, information40technology and data processing, human resources, accounting and related41administrative functions.423.] "Certificate of eligibility" means the document issued by the 43 department to an applicant that has completed an application to be 44 admitted into the empire state jobs retention program and has been 45 accepted into the program by the department. Possession of a certificate 46 of eligibility does not by itself guarantee the eligibility to claim the 47 tax credit. 48 [4.] 2. "Certificate of tax credit" means the document issued to a 49 participant by the department, after the department has verified that 50 the participant has met all applicable eligibility criteria in this 51 article. The certificate shall be issued annually if such criteria are 52 satisfied and shall specify the exact amount of each tax credit under 53 this article that a participant may claim, pursuant to section fourS. 3009--C 50 A. 3009--C 1 hundred twenty-five of this article, and shall specify the taxable year 2 in which such credit may be claimed. 3 [5. "Distribution center" means a large scale facility involving proc-4essing, repackaging and/or movement of finished or semi-finished goods5to retail locations across a multi-state area.66. "Financial services data centers" or "financial services customer7back office operations" means operations that manage the data or8accounts of existing customers or provide product or service information9and support to customers of financial services companies, including10banks, other lenders, securities and commodities brokers and dealers,11investment banks, portfolio managers, trust offices, and insurance12companies.137.] 3. "Impacted jobs" means jobs [existing] at a business enterprise 14 [at a location or locations within the county declared an emergency by15the governor on the day immediately preceding the day on which the event16leading to the emergency declaration by the governor occurred] existing 17 the day before an event leading to an emergency declaration by the 18 governor at a location or locations which demonstrate substantial phys- 19 ical damage and economic harm caused by the event for which the emergen- 20 cy declaration was made. 21 [8. "Manufacturing" means the process of working raw materials into22products suitable for use or which gives new shapes, new quality or new23combinations to matter which has already gone through some artificial24process by the use of machinery, tools, appliances, or other similar25equipment. "Manufacturing" does not include an operation that involves26only the assembly of components, provided, however, the assembly of27motor vehicles or other high value-added products shall be considered28manufacturing.299.] 4. "Participant" means a business entity that: 30 (a) has completed an application prescribed by the department to be 31 admitted into the program; 32 (b) has been issued a certificate of eligibility by the department; 33 (c) has demonstrated that it meets the eligibility criteria in section 34 four hundred twenty-three and subdivision two of section four hundred 35 twenty-four of this article; and 36 (d) has been certified as a participant by the commissioner. 37 [10.] 5. "Preliminary schedule of benefits" means the maximum aggre- 38 gate amount of the tax credit that a participant in the empire state 39 jobs retention program is eligible to receive pursuant to this article. 40 The schedule shall indicate the annual amount of the credit a partic- 41 ipant may claim in [each of] its [ten years] six months of eligibility. 42 The preliminary schedule of benefits shall be issued by the department 43 when the department approves the application for admission into the 44 program. The commissioner may amend that schedule, provided that the 45 commissioner complies with the credit caps in section three hundred 46 fifty-nine of this chapter. 47 [11.] 6. "Related person" means a related person pursuant to subpara- 48 graph (c) of paragraph three of subsection (b) of section four hundred 49 sixty-five of the internal revenue code. 50 [12. "Scientific research and development" means conducting research51and experimental development in the physical, engineering, and life52sciences, including but not limited to agriculture, electronics, envi-53ronmental, biology, botany, biotechnology, computers, chemistry, food,54fisheries, forests, geology, health, mathematics, medicine, oceanogra-55phy, pharmacy, physics, veterinary, and other allied subjects. For theS. 3009--C 51 A. 3009--C 1purposes of this article, scientific research and development does not2include medical or veterinary laboratory testing facilities.313. "Software development" means the creation of coded computer4instructions and includes new media as defined by the commissioner in5regulations.] 6 7. "Business entity" means a for profit business duly authorized to do 7 business in and in good standing in the state of New York. 8 § 3. Section 423 of the economic development law, as added by section 9 1 of part E of chapter 56 of the laws of 2011, is amended to read as 10 follows: 11 § 423. Eligibility criteria. 1. [To be a participant in the empire12state jobs retention program, a business entity shall operate in New13York state predominantly:14(a) as a financial services data center or a financial services back15office operation;16(b) in manufacturing;17(c) in software development and new media;18(d) in scientific research and development;19(e) in agriculture;20(f) in the creation or expansion of back office operations in the21state; or22(g) in a distribution center.232. When determining whether an applicant is operating predominantly in24one of the industries listed in subdivision one of this section, the25commissioner will examine the nature of the business activity at the26location for the proposed project and will make eligibility determi-27nations based on such activity.283.] For the purposes of this article, in order to participate in the 29 empire state jobs retention program[, a business entity operating in one30of the strategic industries listed in subdivision one of this section31(a) must be located in a county in which an emergency has been declared32by the governor] on or after [January] June first, two thousand [eleven] 33 twenty-five, [(b)] a business entity must demonstrate substantial phys- 34 ical damage and economic harm at a location or locations within an area 35 for which the governor has issued an emergency declaration and resulting 36 from the event leading to the emergency declaration by the governor[,37and (c) must have had at least one hundred full-time equivalent jobs in38the county in which an emergency has been declared by the governor on39the day immediately preceding the day on which the event leading to the40emergency declaration by the governor occurred, and must retain or41exceed that number of jobs in New York state.424. A not-for-profit business entity, a business entity whose primary43function is the provision of services including personal services, busi-44ness services, or the provision of utilities, a business entity engaged45predominantly in the retail or entertainment industry, or a company46engaged in the generation or distribution of electricity, the distrib-47ution of natural gas, or the production of steam associated with the48generation of electricity are not eligible to receive the tax credit49described in this article]. At the time of application, a business enti- 50 ty shall submit to the department a plan to retain, restore or increase 51 staffing levels within one year from the date of application to at least 52 the staffing levels that existed at the site the day prior to the date 53 of the applicable declaration of the state of emergency. Any recipient 54 that does not adhere to its jobs retention plan, shall have its program 55 award rescinded unless the recipient can demonstrate economic hardshipS. 3009--C 52 A. 3009--C 1 to the commissioner, in which case any such program award may be reduced 2 proportionally by the number of employees not restored or retained. 3 [5.] 2. A business entity must be in compliance with all worker 4 protection and environmental laws and regulations. In addition, a busi- 5 ness entity may not owe past due state taxes. In addition, a business 6 entity must not owe local property taxes for any year prior to the year 7 in which it applies to participate in the empire state jobs retention 8 program. 9 § 4. Section 424 of the economic development law, as added by section 10 1 of part E of chapter 56 of the laws of 2011, is amended to read as 11 follows: 12 § 424. Application and approval process. 1. A business [enterprise] 13 entity must submit a completed application as prescribed by the commis- 14 sioner. Such completed application must be submitted to the commissioner 15 within [(a)] one hundred eighty days of the declaration of an emergency 16 by the governor in the county in which the business enterprise is 17 located [or (b) one hundred eighty days of the enactment of this arti-18cle, if such date is later than the date specified in paragraph (a) of19this subdivision]; provided, however, that the eligibility period for 20 the credit shall begin upon the date of declaration of an emergency by 21 the governor covering the county in which the business entity is 22 located. 23 2. As part of such application, each business [enterprise] entity 24 must: 25 (a) agree to allow the department of taxation and finance to share its 26 tax information with the department. However, any information shared as 27 a result of this agreement shall not be available for disclosure or 28 inspection under the state freedom of information law. 29 (b) agree to allow the department of labor to share its tax and 30 employer information with the department. However, any information 31 shared as a result of this agreement shall not be available for disclo- 32 sure or inspection under the state freedom of information law. 33 (c) allow the department and its agents access to any and all books 34 and records the department may require to monitor compliance. 35 (d) agree to be permanently disqualified for empire zone tax benefits 36 at any location or locations that qualify for empire state jobs 37 retention program benefits if admitted into the empire state jobs 38 retention program. 39 (e) provide the following information to the department upon request: 40 (i) a plan outlining the schedule for meeting the jobs retention 41 requirements as set forth in subdivision [three] one of section four 42 hundred twenty-three of this article. Such plan must include details on 43 jobs titles and expected salaries; 44 (ii) the prior three years of federal and state income or franchise 45 tax returns, unemployment insurance quarterly returns, real property tax 46 bills and audited financial statements; and 47 (iii) the employer identification or social security numbers for all 48 related persons to the applicant, including those of any members of a 49 limited liability company or partners in a partnership. 50 (f) provide a clear and detailed presentation of all related persons 51 to the applicant to assure the department that jobs are not being shift- 52 ed within the state. 53 (g) certify, under penalty of perjury, that it is in substantial 54 compliance with all environmental, worker protection, and local, state, 55 and federal tax laws.S. 3009--C 53 A. 3009--C 1 3. After reviewing a business enterprise's completed application and 2 determining that the business enterprise will meet the conditions set 3 forth in subdivision [three] one of section four hundred twenty-three of 4 this article, the department may admit the applicant into the program 5 and provide the applicant with a certificate of eligibility and a 6 preliminary schedule of benefits by year based on the applicant's 7 projections as set forth in its application. This preliminary schedule 8 of benefits delineates the maximum possible benefits an applicant may 9 receive. 10 4. In order to become a participant in the program, an applicant must 11 submit evidence that it satisfies the eligibility criteria specified in 12 section four hundred twenty-three of this article and subdivision two of 13 this section in such form as the commissioner may prescribe. After 14 reviewing such evidence and finding it sufficient, the department shall 15 certify the applicant as a participant and issue to that participant a 16 certificate of tax credit [for one taxable year. To receive a certif-17icate of tax credit for subsequent taxable years, the participant must18submit to the department a performance report demonstrating that the19participant continues to satisfy the eligibility criteria specified in20section four hundred twenty-three of this article and subdivision two of21this section]. 22 5. A participant may claim tax benefits commencing in the first taxa- 23 ble year that the business enterprise receives a certificate of tax 24 credit or the first taxable year listed on its preliminary schedule of 25 benefits, whichever is later. [A participant may claim such benefits for26the next nine consecutive taxable years, provided that the participant27demonstrates to the department that it continues to satisfy the eligi-28bility criteria specified in section four hundred twenty-three of this29article and subdivision two of this section in each of those taxable30years.] 31 § 5. Section 425 of the economic development law, as added by section 32 1 of part E of chapter 56 of the laws of 2011, is amended to read as 33 follows: 34 § 425. Empire state jobs retention program credit. 1. A participant in 35 the empire state jobs retention program shall be eligible to claim a 36 credit for the impacted jobs. [The] For a business entity that employes 37 three to forty-nine employees, the amount of such credit shall be equal 38 to the product of the gross wages paid for the impacted jobs and [6.85] 39 up to 15 percent. For a business entity that employs fifty to one 40 hundred employees, the amount of such credit shall be equal to the prod- 41 uct of the gross wages paid for the impacted jobs and up to 7.5 percent. 42 For a business entity that employs greater than one hundred employees, 43 the amount of such credit shall be equal to the product of the gross 44 wages paid for the impacted jobs and up to 3.75 percent. An eligible 45 business entity may only receive up to $500,000 in tax credits per event 46 triggering an emergency declaration by the governor. 47 2. The tax credit established in this section shall be refundable as 48 provided in the tax law. If a participant fails to satisfy the eligibil- 49 ity criteria [in any one year], it will lose the ability to claim credit 50 [for that year]. The event of such failure shall not extend the original 51 [ten-year] six-month eligibility period. 52 3. The business enterprise shall be allowed to claim the credit as 53 prescribed in section thirty-six of the tax law[; provided, however, a54business enterprise shall not be allowed to claim the credit prior to55tax year two thousand twelve].S. 3009--C 54 A. 3009--C 1 4. A participant may be eligible for benefits under this article as 2 well as article seventeen of this chapter, provided the participant can 3 only receive benefits pursuant to subdivision two of section three 4 hundred fifty-five of this chapter for costs in excess of costs recov- 5 ered by insurance. 6 § 6. Section 426 of the economic development law, as added by section 7 1 of part E of chapter 56 of the laws of 2011, is amended to read as 8 follows: 9 § 426. Powers and duties of the commissioner. 1. The commissioner 10 shall promulgate regulations establishing [an] the type of application 11 process and the eligibility criteria, that will be applied consistent 12 with the purposes of this article, so as not to exceed thirty million 13 dollars from the annual cap on tax credits set forth in section three 14 hundred fifty-nine of this chapter which, notwithstanding any provisions 15 to the contrary in the state administrative procedure act, may be 16 adopted on an emergency basis. Such regulations shall include, but not 17 be limited to, criteria for determining whether a business entity demon- 18 strates substantial physical damage and economic harm from the event 19 leading to an emergency declaration by the governor. 20 2. The commissioner shall, in consultation with the department of 21 taxation and finance, develop a certificate of tax credit that shall be 22 issued by the commissioner to participants. Participants may be required 23 by the commissioner of taxation and finance to include the certificate 24 of tax credit with their tax return to receive any tax benefits under 25 this article. 26 3. The commissioner shall solely determine the eligibility of any 27 applicant applying for entry into the program and shall remove any 28 participant from the program for failing to meet any of the requirements 29 set forth in subdivision two of section four hundred twenty-four of this 30 article, or for failing to meet the job retention requirements set forth 31 in [subdivision three of] section four hundred twenty-three of this 32 article[, or for failing to meet the requirements of subdivision five of33section four hundred twenty-three of this article]. 34 § 7. This act shall take effect immediately. 35 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 36 sion, section or part of this act shall be adjudged by any court of 37 competent jurisdiction to be invalid, such judgment shall not affect, 38 impair, or invalidate the remainder thereof, but shall be confined in 39 its operation to the clause, sentence, paragraph, subdivision, section 40 or part thereof directly involved in the controversy in which such judg- 41 ment shall have been rendered. It is hereby declared to be the intent of 42 the legislature that this act would have been enacted even if such 43 invalid provisions had not been included herein. 44 § 3. This act shall take effect immediately, provided, however, that 45 the applicable effective date of Subparts A and B of this act shall be 46 as specifically set forth in the last section of such Subparts. 47 PART I 48 Section 1. Paragraphs 2 and 5 of subdivision (a) of section 24 of the 49 tax law, paragraph 2 as amended by section 1 and paragraph 5 as amended 50 by section 2 of part D of chapter 59 of the laws of 2023, are amended 51 and a new paragraph 6 is added to read as follows: 52 (2) The amount of the credit shall be the product (or pro rata share 53 of the product, in the case of a member of a partnership) of thirty 54 percent and the qualified production costs paid or incurred in theS. 3009--C 55 A. 3009--C 1 production of a qualified film, provided that: (i) the qualified 2 production costs (excluding post production costs) paid or incurred 3 which are attributable to the use of tangible property or the perform- 4 ance of services at a qualified film production facility in the 5 production of such qualified film equal or exceed seventy-five percent 6 of the production costs (excluding post production costs) paid or 7 incurred which are attributable to the use of tangible property or the 8 performance of services at any film production facility within and with- 9 out the state in the production of such qualified film, [and] (ii) 10 except with respect to a qualified independent film production company 11 or pilot, at least ten percent of the total principal photography shoot- 12 ing days spent in the production of such qualified film must be spent at 13 a qualified film production facility, and (iii) qualified production 14 costs that are attributable to scoring shall be eligible for an addi- 15 tional ten percent credit on such scoring costs when incurred within the 16 state and when such scoring costs include payment to a minimum of five 17 musicians. However, if the qualified production costs (excluding post 18 production costs) which are attributable to the use of tangible property 19 or the performance of services at a qualified film production facility 20 in the production of such qualified film is less than three million 21 dollars, then the portion of the qualified production costs attributable 22 to the use of tangible property or the performance of services in the 23 production of such qualified film outside of a qualified film production 24 facility shall be allowed only if the shooting days spent in New York 25 outside of a film production facility in the production of such quali- 26 fied film equal or exceed seventy-five percent of the total shooting 27 days spent within and without New York outside of a film production 28 facility in the production of such qualified film. The credit shall be 29 allowed for the taxable year in which the production of such qualified 30 film is completed. However, in the case of a qualified film that 31 receives funds from additional pool 2, no credit shall be claimed before 32 the later of (1) the taxable year the production of the qualified film 33 is complete, or (2) the taxable year that includes the last day of the 34 allocation year for which the film has been allocated credit by the 35 department of economic development. If the amount of the credit is at 36 least one million dollars but less than five million dollars, the credit 37 shall be claimed over a two year period beginning in the first taxable 38 year in which the credit may be claimed and in the next succeeding taxa- 39 ble year, with one-half of the amount of credit allowed being claimed in 40 each year. If the amount of the credit is at least five million dollars, 41 the credit shall be claimed over a three year period beginning in the 42 first taxable year in which the credit may be claimed and in the next 43 two succeeding taxable years, with one-third of the amount of the credit 44 allowed being claimed in each year. Provided, however, in the case of a 45 qualified film for which the credit application was received on or after 46 January first, two thousand twenty-five, the credit shall be claimed in 47 the taxable year that includes the last day of the allocation year for 48 which the film has been allocated a credit by the department of economic 49 development. 50 (5) For the period two thousand fifteen through two thousand [thirty-51four] thirty-six, in addition to the amount of credit established in 52 paragraph two of this subdivision, a taxpayer shall be allowed a credit 53 equal to (i) the product (or pro rata share of the product, in the case 54 of a member of a partnership) of ten percent and the wages, salaries or 55 other compensation constituting qualified production costs as defined in 56 paragraph two of subdivision (b) of this section, paid to individualsS. 3009--C 56 A. 3009--C 1 directly employed by a qualified film production company or a qualified 2 independent film production company for services performed by those 3 individuals in one of the counties specified in this paragraph in 4 connection with a qualified film with a minimum budget of five hundred 5 thousand dollars, and (ii) the product (or pro rata share of the prod- 6 uct, in the case of a member of a partnership) of ten percent and the 7 qualified production costs (excluding wages, salaries or other compen- 8 sation) paid or incurred in the production of a qualified film where the 9 property constituting such qualified production costs was used, and the 10 services constituting such qualified production costs were performed in 11 any of the counties specified in this paragraph in connection with a 12 qualified film with a minimum budget of five hundred thousand dollars 13 where the majority of principal photography shooting days in the 14 production of such film were shot in any of the counties specified in 15 this paragraph. Provided, however, that the aggregate total eligible 16 qualified production costs constituting wages, salaries or other compen- 17 sation, for writers, directors, composers, producers, and performers 18 shall not exceed forty percent of the aggregate sum total of all other 19 qualified production costs. For purposes of the credit, the services 20 must be performed and the property must be used in one or more of the 21 following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chau- 22 tauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutch- 23 ess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, 24 Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, 25 Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, 26 Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. 27 Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washing- 28 ton, Wayne, Wyoming, or Yates. 29 (6) Production plus program. (i) A qualified independent film 30 production company or a qualified film production company, or a company 31 that is a majority owner of one or more qualified film production compa- 32 nies or qualified independent film production companies, may apply to 33 participate in the production plus program after it, or qualified film 34 production companies or qualified independent film production companies 35 of which it is the majority owner, has submitted two or more initial 36 applications to the empire state film production tax credit program 37 after January first, two thousand twenty-five. 38 (ii) A qualified film production company or qualified independent film 39 production company that has been accepted into the production plus 40 program, or is majority-owned by a company that has been accepted into 41 the production plus program, may be eligible to receive an additional 42 tax credit equal to the product of ten percent and the qualified 43 production costs in New York state if program acceptance was based on 44 initial applications, the sum of which totaled at least one hundred 45 million dollars in qualified production costs in New York state. 46 (iii) A qualified independent film production company that has been 47 accepted into the production plus program, or is majority-owned by a 48 company that has been accepted into the production plus program, that is 49 engaging in the production of a feature length film, television film or 50 television series as defined in the regulations promulgated for this 51 program, may receive an additional tax credit equal to the product of 52 five percent and the qualified production costs incurred on all subse- 53 quent films or series applied for if program acceptance was based on 54 initial applications the sum of which totaled at least twenty million 55 dollars in qualified production costs in New York state.S. 3009--C 57 A. 3009--C 1 (iv) Initial applications for feature length films and new television 2 series submitted after December thirty-first, two thousand twenty-eight 3 shall not be eligible for the program pursuant to this paragraph; 4 provided, however, a television series that enters the program pursuant 5 to this paragraph before January first, two thousand twenty-nine shall 6 continue to be eligible. 7 § 2. Paragraphs 2 and 7 of subdivision (b) of section 24 of the tax 8 law, paragraph 2 as amended by section 3 of part D of chapter 59 of the 9 laws of 2023, paragraph 7 as added by section 9 of part Q of chapter 57 10 of the laws of 2010, are amended to read as follows: 11 (2) "Production costs" means any costs for tangible property used and 12 services performed directly and predominantly in the production (includ- 13 ing pre-production and post production) of a qualified film. 14 "Production costs" shall not include [(i)] costs for a story, script or 15 scenario to be used for a qualified film [and (ii) wages or salaries or16other compensation for writers, directors, composers, and performers17(other than background actors with no scripted lines) to the extent18those wages or salaries or other compensation exceed five hundred thou-19sand dollars per individual]. "Production costs" generally include the 20 wages or salaries or other compensation for writers, directors, compos- 21 ers and performers, technical and crew production costs, such as expend- 22 itures for film production facilities, or any part thereof, props, make- 23 up, wardrobe, film processing, camera, sound recording, set 24 construction, lighting, shooting, editing and meals, and shall include 25 the wages, salaries or other compensation of no more than two producers 26 per qualified film[, not to exceed five hundred thousand dollars per27producer, where only one of whom is the principal individual responsible28for overseeing the creative and managerial process of production of the29qualified film and only one of whom is the principal individual respon-30sible for the day-to-day operational management of production of the31qualified film; provided, however, that such producers are not compen-32sated for any other position on the qualified film by a qualified film33production company or a qualified independent film production company34for services performed]. 35 (7) "Qualified independent film production company" is a corporation, 36 partnership, limited partnership, or other entity or individual, that or 37 who (i) is principally engaged in the production of a qualified film 38 [with a maximum budget of fifteen million dollars], [and] (ii) [controls39the qualified film during production] is not publicly traded, and (iii) 40 [either is not a publicly traded entity, or no more than five percent of41the beneficial ownership of which is owned, directly or indirectly, by a42publicly traded entity]is not majority owned, fifty-one percent or more, 43 by a company publicly traded on a United States stock exchange. 44 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 45 amended by section 2 of chapter 606 of the laws of 2023, is amended to 46 read as follows: 47 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 48 subdivision (a) of this section shall be increased by an additional four 49 hundred twenty million dollars in each year starting in two thousand ten 50 through two thousand twenty-three and seven hundred million dollars in 51 each year starting in two thousand twenty-four through two thousand 52 [thirty-four] thirty-six, provided however, seven million dollars of the 53 annual allocation shall be available for the empire state film post 54 production credit pursuant to section thirty-one of this article in two 55 thousand thirteen and two thousand fourteen, twenty-five million dollars 56 of the annual allocation shall be available for the empire state filmS. 3009--C 58 A. 3009--C 1 post production credit pursuant to section thirty-one of this article in 2 each year starting in two thousand fifteen through two thousand twenty- 3 three, and forty-five million dollars of the annual allocation shall be 4 available for the empire state film post production credit pursuant to 5 section thirty-one of this article in each year starting in two thousand 6 twenty-four through two thousand [thirty-four] thirty-six. Provided 7 further, five million dollars of the annual allocation shall be made 8 available for the television writers' and directors' fees and salaries 9 credit pursuant to section twenty-four-b of this article in each year 10 starting in two thousand twenty through two thousand [thirty-four] thir- 11 ty-six. This amount shall be allocated by the department of economic 12 development among taxpayers in accordance with subdivision (a) of this 13 section. If the commissioner of economic development determines that the 14 aggregate amount of tax credits available from additional pool 2 for the 15 empire state film production tax credit have been previously allocated, 16 and determines that the pending applications from eligible applicants 17 for the empire state film post production tax credit pursuant to section 18 thirty-one of this article is insufficient to utilize the balance of 19 unallocated empire state film post production tax credits from such 20 pool, the remainder, after such pending applications are considered, 21 shall be made available for allocation in the empire state film tax 22 credit pursuant to this section, subdivision twenty of section two 23 hundred ten-B and subsection (gg) of section six hundred six of this 24 chapter. Also, if the commissioner of economic development determines 25 that the aggregate amount of tax credits available from additional pool 26 2 for the empire state film post production tax credit have been previ- 27 ously allocated, and determines that the pending applications from 28 eligible applicants for the empire state film production tax credit 29 pursuant to this section is insufficient to utilize the balance of unal- 30 located film production tax credits from such pool, then all or part of 31 the remainder, after such pending applications are considered, shall be 32 made available for allocation for the empire state film post production 33 credit pursuant to this section, subdivision thirty-two of section two 34 hundred ten-B and subsection (qq) of section six hundred six of this 35 chapter. The department of economic development must notify taxpayers of 36 their allocation year and include the allocation year on the certificate 37 of tax credit. Taxpayers eligible to claim a credit must report the 38 allocation year directly on their empire state film production credit 39 tax form for each year a credit is claimed and include a copy of the 40 certificate with their tax return. In the case of a qualified film that 41 receives funds from additional pool 2 where the taxpayer filed an 42 initial application before April first, two thousand twenty-three and 43 before January first, two thousand twenty-five, no empire state film 44 production credit shall be claimed before the later of (1) the taxable 45 year the production of the qualified film is complete, or (2) the taxa- 46 ble year immediately following the allocation year for which the film 47 has been allocated credit by the department of economic development. In 48 the case of a qualified film that receives funds from additional pool 2 49 where the taxpayer filed an initial application on or after April first, 50 two thousand twenty-three and before January first, two thousand twen- 51 ty-five, no empire state film production credit shall be claimed before 52 the later of (1) the taxable year the production of the qualified film 53 is complete, or (2) the taxable year that includes the last day of the 54 allocation year for which the film has been allocated credit by the 55 department of economic development. In the case of a qualified film for 56 which the taxpayer filed an initial application on or after JanuaryS. 3009--C 59 A. 3009--C 1 first, two thousand twenty-five, the credit shall be claimed in the 2 taxable year that includes the last day of the allocation year for which 3 the production of such qualified film has been allocated a credit by the 4 department of economic development. 5 § 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 6 amended by section 3 of chapter 606 of the laws of 2023, is amended to 7 read as follows: 8 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 9 subdivision (a) of this section shall be increased by an additional four 10 hundred twenty million dollars in each year starting in two thousand ten 11 through two thousand twenty-three and seven hundred million dollars each 12 year starting in two thousand twenty-four through two thousand [thirty-13four] thirty-six, provided however, seven million dollars of the annual 14 allocation shall be available for the empire state film post production 15 credit pursuant to section thirty-one of this article in two thousand 16 thirteen and two thousand fourteen, twenty-five million dollars of the 17 annual allocation shall be available for the empire state film post 18 production credit pursuant to section thirty-one of this article in each 19 year starting in two thousand fifteen through two thousand twenty-three, 20 and forty-five million dollars of the annual allocation shall be avail- 21 able for the empire state film post production credit pursuant to 22 section thirty-one of this article in each year starting in two thousand 23 twenty-four through two thousand [thirty-four] thirty-six. This amount 24 shall be allocated by the department of economic development among 25 taxpayers in accordance with subdivision (a) of this section. If the 26 commissioner of economic development determines that the aggregate 27 amount of tax credits available from additional pool 2 for the empire 28 state film production tax credit have been previously allocated, and 29 determines that the pending applications from eligible applicants for 30 the empire state film post production tax credit pursuant to section 31 thirty-one of this article is insufficient to utilize the balance of 32 unallocated empire state film post production tax credits from such 33 pool, the remainder, after such pending applications are considered, 34 shall be made available for allocation in the empire state film tax 35 credit pursuant to this section, subdivision twenty of section two 36 hundred ten-B and subsection (gg) of section six hundred six of this 37 chapter. Also, if the commissioner of economic development determines 38 that the aggregate amount of tax credits available from additional pool 39 2 for the empire state film post production tax credit have been previ- 40 ously allocated, and determines that the pending applications from 41 eligible applicants for the empire state film production tax credit 42 pursuant to this section is insufficient to utilize the balance of unal- 43 located film production tax credits from such pool, then all or part of 44 the remainder, after such pending applications are considered, shall be 45 made available for allocation for the empire state film post production 46 credit pursuant to this section, subdivision thirty-two of section two 47 hundred ten-B and subsection (qq) of section six hundred six of this 48 chapter. The department of economic development must notify taxpayers of 49 their allocation year and include the allocation year on the certificate 50 of tax credit. Taxpayers eligible to claim a credit must report the 51 allocation year directly on their empire state film production credit 52 tax form for each year a credit is claimed and include a copy of the 53 certificate with their tax return. In the case of a qualified film that 54 receives funds from additional pool 2 where the taxpayer filed an 55 initial application before April first, two thousand twenty-three, no 56 empire state film production credit shall be claimed before the later ofS. 3009--C 60 A. 3009--C 1 (1) the taxable year the production of the qualified film is complete, 2 or (2) the taxable year immediately following the allocation year for 3 which the film has been allocated credit by the department of economic 4 development. In the case of a qualified film that receives funds from 5 additional pool 2 where the taxpayer filed an initial application on or 6 after April first, two thousand twenty-three and before January first, 7 two thousand twenty-five, no empire state film production credit shall 8 be claimed before the later of (1) the taxable year the production of 9 the qualified film is complete, or (2) the taxable year that includes 10 the last day of the allocation year for which the film has been allo- 11 cated credit by the department of economic development. Provided, howev- 12 er, in the case of a qualified film for which the credit application was 13 received on or after January first, two thousand twenty-five, the credit 14 shall be claimed in the taxable year that includes the last day of the 15 allocation year for which the film has been allocated a credit by the 16 department of economic development. 17 § 5. Section 24 of the tax law is amended by adding a new subdivision 18 (g) to read as follows: 19 (g) Credit recapture. If a certificate of tax credit issued by the 20 department of economic development pursuant to this section is revoked 21 by such department because the taxpayer does not meet the eligibility 22 requirements of this section, the amount of credit described in this 23 section and claimed by the taxpayer prior to that revocation shall be 24 added back to tax in the taxable year in which any such revocation 25 becomes final. 26 § 6. Paragraphs 3, 5 and 6 of subdivision (a) of section 31 of the tax 27 law, paragraph 3 as amended by section 5 and paragraph 5 as added by 28 section 5-a of part B of chapter 59 of the laws of 2013, and paragraph 6 29 as amended by section 9 of part D of chapter 59 of the laws of 2023, are 30 amended to read as follows: 31 (3) (i) A taxpayer shall not be eligible for the credit established by 32 this section for qualified post production costs, excluding the costs 33 for visual effects and animation, unless the qualified post production 34 costs, excluding the costs for visual effects and animation, at a quali- 35 fied post production facility meet or exceed one million dollars or 36 seventy-five percent of the total post production costs, excluding the 37 costs for visual effects and animation, paid or incurred in the post 38 production of the qualified film at any post production facility, which- 39 ever is less. (ii) A taxpayer shall not be eligible for the credit 40 established by this section for qualified post production costs which 41 are costs for visual effects or animation unless the qualified post 42 production costs for visual effects or animation at a qualified post 43 production facility meet or exceed [three million] five hundred thousand 44 dollars or [twenty] ten percent of the total post production costs for 45 visual effects or animation paid or incurred in the post production of a 46 qualified film at any post production facility, whichever is less. (iii) 47 A taxpayer may claim a credit for qualified post production costs 48 excluding the costs for visual effects and animation, and for qualified 49 post production costs of visual effects and animation, provided that the 50 criteria in subparagraphs (i) and (ii) of this paragraph are both satis- 51 fied. The credit shall be allowed for the taxable year in which the 52 production of such qualified film is completed. 53 (5) If the amount of the credit is at least one million dollars but 54 less than five million dollars, the credit shall be claimed over a two 55 year period beginning in the first taxable year in which the credit may 56 be claimed and in the next succeeding taxable year, with one-half of theS. 3009--C 61 A. 3009--C 1 amount of credit allowed being claimed in each year. If the amount of 2 the credit is at least five million dollars, the credit shall be claimed 3 over a three year period beginning in the first taxable year in which 4 the credit may be claimed and in the next two succeeding taxable years, 5 with one-third of the amount of the credit allowed being claimed in each 6 year. Provided, however, in the case of a qualified film for which the 7 taxpayer filed an initial application on or after January first, two 8 thousand twenty-five, the credit shall be claimed for the taxable year 9 in which such qualified film is completed. 10 (6) For the period two thousand fifteen through two thousand [thirty-11four] thirty-six, in addition to the amount of credit established in 12 paragraph two of this subdivision, a taxpayer shall be allowed a credit 13 equal to the product (or pro rata share of the product, in the case of a 14 member of a partnership) of ten percent and the amount of wages or sala- 15 ries paid to individuals directly employed (excluding those employed as 16 writers, directors, composers, producers and performers, other than 17 background actors with no scripted lines) for services performed by 18 those individuals in one of the counties specified in this paragraph in 19 connection with the post production work on a qualified film with a 20 minimum budget of five hundred thousand dollars at a qualified post 21 production facility in one of the counties listed in this paragraph. For 22 purposes of this additional credit, the services must be performed in 23 one or more of the following counties: Albany, Allegany, Broome, Catta- 24 raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- 25 land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, 26 Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, 27 Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, 28 Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, 29 Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, 30 Ulster, Warren, Washington, Wayne, Wyoming, or Yates. 31 § 7. Paragraph 2 of subdivision (b) of section 31 of the tax law, as 32 added by section 12 of part Q of chapter 57 of the laws of 2010, is 33 amended to read as follows: 34 (2) "[Post] Qualified production costs" means production of original 35 content for a qualified film employing traditional, emerging and new 36 workflow techniques used in post-production for picture, sound and music 37 editorial, rerecording and mixing, visual effects, graphic design, 38 original scoring, animation, and musical composition in the state; but 39 shall not include the editing of previously produced content for a qual- 40 ified film. 41 § 8. Section 31 of the tax law, as added by section 12 of part Q of 42 chapter 57 of the laws of 2010, is amended by adding a new subdivision 43 (f) to read as follows: 44 (f) Credit recapture. If a certificate of tax credit issued by the 45 department of economic development pursuant to this section is revoked 46 by such department because the taxpayer does not meet the eligibility 47 requirements of this section, the amount of credit described in this 48 section and claimed by the taxpayer prior to that revocation shall be 49 added back to tax in the taxable year in which any such revocation 50 becomes final. 51 § 9. The tax law is amended by adding a new section 24-d to read as 52 follows: 53 § 24-d. Empire state independent film production credit. (a) (1) 54 Allowance of credit. A taxpayer which is a qualified independent film 55 production company, or which is a sole proprietor of or a member of a 56 partnership which is a qualified independent film production company,S. 3009--C 62 A. 3009--C 1 and which is subject to tax under articles nine-A or twenty-two of this 2 chapter, shall be allowed a credit against such tax, pursuant to the 3 provisions referenced in subdivision (c) of this section, to be computed 4 as hereinafter provided. 5 (2) (i) The amount of the credit shall be the product (or pro rata 6 share of the product, in the case of a member of a partnership) of thir- 7 ty percent and the qualified production costs paid or incurred in the 8 production of a qualified film, provided that the qualified production 9 costs (excluding post production costs) paid or incurred which are 10 attributable to the use of tangible property or the performance of 11 services at a qualified film production facility in the production of 12 such qualified film equal or exceed seventy-five percent of the 13 production costs (excluding post production costs) paid or incurred 14 which are attributable to the use of tangible property or the perform- 15 ance of services at any film production facility within and without the 16 state in the production of such qualified film. However, if the quali- 17 fied production costs (excluding post production costs) which are 18 attributable to the use of tangible property or the performance of 19 services at a qualified film production facility in the production of 20 such qualified film is less than three million dollars, then the portion 21 of the qualified production costs attributable to the use of tangible 22 property or the performance of services in the production of such quali- 23 fied film outside of a qualified film production facility shall be 24 allowed only if the shooting days spent in New York outside of a film 25 production facility in the production of such qualified film equal or 26 exceed seventy-five percent of the total shooting days spent within and 27 without the state outside of a film production facility in the 28 production of such qualified film. The credit shall be allowed for the 29 taxable year in which the production of such qualified film is 30 completed. A taxpayer shall not be eligible for a tax credit established 31 by this section for the production of more than two qualified films per 32 calendar year. 33 (ii) In addition to the amount of credit established in subparagraph 34 (i) of this paragraph, a taxpayer shall be allowed a credit equal to (A) 35 the product (or pro rata share of the product, in the case of a member 36 of a partnership) of ten percent and the wages, salaries or other 37 compensation constituting qualified production costs as defined in para- 38 graph one of subdivision (b) of this section, paid to individuals 39 directly employed by a qualified independent film production company for 40 services performed by those individuals in one of the counties specified 41 in this subparagraph in connection with a qualified independent film 42 with a minimum budget of five hundred thousand dollars, and (B) the 43 product (or pro rata share of the product, in the case of a member of a 44 partnership) of ten percent and the qualified production costs (exclud- 45 ing wages, salaries or other compensation) paid or incurred in the 46 production of a qualified film where the property constituting such 47 qualified production costs was used, and the services constituting such 48 qualified production costs were performed in any of the counties speci- 49 fied in this subparagraph in connection with a qualified film with a 50 minimum budget of five hundred thousand dollars where the majority of 51 principal photography shooting days in the production of such film 52 were shot in any of the counties specified in this paragraph. Provided, 53 however, that the aggregate total eligible qualified production costs 54 constituting wages, salaries or other compensation, for writers, 55 directors, composers, producers, and performers shall not exceed forty 56 percent of the aggregate sum total of all other qualified productionS. 3009--C 63 A. 3009--C 1 costs. For purposes of the credit, the services must be performed and 2 the property must be used in one or more of the following counties: 3 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 4 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 5 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 6 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 7 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 8 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- 9 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or 10 Yates and (C) qualified production costs that are attributable to scor- 11 ing shall be eligible for an additional ten percent credit on such scor- 12 ing costs when incurred within the state and when such scoring costs 13 include payment to a minimum of five musicians. 