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A03009 Summary:

BILL NOA03009C
 
SAME ASSAME AS UNI. S04009-C
 
SPONSORBudget
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2023-2024 state fiscal year; provides the authority to abate interest for taxpayers impacted by declared disasters (Part A); clarifies the definition of limited partner for the purposes of the metropolitan commuter transportation mobility tax (Part B); makes the investment tax credit refundable for eligible farmers for five years (Part C); amends provisions of the Empire state film production credit and the Empire state film post production credit; extends and increases such credits (Part D); provides for the abatement of penalties for underpayment of estimated tax by a corporation (Part E); extends the deadline for applications for the COVID-19 capital costs tax credit program (Part F); creates a child care creation and expansion tax credit for child care programs made available to employees by a business directly or through a third party (Part G); relates to extending a tax credit for certain businesses engaged in biotechnologies (Part H); extends the current corporate tax rates (Subpart A); extends the rehabilitation of historic properties tax credit (Subpart B); extends the empire state commercial production tax credit for five years (Subpart C); extends provisions of law relating to the grade No. 6 heating oil conversion tax credit (Subpart D); relates to the New York city musical and theatrical production tax credit (Subpart E)(Part I); makes technical corrections to the credit for companies who provide transportation to individuals with disabilities (Subpart A); relates to the eligibility for the brownfield redevelopment tax credit (Subpart B); relates to the pass-through entity tax and city pass-through entity tax (Subpart C)(Part J); simplifies certain senior citizen real property tax exemptions (Part K); extends provisions of law relating to oil and gas charges (Part L); provides for the adoption and use of solar and wind energy system appraisal model for purposes of real property taxation (Part N); eliminates the congestion surcharge registration requirements (Part P); provides for the payment of tax on increased quantities of motor fuel and Diesel fuel on which the taxes pursuant to articles 12-a, 13-a and 28 were not previously paid (Part Q); extends the sales tax exemption for certain sales made through vending machines (Part R); increases the rate of taxes on cigarettes (Part S); relates to the revocation of certain certificates and civil penalties for refusal of a cigarette and tobacco inspection (Part T); relates to extending the tax rate reduction under the New York state real estate transfer tax and the New York city real property transfer tax for conveyances of real property to existing real estate investment funds (Part U); permits the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part V); clarifies the deposit timeframe for moneys deposited by the commissioner of taxation and finance (Part W); relates to financing of the Belmont Park racetrack renovation and the membership of the franchise oversight board (Part X); extends certain provisions related to the simulcasting of horse races and taxes on pari-mutuel betting (Part BB); relates to the liability of a person who presents false claims for money or property to the state or a local government (Part DD); repeals provisions relating to the transferability of the investment tax credit (Part EE); relates to the amount of credits for cider, wine, and liquor under the alcoholic beverage production credit (Part FF); establishes a permanent rate for the metropolitan transportation business tax surcharge of thirty percent beginning on or after January 1, 2024 (Part GG).
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A03009 Actions:

BILL NOA03009C
 
02/01/2023referred to ways and means
03/06/2023amend (t) and recommit to ways and means
03/06/2023print number 3009a
03/14/2023amend (t) and recommit to ways and means
03/14/2023print number 3009b
04/30/2023amend (t) and recommit to ways and means
04/30/2023print number 3009c
05/01/2023reported referred to rules
05/01/2023reported
05/01/2023rules report cal.127
05/01/2023substituted by s4009c
 S04009 AMEND=C BUDGET
 02/01/2023REFERRED TO FINANCE
 03/06/2023AMEND (T) AND RECOMMIT TO FINANCE
 03/06/2023PRINT NUMBER 4009A
 03/14/2023AMEND (T) AND RECOMMIT TO FINANCE
 03/14/2023PRINT NUMBER 4009B
 04/30/2023AMEND (T) AND RECOMMIT TO FINANCE
 04/30/2023PRINT NUMBER 4009C
 05/01/2023ORDERED TO THIRD READING CAL.718
 05/01/2023MESSAGE OF NECESSITY - 3 DAY MESSAGE
 05/01/2023PASSED SENATE
 05/01/2023DELIVERED TO ASSEMBLY
 05/01/2023referred to ways and means
 05/01/2023substituted for a3009c
 05/01/2023ordered to third reading rules cal.127
 05/01/2023message of necessity - 3 day message
 05/01/2023