14 (3) No qualified production costs used by a taxpayer either as the 15 basis for the allowance of the credit provided for under this section or 16 used in the calculation of the credit provided for under this section 17 shall be used by such taxpayer to claim any other credit allowed pursu- 18 ant to this chapter. 19 (4) Notwithstanding the foregoing provisions of this subdivision, a 20 qualified independent film production company that has applied for cred- 21 it under the provisions of this section, agrees as a condition for the 22 granting of the credit: (i) to include in each qualified film distrib- 23 uted by DVD, or other media for the secondary market, a New York promo- 24 tional video approved by the governor's office of motion picture and 25 television development or to include in the end credits of each quali- 26 fied film "Filmed With the Support of the New York State Governor's 27 Office of Motion Picture and Television Development" and a logo provided 28 by the governor's office of motion picture and television development, 29 and (ii) to certify that it will purchase taxable tangible property and 30 services, defined as qualified production costs pursuant to paragraph 31 one of subdivision (b) of this section, only from companies registered 32 to collect and remit state and local sales and use taxes pursuant to 33 articles twenty-eight and twenty-nine of this chapter. 34 (b) Definitions. As used in this section, the following terms shall 35 have the following meanings: 36 (1) "Qualified production costs" means production costs only to the 37 extent such costs, excluding labor costs, do not exceed sixty million 38 dollars and are attributable to the use of tangible property or the 39 performance of services within the state directly and predominantly in 40 the production (including pre-production and post production) of a qual- 41 ified film. In the case of an eligible relocated television series, the 42 term "qualified production costs" shall include, in the first season 43 that the eligible relocated television series is produced in New York 44 after relocation, qualified relocation costs. Provided, however, that 45 the aggregate total eligible qualified production costs for producers, 46 writers, directors, performers (other than background actors with no 47 scripted lines), and composers shall not exceed forty percent of the 48 aggregate sum total of all other qualified production costs. 49 (2) "Production costs" means any costs for tangible property used and 50 services performed directly and predominantly in the production (includ- 51 ing pre-production and post production) of a qualified film. 52 "Production costs" shall not include costs for a story, script or 53 scenario to be used for a qualified film. "Production costs" generally 54 include writers, directors, composers and performers, technical and crew 55 production costs, such as expenditures for film production facilities, 56 or any part thereof, props, makeup, wardrobe, film processing, camera,S. 3009--C 64 A. 3009--C 1 sound recording, scoring, set construction, lighting, shooting, editing 2 and meals. 3 (3) "Qualified film" means a scripted narrative feature-length film, 4 television film, relocated television series or television series, 5 regardless of the medium by means of which the film or series is created 6 or conveyed. For the purposes of the credit provided by this section 7 only, a "qualified film" whose majority of principal photography shoot- 8 ing days in the production of the qualified film are shot in Westches- 9 ter, Rockland, Nassau, or Suffolk county or any of the five New York 10 City boroughs shall have a minimum budget of one million dollars. A 11 "qualified film", whose majority of principal photography shooting days 12 in the production of the qualified film are shot in any other county of 13 the state than those listed in the preceding sentence shall have a mini- 14 mum budget of two hundred fifty thousand dollars. "Qualified film" shall 15 not include: (i) a television pilot, documentary film, news or current 16 affairs program, interview or talk program, "how-to" (i.e., instruc- 17 tional) film or program, film or program consisting primarily of stock 18 footage, sporting event or sporting program, game show, award ceremony, 19 film or program intended primarily for industrial, corporate or institu- 20 tional end-users, fundraising film or program, daytime drama (i.e., 21 daytime "soap opera"), commercials, music videos or "reality" program; 22 (ii) a production for which records are required under section 2257 of 23 title 18, United States code, to be maintained with respect to any 24 performer in such production (reporting of books, films, etc. with 25 respect to sexually explicit conduct); or (iii) a television series 26 commonly known as variety entertainment, variety sketch and variety 27 talk, i.e., a program with components of improvisational or scripted 28 content (monologues, sketches, interviews), either exclusively or in 29 combination with other entertainment elements such as musical perform- 30 ances, dancing, cooking, crafts, pranks, stunts, and games and which may 31 be further defined in regulations of the commissioner of economic devel- 32 opment. 33 (4) "Film production facility" shall mean a building and/or complex of 34 buildings and their improvements and associated back-lot facilities in 35 which films are or are intended to be regularly produced and which 36 contain at least one sound stage, provided, however, that an armory 37 owned by the state or city of New York located in the city of New York 38 shall not be considered to be a "film production facility" unless such 39 facility is used by a qualified independent film production company. 40 (5) "Qualified film production facility" shall mean a film production 41 facility in the state, which contains at least one sound stage having a 42 minimum of seven thousand square feet of contiguous production space. 43 (6) "Qualified independent film production company" is a corporation, 44 partnership, limited partnership, or other entity or individual, that or 45 who (i) is principally engaged in the production of a qualified film, 46 (ii) is not publicly traded, and (iii) is not majority owned, fifty-one 47 percent or more, by a company publicly traded on a United States stock 48 exchange. 49 (7) "Relocated television series" shall mean the first two years of a 50 regularly occurring production intended to run in its initial broadcast, 51 regardless of the medium or mode of its distribution, in a series of 52 narrative and/or thematically related episodes, each of which has a 53 running time of at least thirty minutes in length (inclusive of commer- 54 cial advertisement and interstitial programming, if any), which had 55 filmed a minimum of six episodes of the television series outside the 56 state immediately prior to relocating to the state, where the televisionS. 3009--C 65 A. 3009--C 1 series had a total minimum budget of at least one million dollars per 2 episode. For the purposes of this definition only, a television series 3 produced by and for media services providers described as streaming 4 services and/or digital platforms (and excluding network/cable) shall 5 mean a regularly occurring production intended to run in its initial 6 release in a series of narrative and/or thematically related episodes, 7 the aggregate length of which is at least seventy-five minutes, although 8 the episodes themselves may vary in duration from the thirty minutes 9 specified for network/cable production. 10 (8) "Qualified relocation costs" means the costs incurred, excluding 11 wages, salaries and other compensation, in the first season that a relo- 12 cated television series relocates to New York, including such costs 13 incurred to transport sets, props and wardrobe to New York and other 14 costs as determined by the department of economic development to the 15 extent such costs do not exceed six million dollars. 16 (9) If the total amount of allocated credits applied for in any 17 particular year is less than the aggregate amount of tax credits allowed 18 for such year under this section, any unused portion may be carried over 19 and added to the aggregate amount of credits allowed in the next 20 succeeding taxable year or years. 21 (c) Cross-references. For application of the credit provided for in 22 this section, see the following provisions of this chapter: 23 (1) article 9-A: section 210-B: subdivision 20-a. 24 (2) article 22: section 606: subsection (gg-1). 25 (d) Notwithstanding any provision of this chapter, employees and offi- 26 cers of the governor's office of motion picture and television develop- 27 ment and the department shall be allowed and are directed to share and 28 exchange information regarding the credits applied for, allowed, or 29 claimed pursuant to this section and taxpayers who are applying for 30 credits or who are claiming credits, including information contained in 31 or derived from credit claim forms submitted to the department and 32 applications for credit submitted to the governor's office of motion 33 picture and television development. 34 (e) Allocation of credit. The aggregate amount of tax credits allowed 35 under this section, subdivision twenty-a of section two hundred ten and 36 subsection (gg-1) of section six hundred six of this chapter in any 37 calendar year shall be (1) twenty million dollars for qualified films 38 with a budget of less than ten million dollars of qualified production 39 costs; and (2) eighty million dollars for qualified films with a budget 40 of ten million dollars or more of qualified production costs. There 41 shall be at least two application periods each year; such aggregate 42 amount of credits shall be allocated by the governor's office for motion 43 picture and television development among taxpayers in order of priority 44 based upon the date of filing of an application for allocation of the 45 independent film production credit with such office within each applica- 46 tion period. If the commissioner of economic development determines that 47 the aggregate amount of tax credits available for an application period 48 under paragraph one of this subdivision have been previously allocated, 49 and determines that the pending applications from eligible applicants 50 for the other application period in such calendar year is insufficient 51 to utilize the balance of unallocated tax credits for such period, then 52 such commissioner may allocate to productions eligible under such para- 53 graph any credits that remain unallocated for such period pursuant to 54 paragraph two of this subdivision. Provided, however, the total amount 55 of allocated credits applied in any calendar year shall not exceed theS. 3009--C 66 A. 3009--C 1 aggregate amount of tax credits allowed for such year under this 2 section. 3 (f) (1) The commissioner of economic development shall reduce by one- 4 half of one percent the amount of credit allowed to a taxpayer and this 5 reduced amount shall be reported on a certificate of tax credit issued 6 pursuant to this section and the regulations promulgated by the commis- 7 sioner of economic development to implement this credit program. 8 (2) By January thirty-first of each year, the commissioner of economic 9 development shall report to the comptroller the total amount of such 10 reductions of tax credit during the immediately preceding calendar year. 11 On or before March thirty-first of each year, the comptroller shall 12 transfer without appropriations from the general fund to the empire 13 state entertainment diversity job training development fund established 14 under section ninety-seven-ff of the state finance law an amount equal 15 to the total amount of such reductions reported by the commissioner of 16 economic development for the immediately preceding calendar year. 17 (g) Credit recapture. If a certificate of tax credit issued by the 18 department of economic development pursuant to this section is revoked 19 by such department because the taxpayer does not meet the eligibility 20 requirements of this section, the amount of credit described in this 21 section and claimed by the taxpayer prior to that revocation shall be 22 added back to tax in the taxable year in which any such revocation 23 becomes final. 24 § 10. Section 210-B of the tax law is amended by adding a new subdivi- 25 sion 20-a to read as follows: 26 20-a. Empire state independent film production credit. (a) Allowance 27 of credit. A taxpayer who is eligible pursuant to section twenty-four-d 28 of this chapter shall be allowed a credit to be computed as provided in 29 such section twenty-four-d against the tax imposed by this article. 30 (b) Application of credit. The credit allowed under this subdivision 31 for any taxable year shall not reduce the tax due for such year to less 32 than the fixed dollar minimum amount prescribed in paragraph (d) of 33 subdivision one of section two hundred ten of this article. Provided, 34 however, that if the amount of the credit allowable under this subdivi- 35 sion for any taxable year reduces the tax to such amount or if the 36 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 37 the excess shall be treated as an overpayment of tax to be credited or 38 refunded in accordance with the provisions of section one thousand 39 eighty-six of this chapter. Provided, however, the provisions of 40 subsection (c) of section one thousand eighty-eight of this chapter 41 notwithstanding, no interest shall be paid thereon. 42 § 11. Section 606 of the tax law is amended by adding a new subsection 43 (gg-1) to read as follows: 44 (gg-1) Empire state independent film production credit. (1) Allowance 45 of credit. A taxpayer who is eligible pursuant to section twenty-four-d 46 of this chapter shall be allowed a credit to be computed as provided in 47 such section twenty-four-d against the tax imposed by this article. 48 (2) Application of credit. If the amount of the credit allowable under 49 this subsection for any taxable year exceeds the taxpayer's tax for such 50 year, the excess shall be treated as an overpayment of tax to be credit- 51 ed or refunded as provided in section six hundred eighty-six of this 52 article, provided, however, that no interest shall be paid thereon. 53 § 12. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 54 of the tax law is amended by adding a new clause (lii) to read as 55 follows: 56 (lii) Empire state film Amount of credit for qualifiedS. 3009--C 67 A. 3009--C 1 production credit under production costs in production of 2 subsection (gg-1) a qualified film under 3 subdivision twenty-a of 4 section two hundred ten-B 5 § 13. This act shall take effect immediately and shall apply to 6 initial applications received on or after January 1, 2025, provided, 7 however, that the amendments to paragraph 4 of subdivision (e) of 8 section 24 of the tax law made by section three of this act shall take 9 effect on the same date and in the same manner as section 6 of chapter 10 683 of the laws of 2019, takes effect. 11 PART J 12 Section 1. Subdivisions 1, 2, 3, 4, 7, 9, 10 and 13 of section 492 of 13 the economic development law, as added by section 2 of part AAA of chap- 14 ter 56 of the laws of 2024, are amended to read as follows: 15 1. "Average full-time employment" shall mean the average number of 16 full-time positions employed by [a] an eligible business [entity] in an 17 eligible industry during a given period. 18 2. "Average starting full-time employment" shall be calculated as the 19 average number of full-time positions employed by [a] an eligible busi- 20 ness [entity] in an eligible industry during a timeframe to be deter- 21 mined by the department of economic development. 22 3. "Average ending full-time employment" shall be calculated as the 23 average number of full-time positions employed by [a] an eligible busi- 24 ness [entity] in an eligible industry during a timeframe to be deter- 25 mined by the department of economic development. 26 4. "Certificate of tax credit" means the document issued to [a] an 27 eligible business [entity] by the department after the department has 28 verified that the eligible business [entity] has met all applicable 29 eligibility criteria in this article. The certificate shall specify the 30 exact amount of the tax credit under this article that [a] an eligible 31 business [entity] may claim, pursuant to section four hundred ninety- 32 five and section four hundred ninety-six of this article. 33 7. "Eligible business" shall mean a print media or broadcast media 34 business operating within an eligible industry, which also carries media 35 liability insurance. For the purposes of this subdivision, each print 36 media publication serving a separate market, as determined by the 37 department, shall be treated as a separate print media business. 38 9. "Eligible industry" means [a] an eligible business [entity] operat- 39 ing predominantly in the newspaper publishing sector or the broadcast 40 media sector, as determined by the department. 41 10. "Net employee increase" means an increase of at least one full- 42 time employee between the average starting full-time employment and the 43 average ending full-time employment of [a] an eligible business [enti-44ty], as defined by the department. 45 13. "Independently owned" shall mean a business entity that is not[:46(a)] a publicly traded entity or no more than five percent of the bene- 47 ficial ownership of which is owned, directly or indirectly by a publicly 48 traded entity[; (b) a subsidiary; and (c) any other criteria that the49department shall determine via regulations to ensure the business is not50controlled by another business entity]. 51 § 2. Subdivision 3 of section 494 of the economic development law, as 52 added by section 2 of part AAA of chapter 56 of the laws of 2024, is 53 amended to read as follows:S. 3009--C 68 A. 3009--C 1 3. After reviewing a business entity's completed final application and 2 determining that the business entity meets the eligibility criteria as 3 set forth in this article, the department may issue [to that business4entity] a certificate of tax credit. [A business entity may claim the5tax credit.] 6 § 3. Subdivisions 1, 2 and 3 of section 495 of the economic develop- 7 ment law, as added by section 2 of part AAA of chapter 56 of the laws of 8 2024, are amended to read as follows: 9 1. A business entity that meets the eligibility requirements of 10 section four hundred ninety-three of this article, and meets any addi- 11 tional eligibility criteria as articulated in regulations established 12 pursuant to this section, and demonstrates a net employee increase, may 13 be [eligible to claim] issued a certificate of tax credit equal to five 14 thousand dollars per each full-time net employee increase as defined in 15 section four hundred ninety-two of this article. A business entity, 16 including a partnership, limited liability company and subchapter S 17 corporation, may not receive in excess of twenty thousand dollars in tax 18 credits for each print media business or broadcast media business under 19 this program. 20 2. A business entity that meets the eligibility requirements of 21 section four hundred ninety-three of this article, and meets any addi- 22 tional eligibility criteria as articulated in regulations established 23 pursuant to this section, may be [eligible to claim] issued a certif- 24 icate of tax credit equal to fifty percent of annual wages of an eligi- 25 ble employee. The calculation of such a credit shall only be applied to 26 up to fifty thousand dollars in wages paid annually per eligible employ- 27 ee. A business entity, including a partnership, limited liability compa- 28 ny and subchapter S corporation, may not receive in excess of three 29 hundred thousand dollars in tax credits for each print media business or 30 broadcast media business under this program. 31 3. The total amount of tax credits listed on certificates of tax cred- 32 it issued by the commissioner pursuant to this article may not exceed 33 thirty million dollars for each year the credit is available. Within 34 this amount, the newspaper and broadcast media new job creation compo- 35 nent of the credit may not exceed four million dollars per year and the 36 newspaper and broadcast media existing jobs component of the credit may 37 not exceed twenty-six million dollars per year. Fifty percent of the 38 newspaper and broadcast media existing jobs component credits will be 39 set-aside for eligible [business entities] businesses with one hundred 40 or fewer employees. Fifty percent of the newspaper and broadcast media 41 existing jobs component credits will be set-aside for eligible [business42entities] businesses with over one hundred employees. In both instances 43 the cap will be three hundred thousand dollars under this program. 44 § 4. Subdivisions (a), (b) and (c) of section 49 of the tax law, as 45 added by section 3 of part AAA of chapter 56 of the laws of 2024, are 46 amended to read as follows: 47 (a) Allowance of credit. A taxpayer subject to tax under article 48 nine-A or twenty-two of this chapter shall be allowed a credit against 49 such tax, pursuant to the provisions referenced in subdivision (e) of 50 this section. The amount of the credit is equal to the amount determined 51 pursuant to article twenty-seven of the economic development law and 52 shall be based on the certificates of tax credit issued to eligible 53 businesses owned by the taxpayer or by an entity of which the taxpayer 54 is a partner or shareholder. A taxpayer that is a partner in a partner- 55 ship, member of a limited liability company or shareholder in a subchap- 56 ter S corporation shall be allowed its pro-rata share of the creditS. 3009--C 69 A. 3009--C 1 allowed for the partnership, limited liability company or subchapter S 2 corporation. No cost or expense paid or incurred that is included as 3 part of the calculation of this credit shall be the basis of any other 4 tax credit allowed under this chapter. 5 (b) Eligibility. To be eligible to claim the newspaper and broadcast 6 media jobs tax credit the eligible businesses owned by the taxpayer or 7 by an entity of which the taxpayer is a partner or shareholder shall 8 have been issued a certificate of tax credit by the department of 9 economic development pursuant to article twenty-seven of the economic 10 development law, which certificate or certificates shall set forth the 11 amount of the credit that may be claimed for the taxable year. The 12 taxpayer shall be allowed to claim only the amount or amounts listed on 13 the certificate or certificates of tax credit issued to eligible busi- 14 nesses owned by the taxpayer or by an entity of which the taxpayer is a 15 partner or shareholder for that taxable year. 16 (c) Tax return requirement. The taxpayer shall be required to attach 17 to its tax return, in the form prescribed by the commissioner, proof of 18 receipt of its certificate or certificates of tax credit issued by the 19 commissioner of the department of economic development. 20 § 5. This act shall take effect immediately and apply to taxable years 21 beginning on or after January 1, 2025. 22 PART K 23 Section 1. Subdivisions (b) and (c) of section 45 of the tax law, as 24 added by section 1 of part OO of chapter 59 of the laws of 2022, are 25 amended to read as follows: 26 (b) Allocation of credit. The aggregate amount of tax credits allowed 27 under this section, subdivision fifty-five of section two hundred ten-B 28 and subsection (nnn) of section six hundred six of this chapter in any 29 taxable year shall be five million dollars. Such credit shall be allo- 30 cated by the department of economic development in order of priority 31 based upon the date of filing an application for allocation of digital 32 gaming media production credit with such office. If the total amount of 33 allocated credits applied for in any particular year exceeds the aggre- 34 gate amount of tax credits allowed for such year under this section, 35 such excess shall be treated as having been applied for on the first day 36 of the subsequent taxable year. Provided, however, that for taxable 37 years beginning on or after January first, two thousand twenty-three, if 38 the total amount of allocated credits applied for in any particular year 39 is less than the aggregate amount of tax credits allowed for such year 40 under this section, any unused portion may be carried over and added to 41 the aggregate amount of credits allowed in the next succeeding taxable 42 year or years. 43 (c) Definitions. As used in this section: 44 (1) "Qualified digital gaming media production" means: (i) a website, 45 the digital media production costs of which are paid or incurred predo- 46 minately in connection with (A) video simulation, animation, text, 47 audio, graphics or similar gaming related property embodied in digital 48 format, and (B) interactive features of digital gaming (e.g., links, 49 message boards, communities or content manipulation); (ii) video or 50 interactive games produced primarily for distribution over the internet, 51 wireless network or successors thereto; and (iii) animation, simulation 52 or embedded graphics digital gaming related software intended for 53 commercial distribution regardless of medium; provided, however, that 54 the qualified digital game development media productions described inS. 3009--C 70 A. 3009--C 1 subparagraphs (i) through (iii) of this paragraph must have digital 2 media production costs equal to or in excess of [one hundred] fifty 3 thousand dollars per production. A qualified digital gaming media 4 production does not include a website, video, interactive game or soft- 5 ware that is used predominately for: electronic commerce (retail or 6 wholesale purposes other than the sale of video interactive games), 7 gambling (including activities regulated by a New York gaming agency), 8 or political advocacy purposes. 9 (2) "Digital gaming media production costs" means any costs for wages 10 or salaries paid to individuals, other than actors or writers, directly 11 employed for services performed by those individuals directly and 12 predominantly in the creation of a digital gaming media production or 13 productions. Up to [one] two hundred thousand dollars in wages and sala- 14 ries paid to such employees, other than actors and writers, directly 15 employed shall be used in the calculation of this credit. Digital gaming 16 media production costs include but shall not be limited to payments for 17 services performed directly and predominantly in the development 18 (including concept and prototype creation), design (including narrative 19 direction and sound design), production (including [concept creation] 20 testing and encoding), [design, production (including testing), editing21(including encoding)] editing (including bug fixing) and compositing 22 (including the integration of digital files for interaction by end 23 users) of digital gaming media. Digital gaming media production costs 24 shall not include expenses incurred for the distribution, marketing, 25 promotion, or advertising content generated by end users, other costs 26 not directly [and predominantly] related to the creation, production or 27 modification of digital gaming media or costs used by the taxpayer as a 28 basis of the calculation of any other tax credit allowed under this 29 chapter. In addition, [salaries or other income distribution] wages 30 related to the creation of digital gaming media for any person who 31 predominantly serves in a corporate capacity in the role of chief execu- 32 tive officer, chief financial officer, president, treasurer or similar 33 corporate position shall not be included as digital gaming media 34 production costs if the digital gaming media production entity has more 35 [then] than ten employees. [Salaries or other income] Wages paid to a 36 person serving in such a role for the digital gaming media production 37 entity shall also not be included if the person was employed by a 38 related person of the digital gaming media production entity within 39 sixty months of the date the digital gaming media production entity 40 applied for the tax credit certificate described in subdivision (d) of 41 this section. For purposes of the preceding sentence, a related person 42 shall have the same meaning as the term "related person" in section four 43 hundred sixty-five of the internal revenue code. Furthermore, any income 44 or other distribution to any individual including, but not limited to, 45 licensing or royalty fees, who holds an ownership interest in a digital 46 gaming media production entity, whether or not such individual is serv- 47 ing in the role of chief executive officer, chief financial officer, 48 president, treasurer or similar position for such an entity, shall not 49 be included as digital gaming media production costs. Up to [four] five 50 million dollars in qualified digital gaming media production costs per 51 production shall be used in the calculation of this credit. Digital 52 gaming media production costs shall not include those costs used by the 53 taxpayer or another taxpayer as the basis calculation of any other tax 54 credit allowed under this chapter. 55 (3) "Qualified digital gaming media production costs" means digital 56 gaming media production costs only to the extent such costs are attrib-S. 3009--C 71 A. 3009--C 1 utable to the use of property or the performance of services by any 2 persons within the state directly and predominantly in the creation, 3 production or modification of digital gaming related media. Such total 4 production costs incurred and paid in this state shall be equal to or 5 exceed [seventy-five] fifty-one percent of total cost of an eligible 6 production incurred and paid within and without this state. 7 (4) "Digital gaming media production entity" means a corporation, 8 partnership, limited partnership or other entity or individual engaged 9 in qualified digital game development media production. 10 § 2. This act shall take effect immediately. 11 PART L 12 Section 1. Section 6 of subpart B of part PP of chapter 59 of the laws 13 of 2021 amending the tax law and the state finance law relating to 14 establishing the New York city musical and theatrical production tax 15 credit and establishing the New York state council on the arts cultural 16 program fund, as amended by section 1 of subpart E of part I of chapter 17 59 of the laws of 2023, is amended to read as follows: 18 § 6. This act shall take effect immediately; provided however, that 19 sections one, two, three and four of this act shall apply to taxable 20 years beginning on or after January 1, 2021, and before January 1, 21 [2026] 2028 and shall expire and be deemed repealed January 1, [2026] 22 2028; provided further, however that the obligations under paragraph 3 23 of subdivision (g) of section 24-c of the tax law, as added by section 24 one of this act, shall remain in effect until December 31, [2027] 2029. 25 § 2. Subparagraph (i) of paragraph 5 of subdivision (b) of section 26 24-c of the tax law, as amended by section 3 of subpart E of part I of 27 chapter 59 of the laws of 2023, is amended to read as follows: 28 (i) "The credit period of a qualified New York city musical and theat- 29 rical production company" is the period starting on the production start 30 date and ending on the earlier of the date the qualified musical and 31 theatrical production has expended sufficient qualified production 32 expenditures to reach its credit cap, September thirtieth, two thousand 33 [twenty-five] twenty-seven or the date the qualified musical and theat- 34 rical production closes. 35 § 3. Subdivision (c) of section 24-c of the tax law, as amended by 36 section 4 of subpart E of part I of chapter 59 of the laws of 2023, is 37 amended to read as follows: 38 (c) The credit shall be allowed for the taxable year beginning on or 39 after January first, two thousand twenty-one but before January first, 40 two thousand [twenty-six] twenty-eight. A qualified New York city 41 musical and theatrical production company shall claim the credit in the 42 year in which its credit period ends. 43 § 4. Subdivision (f) of section 24-c of the tax law, as added by 44 section 1 of subpart B of part PP of chapter 59 of the laws of 2021, 45 paragraphs 1 and 2 as amended by section 5 of subpart E of part I of 46 chapter 59 of the laws of 2023, is amended to read as follows: 47 (f) Maximum amount of credits. (1) The aggregate amount of tax cred- 48 its allowed under this section, subdivision fifty-seven of section two 49 hundred ten-B and subsection (mmm) of section six hundred six of this 50 chapter shall be [three] four hundred million dollars. Such aggregate 51 amount of credits shall be allocated by the department of economic 52 development among taxpayers based on the date of first performance of 53 the qualified musical and theatrical production.S. 3009--C 72 A. 3009--C 1 (2) The commissioner of economic development, after consulting with 2 the commissioner, shall promulgate regulations to establish procedures 3 for the allocation of tax credits as required by this section. Such 4 rules and regulations shall include provisions describing the applica- 5 tion process, the due dates for such applications, the standards that 6 will be used to evaluate the applications, the documentation that will 7 be provided by applicants to substantiate to the department the amount 8 of qualified production expenditures of such applicants, and such other 9 provisions as deemed necessary and appropriate. Notwithstanding any 10 other provisions to the contrary in the state administrative procedure 11 act, such rules and regulations may be adopted on an emergency basis. In 12 no event shall a qualified New York city musical and theatrical 13 production submit an application for this program after June thirtieth, 14 two thousand [twenty-five] twenty-seven. 15 § 5. This act shall take effect immediately; provided, however, that 16 the amendments to section 24-c of the tax law, made by sections two, 17 three and four of this act, shall not affect the repeal of such section 18 and shall be deemed to be repealed therewith. 19 PART M 20 Section 1. Section 35 of the tax law, as added by section 12 of part U 21 of chapter 61 of the laws of 2011, is amended to read as follows: 22 § 35. Use of electronic means of communication. Notwithstanding any 23 other provision of New York state law, where the department has obtained 24 authorization of an online services account holder, in such form as may 25 be prescribed by the commissioner, the department may use electronic 26 means of communication to furnish any document it is required to mail 27 per law or regulation. If the department furnishes such document in 28 accordance with this section, department records of such transaction 29 shall constitute appropriate and sufficient proof of delivery thereof 30 and be admissible in any action or proceeding. Provided, however, that 31 if a taxpayer uses a department system to access taxpayer information, 32 including, but not limited to, notices, documents and account balance 33 information, that is not an electronic communication furnished in lieu 34 of mailing in accordance with this section, such accessed information 35 shall not give the taxpayer the right to a hearing in the division of 36 tax appeals, unless the right to protest such information is expressly 37 authorized by this chapter or another provision of law. 38 § 2. Subdivision 1 of section 2008 of the tax law, as amended by 39 section 3 of subpart C of part V-1 of chapter 57 of the laws of 2009, is 40 amended to read as follows: 41 1. All proceedings in the division of tax appeals shall be commenced 42 by the filing of a petition with the division of tax appeals protesting 43 any written notice of the division of taxation, including any electronic 44 notice provided in accordance with section thirty-five of this chapter, 45 which has advised the petitioner of a tax deficiency, a determination of 46 tax due, a denial of a refund or credit application, a cancellation, 47 revocation or suspension of a license, permit or registration, a denial 48 of an application for a license, permit or registration or any other 49 notice which expressly gives a person the right to a hearing in the 50 division of tax appeals under this chapter or other law. Provided, 51 however, that any written communications of the division of taxation 52 that advise a taxpayer of a past-due tax liability, as defined in 53 section one hundred seventy-one-v of this chapter, shall not give a 54 person the right to a hearing in the division of tax appeals.S. 3009--C 73 A. 3009--C 1 § 3. This act shall take effect immediately. 2 PART N 3 Section 1. Section 6 of the tax law, as added by chapter 765 of the 4 laws of 1985, is amended to read as follows: 5 § 6. Filing of electronic warrants and warrant-related records in the 6 department of state. [Wherever under the provisions] 1. Notwithstanding 7 any provision of this chapter or a [warrant is required to] related 8 statute to the contrary, all warrants and warrant-related records issued 9 by the department shall be filed electronically by the department in the 10 department of state [in order to create a lien on personal property such11requirement shall be satisfied if there is filed a record of the fact of12the issuance of such warrant, including the name of the person on the13basis of whose tax liability the warrant is issued, the last known14address of such person, and the amount of such tax liability, including15penalties and interest]. No fee shall be required to be paid for such 16 [filing of such warrant or such record] filings. [The term "filed" in17such provisions shall mean presentation to the department of state, for18filing, of such warrant or such record.] On the date of the electronic 19 filing of a warrant, as confirmed by the department of state pursuant to 20 subdivision five of this section: 21 (a) the amount of the tax stated in the warrant shall become a lien 22 upon the title to and interest in all real, personal or other property 23 located in New York state, owned by the person or persons named in the 24 warrant. The lien so created shall: 25 (i) attach to all real property and rights to real property located in 26 New York state that is owned by the person or persons named in the 27 warrant at any time during the period of the lien, including any real 28 property or rights to real property located in New York state that is 29 acquired by such person or persons after the lien arises; and 30 (ii) apply to all personal or other property and rights to personal or 31 other property located in New York state that is owned by the person or 32 persons named in the warrant at any time during the period of the lien, 33 including any personal or other property or rights to personal or other 34 property located in New York state that is acquired by such person or 35 persons after the lien arises; and 36 (b) the commissioner shall, in the right of the people of the state of 37 New York, be deemed to have obtained a judgment against the person or 38 persons named in the warrant for the amount of the tax stated in the 39 warrant. 40 2. Enforcement of a judgment obtained pursuant to subdivision one of 41 this section shall be as prescribed in article fifty-two of the civil 42 practice law and rules. 43 3. A written or electronic copy of any electronic warrant or warrant- 44 related record filed in the department of state shall be filed by the 45 department in the office of the clerk of the county named in the warrant 46 or warrant-related record. 47 4. Notwithstanding any provision of this chapter or a related statute 48 to the contrary, all warrant-related records issued by the department 49 that are authorized by applicable laws, including, but not limited to, 50 warrant satisfactions, vacaturs, amendments and expirations, and any 51 warrant-related record issued by the department on or after July first, 52 two thousand twenty-five that pertains to a warrant filed prior to July 53 first, two thousand twenty-five, shall be filed electronically by the 54 department in the department of state. No fee shall be required to beS. 3009--C 74 A. 3009--C 1 paid for such filings. A written or electronic copy of the electronic 2 warrant-related record filed in the department of state shall be filed 3 by the department in the office of the clerk of the county named in the 4 warrant-related record. 5 5. The department shall file warrants and warrant-related records 6 electronically with the department of state. The department of state 7 shall provide electronic notice to the department confirming the date of 8 filing of the warrants and warrant-related records. The department of 9 state shall also make information regarding the warrants and warrant-re- 10 lated records, including the date of filing, available to the public and 11 searchable by the name of the person or persons listed in the tax 12 warrant. Upon request of the commissioner, the department of state shall 13 certify that a warrant or warrant-related record has been filed and the 14 date of such filing. 15 6. Notwithstanding any other provision of this chapter concerning the 16 place of filing of a tax warrant and the creation thereby of a tax lien 17 and judgment, the provisions of this section shall govern such matters 18 for purposes of any taxes imposed by or pursuant to this chapter. 19 § 2. Subdivision 1 of section 174-a of the tax law, as added by chap- 20 ter 176 of the laws of 1997, is amended to read as follows: 21 1. General rule. Notwithstanding any provision of law to the contrary, 22 the provisions of the civil practice law and rules relating to the dura- 23 tion of a lien of a docketed judgment in and upon real property of a 24 judgment debtor, and the extension of any such lien, shall apply to any 25 warrant or other warrant-related document electronically filed on behalf 26 of the commissioner against a taxpayer with the [clerk of a county wher-27ein such taxpayer owns or has an interest in real property] department 28 of state, whether such warrant is being enforced by a sheriff or an 29 officer or employee of the department. 30 § 3. Section 175 of the tax law, as amended by chapter 170 of the laws 31 of 1994, is amended to read as follows: 32 § 175. Manner of execution of instruments by the commissioner. 33 Notwithstanding any other provision of law, whenever a statute author- 34 izes or requires the commissioner to execute an instrument, such instru- 35 ment shall be executed by having the name or title of the commissioner 36 appear on such instrument and, underneath such name or title, such 37 instrument shall be signed by the commissioner or by a deputy tax 38 commissioner or by the secretary to such commissioner[, and the]. An 39 electronic signature may be used in lieu of a signature affixed by hand 40 pursuant to article three of the state technology law. The seal of such 41 commissioner [shall] may be affixed or [shall] appear on such instrument 42 as a facsimile which is engraved, printed or reproduced in any other 43 manner. No acknowledgment of the execution of any such instrument shall 44 be necessary for the purpose of the recordation thereof or for any other 45 purpose. 46 § 4. This act shall take effect July 1, 2025 and shall apply to 47 warrants and warrant-related records pertaining to such warrants filed, 48 or deemed to have been filed, on or after such date; provided, however, 49 that the department of taxation and finance and the department of state 50 are authorized to take any steps necessary to implement this act on or 51 before such effective date. 52 PART OS. 3009--C 75 A. 3009--C 1 Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real 2 property tax law, as amended by section 1 of part RR of chapter 59 of 3 the laws of 2019, is amended to read as follows: 4 (b-1) Income. For final assessment rolls to be used for the levy of 5 taxes for the two thousand eleven-two thousand twelve through two thou- 6 sand eighteen-two thousand nineteen school years, the parcel's affil- 7 iated income may be no greater than five hundred thousand dollars, as 8 determined by the commissioner pursuant to subdivision fourteen of this 9 section or section one hundred seventy-one-u of the tax law, in order to 10 be eligible for the basic exemption authorized by this section. Begin- 11 ning with the two thousand nineteen-two thousand twenty school year, for 12 purposes of the exemption authorized by this section, the parcel's 13 affiliated income may be no greater than two hundred fifty thousand 14 dollars, as so determined. As used herein, the term "affiliated income" 15 shall mean the combined income of all of the owners of the parcel who 16 resided primarily thereon on the applicable taxable status date, and of 17 any owners' spouses residing primarily thereon. For exemptions on final 18 assessment rolls to be used for the levy of taxes for the two thousand 19 eleven-two thousand twelve school year, affiliated income shall be 20 determined based upon the parties' incomes for the income tax year 21 ending in two thousand nine. In each subsequent school year, the appli- 22 cable income tax year shall be advanced by one year. The term "income" 23 as used herein shall have the same meaning as in subdivision four of 24 this section, and the provisions of clause (B) of subparagraph (ii) of 25 paragraph (b) of subdivision four of this section shall be equally 26 applicable to the basic exemption. 27 § 2. Paragraph (a) of subdivision 4 of section 425 of the real proper- 28 ty tax law, as amended by section 4 of part A of chapter 405 of the laws 29 of 1999 and subparagraph (i) as amended by section 2 of part E of chap- 30 ter 83 of the laws of 2002, is amended to read as follows: 31 (a) Age. (i) [All] At least one of the owners who resides primarily on 32 the property must be [at least] sixty-five years of age or older as of 33 the date specified herein[, or in the case of property owned by husband34and wife or by siblings, one of the owners must be at least sixty-five35years of age as of that date and the property must serve as the primary36residence of that owner]. For the two thousand--two thousand one school 37 year, eligibility for the exemption shall be based upon age as of Decem- 38 ber thirty-first, two thousand. For each subsequent school year, the 39 applicable date shall be advanced by one year. 40 (ii) [The term "siblings" as used herein shall have the same meaning41as set forth in section four hundred sixty-seven of this article.42(iii)] In the case of property owned by [husband and wife, one of43whom] a married couple, if only one of the spouses is sixty-five years 44 of age or over, the exemption, once granted, shall not be rescinded 45 solely because of the death of the older spouse so long as the surviving 46 spouse is at least sixty-two years of age as of the date specified in 47 this paragraph. 48 § 3. The opening paragraph of subparagraph (i) of paragraph (b) of 49 subdivision 4 of section 425 of the real property tax law, as amended by 50 section 3 of part E of chapter 83 of the laws of 2002, is amended to 51 read as follows: 52 The combined income of all of the owners who primarily reside on the 53 property, and of any owners' spouses primarily residing on the [prem-54ises] property, may not exceed the applicable income standard specified 55 herein.S. 3009--C 76 A. 3009--C 1 § 4. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 2 425 of the real property tax law, as amended by section 1 of part B of 3 chapter 59 of the laws of 2018, is amended to read as follows: 4 (ii) The term "income" as used herein shall mean the "adjusted gross 5 income" for federal income tax purposes as reported on the applicant's 6 federal or state income tax return for the applicable income tax year, 7 subject to any subsequent amendments or revisions, reduced by distrib- 8 utions, to the extent included in federal adjusted gross income, 9 received from an individual retirement account and an individual retire- 10 ment annuity; provided that if no such return was filed for the applica- 11 ble income tax year, "income" shall mean the [adjusted gross income] 12 amount that would have been so reported if such a return had been filed. 13 Provided further, that [effective]: 14 (A) Effective with exemption applications for final assessment rolls 15 to be completed in two thousand nineteen, where an income-eligibility 16 determination is wholly or partly based upon the income of one or more 17 individuals who did not file a return for the applicable income tax 18 year, then in order for the application to be considered complete, each 19 such individual must file a statement with the department showing the 20 source or sources of [his or her] such individual's income for that 21 income tax year, and the amount or amounts thereof, that would have been 22 reported on such a return if one had been filed. Such statement shall be 23 filed at such time, and in such form and manner, as may be prescribed by 24 the department, and shall be subject to the secrecy provisions of the 25 tax law to the same extent that a personal income tax return would be. 26 The department shall make such forms and instructions available for the 27 filing of such statements. The local assessor shall upon the request of 28 a taxpayer assist such taxpayer in the filing of the statement with the 29 department. 30 (B) Notwithstanding the foregoing provisions of this subparagraph, 31 where property is owned solely by a person or persons who received the 32 exemption for three consecutive years without having filed returns for 33 the applicable income tax years, but who demonstrated their eligibility 34 for the exemption to the commissioner's satisfaction by filing state- 35 ments pursuant to clause (A) of this subparagraph, such person or 36 persons shall be presumed to satisfy the applicable income-eligibility 37 requirements each year thereafter and shall not be required to continue 38 to file such statements in the absence of a specific request therefor 39 from the commissioner. Nothing contained herein shall be construed to 40 prevent the commissioner from denying an exemption pursuant to this 41 section when the commissioner determines that a property owner has a 42 source of income that renders that owner ineligible for that exemption. 43 § 5. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of 44 subdivision 4 of section 425 of the real property tax law are REPEALED 45 and a new clause (C) is added to read as follows: 46 (C) When the commissioner determines that property is ineligible for a 47 STAR exemption, notice of such determination and an opportunity for 48 review thereof shall be provided in the manner set forth in subdivision 49 four-b of this section. 50 § 6. Section 425 of the real property tax law is amended by adding a 51 new subdivision 4-b to read as follows: 52 4-b. Authority of the commissioner in relation to eligibility determi- 53 nations. (a) (i) Notwithstanding any provision of this section to the 54 contrary, it shall be the responsibility of the commissioner to deter- 55 mine eligibility for the basic and enhanced STAR exemptions authorized 56 by this section, in consultation with local assessors as necessary.S. 3009--C 77 A. 3009--C 1 (ii) The commissioner's eligibility determinations shall be based upon 2 data the commissioner has obtained from local assessment rolls, personal 3 income tax returns, the STAR registration program, the STAR income 4 verification program and such other data sources as may be available to 5 the commissioner. 6 (iii) The process followed by the commissioner to verify eligibility 7 for the basic and enhanced STAR exemptions shall be the same, except to 8 the extent that differences are required by law. 9 (b) If the commissioner should determine that a parcel that has a 10 basic STAR exemption is eligible for an enhanced STAR exemption, the 11 commissioner shall so notify the assessor. The assessor shall thereupon 12 grant the parcel an enhanced STAR exemption without requesting a new 13 application from the owner. 14 (c) If the commissioner determines that property is not eligible for a 15 STAR exemption it has been receiving, the provisions of this subdivision 16 shall be applicable. 17 (i) The commissioner shall provide the property owners with notice and 18 an opportunity to show the commissioner that the property is eligible to 19 receive the exemption. If the owners fail to respond to such notice 20 within forty-five days from the mailing thereof, or if their response 21 does not show to the commissioner's satisfaction that the property is 22 eligible for the exemption, the commissioner shall direct the assessor 23 or other person having custody or control of the assessment roll or tax 24 roll to remove or deny the exemption, and to correct the roll according- 25 ly. Such a directive shall be binding upon the assessor or other person 26 having custody or control of the assessment roll or tax roll, and shall 27 be implemented by such person without the need for further documentation 28 or approval. 29 (ii) Neither an assessor nor a board of assessment review has the 30 authority to consider an objection to the removal or denial of an 31 exemption pursuant to this subdivision, nor may such an action be 32 reviewed in a proceeding to review an assessment pursuant to title one 33 or one-A of article seven of this chapter. Such an action may only be 34 challenged before the department of taxation and finance. If a taxpayer 35 is dissatisfied with the department's final determination, the taxpayer 36 may appeal that determination to the state board of real property tax 37 services in a form and manner to be prescribed by the commissioner. Such 38 appeal shall be filed within forty-five days from the issuance of the 39 department's final determination. If dissatisfied with the state board 40 of real property tax services' determination, the taxpayer may seek 41 judicial review thereof pursuant to article seventy-eight of the civil 42 practice law and rules. The taxpayer shall otherwise have no right to 43 challenge such final determination in a court action, administrative 44 proceeding or any other form of legal recourse against the commissioner, 45 the department of taxation and finance, the state board of real property 46 tax services, the assessor or other person having custody or control of 47 the assessment roll or tax roll regarding such action. 48 § 7. The section heading of section 171-u of the tax law, as added by 49 section 2 of part FF of chapter 57 of the laws of 2010, is amended to 50 read as follows: 51 Verification of [income] eligibility for [basic] STAR exemption. 52 § 8. Subdivisions 1, 2, 3 and 4 of section 171-u of the tax law are 53 REPEALED, subdivision 5 is renumbered subdivision 2, and a new subdivi- 54 sion 1 is added to read as follows:S. 3009--C 78 A. 3009--C 1 (1) The commissioner shall verify the eligibility of properties for 2 STAR exemptions in the manner provided by section four hundred twenty- 3 five of the real property tax law. 4 § 9. Subparagraphs (B) and (E) of paragraph 1 of subsection (eee) of 5 section 606 of the tax law, subparagraph (B) as amended by section 10 of 6 part B of chapter 59 of the laws of 2018 and subparagraph (E) as amended 7 by section 2 of part H of chapter 59 of the laws of 2017, are amended to 8 read as follows: 9 (B) (i) "Affiliated income" shall mean [for purposes of the basic STAR10credit,] the combined income of all of the owners of the parcel who 11 resided primarily thereon as of [December thirty-first] July first of 12 the taxable year, and of any owners' spouses residing primarily thereon 13 as of such date[, and for purposes of the enhanced STAR credit, the14combined income of all of the owners of the parcel as of December thir-15ty-first of the taxable year, and of any owners' spouses residing prima-16rily thereon as of such date; provided that for both purposes]; provided 17 that the income to be so combined shall be the "adjusted gross income" 18 for the taxable year as reported for federal income tax purposes, or 19 that would be reported as adjusted gross income if a federal income tax 20 return were required to be filed, reduced by distributions, to the 21 extent included in federal adjusted gross income, received from an indi- 22 vidual retirement account and an individual retirement annuity. 23 (ii) For taxable years beginning on and after January first, two thou- 24 sand nineteen, where an income-eligibility determination is wholly or 25 partly based upon the income of one or more individuals who did not file 26 a return pursuant to section six hundred fifty-one of this article for 27 the applicable income tax year, then in order to be eligible for the 28 credit authorized by this subsection, each such individual must file a 29 statement with the department showing the source or sources of [his or30her] such individual's income for that income tax year, and the amount 31 or amounts thereof, that would have been reported on such a return if 32 one had been filed. Such statement shall be filed at such time, and in 33 such form and manner, as may be prescribed by the department, and shall 34 be subject to the provisions of section six hundred ninety-seven of this 35 article to the same extent that a return would be. The department shall 36 make such forms and instructions available for the filing of such state- 37 ments. The local assessor shall upon the request of a taxpayer assist 38 such taxpayer in the filing of the statement with the department. 39 [Provided further, that if the qualified taxpayer was an owner of the40property during the taxable year but did not own it on December thirty-41first of the taxable year, then the determination as to whether the42income of an individual should be included in "affiliated income" shall43be based upon the ownership and/or residency status of that individual44as of the first day of the month during which the qualified taxpayer45ceased to be an owner of the property, rather than as of December thir-46ty-first of the taxable year.] 47 (iii) Notwithstanding the foregoing provisions of this subparagraph, 48 where property is owned solely by a person or persons who received the 49 credit for three consecutive years without having filed returns for the 50 applicable income tax years, but who demonstrated their eligibility for 51 the credit to the commissioner's satisfaction by filing statements 52 pursuant to clause (ii) of this subparagraph, such person or persons 53 shall be presumed to satisfy the applicable income-eligibility require- 54 ments each year thereafter and shall not be required to continue to file 55 such statements in the absence of a specific request therefor from the 56 commissioner. Nothing contained herein shall be construed to prevent theS. 3009--C 79 A. 3009--C 1 commissioner from denying a credit pursuant to this subsection when the 2 commissioner determines that a property owner has a source of income 3 that renders that owner temporarily or permanently ineligible for that 4 credit. 5 (E) "Qualifying taxes" means the school district taxes that were or 6 are to be levied upon the taxpayer's primary residence for the associ- 7 ated fiscal year [that were actually paid by the taxpayer during the8taxable year]; or, in the case of a city school district that is subject 9 to article fifty-two of the education law, the combined city and school 10 district taxes that were or are to be levied upon the taxpayer's primary 11 residence for the associated fiscal year [that were actually paid by the12taxpayer during the taxable year]. Provided, however, that in the case 13 of a cooperative apartment, "qualifying taxes" means the school district 14 taxes that would have been levied upon the tenant-stockholder's primary 15 residence if it were separately assessed, as determined by the commis- 16 sioner based on the statement provided by the assessor pursuant to 17 subparagraph (ii) of paragraph (k) of subdivision two of section four 18 hundred twenty-five of the real property tax law, or in the case of a 19 cooperative apartment corporation that is described in subparagraph (iv) 20 of paragraph (k) of subdivision two of section four hundred twenty-five 21 of the real property tax law, one third of such amount. In no case shall 22 the term "qualifying taxes" be construed to include penalties or inter- 23 est. 24 § 10. Paragraph 2 of subsection (eee) of section 606 of the tax law is 25 REPEALED. 26 § 11. The opening paragraph and clause (i) of subparagraph (A) of 27 paragraph 4 of subsection (eee) of section 606 of the tax law, as 28 amended by section 8 of part A of chapter 73 of the laws of 2016, are 29 amended to read as follows: 30 Beginning with taxable years after two thousand [fifteen] twenty-four, 31 an enhanced STAR credit shall be available to a qualified taxpayer where 32 both of the following conditions are satisfied: 33 (i) [All] At least one of the owners of the parcel that serves as the 34 taxpayer's primary residence [are] is at least sixty-five years of age 35 as of December thirty-first of the taxable year [or, in the case of36property owned by a married couple or by siblings, at least one of the37owners is at least sixty-five years of age as of that date. The terms38"siblings" as used herein shall have the same meaning as set forth in39section four hundred sixty-seven of the real property tax law]. In the 40 case of property owned by a married couple, [one of whom] if only one of 41 the spouses is sixty-five years of age or over, the credit, once 42 allowed, shall not be disallowed because of the death of the older 43 spouse so long as the surviving spouse is at least sixty-two years of 44 age as of December thirty-first of the taxable year. 45 § 12. Subsection (eee) of section 606 of the tax law is amended by 46 adding a new paragraph 14 to read as follows: 47 (14) The process employed by the commissioner in verifying eligibility 48 for the basic STAR credit shall be the same as for the enhanced STAR 49 credit, except to the extent that differences are required by law. 50 § 13. This act shall take effect immediately; provided, however, that 51 sections two, three, five, six, seven, eight, eleven and twelve of this 52 act shall take effect January 1, 2026; and the amendments to clause (i) 53 of subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of 54 the tax law made by section nine of this act shall take effect January 55 1, 2026.S. 3009--C 80 A. 3009--C 1 PART P 2 Intentionally Omitted 3 PART Q 4 Intentionally Omitted 5 PART R 6 Section 1. Subdivision (a) of section 213-a of the tax law, as amended 7 by chapter 166 of the laws of 1991, is amended to read as follows: 8 (a) Requirement of declaration.--Every taxpayer subject to the tax 9 imposed by section two hundred nine of this [chapter] article shall make 10 a declaration of its estimated tax for the current privilege period, 11 containing such information as the commissioner of taxation and finance 12 may prescribe by regulations or instructions, if such estimated tax can 13 reasonably be expected to exceed one thousand dollars for taxable years 14 beginning before January first, two thousand twenty-six, or five thou- 15 sand dollars for taxable years beginning on or after January first, two 16 thousand twenty-six. If a taxpayer is subject to the tax surcharge 17 imposed under section two hundred nine-B of this article and such 18 taxpayer's estimated tax under section two hundred nine of this article 19 can reasonably be expected to exceed one thousand dollars for taxable 20 years beginning before January first, two thousand twenty-six, or five 21 thousand dollars for taxable years beginning on or after January first, 22 two thousand twenty-six, such taxpayer shall also make a declaration of 23 its estimated tax surcharge for the current privilege period. 24 § 2. Subdivision (a) of section 213-b of the tax law, as amended by 25 section 4 of part Z of chapter 59 of the laws of 2019, is amended to 26 read as follows: 27 (a) First installments for certain taxpayers.--In privilege periods of 28 twelve months ending at any time during the calendar year nineteen 29 hundred seventy and thereafter, every taxpayer subject to the tax 30 imposed by section two hundred nine of this [chapter] article must pay 31 with the report required to be filed for the preceding privilege period, 32 or with an application for extension of the time for filing the report, 33 for taxable years beginning before January first, two thousand sixteen, 34 and must pay on or before the fifteenth day of the third month of such 35 privilege periods, for taxable years beginning on or after January 36 first, two thousand sixteen, an amount equal to (i) twenty-five percent 37 of the second preceding year's tax if the second preceding year's tax 38 exceeded one thousand dollars for taxable years beginning before January 39 first, two thousand twenty-six, or five thousand dollars for taxable 40 years beginning on or after January first, two thousand twenty-six, but 41 was equal to or less than one hundred thousand dollars, or (ii) forty 42 percent of the second preceding year's tax if the second preceding 43 year's tax exceeded one hundred thousand dollars. If the second preced- 44 ing year's tax under section two hundred nine of this [chapter] article 45 exceeded one thousand dollars for taxable years beginning before January 46 first, two thousand twenty-six, or five thousand dollars for taxable 47 years beginning on or after January first, two thousand twenty-six, and 48 the taxpayer is subject to the tax surcharge imposed by section two 49 hundred nine-B of this [chapter] article, the taxpayer must also payS. 3009--C 81 A. 3009--C 1 with the tax surcharge report required to be filed for the second 2 preceding privilege period, or with an application for extension of the 3 time for filing the report, for taxable years beginning before January 4 first, two thousand sixteen, and must pay on or before the fifteenth day 5 of the third month of such privilege periods, for taxable years begin- 6 ning on or after January first, two thousand sixteen, an amount equal to 7 (i) twenty-five percent of the tax surcharge imposed for the second 8 preceding year if the second preceding year's tax was equal to or less 9 than one hundred thousand dollars, or (ii) forty percent of the tax 10 surcharge imposed for the second preceding year if the second preceding 11 year's tax exceeded one hundred thousand dollars. Provided, however, 12 that every taxpayer that is a New York S corporation must pay with the 13 report required to be filed for the preceding privilege period, or with 14 an application for extension of the time for filing the report, an 15 amount equal to (i) twenty-five percent of the preceding year's tax if 16 the preceding year's tax exceeded one thousand dollars for taxable years 17 beginning before January first, two thousand twenty-six, or five thou- 18 sand dollars for taxable years beginning on or after January first, two 19 thousand twenty-six, but was equal to or less than one hundred thousand 20 dollars, or (ii) forty percent of the preceding year's tax if the 21 preceding year's tax exceeded one hundred thousand dollars. 22 § 3. This act shall take effect immediately. 23 PART S 24 Section 1. Section 606 of the tax law is amended by adding a new 25 subsection (ttt) to read as follows: 26 (ttt) Organ donation credit. (1) For taxable years beginning on or 27 after January first, two thousand twenty-five, a full-year resident 28 taxpayer who, while living, donates one or more of their human organs to 29 another human being for human organ transplantation will be allowed a 30 credit against the taxes imposed by this article in the amount specified 31 in paragraph two of this subsection. For purposes of this paragraph, 32 "human organ" means all or part of a liver, pancreas, kidney, intestine, 33 lung, or bone marrow. 34 (2) A taxpayer may claim the credit allowed under this subsection only 35 once and in the taxable year in which the human organ transplantation 36 occurs. Such credit may be claimed, in an amount not to exceed ten thou- 37 sand dollars, for only the following unreimbursed expenses that are 38 incurred by the taxpayer and related to the taxpayer's organ donation: 39 (A) travel expenses; 40 (B) lodging expenses; and 41 (C) lost wages. 42 Provided, however, that this credit shall not apply to any organ 43 donation for which the taxpayer has received benefits under section 44 forty-three hundred seventy-one of the public health law. 45 (3) If the amount of the credit allowed under this subsection for any 46 taxable year shall exceed the taxpayer's tax for such 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, that no interest shall be paid thereon. 50 § 2. Paragraph 38 of subsection (c) of section 612 of the tax law, as 51 added by chapter 565 of the laws of 2006, the opening paragraph as 52 amended by chapter 814 of the laws of 2022, is amended to read as 53 follows:S. 3009--C 82 A. 3009--C 1 (38) [An] For taxable years beginning before January first, two thou- 2 sand twenty-five, an amount of up to ten thousand dollars if a taxpayer, 3 while living, donates one or more of [his or her] the taxpayer's human 4 organs to another human being for human organ transplantation. For 5 purposes of this paragraph, "human organ" means all or part of a liver, 6 pancreas, kidney, intestine, lung, or bone marrow. A subtract modifica- 7 tion allowed under this paragraph shall be claimed in the taxable year 8 in which the human organ transplantation occurs. Provided, however, that 9 this deduction shall not apply to any donation for which the taxpayer 10 has received benefits under section forty-three hundred seventy-one of 11 the public health law. 12 (A) A taxpayer shall claim the subtract modification allowed under 13 this paragraph only once and such subtract modification shall be claimed 14 for only the following unreimbursed expenses which are incurred by the 15 taxpayer and related to the taxpayer's organ donation: 16 (i) travel expenses; 17 (ii) lodging expenses; and 18 (iii) lost wages. 19 (B) The subtract modification allowed under this paragraph shall not 20 be claimed by a part-year resident or a non-resident of this state. 21 § 3. This act shall take effect immediately. 22 PART T 23 Section 1. Paragraph 3 of subsection (a) of section 954 of the tax 24 law, as amended by section 1 of part F of chapter 59 of the laws of 25 2019, is amended to read as follows: 26 (3) Increased by the amount of any taxable gift under section 2503 of 27 the internal revenue code not otherwise included in the decedent's 28 federal gross estate, made during the three year period ending on the 29 decedent's date of death, but not including any gift made: (A) when the 30 decedent was not a resident of New York state; or (B) before April 31 first, two thousand fourteen; or (C) between January first, two thousand 32 nineteen and January fifteenth, two thousand nineteen; or (D) that is 33 real or tangible personal property having an actual situs outside New 34 York state at the time the gift was made. Provided, however that this 35 paragraph shall not apply to the estate of a decedent dying on or after 36 January first, two thousand [twenty-six.] thirty-two. The amount by 37 which the total tax imposed under this article exceeds the total tax 38 that would have been imposed under this article if this paragraph did 39 not apply shall be treated as an obligation of the decedent as of the 40 decedent's death that is subject to the provisions of this article (but 41 which shall not be deductible for purposes of this article). 42 § 2. This act shall take effect immediately. 43 PART U 44 Section 1. Paragraphs (c) and (d) of subdivision 12 of section 210-B 45 of the tax law, as added by section 17 of part A of chapter 59 of the 46 laws of 2014, are amended to read as follows: 47 (c) Amount of credit. Except as provided in paragraph (d) of this 48 subdivision, the amount of credit for taxable years beginning before 49 January first, two thousand twenty-five shall be thirty-five percent of 50 the first six thousand dollars in qualified first-year wages earned by 51 each qualified employee and for taxable years beginning on or after 52 January first, two thousand twenty-five shall be the first five thousandS. 3009--C 83 A. 3009--C 1 dollars in qualified first-year wages earned by each qualified employee. 2 "Qualified first-year wages" means wages paid or incurred by the taxpay- 3 er during the taxable year to qualified employees which are attribut- 4 able, with respect to any such employee, to services rendered during the 5 one-year period beginning with the day the employee begins work for the 6 taxpayer. 7 (d) Credit where federal work opportunity tax credit applies. With 8 respect to any qualified employee whose qualified first-year wages under 9 paragraph (c) of this subdivision also constitute qualified first-year 10 wages for purposes of the work opportunity tax credit for vocational 11 rehabilitation referrals under section fifty-one of the internal revenue 12 code, the amount of credit under this subdivision for taxable years 13 beginning before January first, two thousand twenty-five shall be thir- 14 ty-five percent of the first six thousand dollars in qualified second- 15 year wages earned by each such employee and for taxable years beginning 16 on or after January first, two thousand twenty-five shall be the first 17 five thousand dollars in qualified second-year wages earned by each 18 qualified employee. "Qualified second-year wages" means wages paid or 19 incurred by the taxpayer during the taxable year to qualified employees 20 which are attributable, with respect to any such employee, to services 21 rendered during the one-year period beginning one year after the employ- 22 ee begins work for the taxpayer. 23 § 2. Paragraphs 3 and 4 of subsection (o) of section 606 of the tax 24 law, as added by chapter 142 of the laws of 1997, are amended to read as 25 follows: 26 (3) Amount of credit. Except as provided in paragraph four of this 27 subsection, the amount of credit for taxable years beginning before 28 January first, two thousand twenty-five shall be thirty-five percent of 29 the first six thousand dollars in qualified first-year wages earned by 30 each qualified employee and for taxable years beginning on or after 31 January first, two thousand twenty-five shall be the first five thousand 32 dollars in qualified first-year wages earned by each qualified employee. 33 "Qualified first-year wages" means wages paid or incurred by the taxpay- 34 er during the taxable year to qualified employees which are attribut- 35 able, with respect to any such employee, to services rendered during the 36 one-year period beginning with the day the employee begins work for the 37 taxpayer. 38 (4) Credit where federal work opportunity tax credit applies. With 39 respect to any qualified employee whose qualified first-year wages under 40 paragraph three of this subsection also constitute qualified first-year 41 wages for purposes of the work opportunity tax credit for vocational 42 rehabilitation referrals under section fifty-one of the internal revenue 43 code, the amount of credit under this subsection shall be for taxable 44 years beginning before January first, two thousand twenty-five thirty- 45 five percent of the first six thousand dollars in qualified second-year 46 wages earned by each such employee and for taxable years beginning on or 47 after January first, two thousand twenty-five shall be the first five 48 thousand dollars in qualified second-year wages earned by each qualified 49 employee. "Qualified second-year wages" means wages paid or incurred by 50 the taxpayer during the taxable year to qualified employees which are 51 attributable, with respect to any such employee, to services rendered 52 during the one-year period beginning one year after the employee begins 53 work for the taxpayer. 54 § 3. This act shall take effect immediately. 55 PART VS. 3009--C 84 A. 3009--C 1 Section 1. This Part enacts into law major components of legislation 2 relating to the reporting of federal partnership audit adjustments. Each 3 component is wholly contained within a Subpart identified as Subpart A 4 and Subpart B. The effective date for each particular provision 5 contained within such Subpart is set forth in the last section of such 6 Subpart. Any provision in any section contained within a Subpart, 7 including the effective date of the Subpart, which makes a reference to 8 a section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Subpart in which it is found. Section three of this Part 11 sets forth the general effective date of this Part. 12 SUBPART A 13 Section 1. Subdivision 3 of section 211 of the tax law, as amended by 14 section 19 of part A of chapter 59 of the laws of 2014, is amended to 15 read as follows: 16 3. If the amount of taxable income for any year of any taxpayer 17 (including any taxpayer which has elected to be taxed under subchapter s 18 of chapter one of the internal revenue code), as returned to the United 19 States treasury department is changed or corrected by the commissioner 20 of internal revenue or other officer of the United States or other 21 competent authority, or where a renegotiation of a contract or subcon- 22 tract with the United States results in a change in taxable income, such 23 taxpayer shall report such changed or corrected taxable income, or the 24 results of such renegotiation, within ninety days (or one hundred twenty 25 days, in the case of a taxpayer making a combined report under this 26 article for such year) after the final determination of such change or 27 correction or renegotiation, or as required by the commissioner, and 28 shall concede the accuracy of such determination or state wherein it is 29 erroneous. Provided however, if the taxpayer is a direct or indirect 30 partner of a partnership required to report adjustments in accordance 31 with section six hundred fifty-nine-a of this chapter, such taxpayer 32 shall also report such adjustments in accordance with section six 33 hundred fifty-nine-a of this chapter. The allowance of a tentative 34 carryback adjustment based upon a net operating loss carryback or net 35 capital loss carryback pursuant to section sixty-four hundred eleven of 36 the internal revenue code, as amended, shall be treated as a final 37 determination for purposes of this subdivision. Any taxpayer filing an 38 amended return with such department shall also file within ninety days 39 (or one hundred twenty days, in the case of a taxpayer making a combined 40 report under this article for such year) thereafter an amended report 41 with the commissioner. 42 § 2. Subsection (b) of section 653 of the tax law, as added by chapter 43 563 of the laws of 1960, is amended to read as follows: 44 (b) Partnerships. Any return, statement or other document required of 45 a partnership shall be signed by one or more partners. The fact that a 46 partner's name is signed to a return, statement, or other document, 47 shall be prima facie evidence for all purposes that such partner is 48 authorized to sign on behalf of the partnership. 49 (1) If a partnership is required to report federal adjustments arising 50 from a partnership level audit or an administrative adjustment request 51 pursuant to section six hundred fifty-nine-a of this part, the partner- 52 ship's federal partnership representative is the New York partnership 53 representative unless the partnership designates, in a manner determinedS. 3009--C 85 A. 3009--C 1 by the commissioner, that another person shall act on behalf of the 2 partnership. 3 (2) The New York partnership representative shall have the sole 4 authority to act on behalf of the partnership and its direct and indi- 5 rect partners shall be bound by these actions. 6 § 3. Section 659 of the tax law, as amended by section 8 of part J of 7 chapter 59 of the laws of 2014, is amended to read as follows: 8 § 659. Report of federal changes, corrections or disallowances. If the 9 amount of a taxpayer's federal taxable income, total taxable amount or 10 ordinary income portion of a lump sum distribution or includible gain of 11 a trust reported on [his] their federal income tax return for any taxa- 12 ble year, or the amount of a taxpayer's earned income credit or credit 13 for employment-related expenses set forth on such return, or the amount 14 of any federal foreign tax credit affecting the calculation of the cred- 15 it for Canadian provincial taxes under section six hundred twenty or six 16 hundred twenty-A of this article, or the amount of any claim of right 17 adjustment, is changed or corrected by the United States internal reven- 18 ue service or other competent authority or as the result of a renegoti- 19 ation of a contract or subcontract with the United States, or the amount 20 an employer is required to deduct and withhold from wages for federal 21 income tax withholding purposes is changed or corrected by such service 22 or authority or if a taxpayer's claim for credit or refund of federal 23 income tax is disallowed in whole or in part, the taxpayer or employer 24 shall report such change or correction or disallowance within ninety 25 days after the final determination of such change, correction, renegoti- 26 ation or disallowance, or as otherwise required by the commissioner, and 27 shall concede the accuracy of such determination or state wherein it is 28 erroneous. Provided, however, if the taxpayer is a direct or indirect 29 partner of a partnership required to report adjustments in accordance 30 with section six hundred fifty-nine-a of this part, such taxpayer shall 31 also report such adjustments in accordance with section six hundred 32 fifty-nine-a of this part. The allowance of a tentative carryback 33 adjustment based upon a net operating loss carryback pursuant to section 34 sixty-four hundred eleven of the internal revenue code shall be treated 35 as a final determination for purposes of this section. Any taxpayer 36 filing an amended federal income tax return and any employer filing an 37 amended federal return of income tax withheld shall also file within 38 ninety days thereafter an amended return under this article, and shall 39 give such information as the commissioner may require. The commissioner 40 may by regulation prescribe such exceptions to the requirements of this 41 section as [he or she deems] they deem appropriate. For purposes of this 42 section, (i) the term "taxpayer" shall include a partnership having a 43 resident partner or having any income derived from New York sources, and 44 a corporation with respect to which the taxable year of such change, 45 correction, disallowance or amendment is a year with respect to which 46 the election provided for in subsection (a) of section six hundred sixty 47 of this article is in effect, and (ii) the term "federal income tax 48 return" shall include the returns of income required under sections six 49 thousand thirty-one and six thousand thirty-seven of the internal reven- 50 ue code. In the case of such a corporation, such report shall also 51 include any change or correction of the taxes described in paragraphs 52 two and three of subsection (f) of section thirteen hundred sixty-six of 53 the internal revenue code. Reports made under this section by a partner- 54 ship or corporation shall indicate the portion of the change in each 55 item of income, gain, loss or deduction (and, in the case of a corpo- 56 ration, of each change in, or disallowance of a claim for credit orS. 3009--C 86 A. 3009--C 1 refund of, a tax referred to in the preceding sentence) allocable to 2 each partner or shareholder and shall set forth such identifying infor- 3 mation with respect to such partner or shareholder as may be prescribed 4 by the commissioner. 5 § 4. The tax law is amended by adding a new section 659-a to read as 6 follows: 7 § 659-a. Reporting of federal partnership adjustments. (a) If any 8 item required to be shown on a federal partnership return, for any part- 9 nership that has a resident partner or any income derived from New York 10 sources, including any gross income, gain, loss, deduction, penalty, 11 credit, or tax for any year of such partnership, including any amount of 12 any partner's distributive share, is changed or corrected by the commis- 13 sioner of internal revenue or other officer of the United States or 14 other competent authority, and the partnership is issued an adjustment 15 under section sixty-two hundred twenty-five of the internal revenue code 16 or makes a federal election for alternative payment with the internal 17 revenue service as part of a partnership level audit, or files an admin- 18 istrative adjustment request, the partnership shall report, in the 19 manner prescribed by the commissioner, each change or correction in 20 sufficient detail to allow for the computation of the New York tax 21 change or correction for the reviewed year within ninety days after the 22 date of each final federal determination, or ninety days after the 23 filing of an administrative adjustment request. 24 (b) Definitions. As used in this section, the following terms shall 25 have the following meanings: 26 (1) "Administrative adjustment request" means an administrative 27 adjustment request filed by a partnership under section sixty-two 28 hundred twenty-seven of the internal revenue code. 29 (2) "Direct partner" means a partner that holds an interest directly 30 in an impacted partnership during the reviewed year. 31 (3) "Federal election for alternative payment" means the election 32 described in section sixty-two hundred twenty-six of the internal reven- 33 ue code, relating to alternative payment of imputed underpayment by 34 partnership. 35 (4) "Final federal adjustment" means a change to an item of gross 36 income, gain, loss, deduction, penalty, credit, or a partner's distribu- 37 tive share, of an impacted partnership determined under section sixty- 38 two hundred twenty-five of the internal revenue code that is considered 39 fixed and final under the internal revenue code. 40 (5) "Final federal determination date" means the date on which each 41 adjustment or resolution resulting from an internal revenue service 42 examination is assessed pursuant to section sixty-two hundred three of 43 the internal revenue code. 44 (6) "Impacted partnership" means a partnership that (i) was issued a 45 final federal adjustment; or (ii) made a federal election for alterna- 46 tive payment with the internal revenue service as part of a federal 47 partnership level audit; or (iii) filed an administrative adjustment 48 request with the internal revenue service. 49 (7) "Indirect partner" means a partner, member, or shareholder in a 50 partnership or other pass-through entity that itself held an interest 51 indirectly, or through another indirect partner, in an impacted partner- 52 ship during the reviewed year. 53 (8) "New York election for alternative payment" means the election 54 described in paragraph three of subsection (d) of this section, relating 55 to payment by the impacted partnership in lieu of taxes owed by its 56 direct and indirect partners.S. 3009--C 87 A. 3009--C 1 (9) "Reviewed year" has the meaning provided in paragraph one of 2 subsection (d) of section sixty-two hundred twenty-five of the internal 3 revenue code. 4 (10) "Tiered partner" means any partner in an impacted partnership 5 where such partner is a partnership, S corporation, or other pass- 6 through entity for New York tax purposes. 7 (c) Reporting adjustments to federal taxable income. Where partner- 8 ships and partners were required to report final federal adjustments or 9 administrative adjustment requests for federal purposes by taking such 10 adjustments into account on a timely filed amended federal income tax 11 return for the reviewed year, such partnerships and partners shall 12 report and pay any New York tax owed under article nine-A, twenty-two, 13 thirty-three, or any law authorized by article thirty of this chapter in 14 the same manner for the reviewed year. Such partnerships and partners 15 shall report final federal adjustments arising from an audit or other 16 action by the internal revenue service or reported by the taxpayer on a 17 timely filed amended federal income tax return, including a return or 18 other similar report filed pursuant to section sixty-two hundred twen- 19 ty-five of the internal revenue code, or federal claim for refund by 20 filing a federal adjustments report and, if applicable, such partner- 21 ships and partners shall pay the additional tax due no later than one 22 hundred eighty days after the final determination date. 23 (d) Reporting federal adjustments pursuant to a partnership level 24 audit and administrative adjustment request. Except for adjustments 25 required to be reported under subsection (c) of this section, partner- 26 ships and partners shall report final federal adjustments arising from a 27 partnership level audit or an administrative adjustment request and make 28 payments as required under this subsection in the year of adjustment. 29 (1) Unless a de minimis exception applies, impacted partnerships 30 must report any final federal adjustments and administrative adjustment 31 requests regardless of tax impact. Such report must include the 32 impacted partnership's direct and indirect partner identifying informa- 33 tion and any other information the commissioner may require. 34 (2) Except for those subject to a properly made election for alterna- 35 tive payment under paragraph three of this subsection, any changes or 36 corrections made by the internal revenue service pursuant to such a 37 final federal adjustment or as a result of an administrative adjustment 38 request must be reported by the impacted partnership as follows: 39 (A) No later than ninety days after the final determination date, the 40 partnership shall: 41 (i) file a completed federal adjustments report, including any infor- 42 mation as required by the commissioner; 43 (ii) notify each of its direct partners of their distributive share of 44 the final federal adjustment, including any information required by the 45 commissioner; 46 (iii) file an amended return as required under paragraph one of 47 subsection (c) of section six hundred fifty-eight and section six 48 hundred fifty-nine of this article for the reviewed year; 49 (iv) file an amended group return if the partnership originally filed 50 a group return, and remit the additional amount that would have been due 51 under subsection (c) of section six hundred fifty-eight of this article 52 had the final federal adjustments been properly reported originally as 53 required; and 54 (v) remit any additional amounts that would have been due under para- 55 graph four of subsection (c) of section six hundred fifty-eight of thisS. 3009--C 88 A. 3009--C 1 article had the final federal adjustments been properly originally 2 reported as required. 3 (B) No later than one hundred eighty days after the final determi- 4 nation date, each direct partner of an impacted partnership that is 5 taxed under article nine-A, twenty-two, thirty-three, or any law author- 6 ized by article thirty of this chapter, other than a direct partner that 7 is included on a group return under clause (iv) of subparagraph (A) of 8 this paragraph, shall: 9 (i) file a federal adjustments report reporting their distributive 10 share of the adjustments reported to them by the impacted partnership 11 under clause (ii) of subparagraph (A) of this paragraph; and 12 (ii) remit any additional amount of tax due, plus any penalty and 13 interest computed under this article based on the due date of the 14 originally filed return for the reviewed year, less any credit for 15 amounts paid or withheld and remitted on behalf of the direct partner. 16 (3) New York election for alternative payment by the partnership. An 17 impacted partnership making an election under this subsection shall: 18 (A) no later than ninety days after the final determination date, file 19 a completed federal adjustments report, including any information as 20 required by the commissioner, and provide notice, in the manner required 21 by the commissioner, that it is making the election under this 22 subsection. 23 (B) no later than one hundred eighty days after the final determi- 24 nation date, pay an amount, in lieu of taxes owed by its direct and 25 indirect partners. Such amount shall be determined based on the sum of 26 the following: 27 (i) for direct partners subject to tax pursuant to article nine-A or 28 thirty-three of this chapter in the reviewed year, the partner's 29 distributive share of gross income or gain and deduction apportioned to 30 New York using the apportionment rules described in article nine-A of 31 this chapter multiplied by the highest tax rate under such article 32 nine-A in effect for the reviewed year; and 33 (ii) for a direct partner subject to tax under this article that is 34 treated as a nonresident pursuant to paragraph two of subsection (b) of 35 section six hundred five of this article in the reviewed year, the part- 36 ner's distributive share of gross income or gain and deduction allocated 37 to New York using the allocation rules described in this article multi- 38 plied by the highest tax rate under this article in effect for the 39 reviewed year; and 40 (iii) for a direct partner subject to tax under this article that is 41 treated as a resident pursuant to paragraph one of subsection (b) of 42 section six hundred five of this article in the reviewed year, the part- 43 ner's distributive share of gross income or gain and deduction multi- 44 plied by the highest tax rate under this article in effect for the 45 reviewed year; and 46 (iv) for a direct partner subject to tax under article thirty of this 47 chapter that is treated as a resident pursuant to subsection (a) of 48 section thirteen hundred five of this chapter in the reviewed year, the 49 amount described in clause (iii) of this subparagraph and the partner's 50 distributive share of gross income or gain and deduction multiplied by 51 the highest tax rate under section thirteen hundred four of this chapter 52 in effect for the reviewed year; and 53 (v) for tiered partners, include the sum of: 54 (I) the amount of gross income, gain or deduction from the adjustment 55 that would ultimately flow to a taxpayer subject to tax under article 56 nine-A or thirty-three of this chapter in the reviewed year apportionedS. 3009--C 89 A. 3009--C 1 to New York using the apportionment rules described in article nine-A of 2 this chapter multiplied by the highest tax rate under such article 3 nine-A in effect for the reviewed year; and 4 (II) the amount of gross income, gain or deduction from the adjustment 5 that would ultimately flow to a taxpayer subject to tax under this arti- 6 cle and treated as a nonresident pursuant to paragraph two of subsection 7 (b) of section six hundred five of this article in the reviewed year 8 allocated to New York using the allocation rules described in this arti- 9 cle multiplied by the highest tax rate under this article in effect for 10 the reviewed year; and 11 (III) the amount of gross income, gain or deduction from the adjust- 12 ment that would ultimately flow to a taxpayer subject to tax under this 13 article and treated as a resident pursuant to paragraph one of 14 subsection (b) of section six hundred five of this article in the 15 reviewed year multiplied by the highest tax rate under this article in 16 effect for the reviewed year; and 17 (IV) any amount of gross income, gain or deduction from the adjustment 18 that cannot be established to be properly allocable to a taxpayer 19 described in items (I) or (II) of this clause, multiplied by the highest 20 tax rate under this article in effect for the reviewed year; and 21 (vi) any applicable penalty and interest as required by this article. 22 (4) Tiered partners. The direct and indirect partners of an impacted 23 partnership that are tiered partners, and all of the partners of those 24 tiered partners that are subject to tax under article nine-a, twenty- 25 two, thirty-three, or any law authorized by article thirty of this chap- 26 ter, are subject to the reporting and payment requirements of paragraph 27 two of this subsection and the tiered partners are entitled to make the 28 elections provided in paragraphs three and five of this subsection. The 29 tiered partners or their partners shall make all required reports and 30 payments no later than ninety days after the time for filing and 31 furnishing statements to tiered partners and their partners pursuant to 32 section sixty-two hundred twenty-six of the internal revenue code and 33 the regulations thereunder. 34 (5) Modified reporting and payment method. In the manner required by 35 the commissioner, an impacted partnership or tiered partner may enter 36 into an agreement with the commissioner to utilize an alternative 37 reporting and payment method, including applicable time requirements or 38 any other provision of this section, if the impacted partnership or 39 tiered partner demonstrates that the requested method will reasonably 40 provide for the reporting and payment of taxes, penalties, and interest 41 due under the provisions of this section, or if the impacted partnership 42 or tiered partner can show that their direct partners have agreed to 43 allow a refund of the tax to the entity. Application for approval of an 44 alternative reporting and payment method must be made by the impacted 45 partnership or tiered partner within the time for election as provided 46 in paragraph three or four of this subsection, as appropriate. 47 (6) Effect of election by impacted partnership or tiered partner and 48 payment of amount due. (A) The election made pursuant to paragraph 49 three or five of this subsection is irrevocable, unless the commission- 50 er, in their discretion, determines otherwise. 51 (B) If properly reported and paid by the impacted partnership or 52 tiered partner, the amount determined in subparagraph (B) of paragraph 53 three of this subsection, or similarly under an optional election pursu- 54 ant to paragraph five of this subsection, will be treated as a payment 55 in lieu of taxes owed by its direct and indirect partners, to the extent 56 applicable, on the same final federal adjustment. The direct partners orS. 3009--C 90 A. 3009--C 1 indirect partners may not take any deduction or credit for this amount 2 or claim a refund of such amount. Provided, however, that nothing in 3 this paragraph shall preclude a resident direct partner from claiming a 4 credit against taxes paid to the commissioner pursuant to article twen- 5 ty-two of this chapter for any amounts paid by the impacted partnership 6 or tiered partner on such resident partner's behalf to another state or 7 local tax jurisdiction in accordance with the provisions of section six 8 hundred twenty of this article. 9 (7) Failure of impacted partnership or tiered partner to report or 10 remit. Nothing in this section shall prevent the commissioner 11 from assessing direct or indirect partners for any taxes due, using the 12 best information available, in the event that an impacted partnership, 13 or a direct or indirect partner of an impacted partnership, fails to 14 timely report or remit any report or additional taxes due required by 15 this section for any reason. 16 (e) De minimis exception. The commissioner shall have the discretion 17 to promulgate regulations to establish a de minimis amount upon which a 18 taxpayer shall not be required to comply with subsections (c) and/or (d) 19 of this section. 20 (f) Estimated tax payments during the course of a federal audit. An 21 impacted partnership may make estimated payments of the tax expected to 22 result from a pending internal revenue service audit, prior to the due 23 date of the federal adjustments report and prior to filing the report 24 with the commissioner. If an impacted partnership makes an estimated 25 payment under this subsection, other than an estimated payment made 26 under paragraph four of subsection (c) of section six hundred fifty- 27 eight of this article, such estimated payment must be accompanied by an 28 irrevocable election under paragraph three of subsection (d) of this 29 section. The estimated tax payments shall be credited against any tax 30 liability ultimately found to be due and will limit the accrual of 31 further statutory interest on such amount. If the estimated tax payments 32 exceed the final tax liability and statutory interest ultimately deter- 33 mined to be due, the taxpayer is entitled to a refund or credit of the 34 excess, provided the taxpayer files a federal adjustments report or 35 claim for refund or credit of tax pursuant to section six hundred eight- 36 y-six of this article, no later than one year following the final deter- 37 mination date. 38 (g) Claims for refund or credits of tax arising from a final federal 39 adjustment. Except for final federal adjustments required to be reported 40 for the year of the adjustment, a taxpayer may file a claim for refund 41 or credit of tax arising from federal adjustments on or before the later 42 of: 43 (1) the expiration of the last day for filing a claim for refund or 44 credit pursuant to section six hundred eighty-seven of this article, 45 including any extensions; or 46 (2) one year from the date a federal adjustment report pursuant to 47 subsection (c) or (d) of this section, as applicable, was due, including 48 any extensions pursuant to subsection (h) of this section. 49 (h) Scope of adjustments and extensions of time. (1) Unless otherwise 50 agreed in writing by the taxpayer and the commissioner, any adjustments 51 by the commissioner or the taxpayer made after the period of limitations 52 for assessment or refund has terminated under article nine-A, twenty- 53 two, thirty-three, or any law authorized by article thirty of this chap- 54 ter, is limited to changes to the taxpayer's tax liability arising from 55 such a final federal adjustment. 56 (2) The time periods provided for in this section may be extended:S. 3009--C 91 A. 3009--C 1 (A) automatically, upon written notice to the commissioner, by sixty 2 days for an impacted partnership or tiered partner which has ten thou- 3 sand or more direct partners; or 4 (B) by written agreement between the taxpayer and the commissioner. 5 (3) Any extension granted under this subsection for filing a federal 6 adjustments report extends the last day prescribed by law for assessing 7 any additional tax arising from the adjustments to federal taxable 8 income and the period for filing a claim for refund or credit of taxes 9 under article nine-A, twenty-two, thirty-three, or any law authorized by 10 article thirty of this chapter. 11 § 5. Subsection (e) of section 681 of the tax law, as amended by chap- 12 ter 381 of the laws of 1975, paragraph 1 as amended by chapter 28 of the 13 laws of 1987, is amended to read as follows: 14 (e) Exceptions where federal changes, corrections or disallowances are 15 not reported.--- 16 (1) If the taxpayer or employer fails to comply with section six 17 hundred fifty-nine or section six hundred fifty-nine-a, instead of the 18 mode and time of assessment provided for in subsection (b) of this 19 section, the [tax commission] commissioner may assess a deficiency based 20 upon such federal change, correction or disallowance by mailing to the 21 taxpayer a notice of additional tax due specifying the amount of the 22 deficiency, and such deficiency, together with the interest, additions 23 to tax and penalties stated in such notice, shall be deemed assessed on 24 the date such notice is mailed unless within thirty days after the mail- 25 ing of such notice a report of the federal change, correction or disal- 26 lowance or an amended return, where such return was required by section 27 six hundred fifty-nine or section six hundred fifty-nine-a, is filed 28 accompanied by a statement showing wherein such federal determination 29 and such notice of additional tax due are erroneous. 30 (2) Such notice shall not be considered as a notice of deficiency for 31 the purposes of this section, subsection (f) of section six hundred 32 eighty-seven (limiting credits or refunds after petition to the [tax33commission] division of tax appeals), or subsection (b) of section six 34 hundred eighty-nine (authorizing the filing of a petition with the [tax35commission] division of tax appeals based on a notice of deficiency), 36 nor shall such assessment or the collection thereof be prohibited by the 37 provisions of subsection (c). 38 (3) If [a husband and wife] spouses are jointly liable for tax, a 39 notice of additional tax due may be a single joint notice, except that 40 if the [tax commission] commissioner has been notified by either spouse 41 that separate residences have been established, then, in lieu of the 42 joint notice, a duplicate original of the joint notice shall be mailed 43 to each spouse at [his or her] their last known address in or out of 44 this state. If the taxpayer is deceased or under a legal disability, a 45 notice of additional tax due may be mailed to [his] their last known 46 address in or out of this state, unless the [tax commission] commission- 47 er has received notice of the existence of a fiduciary relationship with 48 respect to the taxpayer. 49 § 6. Subsection (a) of section 682 of the tax law, as amended by 50 section 3 of part F of chapter 60 of the laws of 2004, is amended to 51 read as follows: 52 (a) Assessment date.--The amount of tax which a return shows to be 53 due, or the amount of tax which a return would have shown to be due but 54 for a mathematical or clerical error, shall be deemed to be assessed on 55 the date of filing of the return (including any amended return showing 56 an increase of tax). In the case of a return properly filed withoutS. 3009--C 92 A. 3009--C 1 computation of tax, the tax computed by the commissioner shall be deemed 2 to be assessed on the date on which payment is due. If a notice of defi- 3 ciency has been mailed, the amount of the deficiency shall be deemed to 4 be assessed on the date specified in subsection (b) of section six 5 hundred eighty-one if no petition to the division of tax appeals is 6 filed, or if a petition is filed, then upon the date when a determi- 7 nation or decision rendered in the division of tax appeals establishing 8 the amount of the deficiency becomes final. If an amended return or 9 report filed pursuant to section six hundred fifty-nine or six hundred 10 fifty-nine-a concedes the accuracy of a federal change or correction, 11 any deficiency in tax under this article resulting therefrom shall be 12 deemed to be assessed on the date of filing such report or amended 13 return, and such assessment shall be timely notwithstanding section six 14 hundred eighty-three. If a notice of additional tax due, as prescribed 15 in subsection (e) of section six hundred eighty-one, has been mailed, 16 the amount of the deficiency shall be deemed to be assessed on the date 17 specified in such subsection unless within thirty days after the mailing 18 of such notice a report of the federal change or correction or an 19 amended return, where such return was required by section six hundred 20 fifty-nine or six hundred fifty-nine-a, is filed accompanied by a state- 21 ment showing wherein such federal determination and such notice of addi- 22 tional tax due are erroneous. Any amount paid as a tax or in respect of 23 a tax, other than amounts withheld at the source or paid as estimated 24 income tax, shall be deemed to be assessed upon the date of receipt of 25 payment, notwithstanding any other provisions. 26 § 7. Paragraphs 1, 2 and 3 of subsection (c) of section 683 of the tax 27 law, paragraph 1 as amended by chapter 526 of the laws of 1973, subpara- 28 graph (C) of paragraph 1 and paragraph 3 as amended by chapter 28 of 29 the laws of 1987 and paragraph 2 as added by chapter 1011 of the laws of 30 1962, are amended to read as follows: 31 (1) Assessment at any time.--The tax may be assessed at any time if-- 32 (A) no return is filed, 33 (B) a false or fraudulent return is filed with intent to evade tax, or 34 (C) the taxpayer or employer fails to comply with section six hundred 35 fifty-nine or six hundred fifty-nine-a. 36 (2) Extension by agreement.--Where, before the expiration of the time 37 prescribed in this section for the assessment of tax, both the [tax38commission] commissioner and the taxpayer have consented in writing to 39 its assessment after such time, the tax may be assessed at any time 40 prior to the expiration of the period agreed upon. The period so agreed 41 upon may be extended by subsequent agreements in writing made before the 42 expiration of the period previously agreed upon. 43 (3) Report of federal changes, corrections or disallowances.--If the 44 taxpayer or employer complies with section six hundred fifty-nine or six 45 hundred fifty-nine-a, the assessment (if not deemed to have been made 46 upon the filing of the report or amended return) may be made at any time 47 within two years after such report or amended return was filed. The 48 amount of such assessment of tax shall not exceed the amount of the 49 increase in New York tax attributable to such federal change or 50 correction. The provisions of this paragraph shall not affect the time 51 within which or the amount for which an assessment may otherwise be 52 made. 53 § 8. Paragraph 2 of subsection (h) of section 685 of the tax law, as 54 amended by section 5 of part I of chapter 59 of the laws of 2014, is 55 amended to read as follows:S. 3009--C 93 A. 3009--C 1 (2) If any partnership, S corporation, or trust required to file a 2 return or report under subsection (c) or subsection (f) of section six 3 hundred fifty-eight or under section six hundred fifty-nine or six 4 hundred fifty-nine-a of this article for any taxable year fails to file 5 such return or report at the time prescribed therefor (determined with 6 regard to any extension of time for filing), or files a return or report 7 which fails to show the information required under such subsection (c) 8 [or] of section six hundred fifty-nine of this article, or files a 9 return or report which fails to show the information required under 10 subsection (d) of section six hundred fifty-nine-a of this article, 11 unless it is shown that such failure is due to reasonable cause and not 12 due to willful neglect, there shall, upon notice and demand by the 13 commissioner and in the same manner as tax, be paid by the partnership 14 or S corporation a penalty for each month (or fraction thereof) during 15 which such failure continues (but not to exceed five months). The amount 16 of such penalty for any month is the product of fifty dollars, multi- 17 plied by the number of partners in the partnership or shareholders in 18 the S corporation during any part of the taxable year who were subject 19 to tax under this article during any part of such taxable year, except 20 that, in the case of a trust, the penalty shall be equal to one hundred 21 fifty dollars a month up to a maximum of fifteen hundred dollars per 22 taxable year. 23 § 9. Subsection (c) of section 687 of the tax law, as amended by chap- 24 ter 61 of the laws of 1989, is amended to read as follows: 25 (c) Notice of federal change or correction.--A claim for credit or 26 refund of any overpayment of tax attributable to a federal change or 27 correction required to be reported pursuant to section six hundred 28 fifty-nine or by a partner of a partnership required to report a federal 29 change or correction pursuant to section six hundred fifty-nine-a shall 30 be filed by the taxpayer within two years from the time the notice of 31 such change or correction or such amended return was required to be 32 filed with the commissioner of taxation and finance. If the report or 33 amended return required by section six hundred fifty-nine or six hundred 34 fifty-nine-a is not filed within the ninety day period therein speci- 35 fied, no interest shall be payable on any claim for credit or refund of 36 the overpayment attributable to the federal change or correction. The 37 amount of such credit or refund shall not exceed the amount of the 38 reduction in tax attributable to such federal change, correction or 39 items amended on the taxpayer's amended federal income tax return. This 40 subsection shall not affect the time within which or the amount for 41 which a claim for credit or refund may be filed apart from this 42 subsection. 43 § 10. Subsection (g) of section 688 of the tax law, as amended by 44 chapter 61 of the laws of 1989, is amended to read as follows: 45 (g) Cross-reference.--For provision with respect to interest after 46 failure to file notice of federal change under section six hundred 47 fifty-nine or six hundred fifty-nine-a, see subsection (c) of section 48 six hundred eighty-seven. 49 § 11. Subsection (a) of section 1312 of the tax law, as amended by 50 section 9 of part Q of chapter 407 of the laws of 1999, is amended to 51 read as follows: 52 (a) Except as otherwise provided in this article, any tax imposed 53 pursuant to the authority of this article shall be administered and 54 collected by the commissioner in the same manner as the tax imposed by 55 article twenty-two of this chapter is administered and collected by the 56 commissioner. All of the provisions of article twenty-two of this chap-S. 3009--C 94 A. 3009--C 1 ter relating to or applicable to payment of estimated tax, returns, 2 payment of tax, claim of right adjustment, withholding of tax from 3 wages, employer's statements and returns, employer's liability for taxes 4 required to be withheld and all other provisions of article twenty-two 5 of this chapter relating to or applicable to the administration, 6 collection, liability for and review of the tax imposed by article twen- 7 ty-two of this chapter, including sections six hundred fifty-two through 8 six hundred fifty-four, sections six hundred fifty-seven through [six9hundred fifty-nine] six hundred fifty-nine-a, sections six hundred 10 sixty-one and six hundred sixty-two, sections six hundred seventy-one 11 and six hundred seventy-two, sections six hundred seventy-four through 12 six hundred seventy-eight and sections six hundred eighty-one through 13 six hundred ninety-seven of this chapter, inclusive, shall apply to a 14 tax imposed pursuant to the authority of this article with the same 15 force and effect as if those provisions had been incorporated in full 16 into this article, and had expressly referred to the tax imposed pursu- 17 ant to the authority of this article, except where inconsistent with a 18 provision of this article. Whenever there is joint collection of state 19 and city personal income taxes, it shall be deemed that such collections 20 shall represent proportionately the applicable state and city personal 21 income taxes in determining the amount to be remitted to the city. 22 § 12. Paragraph 1 of subdivision (e) of section 1515 of the tax law, 23 as amended by chapter 770 of the laws of 1992, is amended to read as 24 follows: 25 (1) If the amount of the life insurance company taxable income (which 26 shall include, in the case of a stock life insurance company which has 27 an existing policyholders surplus account, the amount of direct and 28 indirect distributions during the taxable year to shareholders from such 29 account), taxable income of a partnership or taxable income, as the case 30 may be, or alternative minimum taxable income for any year of any 31 taxpayer as returned to the United States treasury department is changed 32 or corrected by the commissioner of internal revenue or other officer of 33 the United States or other competent authority, such taxpayer shall 34 report such change or corrected taxable income or alternative minimum 35 taxable income within ninety days (or one hundred twenty days, in the 36 case of a taxpayer making a combined return under this article for such 37 year) after the final determination of such change or correction or as 38 required by the commissioner, and shall concede the accuracy of such 39 determination or state wherein it is erroneous. Provided, however, if 40 the taxpayer is a direct or indirect partner of a partnership required 41 to report adjustments in accordance with section six hundred 42 fifty-nine-a of this chapter, such taxpayer shall also report such 43 adjustments in accordance with section six hundred fifty-nine-a of this 44 chapter. Any taxpayer filing an amended return with such department 45 shall also file within ninety days (or one hundred twenty days, in the 46 case of a taxpayer making a combined return under this article for such 47 year) thereafter an amended return with the commissioner which shall 48 contain such information as the commissioner shall require. The allow- 49 ance of a tentative carryback adjustment based upon a net operating loss 50 carryback or net capital loss carryback pursuant to section sixty-four 51 hundred eleven of the internal revenue code or upon an operations loss 52 carryback pursuant to section eight hundred ten of the internal revenue 53 code, shall be treated as a final determination for purposes of this 54 subdivision. 55 § 13. This act shall take effect immediately; provided, however, that 56 adjustments to a taxpayer's federal taxable income or tax liability withS. 3009--C 95 A. 3009--C 1 a final determination date or administrative adjustment request occur- 2 ring prior to the effective date of this act must be reported within one 3 year of such effective date; provided further that no interest shall 4 accrue on adjustments occurring prior to the effective date of this act. 5 SUBPART B 6 Section 1. Section 11-501 of the administrative code of the city of 7 New York is amended by adding four new subdivisions (n), (o), (p) and 8 (q) to read as follows: 9 (n) "Administrative adjustment request" when used in this chapter 10 shall mean a request for an administrative adjustment filed by a part- 11 nership under section sixty-two hundred twenty-seven of the internal 12 revenue code. 13 (o) "Alternative adjustment action" when used in this chapter shall 14 mean (i) a final federal adjustment; (ii) a federal election for alter- 15 native payment; or (iii) the filing of an administrative adjustment 16 request. 17 (p) "Federal election for alternative payment" when used in this chap- 18 ter shall mean the election described in section sixty-two hundred twen- 19 ty-six of the internal revenue code, relating to alternative payment of 20 imputed underpayment by a partnership. 21 (q) "Final federal adjustment" when used in this chapter shall mean a 22 change to an item of gross income, gain, loss, deduction, penalty, cred- 23 it or a partner's distributive share, of a partnership that is deter- 24 mined under section sixty-two hundred twenty-five of the internal reven- 25 ue code that is considered fixed and final under the internal revenue 26 code. 27 § 2. Section 11-519 of the administrative code of the city of New York 28 is amended to read as follows: 29 § 11-519 Report of change in federal or New York state taxable income. 30 (a) If the amount of a taxpayer's federal or New York state taxable 31 income reported on [his or her] such taxpayer's federal or New York 32 state income tax for any taxable year is changed or corrected by the 33 United States internal revenue service or the New York state tax commis- 34 sion or other competent authority, or as the result of a renegotiation 35 of a contract or subcontract with the United States or the state of New 36 York, or if a taxpayer, pursuant to subsection (d) of section sixty-two 37 hundred thirteen of the internal revenue code, executes a notice of 38 waiver of the restrictions provided in subsection (a) of said section, 39 or if a taxpayer, pursuant to subsection (f) of section six hundred 40 eighty-one of the tax law, executes a notice or waiver of the 41 restrictions provided in subsection (c) of such section of the tax law, 42 the taxpayer shall report such change or correction in federal or New 43 York state taxable income or such execution of such notice of waiver and 44 the changes or corrections of the taxpayer's federal or New York state 45 taxable income on which it is based, within ninety days after the final 46 determination of such change, correction, or renegotiation, or such 47 execution of such notice of waiver, or as otherwise required by the 48 commissioner of finance, and shall concede the accuracy of such determi- 49 nation or state wherein it is erroneous. Any taxpayer filing an amended 50 federal or New York state income tax return shall also file within nine- 51 ty days thereafter an amended return under this chapter, and shall give 52 such information as the commissioner of finance may require. 53 (b) A taxpayer that is a partner in a partnership that is required to 54 report a change or correction in its federal or New York state taxableS. 3009--C 96 A. 3009--C 1 income pursuant to subdivision (a) of this section shall report its 2 distributive share of such change or correction as if such change or 3 correction was made directly to such taxpayer's federal or New York 4 state taxable income. 5 (c) Any taxpayer subject to an alternative adjustment action, or that 6 is a partner in a partnership subject to an alternative adjustment 7 action, shall report such alternative adjustment action within ninety 8 days after the alternative adjustment action occurs, as applicable, 9 regardless of the tax impact of such action. The commissioner of finance 10 may require such report to be filed electronically. Such report shall 11 include the identity of any partners of such taxpayer, as applicable, 12 and any other information as the commissioner of finance deems necessary 13 in order to determine the impact of such alternative adjustment action. 14 (d) The commissioner of finance may [by regulation] prescribe such 15 exceptions to the requirements of this section as [the] such commission- 16 er deems appropriate to facilitate the administration of this section. 17 § 3. Subparagraph (C) of paragraph 1 of subdivision (c) of section 18 11-523 of the administrative code of the city of New York, as amended by 19 chapter 839 of the laws of 1986, is amended to read as follows: 20 (C) the taxpayer fails to comply with section 11-519 of this chapter 21 in not reporting a change or correction increasing or decreasing the 22 taxpayer's federal or New York state taxable income as reported on the 23 taxpayer's federal or New York state income tax return, or the execution 24 of a notice of waiver and the changes or corrections on which it is 25 based, or in not reporting a change or correction which is treated in 26 the same manner as if it were a deficiency for federal or New York state 27 income tax purposes, or in not reporting an alternative adjustment 28 action, or in not filing an amended return, or 29 § 4. Subdivision (c) of section 11-527 of the administrative code of 30 the city of New York, as amended by chapter 241 of the laws of 1989, is 31 amended to read as follows: 32 (c) Notice of change or correction of federal or New York state taxa- 33 ble income. If a taxpayer is required by section 11-519 of this chapter 34 to report a change or correction in federal or New York state taxable 35 income reported on the taxpayer's federal or New York state income tax 36 return, or to report a change or correction which is treated in the same 37 manner as if it were an overpayment for federal or New York state income 38 tax purposes, or to report an alternative adjustment action, or to file 39 an amended return with the commissioner of finance, claim for credit or 40 refund of any resulting overpayment of tax shall be filed by the taxpay- 41 er within two years from the time the notice of such change or 42 correction, or such report of an alternative adjustment action, or such 43 amended return was required to be filed with the commissioner of 44 finance. If the report or amended return required by section 11-519 of 45 this chapter is not filed within the ninety day period therein speci- 46 fied, no interest shall be payable on any claim for credit or refund of 47 the overpayment attributable to the federal or New York state change or 48 correction. The amount of such credit or refund shall not exceed the 49 amount of the reduction in tax attributable to such federal or New York 50 state change, correction or items amended on the taxpayer's amended 51 federal or New York state income tax return. This subdivision shall not 52 affect the time within which or the amount for which a claim for credit 53 or refund may be filed apart from this subdivision. 54 § 5. Paragraph 4 of subdivision (d) of section 11-529 of the adminis- 55 trative code of the city of New York, as amended by chapter 808 of the 56 laws of 1992, is amended to read as follows:S. 3009--C 97 A. 3009--C 1 (4) Restriction on further notices of deficiency. If the taxpayer 2 files a petition with the tax appeals tribunal under this section, no 3 notice of deficiency under section 11-521 of this chapter may thereafter 4 be issued by the commissioner of finance for the same taxable year, 5 except in case of fraud or with respect to a change or correction in 6 federal or New York state taxable income or an alternative adjustment 7 action required to be reported under section 11-519 of this chapter or 8 with respect to a state change or correction of sales and compensating 9 use tax liability to be reported under section 11-519.1 of this chapter. 10 § 6. Paragraph 3 of subdivision (e) of section 11-529 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 (3) 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 a change or correction of federal or New 17 York state taxable income or an alternative adjustment action required 18 to be reported under section 11-519 of this chapter, and of which change 19 [or], correction, or alternative adjustment action the commissioner of 20 finance had no notice at the time [he or she] such commissioner mailed 21 the notice of deficiency or unless such increase in deficiency is the 22 result of a change or correction of sales and compensating use tax 23 liability required to be reported under section 11-519.1 of this chap- 24 ter, and of which change or correction the commissioner of finance had 25 no notice at the time [he or she] such commissioner mailed the notice of 26 deficiency; and 27 § 7. Section 11-601 of the administrative code of the city of New York 28 is amended by adding four new subdivisions 13-a, 13-b, 13-c and 13-d to 29 read as follows: 30 13-a. "Administrative adjustment request" means a request for an 31 administrative adjustment filed by a partnership under section sixty-two 32 hundred twenty-seven of the internal revenue code. 33 13-b. "Alternative adjustment action" means (i) a final federal 34 adjustment; (ii) a federal election for alternative payment; or (iii) 35 the filing of an administrative adjustment request. 36 13-c. "Federal election for alternative payment" means the election 37 described in section sixty-two hundred twenty-six of the internal reven- 38 ue code, relating to alternative payment of imputed underpayment by a 39 partnership. 40 13-d. "Final federal adjustment" means a change to an item of gross 41 income, gain, loss, deduction, penalty, credit or a partner's distribu- 42 tive share, of a partnership that is determined under section sixty-two 43 hundred twenty-five of the internal revenue code that is considered 44 fixed and final under the internal revenue code. 45 § 8. Section 11-605 of the administrative code of the city of New York 46 is amended by adding three new subdivisions 3-a, 3-b and 3-c to read as 47 follows: 48 3-a. A taxpayer that is a partner in a partnership that is required to 49 report a change or correction in its federal or New York state taxable 50 income shall report its distributive share of such change or correction 51 as if such change or correction was made directly to such taxpayer's 52 federal or New York state taxable income, alternative minimum taxable 53 income or other basis of tax and was required to be reported pursuant to 54 this section. 55 3-b. Any taxpayer that is a partner in a partnership subject to an 56 alternative adjustment action shall report such alternative adjustmentS. 3009--C 98 A. 3009--C 1 action, within ninety days after the alternative adjustment action 2 occurs, as applicable, regardless of the tax impact of such action. Such 3 report shall include any other information as the commissioner of 4 finance deems necessary in order to determine the impact of such alter- 5 native adjustment action. 6 3-c. The commissioner of finance may require the reports required 7 pursuant to subdivisions three-a and three-b of this section to be filed 8 electronically and shall establish exceptions from a taxpayer's require- 9 ment to file such reports as the commissioner of finance determines are 10 appropriate to facilitate the administration of such subdivisions. 11 § 9. Section 11-646 of the administrative code of the city of New York 12 is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to 13 read as follows: 14 (e-1) A taxpayer that is a partner in a partnership that is required 15 to report a change or correction in its federal or New York state taxa- 16 ble income shall report its distributive share of such change or 17 correction as if such change or correction was made directly to such 18 taxpayer's federal or New York state taxable income, alternative minimum 19 taxable income or other basis of tax and was required to be reported 20 pursuant to this section. 21 (e-2) Any taxpayer that is a partner in a partnership subject to an 22 alternative adjustment action shall report such alternative adjustment 23 action, within ninety days after the alternative adjustment action 24 occurs, as applicable, regardless of the tax impact of such action. Such 25 report shall include any other information as the commissioner of 26 finance deems necessary in order to determine the impact of such alter- 27 native adjustment action. 28 (e-3) The commissioner of finance may require the reports required by 29 subdivisions (e-1) and (e-2) of this section to be filed electronically 30 and shall establish exceptions from a taxpayer's requirement to file 31 such reports as the commissioner of finance determines are appropriate 32 to facilitate the administration of such subdivisions. 33 § 10. Section 11-655 of the administrative code of the city of New 34 York is amended by adding three new subdivisions 3-a, 3-b and 3-c to 35 read as follows: 36 3-a. A taxpayer that is a partner in a partnership that is required to 37 report a change or correction in its federal or New York state taxable 38 income shall report its distributive share of such change or correction 39 as if such change or correction was made directly to such taxpayer's 40 federal or New York state taxable income or other basis of tax and was 41 required to be reported pursuant to this section. 42 3-b. Any taxpayer that is a partner in a partnership subject to an 43 alternative adjustment action shall report such alternative adjustment 44 action, within ninety days after the alternative adjustment action 45 occurs, as applicable, regardless of the tax impact of such action. Such 46 report shall include any other information as the commissioner of 47 finance deems necessary in order to determine the impact of such alter- 48 native adjustment action. 49 3-c. The commissioner of finance may require the reports required by 50 subdivisions three-a and three-b of this section to be filed electron- 51 ically and shall establish exceptions from a taxpayer's requirement to 52 file such reports as the commissioner of finance determines are appro- 53 priate to facilitate the administration of this subdivision. 54 § 11. Paragraph (a) of subdivision 5 of section 11-672 of the adminis- 55 trative code of the city of New York, as amended by section 8 of part D 56 of chapter 60 of the laws of 2015, is amended to read as follows:S. 3009--C 99 A. 3009--C 1 (a) If the taxpayer fails to comply with subchapter two, three or 2 three-A of this chapter in not reporting a change or correction or rene- 3 gotiation, or computation or recomputation of tax, increasing or 4 decreasing its federal or New York state taxable income, alternative 5 minimum taxable income or other basis of tax as reported on its federal 6 or New York state income tax return, or in not reporting a change or 7 correction or renegotiation, or computation or recomputation of tax, 8 which is treated in the same manner as if it were a deficiency for 9 federal or New York state income tax purposes, or in not reporting an 10 alternative adjustment action, or in not filing an amended return, or in 11 not reporting the execution of a notice of waiver executed pursuant to 12 subsection (d) of section six thousand two hundred thirteen of the 13 internal revenue code or pursuant to subdivision (f) of section one 14 thousand eighty-one of the tax law, instead of the mode and time of 15 assessment provided for in subdivision two of this section, the commis- 16 sioner of finance may assess a deficiency based upon such increased or 17 decreased federal or New York state taxable income, alternative minimum 18 taxable income or other basis of tax by mailing to the taxpayer a notice 19 of additional tax due specifying the amount of the deficiency, and such 20 deficiency, together with the interest, additions to tax and penalties 21 stated in such notice, shall be deemed assessed on the date such notice 22 is mailed unless within thirty days after the mailing of such notice a 23 report of the federal or New York state change or correction or renego- 24 tiation, or computation or recomputation of tax, or report of an alter- 25 native adjustment action, or an amended return, where such return was 26 required by subchapter two, three or three-A, is filed accompanied by a 27 statement showing wherein such federal or New York state determination 28 and such notice of additional tax due are erroneous. 29 § 12. Subdivision 3 of section 11-678 of the administrative code of 30 the city of New York, as amended by section 16 of part D of chapter 60 31 of the laws of 2015, is amended to read as follows: 32 3. Notice of change or correction of federal or New York state income 33 or other basis of tax. (a) If a taxpayer is required by subchapter two, 34 three or three-A of this chapter to file a report or amended return in 35 respect of [(a)] (i) a decrease or increase in federal or New York state 36 taxable income, alternative minimum taxable income or other basis of tax 37 or federal or New York state tax, [(b)] (ii) a federal or New York state 38 change or correction or renegotiation, or computation or recomputation 39 of tax, which is treated in the same manner as if it were an overpayment 40 for federal or New York state income tax purposes, or (iii) an alterna- 41 tive adjustment action, claim for credit or refund of any resulting 42 overpayment of tax shall be filed by the taxpayer within two years from 43 the time such report or amended return was required to be filed with the 44 commissioner of finance. If the report or amended return required by 45 subchapter two, three or three-A of this chapter is not filed within the 46 ninety day period therein specified, no interest shall be payable on any 47 claim for credit or refund of the overpayment attributable to the feder- 48 al or New York state change or correction. 49 (b) The amount of such credit or refund[:50(c)] shall, (i) for taxable years beginning before January first, two 51 thousand fifteen, be computed without change of the allocation of income 52 or capital upon which the taxpayer's return (or any additional assess- 53 ment) was based, and, (ii) for taxable years beginning on or after Janu- 54 ary first, two thousand fifteen, be computed without change of the allo- 55 cation of income or capital upon which the taxpayer's return (or any 56 additional assessment) was based to the extent that the claim for refundS. 3009--C 100 A. 3009--C 1 arises from a decrease or increase in federal taxable income or other 2 basis of tax or federal tax, or from a federal change, correction, rene- 3 gotiation, computation or recomputation of tax, which is treated in the 4 same manner as if it were an overpayment for federal income tax 5 purposes[, and]. 6 [(d)] (c) The amount of such credit or refund shall not exceed the 7 amount of the reduction in tax attributable to such decrease or increase 8 in federal or New York state taxable income, alternative minimum taxable 9 income or other basis of tax or federal or New York state tax or to such 10 federal or New York state change or correction or renegotiation, or 11 computation or recomputation of tax. 12 § 13. Paragraph (d) of subdivision 4 of section 11-680 of the adminis- 13 trative code of the city of New York, as amended by section 18 of part D 14 of chapter 60 of the laws of 2015, is amended to read as follows: 15 (d) Restriction on further notices of deficiency. If the taxpayer 16 files a petition with the tax appeals tribunal under this section, no 17 notice of deficiency under section 11-672 of this subchapter may there- 18 after be issued by the commissioner of finance for the same taxable 19 year, except in case of fraud or with respect to an increase or decrease 20 in federal or New York state taxable income, alternative minimum taxable 21 income or other basis of tax or federal or New York state tax, or a 22 federal or New York state change or correction or renegotiation, or 23 computation or recomputation of tax, which is treated in the same manner 24 as if it were a deficiency for federal or New York state income tax 25 purposes, or an alternative adjustment action, required to be reported 26 under subchapter two, three or three-A of this chapter or with respect 27 to a state change or correction of sales and compensating use tax 28 liability required to be reported under subchapter two or three-A of 29 this chapter. 30 § 14. Paragraph (c) of subdivision 5 of section 11-680 of the adminis- 31 trative code of the city of New York, as amended by section 19 of part D 32 of chapter 60 of the laws of 2015, is amended to read as follows: 33 (c) whether the petitioner is liable for any increase in a deficiency 34 where such increase is asserted initially after a notice of deficiency 35 was mailed and a petition under this section filed, unless such increase 36 in deficiency is the result of an increase or decrease in federal or New 37 York state taxable income, alternative minimum taxable income or other 38 basis of tax or federal or New York state tax, or a federal or New York 39 state change [or], correction [or], renegotiation, [or] computation, or 40 recomputation of tax, which is treated in the same manner as if it were 41 a deficiency for federal or New York state income tax purposes, or an 42 alternative adjustment action, required to be reported under subchapter 43 two, three or three-A of this chapter, and of which increase, decrease, 44 change [or], correction [or], renegotiation, [or] computation [or], 45 recomputation, or adjustment, the commissioner of finance had no notice 46 at the time [he or she] such commissioner mailed the notice of deficien- 47 cy or unless such increase in deficiency is the result of a change or 48 correction of sales and compensating use tax liability required to be 49 reported under subchapter two or three-A of this chapter, and of which 50 change or correction the commissioner of finance had no notice at the 51 time [he or she] such commissioner mailed the notice of deficiency; and 52 § 15. This act shall take effect on the ninetieth day after it shall 53 have become a law; provided, that, notwithstanding section 11-519 of the 54 administrative code of the city of New York, as amended by section two 55 of this act, or subdivision 3-b of section 11-605, subdivision (e-2) of 56 section 11-646, or subdivision 3-b of section 11-655 of such administra-S. 3009--C 101 A. 3009--C 1 tive code, as added by sections eight, nine and ten of this act, an 2 alternative adjustment action, as defined by either subdivision (o) of 3 section 11-501 or subdivision 13-b of section 11-601 of such administra- 4 tive code, as added by sections one and seven of this act, occurring 5 prior to such date shall not be required to be reported prior to 270 6 days after this act takes effect; and for the purposes of this section, 7 an alternative adjustment action shall be deemed to occur when the 8 applicable administrative adjustment request, federal election for 9 alternative payment or final federal adjustment, as such terms are 10 defined by subdivisions (n), (p) or (q) of section 11-501 and subdivi- 11 sions 13-a, 13-c, and 13-d of section 11-601 of such administrative 12 code, as added by sections one and seven of this act, occurs. 13 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 14 sion, section or part of this act shall be adjudged by any court of 15 competent jurisdiction to be invalid, such judgment shall not affect, 16 impair, or invalidate the remainder thereof, but shall be confined in 17 its operation to the clause, sentence, paragraph, subdivision, section 18 or part thereof directly involved in the controversy in which such judg- 19 ment shall have been rendered. It is hereby declared to be the intent of 20 the legislature that this act would have been enacted even if such 21 invalid provisions had not been included herein. 22 § 3. This act shall take effect immediately, provided, however, that 23 the applicable effective date of Subparts A and B of this act shall be 24 as specifically set forth in the last section of such Subparts. 25 PART W 26 Section 1. Section 1310 of the tax law is amended by adding a new 27 subsection (h) to read as follows: 28 (h) Credit for certain taxpayers with incomes below certain thresh- 29 olds. (1) Notwithstanding any other provision of law to the contrary, 30 for taxable years beginning on or after January first, two thousand 31 twenty-five, a credit shall be allowed to a taxpayer against the tax 32 imposed pursuant to the authority of this article in an amount equal to 33 the tax otherwise due under this article for such taxable year, reduced 34 by all the credits permitted by this article for such taxable year, if: 35 (A) such taxpayer is entitled to a deduction for such taxable year 36 under subsection (c) of section one hundred fifty-one of the internal 37 revenue code; 38 (B) such taxpayer meets the following income thresholds for such taxa- 39 ble year: 40 (i) for city taxpayers who filed a resident income tax return as 41 married taxpayers filing jointly or a qualified surviving spouse: 42 If the number of Income no greater than: 43 dependents is: 44 1 $36,789 45 2 $46,350 46 3 $54,545 47 4 $61,071 48 5 $68,403 49 6 $75,204 50 7 or more $91,902S. 3009--C 102 A. 3009--C 1 (ii) for city taxpayers who filed a resident income tax return as a 2 single taxpayer, married taxpayer filing a separate return, or head of 3 household: 4 If the number of Income no greater than: 5 dependents is: 6 1 $31,503 7 2 $36,824 8 3 $46,512 9 4 $53,711 10 5 $59,928 11 6 $65,712 12 7 $74,565 13 8 or more $88,361 14 (iii) for any taxable year beginning on or after January first, two 15 thousand twenty-six, the commissioner shall multiply the amounts in this 16 subparagraph by one plus the cost-of-living adjustment, which shall be 17 the percentage by which the consumer price index for the preceding 18 calendar year exceeds the consumer price index for calendar year two 19 thousand twenty-four; 20 (C) such taxpayer is not allowed a credit pursuant to: 21 (i) subsection (a) of section eight hundred sixty-three of this chap- 22 ter against the tax imposed pursuant to article twenty-two of this chap- 23 ter; or 24 (ii) subsection (a) of section eight hundred seventy of this chapter 25 against the tax imposed pursuant to the authority of article thirty of 26 this chapter; and 27 (D) such taxpayer does not report disqualified income in excess of ten 28 thousand dollars in the taxable year, as defined in subsection (i) of 29 section thirty-two of the internal revenue code. 30 (2) Where the income of a taxpayer exceeds the amount indicated in 31 subparagraph (B) of paragraph one of this subsection for such taxpayer 32 by five thousand dollars or less, and such taxpayer satisfies subpara- 33 graph (A) and subparagraphs (C) and (D) of paragraph one of this 34 subsection, a credit shall be allowed in the amount determined by multi- 35 plying: (A) the tax otherwise due under this article for such taxable 36 year reduced by all the credits permitted by this article for such taxa- 37 ble year by (B) a fraction the numerator of which is five thousand 38 dollars minus the amount by which such income exceeds the amount indi- 39 cated in subparagraph (B) of paragraph one of this subsection and the 40 denominator of which is five thousand dollars. 41 (3) For purposes of this subsection: 42 (A) "Consumer price index" means the most recent consumer price index 43 for all-urban consumers published by the United States department of 44 labor. The consumer price index for any calendar year shall be the 45 average of the consumer price index as of the close of the twelve-month 46 period ending on August thirty-first of such calendar year. 47 (B) "Income" means federal adjusted gross income for the taxable year. 48 § 2. Section 11-1706 of the administrative code of the city of New 49 York is amended by adding a new subdivision (h) to read as follows: 50 (h) Credit for certain taxpayers with incomes below certain thresh- 51 olds. (1) Notwithstanding any other provision of law to the contrary, 52 for any taxable year beginning on or after January first, two thousand 53 twenty-five, a credit shall be allowed to a taxpayer against the taxesS. 3009--C 103 A. 3009--C 1 imposed pursuant to the authority of this chapter in an amount equal to 2 the tax otherwise due under this chapter for such taxable year reduced 3 by all the credits permitted by this chapter for such taxable year if: 4 (A) such taxpayer is entitled to a deduction for such taxable year 5 under subsection (c) of section one hundred fifty-one of the internal 6 revenue code; 7 (B) such taxpayer meets the following income thresholds for such taxa- 8 ble year: 9 (i) for city taxpayers who filed a resident income tax return as 10 married taxpayers filing jointly or a qualified surviving spouse: 11 If the number of dependents is: Income no greater than: 12 1 $36,789 13 2 $46,350 14 3 $54,545 15 4 $61,071 16 5 $68,403 17 6 $75,204 18 7 or more $91,902 19 (ii) for city taxpayers who filed a resident income tax return as a 20 single taxpayer, married taxpayer filing a separate return, or head of 21 household: 22 If the number of dependents is: Income no greater than: 23 1 $31,503 24 2 $36,824 25 3 $46,512 26 4 $53,711 27 5 $59,928 28 6 $65,712 29 7 $74,565 30 8 or more $88,361 31 (iii) for any taxable year beginning on or after January first, two 32 thousand twenty-six, the commissioner of the state department of taxa- 33 tion and finance shall multiply the amounts in this subparagraph by one 34 plus the cost-of-living adjustment, which shall be the percentage by 35 which the consumer price index for the preceding calendar year exceeds 36 the consumer price index for calendar year two thousand twenty-four; 37 (C) such taxpayer is not allowed a credit pursuant to: (i) subsection 38 (a) of section eight hundred sixty-three of the tax law against the 39 tax imposed pursuant to article twenty-two of such law; or (ii) subdivi- 40 sion (g) of this section against the tax imposed pursuant to this chap- 41 ter; 42 (D) such taxpayer does not report disqualified income in excess of ten 43 thousand dollars in the taxable year, as such term is defined in 44 subsection (i) of section thirty-two of the internal revenue code. 45 (2) Where the income of a taxpayer exceeds the amount indicated in 46 subparagraph (B) of paragraph one of this subdivision for such taxpayer 47 by five thousand dollars or less, and such taxpayer satisfies subpara- 48 graph (A) and subparagraphs (C) and (D) of paragraph one of this subdi- 49 vision, a credit shall be allowed in the amount determined by multiply- 50 ing: (A) the tax otherwise due under this article for such taxable year 51 reduced by all the credits permitted by this article for such taxable 52 year by (B) a fraction the numerator of which is five thousand dollarsS. 3009--C 104 A. 3009--C 1 minus the amount by which such income exceeds the amount indicated in 2 subparagraph (B) of paragraph one of this subdivision and the denomina- 3 tor of which is five thousand dollars. 4 (3) For purposes of this subdivision: 5 (A) "Consumer price index" means the most recent consumer price index 6 for all-urban consumers published by the United States department of 7 labor. The consumer price index for any calendar year shall be the 8 average of the consumer price index as of the close of the twelve-month 9 period ending on August thirty-first of such calendar year. 10 (B) "Income" means federal adjusted gross income for a taxable year. 11 § 3. This act shall take effect immediately and shall apply to taxable 12 years beginning on or after January 1, 2025. 13 PART X 14 Intentionally Omitted 15 PART Y 16 Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax 17 law, as amended by section 1 of part K of chapter 59 of the laws of 18 2022, is amended to read as follows: 19 (a) General. A taxpayer shall be allowed a credit against the tax 20 imposed by this article. Such credit, to be computed as hereinafter 21 provided, shall be allowed for bioheating fuel, used for space heating 22 or hot water production for residential purposes within this state 23 purchased before January first, two thousand [twenty-six] twenty-nine. 24 Such credit shall be $0.01 per percent of biodiesel per gallon of 25 bioheating fuel, not to exceed twenty cents per gallon, purchased by 26 such taxpayer. Provided, however, that on or after January first, two 27 thousand seventeen, this credit shall not apply to bioheating fuel that 28 is less than six percent biodiesel per gallon of bioheating fuel. 29 § 2. Paragraph 1 of subsection (mm) of section 606 of the tax law, as 30 amended by section 2 of part K of chapter 59 of the laws of 2022, is 31 amended to read as follows: 32 (1) A taxpayer shall be allowed a credit against the tax imposed by 33 this article. Such credit, to be computed as hereinafter provided, shall 34 be allowed for bioheating fuel, used for space heating or hot water 35 production for residential purposes within this state and purchased on 36 or after July first, two thousand six and before July first, two thou- 37 sand seven and on or after January first, two thousand eight and before 38 January first, two thousand [twenty-six] twenty-nine. Such credit shall 39 be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to 40 exceed twenty cents per gallon, purchased by such taxpayer. Provided, 41 however, that on or after January first, two thousand seventeen, this 42 credit shall not apply to bioheating fuel that is less than six percent 43 biodiesel per gallon of bioheating fuel. 44 § 3. This act shall take effect immediately. 45 PART Z 46 Section 1. Subdivision 6 of section 187-b of the tax law, as amended 47 by section 1 of part P of chapter 59 of the laws of 2022, is amended to 48 read as follows:S. 3009--C 105 A. 3009--C 1 6. Termination. The credit allowed by subdivision two of this section 2 shall not apply in taxable years beginning after December thirty-first, 3 two thousand [twenty-five] twenty-eight. 4 § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law, 5 as amended by section 2 of part P of chapter 59 of the laws of 2022, is 6 amended to read as follows: 7 (f) Termination. The credit allowed by paragraph (b) of this subdivi- 8 sion shall not apply in taxable years beginning after December thirty- 9 first, two thousand [twenty-five] twenty-eight. 10 § 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as 11 amended by section 3 of part P of chapter 59 of the laws of 2022, is 12 amended to read as follows: 13 (6) Termination. The credit allowed by this subsection shall not apply 14 in taxable years beginning after December thirty-first, two thousand 15 [twenty-five] twenty-eight. 16 § 4. This act shall take effect immediately. 17 PART AA 18 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of 19 section 1115 of the tax law, as amended by section 1 of part J of chap- 20 ter 59 of the laws of 2024, is amended to read as follows: 21 (B) Until May thirty-first, two thousand [twenty-five] twenty-six, the 22 food and drink excluded from the exemption provided by clauses (i), (ii) 23 and (iii) of subparagraph (A) of this paragraph, and bottled water, 24 shall be exempt under this subparagraph: (i) when sold for one dollar 25 and fifty cents or less through any vending machine that accepts coin or 26 currency only; or (ii) when sold for two dollars or less through any 27 vending machine that accepts any form of payment other than coin or 28 currency, whether or not it also accepts coin or currency. 29 § 2. This act shall take effect immediately. 30 PART BB 31 Section 1. Subdivision (f) of section 25-b of the labor law, as added 32 by section 2 of part Q of chapter 59 of the laws of 2022, is amended to 33 read as follows: 34 (f) The tax credits provided under this program shall be applicable to 35 taxable periods beginning before January first, two thousand [twenty-36six] twenty-nine. 37 § 2. This act shall take effect immediately. 38 PART CC 39 Section 1. Paragraph (a) of subdivision 29 of section 210-B of the 40 tax law, as amended by section 1 of part H of chapter 59 of the laws of 41 2022, is amended to read as follows: 42 (a) Allowance of credit. For taxable years beginning on or after Janu- 43 ary first, two thousand fifteen and before January first, two thousand 44 [twenty-six] twenty-nine, a taxpayer shall be allowed a credit, to be 45 computed as provided in this subdivision, against the tax imposed by 46 this article, for hiring and employing, for not less than twelve contin- 47 uous and uninterrupted months (hereinafter referred to as the twelve- 48 month period) in a full-time or part-time position, a qualified veteran 49 within the state. The taxpayer may claim the credit in the year in which 50 the qualified veteran completes the twelve-month period of employment by 51 the taxpayer. If the taxpayer claims the credit allowed under thisS. 3009--C 106 A. 3009--C 1 subdivision, the taxpayer may not use the hiring of a qualified veteran 2 that is the basis for this credit in the basis of any other credit 3 allowed under this article. 4 § 2. Subparagraph 2 of paragraph (b) of subdivision 29 of section 5 210-B of the tax law, as amended by section 1 of part H of chapter 59 of 6 the laws of 2022, is amended to read as follows: 7 (2) who commences employment by the qualified taxpayer on or after 8 January first, two thousand fourteen, and before January first, two 9 thousand [twenty-five] twenty-eight; and 10 § 3. Paragraph 1 of subsection (a-2) of section 606 of the tax law, as 11 amended by section 2 of part H of chapter 59 of the laws of 2022, is 12 amended to read as follows: 13 (1) Allowance of credit. For taxable years beginning on or after Janu- 14 ary first, two thousand fifteen and before January first, two thousand 15 [twenty-six] twenty-nine, a taxpayer shall be allowed a credit, to be 16 computed as provided in this subsection, against the tax imposed by this 17 article, for hiring and employing, for not less than twelve continuous 18 and uninterrupted months (hereinafter referred to as the twelve-month 19 period) in a full-time or part-time position, a qualified veteran within 20 the state. The taxpayer may claim the credit in the year in which the 21 qualified veteran completes the twelve-month period of employment by the 22 taxpayer. If the taxpayer claims the credit allowed under this 23 subsection, the taxpayer may not use the hiring of a qualified veteran 24 that is the basis for this credit in the basis of any other credit 25 allowed under this article. 26 § 4. Subparagraph (B) of paragraph 2 of subsection (a-2) of section 27 606 of the tax law, as amended by section 2 of part H of chapter 59 of 28 the laws of 2022, is amended to read as follows: 29 (B) who commences employment by the qualified taxpayer on or after 30 January first, two thousand fourteen, and before January first, two 31 thousand [twenty-five] twenty-eight; and 32 § 5. Paragraph 1 of subdivision (g-1) of section 1511 of the tax law, 33 as amended by section 3 of part H of chapter 59 of the laws of 2022, is 34 amended to read as follows: 35 (1) Allowance of credit. For taxable years beginning on or after Janu- 36 ary first, two thousand fifteen and before January first, two thousand 37 [twenty-six] twenty-nine, a taxpayer shall be allowed a credit, to be 38 computed as provided in this subdivision, against the tax imposed by 39 this article, for hiring and employing, for not less than twelve contin- 40 uous and uninterrupted months (hereinafter referred to as the twelve- 41 month period) in a full-time or part-time position, a qualified veteran 42 within the state. The taxpayer may claim the credit in the year in which 43 the qualified veteran completes the twelve-month period of employment by 44 the taxpayer. If the taxpayer claims the credit allowed under this 45 subdivision, the taxpayer may not use the hiring of a qualified veteran 46 that is the basis for this credit in the basis of any other credit 47 allowed under this article. 48 § 6. Subparagraph (B) of paragraph 2 of subdivision (g-1) of section 49 1511 of the tax law, as amended by section 3 of part H of chapter 59 of 50 the laws of 2022, is amended to read as follows: 51 (B) who commences employment by the qualified taxpayer on or after 52 January first, two thousand fourteen, and before January first, two 53 thousand [twenty-five] twenty-eight; and 54 § 7. This act shall take effect immediately. 55 PART DDS. 3009--C 107 A. 3009--C 1 Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, 2 amending the tax law relating to a musical and theatrical production 3 credit, as amended by section 1 of part HH of chapter 59 of the laws of 4 2021, is amended to read as follows: 5 § 5. This act shall take effect immediately, provided that section two 6 of this act shall take effect on January 1, 2015, and shall apply to 7 taxable years beginning on or after January 1, 2015, with respect to 8 "qualified production expenditures" and "transportation expenditures" 9 paid or incurred on or after such effective date, regardless of whether 10 the production of the qualified musical or theatrical production 11 commenced before such date, provided further that this act shall expire 12 and be deemed repealed January 1, [2026] 2030. 13 § 2. This act shall take effect immediately. 14 PART EE 15 Section 1. Section 2 of part U of chapter 59 of the laws of 2017, amend- 16 ing the tax law, relating to the financial institution data match system 17 for state tax collection purposes, as amended by section 1 of part A of 18 chapter 59 of the laws of 2020, is amended to read as follows: 19 § 2. This act shall take effect immediately and shall expire April 1, 20 [2025] 2030 when upon such date the provisions of this act shall be 21 deemed repealed. 22 § 2. This act shall take effect immediately. 23 PART FF 24 Section 1. This act enacts into law major components of legislation 25 necessary to implement certain provisions regarding simplifying the 26 pari-mutuel tax rate system. Each component is wholly contained within a 27 Subpart identified as Subparts A through C. The effective date for each 28 particular provision contained within such Subpart is set forth in the 29 last section of such Subpart. Any provision in any section contained 30 within a Subpart, including the effective date of the Subpart, which 31 makes a reference to a section "of this act", when used in connection 32 with that particular component, shall be deemed to mean and refer to the 33 corresponding section of the Subpart in which it is found. Section three 34 of this act sets forth the general effective date of this act. 35 SUBPART A 36 Section 1. The racing, pari-mutuel wagering and breeding law is 37 amended by adding a new section 136 to read as follows: 38 § 136. Pari-mutuel wagering tax. 1. Notwithstanding any law to the 39 contrary, the excise tax imposed on any racing association or corpo- 40 ration or regional off-track betting corporation, authorized to conduct 41 pari-mutuel wagering shall be seven-tenths of one percent (0.7%) of all 42 money wagered through such association or corporation. 43 2. Beginning with state fiscal year two thousand twenty-six, the 44 aggregate amount of the pari-mutuel wagering tax paid by a harness track 45 pursuant to paragraph (b) of subdivision one of this section in a state 46 fiscal year shall not exceed the pari-mutuel wagering tax attributable 47 to live racing handle paid by such harness track in state fiscal year 48 two thousand twenty-four.S. 3009--C 108 A. 3009--C 1 3. All pari-mutuel wagering taxes shall be collected and remitted in 2 the same manner as such taxes were collected and remitted prior to the 3 enactment of this section. 4 4. Breaks, as defined in sections two hundred thirty-six, two hundred 5 thirty-eight, three hundred eighteen, and four hundred eighteen of this 6 chapter are not permitted, unless required by another jurisdiction 7 pursuant to section nine hundred five of this chapter. All distributions 8 to the holders of winning tickets shall be calculated to the nearest 9 penny. 10 5. Notwithstanding subdivision four of this section, a racetrack may 11 round to the nearest nickel for bets made at the facility, however the 12 breaks must be directed to the retired and rescued thoroughbred horse 13 aftercare fund pursuant to section two hundred nine-n of the tax law if 14 the bet was made on a thoroughbred race, and to the retired and rescued 15 standardbred horse aftercare fund pursuant to section two hundred nine-o 16 of the tax law if the bet was made on a standardbred race. 17 § 2. Section 908 of the racing, pari-mutuel wagering and breeding law 18 is REPEALED. 19 § 3. Section 1011 of the racing, pari-mutuel wagering and breeding 20 law, as amended by chapter 243 of the laws of 2020, is amended to read 21 as follows: 22 § 1011. Certain credit to off-track betting corporations. a. [During23the period that a franchised corporation is simulcasting from a facility24operated by such franchised corporation in the second zone as defined in25section two hundred forty-seven of this chapter to a facility operated26by such franchised corporation pursuant to section one thousand seven of27this article, any off-track betting corporation operating in a county in28which such association maintains a racetrack shall receive a credit of29twenty-five percent of the state taxes due pursuant to section five30hundred twenty-seven of this chapter on wagers placed on races conducted31by such association, provided that such corporation has entered into an32agreement with the employee organization representing the employees of33such corporation in which it has agreed not to reduce its workforce as a34result of such simulcasting.35b.] During the days that a franchised corporation is simulcasting from 36 a racetrack facility operated by such franchised corporation and located 37 in the first zone to a racetrack facility operated by such franchised 38 corporation located wholly within a city of one million or more, one 39 percent of the total wagers placed at such receiving facility shall be 40 paid to such city. 41 [c.] b. During the days that a franchised corporation is simulcasting 42 from a facility located wholly within a city in the first zone to a 43 racetrack facility operated by such franchised corporation located 44 partially within a city with a population in excess of one million and 45 partially within a county, one-half percent of the total wagers placed 46 at such receiving facility shall be paid to such city and one-half 47 percent of such wagers shall be paid to such county. 48 § 4. This act shall take effect September 1, 2025. 49 SUBPART B 50 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 51 racing, pari-mutuel wagering and breeding law, as amended by section 1 52 of part P of chapter 59 of the laws of 2024, is amended to read as 53 follows:S. 3009--C 109 A. 3009--C 1 (a) Any racing association or corporation or regional off-track 2 betting corporation, authorized to conduct pari-mutuel wagering under 3 this chapter, desiring to display the simulcast of horse races on which 4 pari-mutuel betting shall be permitted in the manner and subject to the 5 conditions provided for in this article may apply to the commission for 6 a license so to do. Applications for licenses shall be in such form as 7 may be prescribed by the commission and shall contain such information 8 or other material or evidence as the commission may require. No license 9 shall be issued by the commission authorizing the simulcast transmission 10 of thoroughbred races from a track located in Suffolk county. The fee 11 for such licenses shall be five hundred dollars per simulcast facility 12 and for account wagering licensees that do not operate either a simul- 13 cast facility that is open to the public within the state of New York or 14 a licensed racetrack within the state, twenty thousand dollars per year 15 payable by the licensee to the commission for deposit into the general 16 fund. Except as provided in this section, the commission shall not 17 approve any application to conduct simulcasting into individual or group 18 residences, homes or other areas for the purposes of or in connection 19 with pari-mutuel wagering. The commission may approve simulcasting into 20 residences, homes or other areas to be conducted jointly by one or more 21 regional off-track betting corporations and one or more of the follow- 22 ing: a franchised corporation, thoroughbred racing corporation or a 23 harness racing corporation or association; provided (i) the simulcasting 24 consists only of those races on which pari-mutuel betting is authorized 25 by this chapter at one or more simulcast facilities for each of the 26 contracting off-track betting corporations which shall include wagers 27 made in accordance with section one thousand fifteen, one thousand 28 sixteen and one thousand seventeen of this article; provided further 29 that the contract provisions or other simulcast arrangements for such 30 simulcast facility shall be no less favorable than those in effect on 31 January first, two thousand five; (ii) that each off-track betting 32 corporation having within its geographic boundaries such residences, 33 homes or other areas technically capable of receiving the simulcast 34 signal shall be a contracting party; (iii) the distribution of revenues 35 shall be subject to contractual agreement of the parties except that 36 statutory payments to non-contracting parties, if any, may not be 37 reduced; provided, however, that nothing herein to the contrary shall 38 prevent a track from televising its races on an irregular basis primari- 39 ly for promotional or marketing purposes as found by the commission. For 40 purposes of this paragraph, the provisions of section one thousand thir- 41 teen of this article shall not apply. Any agreement authorizing an 42 in-home simulcasting experiment commencing prior to May fifteenth, nine- 43 teen hundred ninety-five, may, and all its terms, be extended until June 44 thirtieth, two thousand [twenty-five] twenty-six; provided, however, 45 that any party to such agreement may elect to terminate such agreement 46 upon conveying written notice to all other parties of such agreement at 47 least forty-five days prior to the effective date of the termination, 48 via registered mail. Any party to an agreement receiving such notice of 49 an intent to terminate, may request the commission to mediate between 50 the parties new terms and conditions in a replacement agreement between 51 the parties as will permit continuation of an in-home experiment until 52 June thirtieth, two thousand [twenty-five] twenty-six; and (iv) no 53 in-home simulcasting in the thoroughbred special betting district shall 54 occur without the approval of the regional thoroughbred track. 55 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 56 1007 of the racing, pari-mutuel wagering and breeding law, as amended byS. 3009--C 110 A. 3009--C 1 section 2 of part P of chapter 59 of the laws of 2024, is amended to 2 read as follows: 3 (iii) Of the sums retained by a receiving track located in Westchester 4 county on races received from a franchised corporation, for the period 5 commencing January first, two thousand eight and continuing through June 6 thirtieth, two thousand [twenty-five] twenty-six, the amount used exclu- 7 sively for purses to be awarded at races conducted by such receiving 8 track shall be computed as follows: of the sums so retained, two and 9 one-half percent of the total pools. Such amount shall be increased or 10 decreased in the amount of fifty percent of the difference in total 11 commissions determined by comparing the total commissions available 12 after July twenty-first, nineteen hundred ninety-five to the total 13 commissions that would have been available to such track prior to July 14 twenty-first, nineteen hundred ninety-five. 15 § 3. The opening paragraph of subdivision 1 of section 1014 of the 16 racing, pari-mutuel wagering and breeding law, as amended by section 3 17 of part P of chapter 59 of the laws of 2024, is amended to read as 18 follows: 19 The provisions of this section shall govern the simulcasting of races 20 conducted at thoroughbred tracks located in another state or country on 21 any day during which a franchised corporation is conducting a race meet- 22 ing in Saratoga county at Saratoga thoroughbred racetrack until June 23 thirtieth, two thousand [twenty-five] twenty-six and on any day regard- 24 less of whether or not a franchised corporation is conducting a race 25 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 26 thirtieth, two thousand [twenty-five] twenty-six. On any day on which a 27 franchised corporation has not scheduled a racing program but a 28 thoroughbred racing corporation located within the state is conducting 29 racing, each off-track betting corporation branch office and each simul- 30 casting facility licensed in accordance with section one thousand seven 31 (that has entered into a written agreement with such facility's repre- 32 sentative horsemen's organization, as approved by the commission), one 33 thousand eight, or one thousand nine of this article shall be authorized 34 to accept wagers and display the live simulcast signal from thoroughbred 35 tracks located in another state or foreign country subject to the 36 following provisions: 37 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 38 and breeding law, as amended by section 4 of part P of chapter 59 of the 39 laws of 2024, is amended to read as follows: 40 1. The provisions of this section shall govern the simulcasting of 41 races conducted at harness tracks located in another state or country 42 during the period July first, nineteen hundred ninety-four through June 43 thirtieth, two thousand [twenty-five] twenty-six. This section shall 44 supersede all inconsistent provisions of this chapter. 45 § 5. The opening paragraph of subdivision 1 of section 1016 of the 46 racing, pari-mutuel wagering and breeding law, as amended by section 5 47 of part P of chapter 59 of the laws of 2024, is amended to read as 48 follows: 49 The provisions of this section shall govern the simulcasting of races 50 conducted at thoroughbred tracks located in another state or country on 51 any day during which a franchised corporation is not conducting a race 52 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 53 thirtieth, two thousand [twenty-five] twenty-six. Every off-track 54 betting corporation branch office and every simulcasting facility 55 licensed in accordance with section one thousand seven that have entered 56 into a written agreement with such facility's representative horsemen'sS. 3009--C 111 A. 3009--C 1 organization as approved by the commission, one thousand eight or one 2 thousand nine of this article shall be authorized to accept wagers and 3 display the live full-card simulcast signal of thoroughbred tracks 4 (which may include quarter horse or mixed meetings provided that all 5 such wagering on such races shall be construed to be thoroughbred races) 6 located in another state or foreign country, subject to the following 7 provisions; provided, however, no such written agreement shall be 8 required of a franchised corporation licensed in accordance with section 9 one thousand seven of this article: 10 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 11 wagering and breeding law, as amended by section 6 of part P of chapter 12 59 of the laws of 2024, is amended to read as follows: 13 Notwithstanding any other provision of this chapter, for the period 14 July twenty-fifth, two thousand one through September eighth, two thou- 15 sand [twenty-four] twenty-five, when a franchised corporation is 16 conducting a race meeting within the state at Saratoga Race Course, 17 every off-track betting corporation branch office and every simulcasting 18 facility licensed in accordance with section one thousand seven (that 19 has entered into a written agreement with such facility's representative 20 horsemen's organization as approved by the commission), one thousand 21 eight or one thousand nine of this article shall be authorized to accept 22 wagers and display the live simulcast signal from thoroughbred tracks 23 located in another state, provided that such facility shall accept 24 wagers on races run at all in-state thoroughbred tracks which are 25 conducting racing programs subject to the following provisions; 26 provided, however, no such written agreement shall be required of a 27 franchised corporation licensed in accordance with section one thousand 28 seven of this article. 29 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 30 racing, pari-mutuel wagering and breeding law and other laws relating to 31 simulcasting, as amended by section 7 of part P of chapter 59 of the 32 laws of 2024, is amended to read as follows: 33 § 32. This act shall take effect immediately and the pari-mutuel tax 34 reductions in section six of this act shall expire and be deemed 35 repealed on July 1, [2025] 2026; provided, however, that nothing 36 contained herein shall be deemed to affect the application, qualifica- 37 tion, expiration, or repeal of any provision of law amended by any 38 section of this act, and such provisions shall be applied or qualified 39 or shall expire or be deemed repealed in the same manner, to the same 40 extent and on the same date as the case may be as otherwise provided by 41 law; provided further, however, that sections twenty-three and twenty- 42 five of this act shall remain in full force and effect only until May 1, 43 1997 and at such time shall be deemed to be repealed. 44 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 45 racing, pari-mutuel wagering and breeding law and other laws relating to 46 simulcasting and the imposition of certain taxes, as amended by section 47 8 of part P of chapter 59 of the laws of 2024, is amended to read as 48 follows: 49 § 54. This act shall take effect immediately; provided, however, 50 sections three through twelve of this act shall take effect on January 51 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 52 ing law, as added by section thirty-eight of this act, shall expire and 53 be deemed repealed on July 1, [2025] 2026; and section eighteen of this 54 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 55 two of this act shall take effect as of the same date as chapter 772 of 56 the laws of 1989 took effect.S. 3009--C 112 A. 3009--C 1 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 2 pari-mutuel wagering and breeding law, as amended by section 9 of part P 3 of chapter 59 of the laws of 2024, is amended to read as follows: 4 (a) The franchised corporation authorized under this chapter to 5 conduct pari-mutuel betting at a race meeting or races run thereat shall 6 distribute all sums deposited in any pari-mutuel pool to the holders of 7 winning tickets therein, provided such tickets are presented for payment 8 before April first of the year following the year of their purchase, 9 less an amount that shall be established and retained by such franchised 10 corporation of between twelve to seventeen percent of the total deposits 11 in pools resulting from on-track regular bets, and fourteen to twenty- 12 one percent of the total deposits in pools resulting from on-track 13 multiple bets and fifteen to twenty-five percent of the total deposits 14 in pools resulting from on-track exotic bets and fifteen to thirty-six 15 percent of the total deposits in pools resulting from on-track super 16 exotic bets, plus the breaks. The retention rate to be established is 17 subject to the prior approval of the commission. 18 Such rate may not be changed more than once per calendar quarter to be 19 effective on the first day of the calendar quarter. "Exotic bets" and 20 "multiple bets" shall have the meanings set forth in section five 21 hundred nineteen of this chapter. "Super exotic bets" shall have the 22 meaning set forth in section three hundred one of this chapter. For 23 purposes of this section, a "pick six bet" shall mean a single bet or 24 wager on the outcomes of six races. The breaks are hereby defined as the 25 odd cents over any multiple of five for payoffs greater than one dollar 26 five cents but less than five dollars, over any multiple of ten for 27 payoffs greater than five dollars but less than twenty-five dollars, 28 over any multiple of twenty-five for payoffs greater than twenty-five 29 dollars but less than two hundred fifty dollars, or over any multiple of 30 fifty for payoffs over two hundred fifty dollars. Out of the amount so 31 retained there shall be paid by such franchised corporation to the 32 commissioner of taxation and finance, as a reasonable tax by the state 33 for the privilege of conducting pari-mutuel betting on the races run at 34 the race meetings held by such franchised corporation, the following 35 percentages of the total pool for regular and multiple bets five percent 36 of regular bets and four percent of multiple bets plus twenty percent of 37 the breaks; for exotic wagers seven and one-half percent plus twenty 38 percent of the breaks, and for super exotic bets seven and one-half 39 percent plus fifty percent of the breaks. 40 For the period April first, two thousand one through December thirty- 41 first, two thousand [twenty-five] twenty-six, such tax on all wagers 42 shall be one and six-tenths percent, plus, in each such period, twenty 43 percent of the breaks. Payment to the New York state thoroughbred breed- 44 ing and development fund by such franchised corporation shall be one- 45 half of one percent of total daily on-track pari-mutuel pools resulting 46 from regular, multiple and exotic bets and three percent of super exotic 47 bets and for the period April first, two thousand one through December 48 thirty-first, two thousand [twenty-five] twenty-six, such payment shall 49 be seven-tenths of one percent of regular, multiple and exotic pools. 50 § 10. This act shall take effect immediately. 51 SUBPART C 52 Section 1. Subdivision 1 and paragraphs a and b of subdivision 2 of 53 section 115-b of the racing, pari-mutuel wagering and breeding law, asS. 3009--C 113 A. 3009--C 1 added by chapter 174 of the laws of 2013, are amended to read as 2 follows: 3 1. Notwithstanding any other provision of law to the contrary, any 4 racing associations and corporations, franchised corporations, and off- 5 track betting corporations that makes a payment of the regulatory fees 6 imposed by this chapter may reduce such payment by an amount equal to 7 the market origin credit allocated to such racing association or corpo- 8 ration, franchised corporation, or off-track betting corporation by the 9 commission. The commission shall allocate credits in an amount equal to 10 [ninety] eighty-two and six-tenths percent of the amount received from 11 the market origin fee paid pursuant to subdivision six of section one 12 thousand twelve-a of this chapter for the period from the sixteenth day 13 of the preceding month through the fifteenth day of the current month. 14 The commission shall notify participants of allocations on or before the 15 twentieth day of the current month. 16 a. [Forty] Thirty-six and seven-tenths percent of the amount received 17 from the market origin fee paid pursuant to subdivision six of section 18 one thousand twelve-a of this chapter to regional off-track betting 19 corporations. Allocations to individual regional off-track betting 20 corporations shall be made based on a ratio where the numerator is the 21 regional corporation's total in-state handle for the previous calendar 22 year as calculated by the commission and the denominator is the total 23 in-state handle of all the regional off-track betting corporations for 24 the previous calendar year as calculated by the commission; 25 b. [Fifty] Forty-five and nine-tenths percent of the amount received 26 from the market origin fee paid pursuant to subdivision six of section 27 one thousand twelve-a of this chapter to the racing associations and 28 corporations and franchised corporations. Allocations to individual 29 racing associations and corporations and franchised corporations shall 30 be made as follows: 31 (i) Sixty percent to thoroughbred racing associations and franchised 32 corporations. Five-sixths shall be allocated to a franchised corporation 33 and one-sixth shall be allocated to a thoroughbred racing association. 34 (ii) Forty percent to harness racing associations and corporations. 35 Allocations to individual harness racing associations and corporations 36 shall be made based on a ratio where the numerator is the association's 37 or corporation's total in-state handle on live racing for the previous 38 calendar year as calculated by the commission and the denominator is the 39 total in-state on live handle for all harness racing associations and 40 corporations for the previous calendar year as calculated by the commis- 41 sion. 42 § 2. Subdivision 6 of section 1012-a of the racing, pari-mutuel wager- 43 ing and breeding law, as amended by chapter 243 of the laws of 2020, is 44 amended to read as follows: 45 6. multi-jurisdictional account wagering providers shall: 46 (a) pay a market origin fee equal to five and forty-five hundredths 47 percent on each wager accepted from New York residents. [Multi-jurisdic-48tional account wagering providers shall] 49 (b) pay an additional fee equal to one percent on each wager accepted 50 from New York residents which shall be directed to the general fund of 51 the state treasury. 52 (c) make the required payments to the market origin account on or 53 before the fifth business day of each month and such required payments 54 shall cover payments due for the period of the preceding calendar month; 55 provided, however, that such payments required to be made on April 56 fifteenth shall be accompanied by a report under oath, showing the totalS. 3009--C 114 A. 3009--C 1 of all such payments, together with such other information as the 2 commission may require. A penalty of five percent and interest at the 3 rate of one percent per month from the date the report is required to be 4 filed to the date the payment shall be payable in case any payments 5 required by this subdivision are not paid when due. If the commission 6 determines that any moneys received under this subdivision were paid in 7 error, the commission may cause the same to be refunded without interest 8 out of any moneys collected thereunder, provided an application therefor 9 is filed with the commission within one year from the time the erroneous 10 payment was made. The commission shall pay into the racing regulation 11 account, under the joint custody of the comptroller and the commission, 12 the total amount of the fee collected pursuant to paragraph (a) of this 13 [section] subdivision. 14 § 3. Subdivision 3 of section 99-i of the state finance law, as 15 amended by chapter 174 of the laws of 2013, is amended to read as 16 follows: 17 3. Moneys of this account shall be available to the commission to pay 18 for the costs of carrying out the purposes of the racing, pari-mutuel 19 wagering and breeding law; provided, however, an amount equal to [five] 20 twelve and eight-tenths percent of the amount received by the account 21 from the market origin fee imposed by subdivision six of section one 22 thousand twelve-a of the racing, pari-mutuel wagering and breeding law 23 shall be transferred to the state department of taxation and finance and 24 the department shall deem this transfer as a payment of a pari-mutuel 25 tax. 26 § 4. This act shall take effect immediately. 27 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 28 sion, section or part of this act shall be adjudged by any court of 29 competent jurisdiction to be invalid, such judgment shall not affect, 30 impair, or invalidate the remainder thereof, but shall be confined in 31 its operation to the clause, sentence, paragraph, subdivision, section 32 or part thereof directly involved in the controversy in which such judg- 33 ment shall have been rendered. It is hereby declared to be the intent of 34 the legislature that this act would have been enacted even if such 35 invalid provisions had not been included herein. 36 § 3. This act shall take effect immediately provided, however, that 37 the applicable effective date of Subparts A through C of this act shall 38 be as specifically set forth in the last section of such Subparts. 39 PART GG 40 Section 1. Subdivision 1 of section 1351 of the racing, pari-mutuel 41 wagering and breeding law, as added by chapter 174 of the laws of 2013, 42 is amended to read as follows: 43 1. (a) For a gaming facility in zone two, there is hereby imposed a 44 tax on gross gaming revenues. The amount of such tax imposed shall be as 45 follows; provided, however, should a licensee have agreed within its 46 application to supplement the tax with a binding supplemental fee 47 payment exceeding the aforementioned tax rate, such tax and supplemental 48 fee shall apply for a gaming facility: 49 [(a)] (1) in region two, forty-five percent of gross gaming revenue 50 from slot machines and ten percent of gross gaming revenue from all 51 other sources. 52 [(b)] (2) in region one, thirty-nine percent of gross gaming revenue 53 from slot machines and ten percent of gross gaming revenue from all 54 other sources.S. 3009--C 115 A. 3009--C 1 [(c)] (3) in region five, thirty-seven percent of gross gaming revenue 2 from slot machines and ten percent of gross gaming revenue from all 3 other sources. 4 (b) (1) Notwithstanding the tax rates on gross gaming revenue from 5 slot machines provided in paragraph (a) of this subdivision, for the 6 period of April first, two thousand twenty-six through June thirtieth, 7 two thousand thirty-one, each gaming facility in zone two shall continue 8 to be subject to the same tax rate on gross gaming revenue from slot 9 machines as was imposed in the preceding fiscal year. 10 (2) As a condition of the lower slot machine tax rate, the licensed 11 gaming facility must: 12 (i) be current on all statutory obligations to the state or have 13 entered into and be in compliance with a repayment agreement with the 14 state. If the commission, in its sole discretion, determines that a 15 gaming facility has not adhered to this condition for any such time 16 period, the gaming facility shall forfeit this lower slot machine tax 17 rate for such time period. 18 (ii) have provided the initial report to the governor, the speaker of 19 the assembly, the temporary president of the senate, and the commission 20 as required pursuant to subdivision one-b of this section. 21 (3) (i) Each gaming facility shall provide an annual fiscal report to 22 the governor, the speaker of the assembly, the temporary president of 23 the senate, director of the division of budget and the commission 24 detailing actual use of the funds resulting from the lower slot machine 25 tax rate. Such report shall include, but not be limited to, any impact 26 on employment levels since receiving the lower slot machine tax rate, an 27 accounting of the use of such funds, any other measures implemented to 28 improve the financial stability of the gaming facility and any other 29 information as deemed necessary by the commission. Such report shall be 30 due no later than January first of each year and shall be posted on the 31 commission website. 32 (ii) At the conclusion of each year, a licensed gaming facility shall 33 provide an affirmation in writing to the commission stating the employ- 34 ment goal in subdivision one-b of this section was either met or not met 35 as described in the initial report. If the licensed gaming facility is 36 found to have not adhered to the plan by the commission, then the appli- 37 cable slot tax rate may be adjusted at the discretion of the commission 38 as follows: 39 (A) If the actual employment number is more than fifty percent less 40 than the employment goal, then the slot tax rate shall be increased by 41 ten percentage points. 42 (B) If the actual employment number is more than forty percent less 43 than the employment goal, then the slot tax rate shall be increased by 44 eight percentage points. 45 (C) If the actual employment number is more than thirty percent less 46 than the employment goal, then the slot tax rate shall be increased by 47 six percentage points. 48 (D) If the actual employment number is more than twenty percent less 49 than the employment goal, then the slot tax rate shall be increased by 50 four percentage points. 51 (E) If the actual employment number is more than ten percent less than 52 the employment goal, then the slot tax rate shall be increased by two 53 percentage points. 54 (iii) Such finding and the reasoning thereof shall occur no later than 55 thirty days following submission of the written affirmation.S. 3009--C 116 A. 3009--C 1 § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law 2 is amended by adding a new subdivision 1-b to read as follows: 3 1-b. As a condition of the lower slot machine tax rate taking effect 4 April first, two thousand twenty-six, pursuant to subdivision one of 5 this section, the licensed gaming facility must provide an initial 6 report to the governor, the speaker of the assembly, the temporary pres- 7 ident of the senate, and the commission clearly detailing the estab- 8 lished quarterly and annual employment goals of increasing full-time 9 employees for each year that the facility will receive a lower tax rate 10 and any substantial changes to the initial plan. This report is due no 11 later than January first, two thousand twenty-six and shall be posted on 12 the commission's website. 13 § 3. Section 2 of part OOO of chapter 59 of the laws of 2021 amending 14 the racing, pari-mutuel wagering and breeding law relating to the tax 15 on gaming revenues, is amended to read as follows: 16 § 2. This act shall take effect immediately and shall expire and be 17 deemed repealed [five years after such date] April 1, 2026. 18 § 4. This act shall take effect immediately; provided however, that 19 section one of this act shall take effect on the same date as the rever- 20 sion of subdivision 1 of section 1351 of the racing, pari-mutuel wager- 21 ing and breeding law as provided in section 2 of part OOO of chapter 59 22 of the laws of 2021, as amended; provided further, that sections one and 23 two of this act shall expire and be deemed repealed July 1, 2031. 24 PART HH 25 Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel 26 wagering and breeding law, as amended by section 1 of part O of chapter 27 59 of the laws of 2024, is amended to read as follows: 28 2. a. Notwithstanding any other provision of law or regulation to the 29 contrary, from April nineteenth, two thousand twenty-one to March thir- 30 ty-first, two thousand twenty-two, twenty-three percent of the funds, 31 not to exceed two and one-half million dollars, in the Catskill off- 32 track betting corporation's capital acquisition fund and twenty-three 33 percent of the funds, not to exceed four hundred forty thousand dollars, 34 in the Capital off-track betting corporation's capital acquisition fund 35 established pursuant to this section shall also be available to such 36 off-track betting corporation for the purposes of statutory obligations, 37 payroll, and expenditures necessary to accept authorized wagers. 38 b. Notwithstanding any other provision of law or regulation to the 39 contrary, from April first, two thousand twenty-two to March thirty- 40 first, two thousand twenty-three, twenty-three percent of the funds, not 41 to exceed two and one-half million dollars, in the Catskill off-track 42 betting corporation's capital acquisition fund established pursuant to 43 this section, and twenty-three percent of the funds, not to exceed four 44 hundred forty thousand dollars, in the Capital off-track betting corpo- 45 ration's capital acquisition fund established pursuant to this section, 46 shall be available to such off-track betting corporations for the 47 purposes of statutory obligations, payroll, and expenditures necessary 48 to accept authorized wagers. 49 c. Notwithstanding any other provision of law or regulation to the 50 contrary, from April first, two thousand twenty-three to March thirty- 51 first, two thousand twenty-four, twenty-three percent of the funds, not 52 to exceed two and one-half million dollars, in the Catskill off-track 53 betting corporation's capital acquisition fund established pursuant to 54 this section, and one million dollars in the Capital off-track bettingS. 3009--C 117 A. 3009--C 1 corporation's capital acquisition fund established pursuant to this 2 section, shall be available to such off-track betting corporation for 3 the purposes of expenditures necessary to accept authorized wagers; past 4 due statutory obligations to New York licensed or franchised racing 5 corporations or associations; past due contractual obligations due to 6 other racing associations or organizations for the costs of acquiring a 7 simulcast signal; past due statutory payment obligations due to the New 8 York state thoroughbred breeding and development fund corporation, agri- 9 culture and New York state horse breeding development fund, and the 10 Harry M. Zweig memorial fund for equine research; and past due obli- 11 gations due the state. 12 d. Notwithstanding any other provision of law or regulation to the 13 contrary, from April first, two thousand twenty-four to March thirty- 14 first, two thousand twenty-five, twenty-three percent of the funds, not 15 to exceed two and one-half million dollars, in the Catskill off-track 16 betting corporation's capital acquisition fund established pursuant to 17 this section, and one million dollars in the Capital off-track betting 18 corporation's capital acquisition fund established pursuant to this 19 section, shall be available to such off-track betting corporation for 20 the purposes of expenditures necessary to accept authorized wagers; past 21 due statutory obligations to New York licensed or franchised racing 22 corporations or associations; past due contractual obligations due to 23 other racing associations or organizations for the costs of acquiring a 24 simulcast signal; past due statutory payment obligations due to the New 25 York state thoroughbred breeding and development fund corporation, agri- 26 culture and New York state horse breeding development fund, and the 27 Harry M. Zweig memorial fund for equine research; and past due obli- 28 gations due the state. 29 e. Notwithstanding any other provision of law or regulation to the 30 contrary, from April first, two thousand twenty-five to March thirty- 31 first, two thousand twenty-six, one million dollars in the Capital off- 32 track betting corporation's capital acquisition fund established pursu- 33 ant to this section shall be available to such off-track betting 34 corporation for the purposes of expenditures necessary to accept author- 35 ized wagers; past due statutory obligations to New York licensed or 36 franchised racing corporations or associations; past due contractual 37 obligations due to other racing associations or organizations for the 38 cost of acquiring a simulcast signal; past due statutory payment obli- 39 gations due to the New York state thoroughbred breeding and development 40 fund corporation, agriculture and New York state horse breeding develop- 41 ment fund, and the Harry M. Zweig memorial fund for equine research; and 42 past due obligations due the state. 43 f. Prior to a corporation being able to utilize the funds authorized 44 by paragraph c [or], d or e of this subdivision, the corporation must 45 attest that the surcharge monies from section five hundred thirty-two of 46 this chapter are being held separate and apart from any amounts other- 47 wise authorized to be retained from pari-mutuel pools and all surcharge 48 monies have been and will continue to be paid to the localities as 49 prescribed in law. Once this condition is satisfied, the corporation 50 must submit an expenditure plan to the gaming commission for review. 51 Such plan shall include the corporation's outstanding liabilities, 52 projected revenue for the upcoming year, a detailed explanation of how 53 the funds will be used, and any other information necessary to detail 54 such plan as determined by the commission. Upon review, the commission 55 shall make a determination as to whether the requirements of this para- 56 graph have been satisfied and notify the corporation of expenditure planS. 3009--C 118 A. 3009--C 1 approval. In the event the commission determines the requirements of 2 this paragraph have not been satisfied, the commission shall notify the 3 corporation of all deficiencies necessary for approval. As a condition 4 of such expenditure plan approval, the corporation shall provide a 5 report to the commission no later than the last day of the calendar year 6 for which the funds are requested, which shall include an accounting of 7 the use of such funds. At such time, the commission may cause an inde- 8 pendent audit to be conducted of the corporation's books to ensure that 9 all moneys were spent as indicated in such approved plan. The audit 10 shall be paid for from money in the fund established by this section. If 11 the audit determines that a corporation used the money authorized under 12 this section for a purpose other than one listed in their expenditure 13 plan, then the corporation shall reimburse the capital acquisition fund 14 for the unauthorized amount. 15 § 2. This act shall take effect immediately. 16 PART II 17 Section 1. Section 703 of the racing, pari-mutuel wagering and breed- 18 ing law is amended by adding a new subdivision 1-a to read as follows: 19 1-a. All amounts necessary to conduct the research project specified 20 in subdivision seven of section seven hundred four of this article shall 21 be appropriated or transferred to the fund from the general fund of the 22 state treasury. Such funds shall be used for the purposes contained in 23 the agreement established pursuant to subdivision seven of section seven 24 hundred four of this article, provided that such amount shall not exceed 25 what is necessary to cover all expenses as contained in such agreement. 26 § 2. Section 704 of the racing, pari-mutuel wagering and breeding law 27 is amended by adding a new subdivision 7 to read as follows: 28 7. (a) The moneys appropriated or transferred to the fund from the 29 general fund of the state treasury pursuant to subdivision one-a of 30 section seven hundred three of this article shall be expended for a 31 three-year research project conducted pursuant to an agreement between 32 the dean of the Cornell University College of Veterinary Medicine and 33 the executive director of the commission. Such agreement shall, at a 34 minimum, require the following: 35 (i) proposed research to identify the incident of fetlock fractures 36 and pre-fracture pathology in thoroughbred racehorses, with and without 37 lameness; 38 (ii) proposed research to determine the sensitivity and specificity of 39 standing computed tomography, positron emission tomography, and magnetic 40 resonance imaging of thoroughbred racehorses compared to that of digital 41 radiographs; 42 (iii) use of photo-counting computed tomography and high field magnet- 43 ic resonance imaging to further define early bone pathology in thorough- 44 bred racehorses that suffer fatal fractures of the fetlock joint, to 45 further characterize blood biomarker findings in healthy and clinically 46 lame horses in a large population of thoroughbred racehorses; 47 (iv) attempted refinement of a risk factor index for fatal musculosk- 48 eletal injury for thoroughbred racing based on epidemiological findings, 49 preliminary scanning technology, clinical examination, and advance imag- 50 ing; and 51 (v) that an annual update shall be provided to the governor, temporary 52 president of the senate, and speaker of the assembly regarding the 53 progression of the research project. Such annual update to the governor, 54 temporary president of the senate, and speaker of the assembly shall beS. 3009--C 119 A. 3009--C 1 due no later than December first each year. The final report outlined in 2 paragraph (c) of this subdivision shall satisfy the annual report 3 requirement outlined in this subparagraph for the last year of the 4 study. 5 (b) The moneys appropriated or transferred to the fund from the gener- 6 al fund of the state treasury pursuant to subdivision one-a of section 7 seven hundred three of this article may be used to purchase equipment 8 and fund staffing needs necessary to carry out the research tasks speci- 9 fied in paragraph (a) of this subdivision. 10 (c) A final report that describes the results of the research project 11 shall be provided to the governor, the temporary president of the 12 senate, the speaker of the assembly, the commission, the franchised 13 corporation, and any entity licensed pursuant to article two of this 14 chapter. Such final report shall include, at a minimum: 15 (i) an accounting of all expenditures related to the research project 16 outlined in this subdivision, including expenditures for equipment, 17 supplies, personnel, operations, and administration; 18 (ii) a description of the procedures for selecting horse participants 19 in the research project outlined in this subdivision, including criteria 20 for selection and any screening or eligibility requirements; and 21 (iii) a summary of findings gathered from the research project 22 outlined in this subdivision, including an analysis of risk factors 23 contributing to racehorse injuries and conclusions drawn regarding safe- 24 ty protocols. 25 (d) The researcher may also make recommendations for changes to any 26 existing rules or regulations that the researcher may determine would be 27 helpful toward maintaining the health of the equine athlete. 28 (e) To the extent practicable, screenings and advanced imaging 29 services conducted pursuant to this agreement may be conducted near 30 racetracks at both Belmont and Saratoga. 31 (f) (i) Screenings and advanced imaging services of horses enrolled in 32 the research project shall be offered to horsemen free of charge. 33 (ii) Subject to availability, Cornell Ruffian may provide screenings 34 and imaging services for New York horses that are not enrolled in the 35 research project. Cornell Ruffian may only charge such owners and train- 36 ers its actual costs for any screening or imaging service provided to 37 such non-enrolled horse. 38 (iii) Cornell Ruffian shall have no responsibility to interpret or 39 analyze the results of any scan or advanced image provided to an owner 40 or trainer of a non-enrolled horse. 41 (iv) For purposes of this paragraph, a New York horse is a horse that 42 has been stabled in New York for four of the six months immediately 43 preceding the date of the screening or advance imaging. 44 (v) The costs charged associated with screenings and advanced images 45 authorized pursuant to this subparagraph shall be included in the annual 46 update outlined in subparagraph (v) of paragraph (a) of this subdivi- 47 sion. 48 (g) Any screening and imaging equipment purchased pursuant to this 49 subdivision shall be owned by the Cornell University College of Veteri- 50 nary Medicine. 51 § 3. Section 208 of the racing, pari-mutuel wagering and breeding law 52 is amended by adding a new subdivision 10 to read as follows: 53 10. It is incumbent upon the franchised corporation to ensure the 54 health and safety of its equine participants. To accomplish that goal, 55 the franchised corporation shall, by September first, two thousand twen- 56 ty-five, make a one-time contribution of two million dollars to theS. 3009--C 120 A. 3009--C 1 Harry M. Zweig memorial fund, established under section seven hundred 2 one of this chapter, for the sole purpose of off-setting the cost of 3 purchasing screening and imaging equipment for the research project as 4 specified in subdivision seven of section seven hundred four of this 5 chapter. The Harry M. Zweig memorial fund shall hold such money in an 6 escrow account until such time as it is necessary to purchase the equip- 7 ment required to conduct the research. The money in the escrow account 8 shall not be used for any purposes other than purchasing equipment to be 9 used for such research. 10 § 4. This act shall take effect immediately, and shall expire and be 11 deemed repealed September 1, 2028. 12 PART JJ 13 Section 1. Subdivision (e) of section 42 of the tax law, as amended by 14 section 1 of subpart B of part B of chapter 59 of the laws of 2022, is 15 amended to read as follows: 16 (e) For taxable years beginning on or after January first, two thou- 17 sand seventeen and before January first, two thousand eighteen, the 18 amount of the credit allowed under this section shall be equal to the 19 product of the total number of eligible farm employees and two hundred 20 fifty dollars. For taxable years beginning on or after January first, 21 two thousand eighteen and before January first, two thousand nineteen, 22 the amount of the credit allowed under this section shall be equal to 23 the product of the total number of eligible farm employees and three 24 hundred dollars. For taxable years beginning on or after January first, 25 two thousand nineteen and before January first, two thousand twenty, the 26 amount of the credit allowed under this section shall be equal to the 27 product of the total number of eligible farm employees and five hundred 28 dollars. For taxable years beginning on or after January first, two 29 thousand twenty and before January first, two thousand twenty-one, the 30 amount of the credit allowed under this section shall be equal to the 31 product of the total number of eligible farm employees and four hundred 32 dollars. For taxable years beginning on or after January first, two 33 thousand twenty-one and before January first, two thousand twenty-two, 34 the amount of the credit allowed under this section shall be equal to 35 the product of the total number of eligible farm employees and six 36 hundred dollars. For taxable years beginning on or after January first, 37 two thousand twenty-two and before January first, two thousand [twenty-38six] twenty-nine, the amount of the credit allowed under this section 39 shall be equal to the product of the total number of eligible farm 40 employees and twelve hundred dollars. 41 § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending 42 the tax law relating to creating a farm workforce retention credit, as 43 amended by section 2 of subpart B of part B of chapter 59 of the laws of 44 2022, is amended to read as follows: 45 § 5. This act shall take effect immediately and shall apply only to 46 taxable years beginning on or after January 1, 2017 and before January 47 1, [2026] 2029. 48 § 3. This act shall take effect immediately. 49 PART KK 50 Section 1. The agriculture and markets law is amended by adding a new 51 article 25-C to read as follows:S. 3009--C 121 A. 3009--C 1 Article 25-C 2 FARM EMPLOYER OVERTIME CREDIT PROGRAM 3 Section 333. Short title. 4 334. Definitions. 5 335. Tax credit; overtime expense certification. 6 § 333. Short title. This article shall be known and may be cited as 7 the "farm employer overtime credit program." 8 § 334. Definitions. For the purposes of this article: 9 1. "Commissioner" shall mean the commissioner of agriculture and 10 markets. 11 2. "Department" shall mean the department of agriculture and markets. 12 3. "Eligible farm employee" shall mean an individual who meets the 13 definition of a "farm laborer" under section two of the labor law who is 14 employed in New York state by (a) a farm employer or (b) a qualified 15 professional employer organization. 16 4. "Eligible overtime" shall mean the aggregate number of hours of 17 work performed during the calendar year by an eligible farm employee 18 that in any calendar week exceeds the overtime work threshold set by the 19 commissioner of labor pursuant to the recommendation of the farm labor- 20 ers wage board, provided that work performed in such calendar week in 21 excess of sixty hours shall not be included. 22 5. "Farm employer" shall mean a corporation (including a New York S 23 corporation), a sole proprietorship, a limited liability company or a 24 partnership whose principal business is farming activity. 25 6. "Farming activity" shall include, but not be limited to, the culti- 26 vation of crops, operation, or management of a farm for gain or profit, 27 including the operation or management of livestock, dairy, poultry, 28 aquaculture, fruit, fur-bearing animal, field crop, horticultural 29 specialty, and vegetable farms. 30 7. "Overtime expense" shall mean the product of (a) the eligible over- 31 time hours worked during the calendar year by the eligible farm employee 32 and (b) the overtime rate paid to the eligible farm employee less such 33 eligible farm employee's regular rate of pay. 34 8. "Qualified farm employer" shall mean a farm employer that: 35 (a) primarily engaged in farming activity during the calendar year; 36 (b) utilized eligible farm employees in its farming activity during 37 the calendar year; and 38 (c) directly, or indirectly through a qualified professional employer 39 organization, paid eligible overtime to eligible farm employees during 40 the calendar year. 41 9. "Qualified professional employer organization" shall mean an entity 42 who provides remuneration to or otherwise employs eligible farm employ- 43 ees on behalf of a farm employer. 44 § 335. Tax credit; overtime expense certification. 1. A qualified farm 45 employer who is issued an overtime expense certificate by the department 46 may be allowed a credit pursuant to section forty-two-a of the tax law 47 equal to one hundred eighteen percent of the aggregate amount of over- 48 time expenses certified by the department pursuant to this section. A 49 qualified farm employer who is issued a preliminary overtime expense 50 certificate may be eligible to receive an advance payment of such tax 51 credit pursuant to subdivision (e) of section forty-two-a of the tax 52 law. 53 2. Certificate application and approval process. A farm employer must 54 submit a complete application as prescribed by the commissioner by the 55 first of February after the end of the calendar year. As part of the 56 application, each farm employer shall provide evidence in the form andS. 3009--C 122 A. 3009--C 1 manner prescribed by the commissioner sufficient to establish that it is 2 a qualified farm employer and to determine the overtime expense per 3 eligible farm employee paid by such qualified farm employer during the 4 preceding calendar year. If, after reviewing a farm employer's completed 5 application, the department determines that the farm employer is a qual- 6 ified farm employer, the department may issue to such qualified farm 7 employer an overtime expense certificate for each year that the eligi- 8 bility criteria are satisfied that specifies (a) the total number of 9 eligible farm employees who were paid eligible overtime by the qualified 10 farm employer; (b) the aggregate amount of overtime expense paid by the 11 qualified farm employer; and (c) the calendar year in which such over- 12 time expense was paid. 13 3. Preliminary overtime expense certificate. A farm employer who 14 intends to request an advance payment of the tax credit pursuant to 15 subdivision (e) of section forty-two-a of the tax law must submit a 16 complete application as prescribed by the commissioner by September 17 thirtieth of the calendar year. As part of the application, each farm 18 employer shall provide evidence in the form and manner prescribed by the 19 commissioner sufficient to establish that it is a qualified farm employ- 20 er and to determine the overtime expense per eligible farm employee paid 21 by such qualified farm employer from January first through July thirty- 22 first of such calendar year. If, after reviewing a farm employer's 23 completed application, the department determines that the farm employer 24 is a qualified farm employer, the department may issue to such qualified 25 farm employer a preliminary overtime expense certificate that specifies 26 (a) the total number of eligible farm employees who were paid eligible 27 overtime by the qualified farm employer from January first through July 28 thirty-first of such calendar year; and (b) the aggregate amount of 29 overtime expense paid by the qualified farm employer during such period. 30 § 2. Section 42-a of the tax law, as added by section 2 of subpart C 31 of part B of chapter 59 of the laws of 2022, is amended to read as 32 follows: 33 § 42-a. Farm employer overtime credit. (a) Notwithstanding subdivision 34 (f) of section forty-two of this article, a taxpayer that is [a] an 35 eligible farm employer or an owner of [a] an eligible farm employer 36 shall be eligible for a credit against the tax imposed under article 37 nine-A or twenty-two of this chapter, pursuant to the provisions refer- 38 enced in subdivision [(i)] (h) of this section. 39 (b) [A farm employer is a corporation (including a New York S corpo-40ration), a sole proprietorship, a limited liability company or a part-41nership that is an eligible farmer.42(c)] For purposes of this section, the term "eligible [farmer] farm 43 employer" means a taxpayer who received an overtime expense certificate 44 pursuant to section three hundred thirty-five of the agriculture and 45 markets law and whose federal gross income from farming as defined in 46 subsection (n) of section six hundred six of this chapter for the taxa- 47 ble year is at least two-thirds of excess federal gross income. Excess 48 federal gross income means the amount of federal gross income from all 49 sources for the taxable year in excess of thirty thousand dollars. For 50 purposes of this section, payments from the state's farmland protection 51 program, administered by the department of agriculture and markets, 52 shall be included as federal gross income from farming for otherwise 53 eligible farmers. 54 [(d) An eligible farm employee is an individual who meets the defi-55nition of a "farm laborer" under section two of the labor law who isS. 3009--C 123 A. 3009--C 1employed by a farm employer in New York state, but excluding general2executive officers of the farm employer.3(e) Eligible overtime is the aggregate number of hours of work4performed during the taxable year by an eligible farm employee that in5any calendar week exceeds the overtime work threshold set by the commis-6sioner of labor pursuant to the recommendation of the farm laborers wage7board, provided that work performed in such calendar week in excess of8sixty hours shall not be included.9(f)] (c) Special rules. If more than fifty percent of such eligible 10 [farmer's] farm employer's federal gross income from farming is from the 11 sale of wine from a licensed farm winery as provided for in article six 12 of the alcoholic beverage control law, or from the sale of cider from a 13 licensed farm cidery as provided for in section fifty-eight-c of the 14 alcoholic beverage control law, then an eligible farm employee of such 15 eligible farmer shall be included for purposes of calculating the amount 16 of credit allowed under this section only if such eligible farm employee 17 is employed by such eligible farmer on qualified agricultural property 18 as defined in paragraph four of subsection (n) of section six hundred 19 six of this chapter. 20 [(g)] (d) The amount of the credit allowed under this section shall be 21 equal to one hundred eighteen percent of the aggregate amount of [such22credit allowed per eligible farm employee, as follows. The amount of the23credit allowed per eligible farm employee shall be equal to one hundred24eighteen percent of the product of (1) the eligible overtime worked25during the taxable year by the eligible farm employee and (2) the over-26time rate paid by the farm employer to the eligible farm employee less27such employee's regular rate of pay] overtime expense paid by the quali- 28 fied farm employer as certified by the department of agriculture and 29 markets pursuant to section three hundred thirty-five of the agriculture 30 and markets law. 31 [(h)(1) Taxpayers] (e) A taxpayer who received a preliminary overtime 32 expense certificate pursuant to section three hundred thirty-five of the 33 agriculture and markets law shall have the option to request an advance 34 payment of the portion of the amount of tax credit they are allowed 35 under this section [for the amount of eligible overtime] equal to one 36 hundred eighteen percent of aggregate amount of overtime expense that 37 the farm employer paid from January first through July thirty-first, as 38 certified by the department of agriculture and markets pursuant to 39 section three hundred thirty-five of the agriculture and markets law. 40 [To be eligible for the advance payment, the farm employer must submit41by September thirtieth a properly completed application to the depart-42ment of agriculture and markets, in a form prescribed by the commission-43er of agriculture and markets, that demonstrates how much the farm44employer paid in eligible overtime during that period. After reviewing a45farm employer's completed application for the advance payment of a46portion of the amount of tax credit allowed under this section, the47department of agriculture and markets may issue to that farm employer a48certificate of tax credit that specifies the exact amount of the tax49credit under this article that a taxpayer may claim as an advance50payment pursuant to this subdivision.51(2)] A taxpayer must submit [a] an advanced payment request to the 52 department in the manner prescribed by the commissioner after it has 53 been issued a preliminary overtime expense certificate [of tax credit] 54 by the department of agriculture and markets pursuant to [paragraph one55of this subdivision] article twenty-five-C of the agriculture and 56 markets law (or such certificate has been issued to a partnership,S. 3009--C 124 A. 3009--C 1 limited liability company or subchapter S corporation in which it is a 2 partner, member or shareholder, respectively, that is a farm employer), 3 but such request must be submitted no later than November first of the 4 taxable year for which the credit is being claimed. For those taxpayers 5 who have requested an advance payment and for whom the commissioner has 6 determined to be eligible for this credit, the commissioner shall 7 advance a payment of the portion of the amount of tax credit allowed to 8 the taxpayer. The taxpayer will claim on the taxpayers' return for the 9 taxable year the portion of the amount of tax credit allowed for eligi- 10 ble overtime paid by the farm employer from August first through Decem- 11 ber thirty-first. The taxpayer must properly reconcile the advance 12 payment of tax credit allowed under this subdivision on the taxpayer's 13 return. 14 [(3)] (f) If a taxpayer that has received an advance payment is not an 15 eligible [farmer] farm employer or an owner of an eligible farm employer 16 for the taxable year for which it received an advance payment, the 17 taxpayer shall be required to add back as tax the amount of advance 18 payment the taxpayer received during the taxable year. 19 [(4)] (g) Notwithstanding any provision of this chapter, employees of 20 the department of agriculture and markets and the department shall be 21 allowed to share and exchange: 22 (i) information derived from tax returns or reports that is relevant 23 to a taxpayer's eligibility for the credit allowed by this section; 24 (ii) information regarding the credit applied for, allowed or claimed 25 pursuant to this section and regarding taxpayers that are applying for 26 the credit or that are claiming the credit; and 27 (iii) information collected by the department of agriculture and 28 markets and exchanged between the department of agriculture and markets 29 and the department pursuant to this section shall not be subject to 30 disclosure or inspection under the state's freedom of information law. 31 [(i)] (h) Cross references: For application of the credit provided in 32 this section, see the following provisions of this chapter: 33 (1) Article 9-A: Section 210-B, subdivision 58. 34 (2) Article 22: Section 606, subsection (nnn). 35 § 3. Notwithstanding any provision of law to the contrary, a farm 36 employer shall be allowed a credit, pursuant to section forty-two-a of 37 the tax law, for the eligible overtime indirectly paid to eligible farm 38 employees through a professional employer organization during the two 39 thousand twenty-four and/or two thousand twenty-five calendar years as 40 if such remuneration was paid directly by the farm employer to the 41 eligible farm employees. A farm employer must apply for and receive 42 certification by the department of agriculture and markets of the aggre- 43 gate amount of eligible overtime indirectly paid by the farm employer to 44 eligible farm employees through a professional employer organization 45 during the two thousand twenty-four and two thousand twenty-five calen- 46 dar years. A farm employer shall have the option to request an advance 47 payment of the credit, pursuant to subdivision (h) of section 48 forty-two-a of the tax law, for the eligible overtime indirectly paid by 49 the farm employer during the period from January first, two thousand 50 twenty-four, through July thirty-first, two thousand twenty-five, in 51 which case the farm employer must apply for and receive preliminary 52 certification by the department of agriculture and markets of the eligi- 53 ble overtime indirectly paid by the farm employer to eligible farm 54 employees during such period. The farm employer may request an advance 55 credit from the commissioner of taxation and finance in the form and 56 manner prescribed by such commissioner; provided, however, if a taxpayerS. 3009--C 125 A. 3009--C 1 that has received an advance payment is not an eligible farmer for the 2 taxable year when the indirect overtime expense was incurred, the 3 taxpayer shall be required to add back as tax the amount of advance 4 payment the taxpayer received. 5 § 4. This act shall take effect immediately; provided, however, that 6 sections one and two of this act shall apply to taxable years beginning 7 on or after January 1, 2026; and provided further that section three of 8 this act shall apply to taxable years beginning on or after January 1, 9 2025, and before January 1, 2026. 10 PART LL 11 Section 1. Section 4 of part H of chapter 59 of the laws of 2024 12 amending the tax law relating to the filing of amended returns under 13 article 28 thereof, is amended to read as follows: 14 § 4. This act shall take effect immediately, provided, however, the 15 amendments made by section one of this act shall apply to returns filed 16 or amended [for periods commencing] on and after December 1, 2024. 17 § 2. This act shall take effect immediately and shall be deemed to 18 have been in full force and effect on and after April 20, 2024. 19 PART MM 20 Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of 21 section 1612 of the tax law is amended by adding a new clause (E) to 22 read as follows: 23 (E) notwithstanding clause (B) of this subparagraph, beginning on June 24 first, two thousand twenty-five, when the vendor track is located in the 25 county of Genesee and within forty miles of a Native American class III 26 gaming facility as defined in 25 U.S.C. §2703(8), at a rate of fifty-six 27 percent of the total revenue wagered at the vendor track after payout 28 for prizes pursuant to this chapter; provided, however, that the follow- 29 ing additional provisions shall apply to such vendor track: 30 (1) From the vendor fee amount equivalent to fifty-six percent of the 31 total revenue wagered at the vendor track after payout for prizes pursu- 32 ant to this clause, a portion equivalent to five percent of the total 33 revenue wagered at the vendor track after payout for prizes shall be 34 defined as and hereinafter be referred to as the "additional vendor 35 fee". 36 (2) Such additional vendor fee shall be accounted for separately by 37 the vendor track and shall be used exclusively for the following 38 purposes, in proportions determined annually by such vendor track in 39 accordance with a plan submitted to the gaming commission pursuant to 40 subclause four of this clause: 41 (A) reducing the costs paid by non-executive and non-managerial 42 employees of such vendor track for healthcare coverage offered by such 43 vendor track; 44 (B) increasing salaries, hourly wages, or benefits paid to non-execu- 45 tive and non-managerial employees of such vendor track, or funding 46 increases in the number of full-time equivalent non-executive and non- 47 managerial employees; and 48 (C) supplementing distributions payable to participating counties or 49 municipalities as required under existing law. 50 (3) Additional vendor fee revenue utilized pursuant to this clause 51 shall not be included in any calculation used to determine amounts paya- 52 ble pursuant to subclause two of this clause or payments required underS. 3009--C 126 A. 3009--C 1 subclause two of this clause to the appropriate breeding fund estab- 2 lished pursuant to article three of the racing, pari-mutuel wagering and 3 breeding law. 4 (4) (A) Such vendor track shall annually submit a plan to the commis- 5 sion, no later than sixty days prior to the beginning of its fiscal 6 year, detailing the allocation and use of the additional vendor fee 7 revenue among the purposes specified in subclause two of this clause for 8 the upcoming fiscal year. Such plan shall include specific projections 9 for cost reductions in employee healthcare, increases in employee 10 compensation specifying the job titles or categories benefiting there- 11 from, and supplemental amounts for local distributions. 12 (B) Such vendor track shall submit a plan to the commission, no later 13 than sixty days after the effective date of this clause, detailing the 14 allocation and use of such additional vendor fee among the purposes 15 specified in subclause two of this clause for the remainder of fiscal 16 year two thousand twenty-five. Such plan shall include specific projec- 17 tions for cost reductions in employee healthcare, increases in employee 18 compensation specifying the job titles or categories benefiting there- 19 from, and projections of supplemental amounts of local distributions. 20 Such plan shall also detail allocations already made between this act 21 going into effect and the date such plan has been submitted to the 22 commission. 23 (5) Such vendor track shall also submit an annual report to the gaming 24 commission, the governor, the temporary president of the senate, and the 25 speaker of the assembly, no later than ninety days after the end of each 26 fiscal year, detailing the actual allocation and use of such additional 27 vendor fee during the preceding fiscal year. Such report shall specify 28 the amounts applied to each purpose outlined in subclause two of this 29 clause, provide data demonstrating the impact on employee healthcare 30 costs and compensation including the specific job titles or categories 31 that received increased compensation pursuant to item (B) of subclause 32 two of this clause, detail the supplemental distributions made to local- 33 ities, compare actual use to the plan, and provide justification for any 34 significant variances. 35 (6) (A) The additional vendor fee shall only be used to supplement 36 amounts previously allocated or appropriated by the corporation for the 37 purposes stated in subclause two of this clause and may not be used to 38 replace or backfill such amounts. 39 (B) The gaming commission shall have the authority to audit the use of 40 such additional vendor fee by such vendor track. If the gaming commis- 41 sion determines, after notice and an opportunity for a hearing, that 42 such funds have been used for purposes other than those authorized in 43 subclause two of this clause or inconsistent with the plan, including a 44 failure to benefit non-executive and non-managerial employees as 45 required by item (B) of subclause two of this clause, the gaming 46 commission may impose monetary penalties pursuant to its authority under 47 the racing, pari-mutuel wagering and breeding law and may require that 48 an amount equivalent to any funds used in a manner inconsistent with the 49 provisions of this clause shall be expended for authorized purposes 50 pursuant to an amended plan. 51 (7) Nothing contained in this clause shall affect any existing collec- 52 tive bargaining agreement or the obligation of such vendor track to 53 negotiate terms and conditions of employment with any certified employee 54 representative. 55 § 2. This act shall take effect immediately and shall expire and be 56 deemed repealed April 1, 2030.S. 3009--C 127 A. 3009--C 1 PART NN 2 Section 1. Subparagraph (ii) of paragraph (a) of subdivision 1 of 3 section 207 of the racing, pari-mutuel wagering and breeding law, as 4 amended by section 1 of part NN of chapter 59 of the laws of 2017, is 5 amended and two new subparagraphs (iv) and (v) are added to read as 6 follows: 7 (ii) The term of voting membership on the New York racing association 8 board shall be three years. Individual appointees shall be limited to 9 serving as a voting member the lesser of three terms or nine years. 10 Notwithstanding the foregoing, the initial term of one member appointed 11 by each of the governor, temporary president of the senate, and speaker 12 of the assembly, the member appointed by the New York thoroughbred 13 horsemen's association, and the member appointed by the New York 14 Thoroughbred Breeders, Inc. shall expire March thirty-first, two thou- 15 sand eighteen; the initial term of the remaining members appointed by 16 each of the governor, temporary president of the senate, and speaker of 17 the assembly and two members appointed by the New York racing associ- 18 ation reorganization board shall expire on March thirty-first, two thou- 19 sand nineteen; [and the remaining members shall serve full three-year20terms] the initial term of three members appointed by the New York 21 racing association reorganization board shall expire on March thirty- 22 first, two thousand twenty-one, and the initial term of three members 23 appointed by the New York racing association reorganization board shall 24 expire on March thirty-first, two thousand twenty-three. The eight 25 initial members appointed by the New York racing association reorganiza- 26 tion board shall hold appointment as a voting member for the greater of 27 three terms or nine years. 28 (iv) Beginning January first, two thousand twenty-six, one member 29 appointed by the governor, one member appointed by the temporary presi- 30 dent of the senate, one member appointed by the speaker of the assembly, 31 and four members appointed by the executive committee of the New York 32 racing association board of directors shall satisfy at least one of the 33 following requirements at the time of appointment or reappointment: (1) 34 over the three years prior, owned or trained horses with a cumulative 35 average of fifteen starts at New York race tracks per year, (2) be a 36 breeder of record registered with the thoroughbred breeding and develop- 37 ment fund, (3) be a managing partner in a New York state-based ownership 38 syndicate licensed with the commission, or (4) have a cogent interest in 39 the racing and breeding industry in the state. The provisions of this 40 subparagraph shall not impact any members serving as of January first, 41 two thousand twenty-six. 42 (v) Beginning January first, two thousand twenty-six, all non-publicly 43 appointed members must hold a license pursuant to section two hundred 44 twenty of this article. 45 § 2. Subdivision 1 of section 220 of the racing, pari-mutuel wagering 46 and breeding law, as amended by section 1 of part S of chapter 59 of the 47 laws of 2024, is amended to read as follows: 48 1. For the purpose of maintaining a proper control over race meetings 49 conducted pursuant to sections two hundred five and two hundred six of 50 this article, the commission shall license owners, which term shall be 51 deemed to include part-owners and lessees, trainers, assistant trainers 52 and jockeys, jockey agents, stable employees, non-publicly appointed 53 members of the board of a franchised corporation, and such other persons 54 as the commission may by rule prescribe at running races and at steeple- 55 chases, provided, however, that no such license shall be required forS. 3009--C 128 A. 3009--C 1 seasonal employees hired solely to work for no longer than six weeks 2 during the summer meet at Saratoga racetrack, and any such other times 3 as race dates historically assigned to Belmont Park are conducted at the 4 Saratoga racetrack in two thousand twenty-four and two thousand twenty- 5 five as approved in writing by the commission. In the event that a 6 proposed licensee is other than a natural person, the commission shall 7 require by regulation disclosure of the names and addresses of all 8 owners of an interest in such entity. The commission may retain, employ 9 or appoint such officers, employees and agents, as it may deem necessary 10 to receive, examine and make recommendations, for the consideration of 11 the commission, in respect of applications for such licenses; prescribe 12 their duties in connection therewith, and fix their compensation there- 13 for within the limitations prescribed by law. Each applicant for a 14 license shall pay to the commission an annual license fee as follows: 15 owner's license, if a renewal, fifty dollars, and if an original appli- 16 cation, one hundred dollars; trainer's license, thirty dollars; assist- 17 ant trainer's license, thirty dollars; jockey's license, fifty dollars; 18 jockey agent's license, twenty dollars; and stable employee's license, 19 five dollars. Each applicant may apply for a two-year or three-year 20 license by payment to the commission of the appropriate multiple of the 21 annual fee. The commission may by rule fix the license fees to be paid 22 by other persons required to be licensed by the rules of the commission, 23 not to exceed thirty dollars per category. The application for the 24 license shall be in writing in such form as the commission may 25 prescribe, and contain such information as the commission may require. 26 The commission shall henceforth cause all applicants for licenses to be 27 photographed and fingerprinted and may issue identification cards to 28 licensees. Such fingerprints shall be submitted to the division of crim- 29 inal justice services for a state criminal history record check, as 30 defined in subdivision one of section three thousand thirty-five of the 31 education law, and may be submitted to the federal bureau of investi- 32 gation for a national criminal history record check. A fee equal to the 33 actual cost of issuance shall be charged for the initial issuance of 34 such identification cards. Each such license unless revoked for cause 35 shall be for the period of no more than one, two or three years, deter- 36 mined by rule of the commission, expiring on the applicant's birth date. 37 Licenses of non-publicly appointed members of the board of a franchised 38 corporation shall be issued without fee and remain in effect for the 39 duration of their board service. Licenses current on the effective date 40 of this provision shall not be reduced in duration by this provision. An 41 applicant who applies for a license that, if issued, would take effect 42 less than six months prior to the applicant's birth date may, by payment 43 of a fifty percent higher fee, receive a license which shall not expire 44 until the applicant's second succeeding birth date. All receipts of the 45 commission derived from the operation of this section shall be paid by 46 it into the state treasury on or before the tenth day of each month. All 47 officials connected with the actual conduct of racing shall be subject 48 to approval by the commission. 49 § 3. Subdivision 1 of section 220 of the racing, pari-mutuel wagering 50 and breeding law, as amended by section 243 of the laws of 2020, is 51 amended to read as follows: 52 1. For the purpose of maintaining a proper control over race meetings 53 conducted pursuant to sections two hundred five and two hundred six of 54 this article, the commission shall license owners, which term shall be 55 deemed to include part-owners and lessees, trainers, assistant trainers 56 and jockeys, jockey agents, stable employees, non-publicly appointedS. 3009--C 129 A. 3009--C 1 members of the board of a franchised corporation, and such other persons 2 as the commission may by rule prescribe at running races and at steeple- 3 chases, provided, however, that no such license shall be required for 4 seasonal employees hired solely to work for no longer than six weeks 5 during the summer meet at Saratoga racetrack. In the event that a 6 proposed licensee is other than a natural person, the commission shall 7 require by regulation disclosure of the names and addresses of all 8 owners of an interest in such entity. The commission may retain, employ 9 or appoint such officers, employees and agents, as it may deem necessary 10 to receive, examine and make recommendations, for the consideration of 11 the commission, in respect of applications for such licenses; prescribe 12 their duties in connection therewith, and fix their compensation there- 13 for within the limitations prescribed by law. Each applicant for a 14 license shall pay to the commission an annual license fee as follows: 15 owner's license, if a renewal, fifty dollars, and if an original appli- 16 cation, one hundred dollars; trainer's license, thirty dollars; assist- 17 ant trainer's license, thirty dollars; jockey's license, fifty dollars; 18 jockey agent's license, twenty dollars; and stable employee's license, 19 five dollars. Each applicant may apply for a two-year or three-year 20 license by payment to the commission of the appropriate multiple of the 21 annual fee. The commission may by rule fix the license fees to be paid 22 by other persons required to be licensed by the rules of the commission, 23 not to exceed thirty dollars per category. The application for the 24 license shall be in writing in such form as the commission may 25 prescribe, and contain such information as the commission may require. 26 The commission shall henceforth cause all applicants for licenses to be 27 photographed and fingerprinted and may issue identification cards to 28 licensees. Such fingerprints shall be submitted to the division of crim- 29 inal justice services for a state criminal history record check, as 30 defined in subdivision one of section three thousand thirty-five of the 31 education law, and may be submitted to the federal bureau of investi- 32 gation for a national criminal history record check. A fee equal to the 33 actual cost of issuance shall be charged for the initial issuance of 34 such identification cards. Each such license unless revoked for cause 35 shall be for the period of no more than one, two or three years, deter- 36 mined by rule of the commission, expiring on the applicant's birth date. 37 Licenses of non-publicly appointed members of the board of a franchised 38 corporation shall be issued without fee and remain in effect for the 39 duration of their board service. Licenses current on the effective date 40 of this provision shall not be reduced in duration by this provision. An 41 applicant who applies for a license that, if issued, would take effect 42 less than six months prior to the applicant's birth date may, by payment 43 of a fifty percent higher fee, receive a license which shall not expire 44 until the applicant's second succeeding birth date. All receipts of the 45 commission derived from the operation of this section shall be paid by 46 it into the state treasury on or before the tenth day of each month. All 47 officials connected with the actual conduct of racing shall be subject 48 to approval by the commission. 49 § 4. The New York racing association shall immediately identify which 50 members are designated to which specific seats on the board. 51 § 5. This act shall take effect immediately and shall apply to all 52 initial appointments by the New York racing association reorganization 53 board; provided, however, that if section 1 of part NN of chapter 59 of 54 the laws of 2017 shall not have taken effect on or before such date then 55 section one of this act shall take effect on the same date and in the 56 same manner as such section of such part of such chapter of the laws ofS. 3009--C 130 A. 3009--C 1 2017 takes effect; and provided, further, that the amendments to subdi- 2 vision 1 of section 220 of the racing, pari-mutuel wagering and breeding 3 law made by section two of this act shall be subject to the expiration 4 and reversion of such subdivision pursuant to section 2 of part S of 5 chapter 59 of the laws of 2024, as amended, when upon such date the 6 provisions of section three of this act shall take effect. 7 PART OO 8 Section 1. Subdivision 8 of section 1367 of the racing, pari-mutuel 9 wagering and breeding law, as added by section 3 of part Y of chapter 59 10 of the laws of 2021, is amended to read as follows: 11 8. Notwithstanding section thirteen hundred fifty-one of this article, 12 mobile sports wagering gross gaming revenue and tax revenue shall be 13 excluded from sports wagering gross gaming revenue and tax revenue. 14 Mobile sports wagering tax revenue shall be separately maintained and 15 returned to the state for deposit into the state lottery fund for educa- 16 tion aid except as otherwise provided in this subdivision. Any interest 17 and penalties imposed by the commission relating to those taxes, all 18 penalties levied and collected by the commission, and the appropriate 19 funds, cash or prizes forfeited from sports wagering shall be deposited 20 into the state lottery fund for education. In [the first fiscal year in21which mobile sports wagering licensees commence operations and accept22mobile sports wagers pursuant to this section] fiscal year two thousand 23 twenty-two, the commission shall pay into the commercial gaming fund one 24 percent of the state tax imposed on mobile sports wagering by this 25 section to be distributed for problem gambling education and treatment 26 purposes pursuant to paragraph a of subdivision four of section ninety- 27 seven-nnnn of the state finance law; provided however, that such amount 28 shall be equal to six million dollars for each fiscal year through 29 fiscal year two thousand twenty-six and twelve million dollars for each 30 fiscal year thereafter, provided that this amount may only be expended 31 pursuant to a plan approved by the director of the budget. In [the first32fiscal year in which mobile sports wagering licensees commence oper-33ations and accept mobile sports wagers pursuant to this section] fiscal 34 year two thousand twenty-two, the commission shall pay one percent of 35 the state tax imposed on mobile sports wagering by this section to the 36 general fund, a program to be administered by the office of children and 37 family services for a statewide youth sports activities and education 38 grant program for the purpose of providing annual awards to sports 39 programs for underserved youth under the age of eighteen years; provided 40 however, that such amount shall be equal to five million dollars for 41 each fiscal year thereafter. The commission shall require at least 42 monthly deposits by a platform provider of any payments pursuant to 43 subdivision seven of this section, at such times, under such conditions, 44 and in such depositories as shall be prescribed by the state comp- 45 troller. The deposits shall be deposited to the credit of the state 46 commercial gaming revenue fund. The commission shall require a monthly 47 report and reconciliation statement to be filed with it on or before the 48 tenth day of each month, with respect to gross revenues and deposits 49 received and made, respectively, during the preceding month. 50 § 2. This act shall take effect immediately. 51 PART PPS. 3009--C 131 A. 3009--C 1 Section 1. (a) Notwithstanding any provision of law, rule or regu- 2 lation to the contrary, any site for which (i) a brownfield cleanup 3 agreement with the department of environmental conservation was entered 4 into prior to June 23, 2008 with respect to a site located within the 5 Renaissance Commerce Park situate within the city of Lackawanna, Erie 6 county, (ii) which received a certificate of completion on or before 7 December 31, 2017, and (iii) that has not otherwise had property placed 8 in service upon such a site as of the effective date of this act, shall 9 be a qualified site for purposes of the brownfield redevelopment tax 10 credits available to such a site pursuant to section 21 of the tax law 11 as in effect for such a site as of the effective date of this act 12 provided that both the site preparation credit component and the on-site 13 groundwater remediation credit component shall be allowed for all eligi- 14 ble costs incurred on such a site prior to and within the tax year in 15 which qualified tangible property on such a site is placed in service, 16 and for a seven year period following the year such property is first 17 placed in service upon such a site, provided, such a date occurs prior 18 to the 2036 tax year, and the tangible property credit component shall 19 be allowed for all eligible costs incurred on such a site prior to and 20 within the tax year in which qualified tangible property on such a site 21 is placed in service, and for a ten year period (120 months) following 22 the year such property is first placed in service upon such a site, 23 provided such a date occurs prior to the 2036 tax year. 24 (b) In addition, any site for which (i) a brownfield cleanup agreement 25 with the department of environmental conservation was entered into prior 26 to June 23, 2008 with respect to a site located within the Renaissance 27 Commerce Park situate within the city of Lackawanna, Erie county, (ii) 28 which received a certificate of completion on or before December 31, 29 2017, and (iii) that has not otherwise had property placed in service 30 upon such a site as of the effective date of this act shall be eligible 31 to claim the tax credit for remediated brownfields available to such a 32 site pursuant to section 22 of the tax law as in effect for such a site 33 as of the effective date of this act provided the benefit period as 34 applicable thereto shall be deemed to be a ten-consecutive-tax-year 35 period beginning with the tax year in which qualified tangible property 36 on such a site is placed in service where said benefit period shall 37 begin no later than the 2036 tax year. 38 (c) Further, any site for which (i) a brownfield cleanup agreement 39 with the department of environmental conservation was entered into prior 40 to June 23, 2008 with respect to a site located within the Renaissance 41 Commerce Park situate within the city of Lackawanna, Erie county, (ii) 42 which received a certificate of completion on or before December 31, 43 2017, and (iii) that has not otherwise had property placed in service 44 upon such a site as of the effective date of this act, shall be a quali- 45 fied site for purposes of claiming the tax credit for remediated brown- 46 fields available to such a site pursuant to section 22 of the tax law, 47 provided that such developer as defined under section 22 of the tax law 48 has purchased or in any other way has been conveyed all or any portion 49 of such a site from any other party who or which has been issued a 50 certificate of completion with respect to such site and further provided 51 that such purchase or conveyance occurs no later than the 2036 tax year. 52 § 2. This act shall take effect immediately. 53 PART QQS. 3009--C 132 A. 3009--C 1 Section 1. Section 171 of the tax law is amended by adding a new 2 subdivision fifteenth-a to read as follows: 3 Fifteenth-a. Notwithstanding any other provision of this chapter: (i) 4 the commissioner may grant the relief described in paragraph (iii) of 5 this subdivision to a limited partner of a limited partnership (but not 6 a partner of a limited liability partnership) or a member of a limited 7 liability company if such limited partner or member demonstrates to the 8 satisfaction of the commissioner that such limited partner's or member's 9 ownership interest and the percentage of their distributive share of the 10 profits and losses of such limited partnership or limited liability 11 company are each less than fifty percent, and such limited partner or 12 member was not under a duty to act, and did not act, for such limited 13 partnership or limited liability company in complying with any require- 14 ment of the taxes imposed under article twenty-eight of this chapter and 15 pursuant to the authority of article twenty-nine of this chapter. 16 Provided, however, the commissioner shall deny an application for relief 17 if: (A) such limited partner or member had a duty to act or has acted on 18 behalf of such limited partnership or limited liability company in 19 complying with any requirement of the taxes imposed under article twen- 20 ty-eight of this chapter and pursuant to the authority of article twen- 21 ty-nine of this chapter; (B) such limited partner or member has been 22 convicted of a crime provided in this chapter; (C) such limited partner 23 or member has a past-due tax liability, as such term is defined in 24 section one hundred seventy-one-v of this article; (D) approval of such 25 application would undermine compliance with the taxes or other imposi- 26 tions administered by the commissioner; or (E) approval of such applica- 27 tion would be adverse to the best interests of the state. 28 (ii) The relief described in paragraph (iii) of this subdivision shall 29 not be provided unless a limited partner or member submits a properly 30 completed application for relief on a form prescribed by the commission- 31 er. The information provided in such application must be true and 32 complete in all material respects. Providing materially false or fraudu- 33 lent information on such application shall disqualify such limited part- 34 ner or member for the relief described in paragraph (iii) of this subdi- 35 vision, shall void any agreement with the commissioner with respect to 36 such relief, and shall result in such limited partner or member bearing 37 strict liability for the total amount of tax, interest and penalty owed 38 by their respective limited partnership or limited liability company 39 under article twenty-eight of this chapter and pursuant to the authority 40 of article twenty-nine of this chapter. 41 (iii) If the commissioner approves such application, such limited 42 partner or member shall be liable for the percentage of the original 43 liability under article twenty-eight of this chapter and pursuant to the 44 authority of article twenty-nine of this chapter of their respective 45 limited partnership or limited liability company that reflects such 46 limited partner's or member's ownership interest or distributive share 47 of the profits and losses of such limited partnership or limited liabil- 48 ity company, whichever is higher. Such original liability shall include 49 any interest accrued thereon up to and including the date of payment by 50 such limited partner or member at the underpayment rate set by the 51 commissioner pursuant to section eleven hundred forty-two of this chap- 52 ter, and shall be reduced by the sum of any payments made by the limited 53 partnership or limited liability company. Provided, however, such limit- 54 ed partner or member shall not be liable for any penalty owed by such 55 limited partnership or limited liability company or any other partner or 56 member of such limited partnership or limited liability company; andS. 3009--C 133 A. 3009--C 1 provided further that the sum of the amounts owed by all of the persons 2 required to collect tax of a limited partnership or limited liability 3 company shall not exceed the total liability of such limited partnership 4 or limited liability company. 5 (iv) The denial of a limited partner's or member's application for 6 relief shall not be reviewable by the division of tax appeals, but may 7 be reviewed pursuant to article seventy-eight of the civil practice law 8 and rules by a proceeding commenced within four months of such denial in 9 the county where the commissioner has their principal office. 10 (v) Any payment made by a limited partner or member in excess of such 11 limited partner's or member's percentage of ownership or distributive 12 share, whichever is higher, shall be deemed a payment by the respective 13 limited partnership or limited liability company, and such limited part- 14 ner or member shall not be entitled to a refund of such amount. 15 § 2. Subdivision (a) of section 1133 of the tax law, as amended by 16 section 2 of part X of chapter 59 of the laws of 2018, is amended to 17 read as follows: 18 (a) [(1)] Except as otherwise provided in [paragraph two of this19subdivision and in] section eleven hundred thirty-seven of this part, 20 every person required to collect any tax imposed by this article shall 21 be personally liable for the tax imposed, collected or required to be 22 collected under this article. Any such person shall have the same right 23 in respect to collecting the tax from [his] their customer or in respect 24 to nonpayment of the tax by the customer as if the tax were a part of 25 the purchase price of the property or service, amusement charge or rent, 26 as the case may be, and payable at the same time; provided, however, 27 that the tax commission shall be joined as a party in any action or 28 proceeding brought to collect the tax. 29 [(2) Notwithstanding any other provision of this article: (i) The30commissioner shall grant the relief described in subparagraph (iii) of31this paragraph to a limited partner of a limited partnership (but not a32partner of a limited liability partnership) or a member of a limited33liability company if such limited partner or member demonstrates to the34satisfaction of the commissioner that such limited partner's or member's35ownership interest and the percentage of the distributive share of the36profits and losses of such limited partnership or limited liability37company are each less than fifty percent, and such limited partner or38member was not under a duty to act for such limited partnership or39limited liability company in complying with any requirement of this40article. Provided, however, the commissioner may deny an application for41relief to any such limited partner or member who the commissioner finds42has acted on behalf of such limited partnership or limited liability43company in complying with any requirement of this article or has been44convicted of a crime provided in this chapter or who has a past-due45liability, as such term is defined in section one hundred seventy-one-v46of this chapter.47(ii) Such limited partner or member must submit an application for48relief, on a form prescribed by the commissioner, and the information49provided in such application must be true and complete in all material50respects. Providing materially false or fraudulent information on such51application shall disqualify such limited partner or member for the52relief described in subparagraph (iii) of this paragraph, shall void any53agreement with the commissioner with respect to such relief, and shall54result in such limited partner or member bearing strict liability for55the total amount of tax, interest and penalty owed by their respectiveS. 3009--C 134 A. 3009--C 1limited partnership or limited liability company pursuant to this subdi-2vision.3(iii) A limited partner of a limited partnership or member of a limit-4ed liability company, who meets the requirements set forth in this para-5graph and whose application for relief is approved by the commissioner,6shall be liable for the percentage of the original sales and use tax7liability of their respective limited partnership or limited liability8company that reflects such limited partner's or member's ownership9interest of distributive share of the profits and losses of such limited10partnership or limited liability company, whichever is higher. Such11original liability shall include any interest accrued thereon up to and12including the date of payment by such limited partner or member at the13underpayment rate set by the commissioner pursuant to section eleven14hundred forty-two of this part, and shall be reduced by the sum of any15payments made by (A) the limited partnership or limited liability compa-16ny; (B) any person required to collect tax not eligible for relief; and17(C) any person required to collect tax who was eligible for relief but18had not been approved for relief by the commissioner at the time such19payment was made. Provided, however, such limited partner or member20shall not be liable for any penalty owed by such limited partnership or21limited liability company or any other partner or member of such limited22partnership or limited liability company. Any payment made by a limited23partner or member pursuant to the provisions of this paragraph shall not24be credited against the liability of other limited partners or members25of their respective limited partnership or limited liability company who26are eligible for the same relief; provided, however that the sum of the27amounts owed by all of the persons required to collect tax of a limited28partnership or limited liability company shall not exceed the total29liability of such limited partnership or limited liability company.] 30 § 3. This act shall take effect immediately. 31 PART RR 32 Section 1. Subparagraphs (A), (E) and (F) of paragraph 1 of subsection 33 (e) of section 606 of the tax law, subparagraph (A) and (F) as amended 34 by chapter 28 of the laws of 1987 and subparagraph (E) as amended by 35 chapter 105 of the laws of 2006, are amended to read as follows: 36 (A) ["Qualified] (i) For taxable years beginning before January first, 37 two thousand twenty-five, "qualified taxpayer" means a resident individ- 38 ual of the state who has occupied the same residence for six months or 39 more of the taxable year, and is required or chooses to file a return 40 under this article. 41 (ii) For taxable years beginning on or after January first, two thou- 42 sand twenty-five, "qualified taxpayer" means a resident individual of 43 the state who has occupied the same residence for six months or more of 44 the taxable year, and has qualifying real property taxes as defined in 45 clause (ii) of subparagraph (E) of this paragraph, or a real property 46 tax equivalent as defined in clause (ii) of subparagraph (F) of this 47 paragraph, in excess of the following percentages of federal adjusted 48 gross income: 49 If federal adjusted gross income for the Percentage 50 taxable year is: 51 $3,000 or less 3 1/2 52 Over $3,000 but not over $5,000 4S. 3009--C 135 A. 3009--C 1 Over $5,000 but not over $7,000 4 1/2 2 Over $7,000 but not over $9,000 5 3 Over $9,000 but not over $11,000 5 1/2 4 Over $11,000 but not over $14,000 6 5 Over $14,000 but not over $18,000 6 1/2 6 (E) ["Qualifying] (i) For taxable years beginning before January 7 first, two thousand twenty-five, "qualifying real property taxes" means 8 all real property taxes, special ad valorem levies and special assess- 9 ments, exclusive of penalties and interest, levied on the residence of a 10 qualified taxpayer and paid during the taxable year less the credit 11 claimed under subsection (n-1) of this section. In addition, for taxable 12 years beginning after December thirty-first, nineteen hundred eighty- 13 four, a qualified taxpayer may elect to include any additional amount 14 that would have been levied in the absence of an exemption from real 15 property taxation pursuant to section four hundred sixty-seven of the 16 real property tax law. If tenant-stockholders in a cooperative housing 17 corporation have met the requirements of section two hundred sixteen of 18 the internal revenue code by which they are allowed a deduction for real 19 estate taxes, the amount of taxes so allowable, or which would be allow- 20 able if the taxpayer had filed returns on a cash basis, shall be quali- 21 fying real property taxes. If a residence is owned by two or more indi- 22 viduals as joint tenants or tenants in common, and one or more than one 23 individual is not a member of the household, qualifying real property 24 taxes is that part of such taxes on the residence which reflects the 25 ownership percentage of the qualified taxpayer and members of [his] 26 their household. If a residence is an integral part of a larger unit, 27 qualifying real property taxes shall be limited to that amount of such 28 taxes paid as may be reasonably apportioned to such residence. If a 29 household owns and occupies two or more residences during different 30 periods in the same taxable year, qualifying real property taxes shall 31 be the sum of the prorated qualifying real property taxes attributable 32 to the household during the periods such household occupies each of such 33 residences. If the household owns and occupies a residence for part of 34 the taxable year and rents a residence for part of the same taxable 35 year, it may include both the proration of qualifying real property 36 taxes on the residence owned and the real property tax equivalent with 37 respect to the months the residence is rented. Provided, however, for 38 purposes of the credit allowed under this subsection, qualifying real 39 property taxes may be included by a qualified taxpayer only to the 40 extent that such taxpayer or the spouse of such taxpayer occupying such 41 residence for six months or more of the taxable year owns or has owned 42 the residence and paid such taxes. 43 (ii) For taxable years beginning on or after January first, two thou- 44 sand twenty-five, "qualifying real property taxes" means all real prop- 45 erty taxes, special ad valorem levies and special assessments, exclusive 46 of penalties and interest, levied on the residence of a qualified 47 taxpayer and paid during the taxable year less any school tax relief 48 credit allowed under subsection (eee) of this section. A qualified 49 taxpayer may elect to include any additional amount that would have been 50 levied in the absence of an exemption from real property taxation pursu- 51 ant to section four hundred sixty-seven of the real property tax law. If 52 tenant-stockholders in a cooperative housing corporation have met the 53 requirements of section two hundred sixteen of the internal revenue code 54 by which they are allowed a deduction for real estate taxes, the amount 55 of taxes so allowable, or which would be allowable if the taxpayer hadS. 3009--C 136 A. 3009--C 1 filed returns on a cash basis, shall be qualifying real property taxes. 2 If a residence is owned by two or more individuals as joint tenants or 3 tenants in common, qualifying real property taxes is that part of such 4 taxes on the residence which reflects the ownership percentage of the 5 qualified taxpayer. If a residence is an integral part of a larger unit, 6 qualifying real property taxes shall be limited to that amount of the 7 taxes paid as may be reasonably apportioned to such residence. If a 8 qualified taxpayer owns and occupies two or more residences during 9 different periods in the same taxable year, qualifying real property 10 taxes shall be the sum of the prorated qualifying real property taxes 11 attributable to the qualified taxpayer during the periods the taxpayer 12 occupies each of the residences. If a qualified taxpayer owns and occu- 13 pies a residence for part of the taxable year and rents a residence for 14 part of the same taxable year, the taxpayer may include both the 15 proration of qualifying real property taxes on the residence owned and 16 the real property tax equivalent with respect to the months the resi- 17 dence is rented. Provided, however, for purposes of the credit allowed 18 under this subsection, qualifying real property taxes may be included by 19 a qualified taxpayer only to the extent that such taxpayer or the spouse 20 of such taxpayer occupying such residence for six months or more of the 21 taxable year owns or has owned the residence and paid such taxes. 22 (F) ["Real] (i) For taxable years beginning before January first, two 23 thousand twenty-five, "real property tax equivalent" means twenty-five 24 percent of the adjusted rent actually paid in the taxable year by a 25 household solely for the right of occupancy of its New York residence 26 for the taxable year. If [(i)] (I) a residence is rented to two or more 27 individuals as cotenants, or such individuals share in the payment of a 28 single rent for the right of occupancy of such residence, and [(ii)] 29 (II) each of such individuals is a member of a different household, one 30 or more of which individuals shares such residence, real property tax 31 equivalent is that portion of twenty-five percent of the adjusted rent 32 paid in the taxable year which reflects that portion of the rent attrib- 33 utable to the qualified taxpayer and the members of [his] their house- 34 hold. 35 (ii) For taxable years beginning on or after January first, two thou- 36 sand twenty-five, "real property tax equivalent" means twenty-five 37 percent of the adjusted rent actually paid in the taxable year by a 38 qualified taxpayer solely for the right of occupancy of their New York 39 residence for the taxable year. 40 § 2. Paragraph 2 of subsection (e) of section 606 of the tax law, as 41 amended by chapter 28 of the laws of 1987, is amended to read as 42 follows: 43 (2) [A] (A) For taxable years beginning before January first, two 44 thousand twenty-five, a qualified taxpayer shall be allowed a credit as 45 provided in subparagraph (A) of paragraph three [hereof] of this 46 subsection against the taxes imposed by this article reduced by the 47 credits permitted by this article. If the credit exceeds the tax as so 48 reduced for such year under this article the qualified taxpayer may 49 receive, and the comptroller, subject to a certificate of the [state tax50commission] commissioner, shall pay as an overpayment, without interest, 51 any excess between such tax as so reduced and the amount of the credit. 52 If a qualified taxpayer is not required to file a return pursuant to 53 section six hundred fifty-one, a qualified taxpayer may nevertheless 54 receive and the comptroller, subject to a certificate of the [state tax55commission] commissioner, shall pay as an overpayment the full amount of 56 the credit, without interest.S. 3009--C 137 A. 3009--C 1 (B) For taxable years beginning on or after January first, two thou- 2 sand twenty-five, a qualified taxpayer shall be allowed a credit against 3 the tax imposed by this article as provided for in subparagraph (B) of 4 paragraph three of this subsection. If the amount of the credit allowed 5 under this subsection exceeds the taxpayer's tax for the taxable year, 6 the excess shall be treated as an overpayment of tax to be credited or 7 refunded in accordance with the provisions of section six hundred eight- 8 y-six of this article, provided, however, that no interest shall be paid 9 thereon. If a taxpayer is not required to file a return pursuant to 10 section six hundred fifty-one, a qualified taxpayer may nevertheless 11 receive and the comptroller, subject to a certificate of the commission- 12 er, shall pay as an overpayment the full amount of the credit, without 13 interest. 14 § 3. Paragraph 3 of subsection (e) of section 606 of the tax law, as 15 amended by chapter 28 of the laws of 1987, is amended to read as 16 follows: 17 (3) Determination of credit. (A) For taxable years beginning before 18 January first, two thousand twenty-five, (i) for qualified taxpayers who 19 have attained the age of sixty-five years before the beginning of or 20 during the taxable year the amount of the credit allowable under this 21 subsection shall be fifty percent, or in the case of a qualified taxpay- 22 er who has elected to include an additional amount pursuant to subpara- 23 graph (E) of paragraph one of this subsection, twenty-five percent, of 24 the excess of real property taxes or the excess of real property tax 25 equivalent determined as follows: 26 Excess real property taxes are the 27 excess of real property tax equiv- 28 alent or the excess of qualifying 29 real property taxes over the fo- 30 If household gross income for the llowing percentage of household 31 taxable year is: gross income: 32 ----------------------------------- ----------------------------------- 33 $3,000 or less 3 1/2 34 Over $3,000 but not over $5,000 4 35 Over $5,000 but not over $7,000 4 1/2 36 Over $7,000 but not over $9,000 5 37 Over $9,000 but not over $11,000 5 1/2 38 Over $11,000 but not over $14,000 6 39 Over $14,000 but not over $18,000 6 1/2 40 Notwithstanding the foregoing provisions, the maximum credit deter- 41 mined under this [subparagraph] clause may not exceed the amount deter- 42 mined in accordance with the following table: 43 If household gross income for the 44 taxable year is: The maximum credit is: 45 ----------------------------------- ----------------------------------- 46 $1,000 or less $375 47 Over $1,000 but not over $2,000 $358 48 Over $2,000 but not over $3,000 $341 49 Over $3,000 but not over $4,000 $324 50 Over $4,000 but not over $5,000 $307 51 Over $5,000 but not over $6,000 $290 52 Over $6,000 but not over $7,000 $273 53 Over $7,000 but not over $8,000 $256S. 3009--C 138 A. 3009--C 1 Over $8,000 but not over $9,000 $239 2 Over $9,000 but not over $10,000 $222 3 Over $10,000 but not over $11,000 $205 4 Over $11,000 but not over $12,000 $188 5 Over $12,000 but not over $13,000 $171 6 Over $13,000 but not over $14,000 $154 7 Over $14,000 but not over $15,000 $137 8 Over $15,000 but not over $16,000 $120 9 Over $16,000 but not over $17,000 $103 10 Over $17,000 but not over $18,000 $ 86 11 [(B) For] (ii) for all other qualified taxpayers the amount of the 12 credit allowable under this subsection shall be fifty percent of excess 13 real property taxes or the excess of the real property tax equivalent 14 determined as follows: 15 Excess real property taxes are the 16 excess of real property tax equiv- 17 alent or the excess of qualifying 18 real property taxes over the 19 If household gross income for the following percentage of household 20 taxable year is: gross income: 21 ----------------------------------- ----------------------------------- 22 $3,000 or less 3 1/2 23 Over $3,000 but not over $5,000 4 24 Over $5,000 but not over $7,000 4 1/2 25 Over $7,000 but not over $9,000 5 26 Over $9,000 but not over $11,000 5 1/2 27 Over $11,000 but not over $14,000 6 28 Over $14,000 but not over $18,000 6 1/2 29 Notwithstanding the foregoing provisions, the maximum credit deter- 30 mined under this [subparagraph] clause may not exceed the amount deter- 31 mined in accordance with the following table: 32 If household gross income for the 33 taxable year is: The maximum credit is: 34 ----------------------------------- ----------------------------------- 35 $1,000 or less $75 36 Over $1,000 but not over $2,000 $73 37 Over $2,000 but not over $3,000 $71 38 Over $3,000 but not over $4,000 $69 39 Over $4,000 but not over $5,000 $67 40 Over $5,000 but not over $6,000 $65 41 Over $6,000 but not over $7,000 $63 42 Over $7,000 but not over $8,000 $61 43 Over $8,000 but not over $9,000 $59 44 Over $9,000 but not over $10,000 $57 45 Over $10,000 but not over $11,000 $55 46 Over $11,000 but not over $12,000 $53 47 Over $12,000 but not over $13,000 $51 48 Over $13,000 but not over $14,000 $49 49 Over $14,000 but not over $15,000 $47 50 Over $15,000 but not over $16,000 $45 51 Over $16,000 but not over $17,000 $43 52 Over $17,000 but not over $18,000 $41S. 3009--C 139 A. 3009--C 1 (B) For taxable years beginning on or after January first, two thou- 2 sand twenty-five, (i) for qualified taxpayers who have attained the age 3 of sixty-five years before the beginning of or during the taxable year 4 or are claiming dependents as defined under section one hundred fifty- 5 two of the internal revenue code who have attained the age of sixty-five 6 years before the beginning of or during the taxable year, the credit 7 allowable under this subsection shall be: 8 If the taxpayer's federal adjusted gross 9 income for the taxable year is: The credit amount is: 10 $3,000 or less $375 11 Over $3,000 but not over $5,000 $330 12 Over $5,000 but not over $7,000 $300 13 Over $7,000 but not over $9,000 $260 14 Over $9,000 but not over $11,000 $230 15 Over $11,000 but not over $14,000 $200 16 Over $14,000 but not over $18,000 $150 17 (ii) for all other taxpayers the amount of the credit allowable under 18 this subsection shall be: 19 If the taxpayer's federal adjusted gross 20 income for the taxable year is: The credit amount is: 21 $5,000 or less $75 22 Over $5,000 but not over $9,000 $70 23 Over $9,000 but not over $14,000 $60 24 Over $14,000 but not over $18,000 $50 25 § 4. Paragraph 4 of subsection (e) of section 606 of the tax law, as 26 amended by chapter 28 of the laws of 1987, is amended to read as 27 follows: 28 (4) If a qualified taxpayer occupies a residence for a period of less 29 than twelve months during the taxable year or occupies two or more resi- 30 dences during different periods in such taxable year, the credit allowed 31 pursuant to this subsection shall be computed in such manner as the [tax32commission] commissioner may[, by regulation,] prescribe in order to 33 properly reflect the credit or portion thereof attributable to such 34 residence or residences and such period or periods. 35 § 5. Paragraph 5 of subsection (e) of section 606 of the tax law is 36 REPEALED. 37 § 6. Paragraph 6 of subsection (e) of section 606 of the tax law, as 38 amended by chapter 28 of the laws of 1987, is amended to read as 39 follows: 40 (6) [Only] (A) For taxable years beginning before January first, two 41 thousand twenty-five, only one credit per household and per qualified 42 taxpayer shall be allowed per taxable year under this subsection. 43 [When] Where two or more members of a household are able to meet the 44 qualifications for a qualified taxpayer, the credit shall be equally 45 divided between or among such individuals unless such individuals file 46 with the [tax commission] commissioner a written agreement among such 47 individuals setting forth a different division. Where two or more 48 members of a household are able to meet the qualifications of a quali- 49 fied taxpayer and one of them is sixty-five years of age or more, the 50 credit which may be taken shall be the credit applicable to individuals 51 who have attained the age of sixty-five years.S. 3009--C 140 A. 3009--C 1 [(A)] (B) For taxable years beginning on or after January first, two 2 thousand twenty-five, only one credit per qualified taxpayer shall be 3 allowed per taxable year under this subsection. 4 (C) Provided, however, where a joint income tax return has been filed 5 pursuant to the provisions of section six hundred fifty-one by a quali- 6 fied taxpayer and [his] their spouse (or where both spouses are quali- 7 fied taxpayers and have filed such joint return), the credit, or the 8 portion of the credit if divided, to which the [husband and wife] spous- 9 es are entitled shall be applied against the tax of both spouses and any 10 overpayment shall be made to both spouses. 11 [(B)] (D) Where any return required to be filed pursuant to the 12 provisions of section six hundred fifty-one is combined with any return 13 of tax imposed pursuant to the authority of this chapter or any other 14 law if such tax is administered by the [tax commission] commissioner, 15 the credit or the portion of the credit if divided, allowed to the qual- 16 ified taxpayer may be applied by the [tax commission] commissioner 17 toward any liability for the aforementioned taxes. 18 § 7. Subparagraph (A) of paragraph 7 of subsection (e) of section 606 19 of the tax law, as amended by chapter 28 of the laws of 1987, is amended 20 to read as follows: 21 (A) [If] (i) For taxable years beginning before January first, two 22 thousand twenty-five, if household gross income for the taxable year 23 exceeds eighteen thousand dollars. 24 (ii) For taxable years beginning on or after January first, two thou- 25 sand twenty-five, if the taxpayer's federal adjusted gross income 26 exceeds eighteen thousand dollars. 27 § 8. Paragraphs 9, 10 and 14 of subsection (e) of section 606 of the 28 tax law, paragraphs 9 and 10 as amended by chapter 28 of the laws of 29 1987 and paragraph 14 as amended by chapter 23 of the laws of 1990, are 30 amended to read as follows: 31 (9) Returns. If a qualified taxpayer is not required to file a return 32 pursuant to section six hundred fifty-one, a claim for a credit may be 33 taken on a return filed with the [tax commission] commissioner, or a 34 form prescribed by the commissioner, within three years from the time it 35 would have been required that a return be filed pursuant to such section 36 had the qualified taxpayer had a taxable year ending on December thir- 37 ty-first. Returns under this paragraph shall be in such form as shall be 38 prescribed by the [tax commission] commissioner, which shall make avail- 39 able such forms and instructions for filing such returns. 40 (10) Proof of claim. The [tax commission] commissioner may require a 41 qualified taxpayer to furnish the following information in support of 42 [his] their claim for credit under this subsection: federal adjusted 43 gross income, household gross income, rent paid, name and address of 44 owner or managing agent of the property rented, real property taxes 45 levied or that would have been levied in the absence of an exemption 46 from real property tax pursuant to section four hundred sixty-seven of 47 the real property tax law, the names of members of the household and 48 other qualifying taxpayers occupying the same residence and their iden- 49 tifying numbers including social security numbers, household gross 50 income, size and nature of property claimed as residence and all other 51 information which may be required by the [tax commission] commissioner 52 to determine the credit. 53 (14) [The] (A) For calendar years before two thousand twenty-five, 54 the commissioner [of taxation and finance] shall prepare a preliminary 55 written report after July thirty-first and a final written report after 56 December thirty-first of each calendar year, which shall contain statis-S. 3009--C 141 A. 3009--C 1 tical information regarding the credits granted on or before such dates 2 under this subsection during such calendar year. Copies of these 3 reports shall be submitted by [such] the commissioner to the governor, 4 the temporary president of the senate, the speaker of the assembly, the 5 [chairman] chair of the senate finance committee and the [chairman] 6 chair of the assembly ways and means committee within sixty days of July 7 thirty-first with respect to the preliminary report, and within forty- 8 five days of December thirty-first with respect to the final report. 9 Such reports shall contain, but need not be limited to, the number of 10 credits and the average amount of such credits allowed; and of those, 11 the number of credits and the average amount of such credits allowed to 12 qualified taxpayers in each county; and of those, the number of credits 13 and the average amount of such credits allowed to qualified taxpayers 14 whose household gross income falls within each of the household gross 15 income ranges set forth in paragraph three of this subsection; and of 16 those, the number of credits and the average amount of such credits 17 allowed to qualified taxpayers whose credit amount falls within credit 18 amount ranges set forth in twenty-five dollar increments. 19 (B) For calendar years beginning with two thousand twenty-five, the 20 commissioner of taxation and finance shall prepare an annual report by 21 September first of each such year, which shall contain statistical 22 information regarding the credits claimed under this subsection for the 23 second preceding taxable year. Copies of such report shall be submitted 24 by the commissioner to the governor, the temporary president of the 25 senate, the speaker of the assembly, the chair of the senate finance 26 committee and the chair of the assembly ways and means committee. Such 27 report shall contain, but need not be limited to, the number of credits 28 and the amount of such credits allowed; and of those, the number of 29 credits and the amount of such credits allowed to qualified taxpayers in 30 each county; and of those, the number of credits and the amount of such 31 credits allowed to qualified taxpayers whose federal adjusted gross 32 income falls within each of the federal adjusted gross income ranges set 33 forth in paragraph three of this subsection. 34 § 9. This act shall take effect immediately. 35 PART SS 36 Section 1. The tax law is amended by adding a new section 1202-z-5 to 37 read as follows: 38 § 1202-z-5. Occupancy tax in the city of Auburn. (1) Notwithstanding 39 any other provision of law to the contrary, the city of Auburn, in the 40 county of Cayuga, is hereby authorized and empowered to adopt and amend 41 local laws imposing in such city a tax, in addition to any other tax 42 authorized and imposed pursuant to this article, such as the legislature 43 has or would have the power and authority to impose upon persons occupy- 44 ing any room for hire in any hotel. For the purposes of this section, 45 the term "hotel" shall mean a building or portion of it which is regu- 46 larly used and kept open as such for the lodging of guests. The term 47 "hotel" includes an apartment hotel, a motel, a boarding house, and 48 facilities designated and commonly known as a "bed and breakfast" and 49 similar "tourist" facilities, whether or not meals are served. The rate 50 of such tax shall not exceed five percent of the per diem rental rate 51 for each room whether such room is rented on a daily or longer basis. 52 (2) Such taxes may be collected and administered by the chief fiscal 53 officer of the city of Auburn by such means and in such manner as otherS. 3009--C 142 A. 3009--C 1 taxes which are now collected and administered by such officer or as 2 otherwise may be provided by such local law. 3 (3) Such local laws may provide that any taxes imposed shall be paid 4 by the person liable therefor to the owner of the room for hire in the 5 tourist home, inn, club, hotel, motel or other similar place of public 6 accommodation occupied or to the person entitled to be paid the rent or 7 charge the room for hire in the tourist home, inn, club, hotel, motel or 8 other similar place of public accommodation occupied for and on account 9 of the city of Auburn imposing the tax and that such owner or person 10 entitled to be paid the rent or charge shall be liable for the 11 collection and payment of the tax; and that such owner or person enti- 12 tled to be paid the rent or charge shall have the same right in respect 13 to collecting the tax from the person occupying the room for hire in the 14 tourist home, inn, club, hotel, motel or other similar place of public 15 accommodation, or in respect to nonpayment of the tax by the person 16 occupying the room for hire in the tourist home, inn, club, hotel, motel 17 or similar place of public accommodation, as if the taxes were a part of 18 the rent or charge and payable at the same time as the rent or charge; 19 provided, however, that the chief fiscal officer of the city, specified 20 in such local laws, shall be joined as a party in any action or proceed- 21 ing brought to collect the tax by the owner or by the person entitled to 22 be paid the rent or charge. 23 (4) Such local laws may provide for the filing of returns and the 24 payment of the taxes on a monthly basis or on the basis of any longer or 25 shorter period of time. 26 (5) This section shall not authorize the imposition of such tax upon 27 any of the following: 28 a. The state of New York, or any public corporation (including a 29 public corporation created pursuant to agreement or compact with another 30 state or the dominion of Canada), improvement district or other poli- 31 tical subdivision of the state; 32 b. The United States of America, insofar as it is immune from taxa- 33 tion; 34 c. Any corporation or association, or trust, or community chest, fund 35 or foundation organized and operated exclusively for religious, charita- 36 ble or educational purposes, or for the prevention of cruelty to chil- 37 dren or animals, and no part of the net earnings of which inures to the 38 benefit of any private shareholder or individual and no substantial part 39 of the activities of which is carrying on propaganda, or otherwise 40 attempting to influence legislation; provided, however, that nothing in 41 this paragraph shall include an organization operated for the primary 42 purpose of carrying on a trade or business for profit, whether or not 43 all of its profits are payable to one or more organizations described in 44 this paragraph; or 45 d. A permanent resident of a hotel or motel. For the purposes of this 46 section, the term "permanent resident" shall mean a natural person occu- 47 pying any room or rooms in a hotel or motel for at least ninety consec- 48 utive days. 49 (6) Any final determination of the amount of any tax payable hereunder 50 shall be reviewable for error, illegality or unconstitutionality or any 51 other reason whatsoever by a proceeding under article seventy-eight of 52 the civil practice law and rules if application therefor is made to the 53 supreme court within thirty days after the giving of notice of such 54 final determination, provided, however, that any such proceeding under 55 article seventy-eight of the civil practice law and rules shall not be 56 instituted unless:S. 3009--C 143 A. 3009--C 1 a. The amount of any tax sought to be reviewed, with such interest and 2 penalties thereon as may be provided for by local laws or regulations 3 shall be first deposited and there shall be filed an undertaking, issued 4 by a surety company authorized to transact business in this state and 5 approved by the superintendent of financial services of this state as to 6 solvency and responsibility, in such amount as a justice of the supreme 7 court shall approve to the effect that if such proceeding be dismissed 8 or the tax confirmed the petitioner will pay all costs and charges which 9 may accrue in the prosecution of such proceeding; or 10 b. At the option of the petitioner, such undertaking may be in a sum 11 sufficient to cover the taxes, interests and penalties stated in such 12 determination plus the costs and charges which may accrue against it in 13 the prosecution of the proceeding, in which event the petitioner shall 14 not be required to pay such taxes, interest or penalties as a condition 15 precedent to the application. 16 (7) Where any taxes imposed hereunder shall have been erroneously, 17 illegally or unconstitutionally collected and application for the refund 18 therefor duly made to the proper fiscal officer or officers, and such 19 officer or officers shall have made a determination denying such refund, 20 such determination shall be reviewable by a proceeding under article 21 seventy-eight of the civil practice law and rules, provided, however, 22 that such proceeding is instituted within thirty days after the giving 23 of the notice of such denial, that a final determination of tax due was 24 not previously made, and that an undertaking is filed with the proper 25 fiscal officer or officers in such amount and with such sureties as a 26 justice of the supreme court shall approve to the effect that if such 27 proceeding be dismissed or the taxes confirmed, the petitioner will pay 28 all costs and charges which may accrue in the prosecution of such 29 proceeding. 30 (8) Except in the case of a willfully false or fraudulent return with 31 intent to evade the tax, no assessment of additional tax shall be made 32 after the expiration of more than three years from the date of the 33 filing of a return, provided, however, that where no return has been 34 filed as provided by law the tax may be assessed at any time. 35 (9) All revenues resulting from the imposition of the tax under the 36 local laws shall be paid into the treasury of the city of Auburn and 37 shall be credited to and deposited in the general fund of the city. Such 38 revenues may be used for any lawful purpose. 39 (10) Each enactment of such a local law may provide for the imposition 40 of a hotel or motel tax for a period of time no longer than two years 41 from the date of its enactment. Nothing in this section shall prohibit 42 the adoption and enactment of local laws, pursuant to the provisions of 43 this section, upon the expiration of any other local law adopted pursu- 44 ant to this section. 45 (11) If any provision of this section or the application thereof to 46 any person or circumstance shall be held invalid, the remainder of this 47 section and the application of such provision to other persons or 48 circumstances shall not be affected thereby. 49 § 2. This act shall take effect immediately and shall expire and be 50 deemed repealed December 31, 2027. 51 PART TT 52 Section 1. The tax law is amended by adding a new section 1202-kk to 53 read as follows:S. 3009--C 144 A. 3009--C 1 § 1202-kk. Hotel or motel taxes in the city of Buffalo. (1) Notwith- 2 standing any other provisions of law to the contrary, the city of 3 Buffalo, in the county of Erie, is hereby authorized and empowered to 4 adopt and amend local laws imposing in such city a tax, in addition to 5 any other tax authorized and imposed pursuant to this article such as 6 the legislature has or would have the power and authority to impose upon 7 persons occupying hotel or motel rooms in such city. For the purposes of 8 this section, the term "hotel" or "motel" shall mean and include any 9 facility consisting of rentable units and providing lodging on an over- 10 night basis and shall include those facilities designated and commonly 11 known as "bed and breakfast" and "tourist" facilities. The rates of such 12 tax shall not exceed three percent of the per diem rental rate for each 13 room, provided however, that such tax shall not be applicable to a 14 permanent resident of a hotel or motel. For the purposes of this section 15 the term "permanent resident" shall mean a person occupying any room or 16 rooms in a hotel or motel for at least ninety consecutive days. 17 (2) Such tax may be collected and administered by the commissioner of 18 administration, finance, policy and urban affairs of the city of Buffalo 19 by such means and in such manner as other taxes which are now collected 20 and administered by such officer or as otherwise may be provided by such 21 local law. 22 (3) Such local laws may provide that any tax imposed shall be paid by 23 the person liable therefor to the owner of the hotel or motel room occu- 24 pied or to the person entitled to be paid the rent or charge for the 25 hotel or motel room occupied for and on account of the city of Buffalo 26 imposing the tax and that such owner or person entitled to be paid the 27 rent or charge shall be liable for the collection and payment of the 28 tax; and that such owner or person entitled to be paid the rent or 29 charge shall have the same right in respect to collecting the tax from 30 the person occupying the hotel or motel room, or in respect to nonpay- 31 ment of the tax by the person occupying the hotel or motel room, as if 32 the tax were a part of the rent or charge and payable at the same time 33 as the rent or charge; provided, however, that the commissioner of 34 administration, finance, policy and urban affairs of the city, specified 35 in such local law, shall be joined as a party in any action or proceed- 36 ing brought to collect the tax by the owner or by the person entitled to 37 be paid the rent or charge. 38 (4) Such local laws may provide for the filing of returns and the 39 payment of the tax on a monthly basis or on the basis of any longer or 40 shorter period of time. 41 (5) This section shall not authorize the imposition of such tax upon 42 any transaction, by or with any of the following in accordance with 43 section twelve hundred thirty of this article: 44 a. The state of New York, or any public corporation (including a 45 public corporation created pursuant to agreement or compact with another 46 state or the Dominion of Canada), improvement district or other poli- 47 tical subdivision of the state; 48 b. The United States of America, insofar as it is immune from taxa- 49 tion; 50 c. Any corporation or association, or trust, or community chest, fund 51 or foundation organized and operated exclusively for religious, charita- 52 ble or educational purposes, or for the prevention of cruelty to chil- 53 dren or animals, and no part of the net earnings of which inures to the 54 benefit of any private shareholder or individual and no substantial part 55 of the activities of which is carrying on propaganda, or otherwise 56 attempting to influence legislation; provided, however, that nothing inS. 3009--C 145 A. 3009--C 1 this paragraph shall include an organization operated for the primary 2 purpose of carrying on a trade or business for profit, whether or not 3 all of its profits are payable to one or more organizations described in 4 this paragraph. 5 (6) Any final determination of the amount of any tax payable hereunder 6 shall be reviewable for error, illegality or unconstitutionality or any 7 other reason whatsoever by a proceeding under article seventy-eight of 8 the civil practice law and rules if application therefor is made to the 9 supreme court within thirty days after the giving of the notice of such 10 final determination, provided, however, that any such proceeding under 11 article seventy-eight of the civil practice law and rules shall not be 12 instituted unless: 13 a. The amount of any tax sought to be reviewed, with such interest and 14 penalties thereon as may be provided for by local law shall be first 15 deposited and there is filed an undertaking, issued by a surety company 16 authorized to transact business in this state and approved by the super- 17 intendent of financial services of this state as to solvency and respon- 18 sibility, in such amount as a justice of the supreme court shall approve 19 to the effect that if such proceeding be dismissed or the tax confirmed 20 the petitioner will pay all costs and charges which may accrue in the 21 prosecution of such proceeding; or 22 b. At the option of the petitioner such undertaking may be in a sum 23 sufficient to cover the taxes, interests and penalties stated in such 24 determination plus the costs and charges which may accrue against it in 25 the prosecution of the proceeding, in which event the petitioner shall 26 not be required to pay such taxes, interest or penalties as a condition 27 precedent to the application. 28 (7) Where any tax imposed hereunder shall have been erroneously, ille- 29 gally or unconstitutionally collected and application for the refund 30 thereof duly made to the proper fiscal officer or officers, and such 31 officer or officers shall have made a determination denying such refund, 32 such determination shall be reviewable by a proceeding under article 33 seventy-eight of the civil practice law and rules, provided, however, 34 that such proceeding is instituted within thirty days after the giving 35 of the notice of such denial, that a final determination of tax due was 36 not previously made, and that an undertaking is filed with the proper 37 fiscal officer or officers in such amount and with such sureties as a 38 justice of the supreme court shall approve to the effect that if such 39 proceeding be dismissed or the tax confirmed, the petitioner will pay 40 all costs and charges which may accrue in the prosecution of such 41 proceeding. 42 (8) Except in the case of a willfully false or fraudulent return with 43 intent to evade the tax, no assessment of additional tax shall be made 44 after the expiration of more than three years from the date of the 45 filing of a return, provided, however, that where no return has been 46 filed as provided by law the tax may be assessed at any time. 47 (9) All revenues resulting from the imposition of the tax under the 48 local laws shall be paid into the treasury of the city of Buffalo and 49 shall be credited to and deposited in the general fund of the city. Such 50 revenues shall be used as follows: twenty-five percent of such revenue 51 from this tax shall be allocated to support organizations dedicated to 52 maintenance of the city-owned public realm and city-owned parking facil- 53 ities in downtown as well as public safety initiatives undertaken by the 54 Buffalo police department and other organizations in downtown, and 55 seventy-five percent shall be allocated for capital improvements toS. 3009--C 146 A. 3009--C 1 city-owned cultural facilities citywide, the city-owned public realm in 2 downtown, and city-owned professional sporting venues. 3 (10) If any provision of this section or the application thereof to 4 any person or circumstance shall be held invalid, the remainder of this 5 section and the application of such provision to other persons or 6 circumstances shall not be affected thereby. 7 § 2. This act shall take effect immediately and shall expire and be 8 deemed repealed December 31, 2027. 9 PART UU 10 Section 1. Paragraphs 1 and 9 of subsection (g-4) of section 606 of 11 the tax law, as added by section 1 of part FF of chapter 59 of the laws 12 of 2022, are amended to read as follows: 13 (1) General. An individual taxpayer shall be allowed a credit against 14 the tax imposed by this article equal to twenty-five percent of quali- 15 fied geothermal energy system expenditures, except as provided in 16 subparagraph (D) of paragraph two of this subsection, not to exceed five 17 thousand dollars for qualified geothermal energy systems placed in 18 service on or before June thirtieth, two thousand twenty-five, and ten 19 thousand dollars for qualified geothermal energy equipment placed in 20 service on or after July first, two thousand twenty-five. 21 (9) [Carryover] Application of credit. If the amount of the credit, 22 and carryovers of such credit, allowable under this subsection for any 23 taxable year shall exceed the taxpayer's tax for such year, such excess 24 amount may be carried over to the five taxable years next following the 25 taxable year with respect to which the credit is allowed and may be 26 deducted from the taxpayer's tax for such year or years. For taxable 27 years beginning on or after January first, two thousand twenty-six, 28 taxpayers who are (A) married filing jointly or qualifying surviving 29 spouses with a federal adjusted gross income of one hundred eighty thou- 30 sand dollars or less, or (B) single, married filing separate, or heads 31 of household with a federal adjusted gross income of ninety thousand 32 dollars or less, may elect to receive such excess amount as a refund. 33 Any refund paid pursuant to this paragraph shall be deemed to be a 34 refund of an overpayment of tax as provided in section six hundred 35 eighty-six of this article, provided, however, that no interest shall be 36 paid thereon. 37 § 2. This act shall take effect immediately. 38 PART VV 39 Section 1. Section 800 of the tax law, as added by section 1 of part C 40 of chapter 25 of the laws of 2009, subsection (b) as amended by section 41 1 of part B of chapter 56 of the laws of 2011, paragraph 4 of subsection 42 (b) as amended by section 1 of part YY of chapter 59 of the laws of 2015 43 and subsection (e) as amended by section 1 of part B of chapter 59 of 44 the laws of 2023, is amended to read as follows: 45 § 800. Definitions. For the purposes of this article: 46 (a) Metropolitan commuter transportation district. The metropolitan 47 commuter transportation district ("MCTD") means the area of the state 48 included in the district created and governed by section twelve hundred 49 sixty-two of the public authorities law. The MCTD shall have two zones: 50 (1) MCTD zone one shall be comprised of the counties of Bronx, Kings, 51 New York, Queens, and Richmond.S. 3009--C 147 A. 3009--C 1 (2) MCTD zone two shall be comprised of the counties of Dutchess, 2 Nassau, Orange, Putnam, Rockland, Suffolk and Westchester. 3 (b) Employer. Employer means an employer required by section six 4 hundred seventy-one of this chapter to deduct and withhold tax from 5 wages, [that has a payroll expense in excess of three hundred twelve6thousand five hundred dollars in any calendar quarter;] other than 7 (1) any agency or instrumentality of the United States; 8 (2) the United Nations; 9 (3) an interstate agency or public corporation created pursuant to an 10 agreement or compact with another state or the Dominion of Canada; [or] 11 (4) Any eligible educational institution. An "eligible educational 12 institution" shall mean any public school district, a board of cooper- 13 ative educational services, a public elementary or secondary school, a 14 school approved pursuant to article eighty-five or eighty-nine of the 15 education law to serve students with disabilities of school age, or a 16 nonpublic elementary or secondary school that provides instruction in 17 grade one or above, all public library systems as defined in subdivision 18 one of section two hundred seventy-two of the education law, and all 19 public and free association libraries as such terms are defined in 20 subdivision two of section two hundred fifty-three of the education law; 21 or 22 (5) any local government employer whose covered employees are within 23 MCTD zone two. 24 (c) Payroll expense. Payroll expense means wages and compensation as 25 defined in sections 3121 and 3231 of the internal revenue code (without 26 regard to section 3121(a)(1) and section 3231(e)(2)(A)(i)), paid to all 27 covered employees. 28 (d) Covered employee. Covered employee means an employee who is 29 employed within the MCTD. 30 (e) Net earnings from self-employment. Net earnings from self-employ- 31 ment has the same meaning as in section 1402 of the internal revenue 32 code, provided, however, that for purposes of determining whether the 33 exclusion pursuant to paragraph 13 of subsection (a) of section 1402 of 34 the internal revenue code applies, an individual shall not be considered 35 a limited partner if the individual, directly or indirectly, takes part 36 in the control, or participates in the management or operations of the 37 partnership such that the individual is not a passive investor, regard- 38 less of the individual's title or characterization in a partnership or 39 operating agreement. 40 (f) Local government employer. Local government employer means (1) a 41 county, city, town, village or any other political subdivision or civil 42 division of the state, (2) a public improvement or special district, (3) 43 a public authority, commission, community college, or public benefit 44 corporation, (4) any other public corporation, agency or instrumentality 45 or unit of government which exercises governmental powers under the laws 46 of the state, or (5) in the case of a county sheriff's office in those 47 counties where the office of sheriff is an elected position, both the 48 county and the sheriff, shall be designated as a joint public employer 49 for all purposes of this article. 50 § 2. Section 801 of the tax law, as added by section 1 of part C of 51 chapter 25 of the laws of 2009, subsection (a) as amended by section 1 52 of part N of chapter 59 of the laws of 2012, paragraph 1 of subsection 53 (a) as amended by section 1 and subparagraph (B) of paragraph 2 of 54 subsection (a) as amended by section 3 of part Q of chapter 58 of the 55 laws of 2023 and subparagraph (A) of paragraph 2 of subsection (a) asS. 3009--C 148 A. 3009--C 1 amended by section 1 of part C of chapter 59 of the laws of 2024, is 2 amended to read as follows: 3 § 801. Imposition of tax and rate. (a) For the sole purpose of provid- 4 ing an additional stable and reliable dedicated funding source for the 5 metropolitan transportation authority and its subsidiaries and affil- 6 iates to preserve, operate and improve essential transit and transporta- 7 tion services in the metropolitan commuter transportation district, a 8 tax is hereby imposed on employers and individuals as follows: (1) (A) 9 For tax quarters beginning before July first, two thousand twenty-five, 10 employers who engage in business within the MCTD, in the counties of 11 Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester, the 12 tax is imposed at a rate of (i) eleven hundredths (.11) percent of the 13 payroll expense for employers with payroll expense greater than three 14 hundred twelve thousand five hundred dollars and no greater than three 15 hundred seventy-five thousand dollars in any calendar quarter, (ii) 16 twenty-three hundredths (.23) percent of the payroll expense for employ- 17 ers with payroll expense greater than three hundred seventy-five thou- 18 sand dollars and no greater than four hundred thirty-seven thousand five 19 hundred dollars in any calendar quarter, and (iii) thirty-four 20 hundredths (.34) percent of the payroll expense for employers with 21 payroll expense in excess of four hundred thirty-seven thousand five 22 hundred dollars in any calendar quarter. If the employer is a profes- 23 sional employer organization, as defined in section nine hundred sixteen 24 of the labor law, the employer's tax shall be calculated by determining 25 the payroll expense attributable to each client who has entered into a 26 professional employer agreement with such organization and the payroll 27 expense attributable to such organization itself, multiplying each of 28 those payroll expense amounts by the applicable rate set forth in this 29 paragraph and adding those products together. 30 (B) For tax quarters beginning before July first, two thousand twen- 31 ty-five, employers who engage in business within the MCTD, in the coun- 32 ties of Bronx, Kings, New York, Queens, and Richmond, the tax is imposed 33 at a rate of (i) eleven hundredths (.11) percent of the payroll expense 34 for employers with payroll expense greater than three hundred twelve 35 thousand five hundred dollars and no greater than three hundred seven- 36 ty-five thousand dollars in any calendar quarter, (ii) twenty-three 37 hundredths (.23) percent of the payroll expense for employers with 38 payroll expense greater than three hundred seventy-five thousand dollars 39 and no greater than four hundred thirty-seven thousand five hundred 40 dollars in any calendar quarter, and (iii) sixty hundredths (.60) 41 percent of the payroll expense for employers with payroll expense in 42 excess of four hundred thirty-seven thousand five hundred dollars in any 43 calendar quarter. If the employer is a professional employer organiza- 44 tion, as defined in section nine hundred sixteen of the labor law, the 45 employer's tax shall be calculated by determining the payroll expense 46 attributable to each client who has entered into a professional employer 47 agreement with such organization and the payroll expense attributable to 48 such organization itself, multiplying each of those payroll expense 49 amounts by the applicable rate set forth in this paragraph and adding 50 those products together. 51 (C) For tax quarters beginning on and after July first, two thousand 52 twenty-five, for employers within MCTD zone one, the tax is imposed at a 53 rate of (i) fifty-five thousandths (.055) percent of the payroll expense 54 for employers with payroll expense greater than three hundred twelve 55 thousand five hundred dollars and no greater than three hundred seven- 56 ty-five thousand dollars in any calendar quarter, (ii) one hundredS. 3009--C 149 A. 3009--C 1 fifteen thousandths (.115) percent of the payroll expense for employers 2 with payroll expense greater than three hundred seventy-five thousand 3 dollars and no greater than four hundred thirty-seven thousand five 4 hundred dollars in any calendar quarter, (iii) sixty hundredths (.60) 5 percent of the payroll expense for employers with payroll expense great- 6 er than four hundred thirty-seven thousand five hundred dollars and no 7 greater than two million five hundred thousand dollars in any calendar 8 quarter; and (iv) eight hundred ninety-five thousandths (.895) percent 9 of the payroll expense for employers with payroll expense in excess of 10 two million five hundred thousand dollars in any calendar quarter. 11 Provided, however, that for employers within MCTD zone one who are local 12 government employers as defined in this article with payroll expense in 13 excess of two million five hundred thousand dollars in any calendar 14 quarter, the tax is imposed at a rate of sixty hundredths (.60) percent 15 of the payroll expense. If the employer is a professional employer 16 organization, as defined in section nine hundred sixteen of the labor 17 law, the employer's tax shall be calculated by determining the payroll 18 expense attributable to each client who has entered into a professional 19 employer agreement with such organization and the payroll expense 20 attributable to such organization itself, multiplying each of those 21 payroll expense amounts by the applicable rate set forth in this para- 22 graph and adding those products together. 23 (D) For tax quarters beginning on and after July first, two thousand 24 twenty-five, for employers within MCTD zone two that are not local 25 government employers, the tax is imposed at a rate of (i) fifty-five 26 thousandths (.055) percent of the payroll expense for employers with 27 payroll expense greater than three hundred twelve thousand five hundred 28 dollars and no greater than three hundred seventy-five thousand dollars 29 in any calendar quarter, (ii) one hundred fifteen thousandths (.115) 30 percent of the payroll expense for employers with payroll expense great- 31 er than three hundred seventy-five thousand dollars and no greater than 32 four hundred thirty-seven thousand five hundred dollars in any calendar 33 quarter, (iii) thirty-four hundredths (.34) percent of the payroll 34 expense for employers with payroll expense greater than four hundred 35 thirty-seven thousand five hundred dollars and no greater than two 36 million five hundred thousand dollars in any calendar quarter; and (iv) 37 six hundred thirty-five thousandths (.635) percent of the payroll 38 expense for employers with payroll expense in excess of two million five 39 hundred thousand dollars in any calendar quarter. If the employer is a 40 professional employer organization, as defined in section nine hundred 41 sixteen of the labor law, the employer's tax shall be calculated by 42 determining the payroll expense attributable to each client who has 43 entered into a professional employer agreement with such organization 44 and the payroll expense attributable to such organization itself, multi- 45 plying each of those payroll expense amounts by the applicable rate set 46 forth in this paragraph and adding those products together. 47 (2) For individuals in calendar years beginning before January first, 48 two thousand twenty-six: (A) [For individuals,] the tax is imposed at a 49 rate of thirty-four hundredths (.34) percent of the net earnings from 50 self-employment of individuals that are attributable to the MCTD, in the 51 counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and 52 Westchester, if such earnings attributable to the MCTD exceed fifty 53 thousand dollars for the tax year. 54 (B) [For individuals,] the tax is imposed at a rate of sixty 55 hundredths (.60) percent of the net earnings from self-employment of 56 individuals that are attributable to the MCTD, in the counties of Bronx,S. 3009--C 150 A. 3009--C 1 Kings, New York, Queens, and Richmond, if such earnings attributable to 2 the MCTD exceed fifty thousand dollars for the tax year. 3 (3) For individuals in calendar years beginning on and after January 4 first, two thousand twenty-six: (A) the tax is imposed at a rate of 5 sixty hundredths (.60) percent of the net earnings from self-employment 6 of individuals that are attributable to MCTD zone one, if such earnings 7 attributable to the MCTD exceed one hundred fifty thousand dollars for 8 the tax year. 9 (B) the tax is imposed at a rate of thirty-four hundredths (.34) 10 percent of the net earnings from self-employment of individuals that are 11 attributable to MCTD zone two, if such earnings attributable to the MCTD 12 exceed one hundred fifty thousand dollars for the tax year. 13 (b)(1) An individual having net earnings from self-employment from 14 activity both within and without the metropolitan commuter transporta- 15 tion district is required to allocate and apportion such net earnings to 16 the MCTD in the manner required for allocation and apportionment of 17 income under article twenty-two of this chapter. 18 (2) In the case of individuals with earnings from self-employment, the 19 net earnings from self employment threshold in [paragraph] paragraphs 20 two or three of subsection (a) of this section will be computed on an 21 individual basis regardless of whether that individual filed a joint 22 personal income tax return. 23 (c) The determination of whether a covered employee is employed within 24 the MCTD will be made by utilizing the rules applicable to the jurisdic- 25 tion of employment for purposes of the statewide wage reporting system 26 under section one hundred seventy-one-a of this chapter and substituting 27 the MCTD for the state in that application. 28 § 3. Subdivision 4 of section 1270-h of the public authorities law is 29 renumbered subdivision 5 and a new subdivision 4 is added to read as 30 follows: 31 4. Commencing September first, two thousand twenty-five, no later than 32 the last business day of each month, after satisfying the requirements 33 of any debt service or reserve requirements, if any, of any resolution 34 authorizing bonds, notes or other obligations, the authority shall 35 transfer twenty-eight and five-tenths percent of the revenue, including 36 taxes, interest and penalties collected in accordance with article twen- 37 ty-three of the tax law to the 2025 to 2029 capital program account in 38 the metropolitan transportation authority capital lockbox fund estab- 39 lished pursuant to section five hundred fifty-three-j of this chapter. 40 § 4. Section 553-j of the public authorities law, as added by section 41 5 of subpart A of part ZZZ of chapter 59 of the laws of 2019, is amended 42 to read as follows: 43 § 553-j. [Additional powers and provisions in relation to central44business district tolling program] Metropolitan transportation authority 45 capital lockbox fund. 1. The authority shall establish a fund to be 46 known as the [central business district tolling] metropolitan transpor- 47 tation authority capital lockbox fund which shall be kept separate from 48 and shall not be commingled with any other monies of the authority. The 49 fund shall consist of two separate and distinct accounts: (i) the "2020 50 to 2024 capital program account" and (ii) the "2025 to 2029 capital 51 program account". 52 (a) The 2020 to 2024 capital program account shall consist of all 53 monies received by the authority pursuant to article forty-four-C of the 54 vehicle and traffic law, subdivision twelve-a of section five hundred 55 fifty-three of this title, and revenues of the real estate transfer tax 56 deposited pursuant to subdivision (b) of section fourteen hundred twen-S. 3009--C 151 A. 3009--C 1 ty-one of the tax law, and sales tax pursuant to subdivision (c) of 2 section eleven hundred forty-eight of the tax law, subparagraph (B) of 3 paragraph five of subdivision (c) of section twelve hundred sixty-one of 4 the tax law, and funds appropriated from the central business district 5 trust fund established pursuant to section [ninty-nine-ff] ninety-nine- 6 ff of the state finance law. 7 (b) The 2025 to 2029 capital program account shall consist of all 8 monies deposited pursuant to subdivision four of section twelve hundred 9 seventy-h of this chapter. 10 2. Monies in the [fund] 2020 to 2024 capital program account shall be 11 applied, subject to agreements with bondholders and applicable federal 12 law, to the payment of operating, administration, and other necessary 13 expenses of the authority, or to the city of New York subject to the 14 memorandum of understanding executed pursuant to subdivision two-a of 15 section seventeen hundred four of the vehicle and traffic law properly 16 allocable to such program, including the planning, designing, construct- 17 ing, installing or maintaining of the central business district tolling 18 program, including, without limitation, the central business district 19 tolling infrastructure, the central business district tolling collection 20 system and the central business district tolling customer service 21 center, and the costs of any metropolitan transportation authority capi- 22 tal projects included within the 2020 to 2024 MTA capital program or any 23 successor programs. Monies in the [fund] 2020 to 2024 capital program 24 account may be: (a) pledged by the authority to secure and be applied to 25 the payment of the bonds, notes or other obligations of the authority to 26 finance the costs of the central business district tolling program, 27 including, without limitation, the central business district tolling 28 infrastructure, the central business district tolling collection system 29 and the central business district tolling customer service center, and 30 the costs of any metropolitan transportation authority capital projects 31 included within the 2020 to 2024 MTA capital program or any successor 32 programs, including debt service, reserve requirements, if any, the 33 payment of amounts required under bond and note facilities or agreements 34 related thereto, the payment of federal government loans, security or 35 credit arrangements or other agreements related thereto; or (b) used by 36 the authority for the payment of such capital costs of the central busi- 37 ness district tolling program and the costs of any metropolitan trans- 38 portation authority capital projects included within the 2020 to 2024 39 MTA capital program or any successor programs; or (c) transferred to the 40 metropolitan transportation authority and (1) pledged by the metropol- 41 itan transportation authority to secure and be applied to the payment of 42 the bonds, notes or other obligations of the metropolitan transportation 43 authority to finance the costs of any metropolitan transportation 44 authority capital projects included within the 2020 to 2024 MTA capital 45 program or any successor programs, including debt service, reserve 46 requirements, if any, the payment of amounts required under bond and 47 note facilities or agreements related thereto, the payment of federal 48 government loans, security or credit arrangements or other agreements 49 related thereto, or (2) used by the metropolitan transportation authori- 50 ty for the payment of or to reimburse the costs, including debt service, 51 of any metropolitan transportation authority capital projects included 52 within the 2020 to 2024 MTA capital program or any successor programs. 53 Such revenues shall only supplement and shall not supplant any federal, 54 state, or local funds expended by the authority or the metropolitan 55 transportation authority, or such authority's or metropolitan transpor- 56 tation authority's affiliates or subsidiaries for such respectiveS. 3009--C 152 A. 3009--C 1 purposes. Central business district toll revenues may be used as 2 required to obtain, utilize, or maintain federal authorization to 3 collect tolls on federal aid highways. 4 2-a. Monies in the 2025 to 2029 capital program account shall be 5 applied, subject to agreements with bondholders and applicable federal 6 law, to the payment of the costs of any metropolitan transportation 7 authority capital projects included within the 2025 to 2029 MTA capital 8 program or any successor programs. Monies in the 2025 to 2029 capital 9 program account may be: (a) pledged by the authority to secure and be 10 applied to the payment of the bonds, notes or other obligations of the 11 authority to finance the costs of any metropolitan transportation 12 authority capital projects included within the 2025 to 2029 MTA capital 13 program or any successor programs, including debt service, reserve 14 requirements, if any, the payment of amounts required under bond and 15 note facilities or agreements related thereto, the payment of federal 16 government loans, security or credit arrangements or other agreements 17 related thereto; or (b) used by the authority for the payment of such 18 capital costs of any metropolitan transportation authority capital 19 projects included within the 2025 to 2029 MTA capital program or any 20 successor programs; or (c) transferred to the metropolitan transporta- 21 tion authority and (1) pledged by the metropolitan transportation 22 authority to secure and be applied to the payment of the bonds, notes or 23 other obligations of the metropolitan transportation authority to 24 finance the costs of any metropolitan transportation authority capital 25 projects included within the 2025 to 2029 MTA capital program or any 26 successor programs, including debt service, reserve requirements, if 27 any, the payment of amounts required under bond and note facilities or 28 agreements related thereto, the payment of federal government loans, 29 security or credit arrangements or other agreements related thereto, or 30 (2) used by the metropolitan transportation authority for the payment of 31 or to reimburse the costs, including debt service, of any metropolitan 32 transportation authority capital projects included within the 2025 to 33 2029 MTA capital program or any successor programs. Such revenues shall 34 only supplement and shall not supplant any federal, state, or local 35 funds expended by the authority or the metropolitan transportation 36 authority, or such authority's or metropolitan transportation authori- 37 ty's affiliates or subsidiaries for such respective purposes. 38 3. Any monies deposited in the fund shall be held in the fund free and 39 clear of any claim by any person arising out of or in connection with 40 article forty-four-C of the vehicle and traffic law [and], subdivision 41 twelve-a of section five hundred fifty-three of this title, and article 42 twenty-three of the tax law. Without limiting the generality of the 43 foregoing, no person paying any amount that is deposited into the fund 44 shall have any right or claim against the authority or the metropolitan 45 transportation authority, any of their bondholders, any of the authori- 46 ty's or the metropolitan transportation authority's subsidiaries or 47 affiliates to any monies in or distributed from the fund or in respect 48 of a refund, rebate, credit or reimbursement of monies arising out of or 49 in connection with article forty-four-C of the vehicle and traffic law 50 [and], subdivision twelve-a of section five hundred fifty-three of this 51 title, and article twenty-three of the tax law. 52 3-a. Of the capital project costs paid by this fund: eighty percent 53 shall be capital project costs of the New York city transit authority 54 and its subsidiary, Staten Island Rapid Transit Operating Authority, and 55 MTA Bus with priority given to the subway system, new signaling, new 56 subway cars, track and car repair, accessibility, buses and bus systemS. 3009--C 153 A. 3009--C 1 improvements and further investments in expanding transit availability 2 to areas in the outer boroughs that have limited mass transit options; 3 ten percent shall be capital project costs of the Long Island Rail Road, 4 including but not limited to, parking facilities, rolling stock, capaci- 5 ty enhancements, accessibility, and expanding transit availability to 6 areas in the Metropolitan Commuter Transportation District that have 7 limited mass transit options; and ten percent shall be capital project 8 costs of the Metro-North Commuter Railroad Company, including but not 9 limited to, parking facilities, rolling stock, capacity enhancements, 10 accessibility, and expanding transit availability to areas in the Metro- 11 politan Commuter Transportation District that have limited mass transit 12 options. 13 4. The authority shall report annually on all receipts and expendi- 14 tures of the fund and each account within the fund. The report shall 15 detail operating expenses of the central business district tolling 16 program and all fund expenditures including capital projects. The report 17 shall be readily available to the public, and shall be posted on the 18 authority's website and be submitted to the governor, the temporary 19 president of the senate, the speaker of the assembly, the mayor and 20 council of the city of New York, the metropolitan transportation author- 21 ity board, and the metropolitan transportation authority capital program 22 review board. 23 5. Any operating funding used for the purposes of a central business 24 district tolling program shall only be from [this fund] the 2020 to 2024 25 capital program account and shall be approved, annually, in a plan of 26 expenditures, by the director of the budget. 27 § 5. This act shall take effect immediately; provided, however, that 28 sections three and four of this act shall apply to tax quarters begin- 29 ning on and after July 1, 2025. 30 PART WW 31 Section 1. Paragraph 2 of subdivision (d) of section 1109 of the tax 32 law, as added by chapter 485 of the laws of 1981, is amended to read as 33 follows: 34 (2) On or before the twelfth day of each month, after reserving such 35 amount for such refunds and such costs, the commissioner of taxation and 36 finance shall certify to the comptroller the amount of all revenues so 37 received during the prior month as a result of the taxes, interest and 38 penalties so imposed and in addition on or before the last day of June 39 the commissioner shall certify the amount of such revenues received 40 during and including the first twenty-five days of June. [The amount of41revenues so certified shall be deposited by the comptroller in the mass42transportation operating assistance fund established by section eighty-43eight-a of the state finance law to the credit of the metropolitan mass44transportation operating assistance account therein.] Fifteen percent of 45 the revenues so certified shall be deposited by the comptroller in the 46 mass transportation operating assistance fund established by section 47 eighty-eight-a of the state finance law to the credit of the metropol- 48 itan mass transportation operating assistance account therein. Eighty- 49 five percent of the revenues so certified shall be deposited by the 50 comptroller in the dedicated mass transportation trust fund established 51 pursuant to section eighty-nine-c of the state finance law to be 52 distributed as follows: eighty-five percent of such amount shall be 53 allocated to the New York city transit authority and its subsidiaries 54 and the Staten Island rapid transit operating authority and fifteenS. 3009--C 154 A. 3009--C 1 percent of such amount shall be allocated to the Long Island Rail Road 2 Company and Metro-North commuter railroad company in accordance with the 3 procedures for payment and distribution specified in section twelve 4 hundred seventy-c of the public authorities law, for payment, subject to 5 appropriation, to the metropolitan transportation authority dedicated 6 tax fund established pursuant to section twelve hundred seventy-c of the 7 public authorities law. 8 § 2. Paragraph 3 of subdivision g of section 1109 of the tax law, as 9 amended by section 2 of part GG of chapter 57 of the laws of 2010, is 10 amended to read as follows: 11 (3) By the fifteenth day of the month in which the commissioner has 12 made the certifications to the comptroller described in paragraph two of 13 this subdivision, the comptroller shall bill any county, city or school 14 district in such metropolitan commuter transportation district which 15 provides such clothing and footwear exemption, and any city in such 16 district in which the taxes imposed by section eleven hundred eight of 17 this part are in effect, an amount equal to one-half of the amount 18 certified to the comptroller by the commissioner in respect of such 19 county, city or school district; and such county, city or school 20 district shall pay the amount of such bill to the comptroller by the 21 twenty-fifth day of such month. The comptroller shall deposit any such 22 amounts received [in the mass transportation operating assistance fund23established by section eighty-eight-a of the state finance law to the24credit of the metropolitan mass transportation operating assistance25account therein] as provided in subdivision (d) of this section. 26 § 3. Paragraph 4 of subdivision g of section 1109 of the tax law, as 27 amended by section 2 of part GG of chapter 57 of the laws of 2010, is 28 amended to read as follows: 29 (4) In the event that a county, city or school district imposing tax 30 pursuant to the authority of subpart B of part I of article twenty-nine 31 of this chapter does not pay in full a bill described in paragraph three 32 of this subdivision by the twenty-fifth day of the month described in 33 paragraphs two and three of this subdivision, the comptroller shall 34 deduct any amount not paid from the amount of the next payment or 35 payments due such county, city or school district pursuant to subdivi- 36 sion (c) of section twelve hundred sixty-one of this chapter until such 37 amount not paid has been recovered. The comptroller shall deposit the 38 amounts so deducted and recovered [in the mass transportation operating39assistance fund] to be credited as provided in paragraph three of this 40 subdivision. 41 § 4. Paragraph 5 of subdivision g of section 1109 of the tax law, as 42 amended by section 2 of part GG of chapter 57 of the laws of 2010, is 43 amended to read as follows: 44 (5) In the event that a city in which the taxes imposed by section 45 eleven hundred eight of this article are in effect does not pay in full 46 a bill described in paragraph three of this subdivision by the twenty- 47 fifth day of the month described in paragraphs two and three of this 48 subdivision, the comptroller shall deduct any amount not paid from the 49 amount of any other moneys due such city from the comptroller, not 50 otherwise pledged, dedicated or encumbered pursuant to other state law, 51 until such amount not paid has been recovered. The comptroller shall 52 deposit the amounts so deducted and recovered [in the mass transporta-53tion operating assistance fund] to be credited as provided in paragraph 54 three of this subdivision.S. 3009--C 155 A. 3009--C 1 § 5. Paragraph 7 of subdivision g of section 1109 of the tax law, as 2 amended by section 2 of part GG of chapter 57 of the laws of 2010, is 3 amended to read as follows: 4 (7) On the same date that the comptroller is required to bill a coun- 5 ty, city or school district an amount as provided in paragraph three of 6 this subdivision, the comptroller shall, after having first made any 7 deposits required by section ninety-two-r of the state finance law and 8 only to the extent that there are moneys remaining after having made 9 such required deposits, withdraw from the state treasury, to the debit 10 of the general fund, an amount equal to the total of the amounts 11 required to be billed to counties, cities and school districts pursuant 12 to such subdivision three and deposit such total amount [in the mass13transportation operating assistance fund] to be credited as provided in 14 such paragraph three. The amount of any over calculation or under calcu- 15 lation determined in paragraph six of this subdivision shall likewise be 16 applied to the amounts required to be deposited under this paragraph, so 17 that the amounts deposited under this paragraph equal the total of the 18 amounts required to be billed to counties, cities and school districts 19 under such paragraph three, as adjusted, pursuant to paragraph six of 20 this subdivision. 21 § 6. Paragraph 3 of subdivision h of section 1109 of the tax law, as 22 amended by section 2 of part M-1 of chapter 109 of the laws of 2006, is 23 amended to read as follows: 24 (3) The comptroller shall, after having first made any deposits 25 required by section ninety-two-r of the state finance law and only to 26 the extent that there are moneys remaining after having made such 27 required deposits, withdraw from the state treasury, to the debit of the 28 general fund, and shall deposit the amount certified by the commissioner 29 as such revenue foregone [in the mass transportation operating assist-30ance fund established by section eighty-eight-a of the state finance law31to the credit of the metropolitan mass transportation operating assist-32ance account therein] as provided in subdivision (d) of this section. 33 § 7. Paragraph (a) of subdivision 7 of section 88-a of the state 34 finance law, as added by chapter 481 of the laws of 1981, is amended to 35 read as follows: 36 (a) The "metropolitan mass transportation operating assistance 37 account" shall consist of that proportion of the revenues derived from 38 the taxes for the metropolitan transportation district imposed by 39 section eleven hundred nine of the tax law as specified in such section 40 and that proportion of the receipts received pursuant to the tax imposed 41 by article [nine-a] nine-A of such law as specified in section one 42 hundred seventy-one-a of such law, and that proportion of the receipts 43 received pursuant to the tax imposed by article nine of such law as 44 specified in section two hundred five of such law, and the receipts 45 required to be deposited pursuant to the provisions of section one 46 hundred eighty-two-a of such law, and all other moneys credited or 47 transferred thereto from any other fund or source pursuant to law. 48 § 8. Subdivision 3 of section 89-c of the state finance law, as 49 amended by chapter 56 of the laws of 1993, is amended to read as 50 follows: 51 3. Moneys in the dedicated mass transportation trust fund shall, 52 following appropriation by the legislature, be utilized for the recon- 53 struction, replacement, purchase, modernization, improvement, recondi- 54 tioning, preservation and maintenance of mass transit facilities, vehi- 55 cles and rolling stock, or the payment of debt service or operating 56 expenses incurred by mass transit operating agencies, and for railS. 3009--C 156 A. 3009--C 1 projects authorized pursuant to section fourteen-j of the transportation 2 law, for payments to the general debt service fund of amounts equal to 3 amounts required for service contract payments related to rail projects 4 as provided and authorized by section three hundred eighty-six of the 5 public authorities law and for programs to assist small and minority and 6 women-owned firms engaged in transportation construction and recon- 7 struction projects, including a revolving fund for working capital 8 loans, and a bonding guarantee assistance program in accordance with 9 provisions of this chapter. It is the intent of the governor to submit 10 and the legislature to enact in a budget bill for fiscal year nineteen 11 hundred ninety-four--ninety-five, two appropriations from the dedicated 12 mass transportation trust fund to the metropolitan transportation 13 authority dedicated tax fund established by section twelve hundred 14 seventy-c of the public authorities law. One such appropriation shall be 15 equal to the amounts expected to be available for such purpose pursuant 16 to subdivision (d) of section three hundred one-j of the tax law during 17 the nineteen hundred ninety-four--ninety-five fiscal year and shall be 18 effective in that fiscal year. The other such appropriation shall be 19 equal to the amount expected to be available for such purpose pursuant 20 to subdivision (d) of section three hundred one-j of the tax law during 21 the nineteen hundred ninety-five--ninety-six fiscal year and shall, 22 notwithstanding the provisions of section forty of this chapter, take 23 effect on the first day of the nineteen hundred ninety-five--ninety-six 24 fiscal year and lapse on the last day of that fiscal year. It is the 25 intent of the governor to submit and the legislature to enact for each 26 fiscal year after the nineteen hundred ninety-four--ninety-five fiscal 27 year in an annual budget bill: (i) an appropriation for the amount 28 expected to be available in the dedicated mass transportation trust fund 29 during such fiscal year for the metropolitan transportation authority 30 pursuant to subdivision (d) of section three hundred one-j of the tax 31 law and paragraph two of subdivision (d) of section eleven hundred nine 32 of the tax law, including any amounts on deposit therein from any prior 33 year which have been previously appropriated, and (ii) an appropriation 34 of the amounts projected by the director of the budget to be deposited 35 in the metropolitan transportation authority dedicated tax fund from the 36 dedicated mass transportation trust fund pursuant to subdivision (d) of 37 section three hundred one-j of the tax law and paragraph two of subdivi- 38 sion (d) of section eleven hundred nine of the tax law, for the next 39 succeeding fiscal year. Such appropriation for payment of revenues 40 expected to be received in the succeeding fiscal year shall, notwith- 41 standing section forty of this chapter, take effect on the first day of 42 such succeeding fiscal year and lapse on the last day of such fiscal 43 year. If for any fiscal year commencing on or after the first day of 44 April, nineteen hundred ninety-four the governor fails to submit a budg- 45 et bill containing the foregoing, or the legislature fails to enact a 46 bill with such provisions, then the authority shall notify the comp- 47 troller, the director of the budget, the chairperson of the senate 48 finance committee and the chairperson of the assembly ways and means 49 committee of amounts required to be disbursed from the appropriation 50 made during the preceding fiscal year for payment in such fiscal year. 51 In no event shall the comptroller make any payments from such appropri- 52 ation prior to May first of such fiscal year, and unless and until the 53 director of the budget, the chairperson of the senate finance committee 54 and the chairperson of the assembly ways and means committee have been 55 notified of the required payments and the timing of such payments to be 56 made from the dedicated mass transportation trust fund to the metropol-S. 3009--C 157 A. 3009--C 1 itan transportation authority dedicated tax fund at least forty-eight 2 hours prior to any such payments. Until such time as payments pursuant 3 to such appropriation are made in full, revenues in the dedicated mass 4 transportation trust fund shall not be paid over to any person other 5 than the metropolitan transportation authority. Nothing contained in 6 this subdivision shall be deemed to restrict the right of the state to 7 amend, repeal, modify or otherwise alter statutes imposing or relating 8 to the taxes imposed pursuant to section three hundred one-j of the tax 9 law, the taxes imposed pursuant to paragraph two of subdivision (d) of 10 section eleven hundred nine of the tax law, or the appropriations relat- 11 ing thereto. The metropolitan transportation authority shall not include 12 within any resolution, contract or agreement with holders of the bonds 13 or notes issued under section twelve hundred sixty-nine of the public 14 authorities law any provision which provides that a default occurs as a 15 result of the state exercising its right to amend, repeal, modify or 16 otherwise alter such taxes or appropriations. 17 § 9. Subdivision 2 of section 1270-c of the public authorities law, as 18 added by chapter 56 of the laws of 1993, is amended to read as follows: 19 2. There shall be deposited, pursuant to appropriation, into the fund 20 the moneys deposited in the dedicated mass transportation trust fund for 21 payment to the metropolitan transportation authority dedicated tax fund 22 pursuant to the provisions of subdivision (d) of section three hundred 23 one-j of the tax law, paragraph two of subdivision (d) of section eleven 24 hundred nine of the tax law, and any other moneys collected for or 25 transferred to such fund pursuant to section eighty-eight-a of the state 26 finance law and any other provision of law directing or permitting the 27 deposit of moneys in such fund. 28 § 10. Subdivision 3 of section 1270-c of the public authorities law, 29 as amended by section 30 of part O of chapter 61 of the laws of 2000, is 30 amended to read as follows: 31 3. Moneys in the fund may be (a) pledged by the authority to secure 32 and be applied to the payment of its bonds, notes or other obligations 33 specified by the authority and issued to finance (i) transit projects 34 undertaken for the New York city transit authority and its subsidiaries 35 and (ii) transportation facilities undertaken for the authority and its 36 subsidiaries and (b) used for payment of operating costs, and capital 37 costs, including debt service, reserve requirements, if any, the payment 38 of amounts required under bond and note facilities or agreements related 39 thereto, the payment of federal government loans, security or credit 40 arrangements or other agreements related thereto, and the payment of all 41 costs related to such obligations, of or for the authority, the New York 42 city transit authority and their subsidiaries as the authority shall 43 determine. To the extent moneys in the fund have been pledged by the 44 authority to secure and pay its bonds, notes or other obligations as 45 herein provided, moneys deposited into the fund shall first be deposited 46 into the pledged amounts account to the extent necessary to satisfy the 47 requirements of any debt service or reserve requirements, if any, of the 48 resolution authorizing such bonds, notes or other obligations. After 49 satisfaction of such requirements of the resolution, or if the authority 50 has not so pledged the moneys in the fund, moneys deposited in the fund 51 shall be directly deposited into the operating and capital costs account 52 and, subject to the provisions of any resolutions of the authority not 53 secured by the pledged amounts account, transferred forthwith to or for 54 the benefit of the New York city transit authority and its subsidiaries 55 and the Staten Island rapid transit operating authority (the "TA") and 56 to and for the benefit of the Long Island Rail Road company and theS. 3009--C 158 A. 3009--C 1 Metro-North commuter rail road company (the "CRR") as provided in this 2 section. 3 Moneys in the operating and capital costs account which were deposited 4 in the fund pursuant to appropriation from moneys deposited in the dedi- 5 cated mass transportation trust fund for payment to the metropolitan 6 transportation authority dedicated tax fund pursuant to subdivision (d) 7 of section three hundred one-j of the tax law or paragraph two of subdi- 8 vision (d) of section eleven hundred nine of the tax law (the "remaining 9 PBT amount") shall be distributed by the authority as follows: an amount 10 equal to the debt service incurred in such calendar year as a result of 11 obligations issued and secured by moneys in the fund, to the extent such 12 debt service is to be paid from money deposited in the fund pursuant to 13 appropriation from moneys deposited in the dedicated mass transportation 14 trust fund for payment to the metropolitan transportation authority 15 dedicated tax fund pursuant to subdivision (d) of section three hundred 16 one-j of the tax law or paragraph two of subdivision (d) of section 17 eleven hundred nine of the tax law ("PBT debt service"), shall be added 18 to the remaining PBT amount. The sum of these figures shall then be 19 allocated as follows: eighty-five per centum of such sum shall be allo- 20 cated to the TA and fifteen per centum of such sum shall be allocated to 21 the CRR. The amounts so allocated shall then be reduced respectively by 22 the proportional amount of PBT debt service attributable to the payments 23 for transit projects undertaken for the TA and transportation facility 24 projects undertaken for the CRR. The remaining amounts shall constitute 25 the respective distributable shares of the remaining PBT amount and 26 shall be distributed to or for the benefit of the TA and the CRR. 27 Moneys in the operating and capital costs account which were deposited 28 in the fund pursuant to section eighty-eight-a of the state finance law 29 (the "remaining MMTOA amount") shall be distributed by the authority as 30 follows: an amount equal to the debt service incurred in such calendar 31 year as a result of obligations issued and secured by money in the fund, 32 to the extent such debt service is to be paid from money deposited in 33 the fund pursuant to section eighty-eight-a of the state finance law 34 ("MMTOA debt service"), shall be added to the remaining MMTOA amount. 35 The sum of these figures shall then be allocated as follows: there shall 36 be allocated (i) to the TA an amount of such sum which bears the same 37 proportion to such sum as the amount appropriated and paid during such 38 calendar year from the metropolitan mass transportation operating 39 assistance account to the authority for the operating expenses of the TA 40 bears to the total amounts so appropriated and paid from such operating 41 assistance account during such calendar year to the TA and CRR combined 42 and (ii) to the CRR an amount of such sum which bears the same propor- 43 tion to such sum as the amount appropriated and paid during such calen- 44 dar year from the metropolitan mass transportation operating assistance 45 account to the CRR bears to the total amounts so appropriated and paid 46 from such operating assistance account during such calendar year to the 47 TA and CRR combined. The amounts so allocated shall then be reduced 48 respectively by the proportional amount of MMTOA debt service attribut- 49 able to the payments for transit projects undertaken for the TA and 50 transportation facility projects undertaken for the CRR. The remaining 51 amounts shall constitute the respective distributable shares of the 52 remaining MMTOA amount and shall be distributed to or for the benefit of 53 the TA and the CRR. In no event shall the authority utilize any measure 54 or calculation for determining such distributable shares other than the 55 formula prescribed herein nor shall the authority take any action whichS. 3009--C 159 A. 3009--C 1 would result in the use of such money which is different from or incon- 2 sistent with the use prescribed in this section. 3 To the extent that amounts described in the preceding two paragraphs 4 are distributed more frequently than annually, each such distribution 5 shall be made as nearly as may be practicable in accordance with the 6 allocations described above to the TA and the CRR. Within thirty days 7 after the end of each calendar year, the authority shall certify to the 8 director of the budget, the chairperson of the senate finance committee 9 and the chairperson of the assembly ways and means committee, the amount 10 of money deposited in the fund pursuant to appropriation from moneys 11 deposited in the dedicated mass transportation trust fund for payment to 12 the metropolitan transportation authority dedicated tax fund pursuant to 13 subdivision (d) of section three hundred one-j of the tax law, paragraph 14 two of subdivision (d) of section eleven hundred nine of the tax law, 15 and section eighty-eight-a of the state finance law, the amounts 16 expended from the pledged amounts account for the benefit of the TA and 17 the CRR, and the amounts of the remaining PBT amount and the remaining 18 MMTOA amount distributed during the prior calendar year to the TA and 19 the CRR and specifying in each case the appropriation or appropriations 20 which was the source of such amounts. 21 § 11. Subdivision 4 of section 1270-c of the public authorities law, 22 as added by chapter 56 of the laws of 1993, is amended to read as 23 follows: 24 4. Any money deposited in the fund shall be held in the fund free and 25 clear of any claim by any person arising out of or in connection with 26 article thirteen-A and article twenty-eight of the tax law. Without 27 limiting the generality of the foregoing and without limiting the rights 28 and duties of the commissioner of taxation and finance under article 29 thirteen-A of the tax law, no petroleum business, as defined in section 30 three hundred of the tax law, or any other person, including the state, 31 shall have any right or claim against the authority, any of its bond- 32 holders, the TA or the CRR to any moneys in or distributed from the fund 33 or in respect of a refund, rebate, credit or reimbursement of taxes paid 34 under article thirteen-A and article twenty-eight of the tax law. 35 § 12. This act shall take effect April 1, 2026. 36 PART XX 37 Section 1. Subdivision 12 of section 1269 of the public authorities 38 law, as amended by section 1 of part I of chapter 58 of the laws of 39 2020, is amended to read as follows: 40 12. The aggregate principal amount of bonds, notes or other obli- 41 gations issued after the first day of January, nineteen hundred ninety- 42 three by the authority, the Triborough bridge and tunnel authority and 43 the New York city transit authority to fund projects contained in capi- 44 tal program plans approved pursuant to section twelve hundred sixty- 45 nine-b of this title for the period nineteen hundred ninety-two through 46 two thousand [twenty-four] twenty-nine shall not exceed [ninety] one 47 hundred fifteen billion [one] five hundred million dollars. Such aggre- 48 gate principal amount of bonds, notes or other obligations or the 49 expenditure thereof shall not be subject to any limitation contained in 50 any other provision of law on the principal amount of bonds, notes or 51 other obligations or the expenditure thereof applicable to the authori- 52 ty, the Triborough bridge and tunnel authority or the New York city 53 transit authority. The aggregate limitation established by this subdivi- 54 sion shall not include (i) obligations issued to refund, redeem orS. 3009--C 160 A. 3009--C 1 otherwise repay, including by purchase or tender, obligations thereto- 2 fore issued either by the issuer of such refunding obligations or by the 3 authority, the New York city transit authority or the Triborough bridge 4 and tunnel authority, (ii) obligations issued to fund any debt service 5 or other reserve funds for such obligations, (iii) obligations issued or 6 incurred to fund the costs of issuance, the payment of amounts required 7 under bond and note facilities, federal or other governmental loans, 8 security or credit arrangements or other agreements related thereto and 9 the payment of other financing, original issue premiums and related 10 costs associated with such obligations, (iv) an amount equal to any 11 original issue discount from the principal amount of such obligations or 12 to fund capitalized interest, (v) obligations incurred pursuant to 13 section twelve hundred seven-m of this article, (vi) obligations 14 incurred to fund the acquisition of certain buses for the New York city 15 transit authority as identified in a capital program plan approved 16 pursuant to chapter fifty-three of the laws of nineteen hundred ninety- 17 two, (vii) obligations incurred in connection with the leasing, selling 18 or transferring of equipment, and (viii) bond anticipation notes or 19 other obligations payable solely from the proceeds of other bonds, notes 20 or other obligations which would be included in the aggregate principal 21 amount specified in the first sentence of this subdivision, whether or 22 not additionally secured by revenues of the authority, or any of its 23 subsidiary corporations, New York city transit authority, or any of its 24 subsidiary corporations, or Triborough bridge and tunnel authority. 25 § 2. This act shall take effect immediately. 26 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 27 sion, section or part of this act shall be adjudged by any court of 28 competent jurisdiction to be invalid, such judgment shall not affect, 29 impair, or invalidate the remainder thereof, but shall be confined in 30 its operation to the clause, sentence, paragraph, subdivision, section 31 or part thereof directly involved in the controversy in which such judg- 32 ment shall have been rendered. It is hereby declared to be the intent of 33 the legislature that this act would have been enacted even if such 34 invalid provisions had not been included herein. 35 § 3. This act shall take effect immediately provided, however, that 36 the applicable effective date of Parts A through XX of this act shall be 37 as specifically set forth in the last section of such Parts.
A03009 LFIN:
| NO LFIN |
A03009 Chamber Video/Transcript:
| 5-8-25 | Video (@ 03:39:54) |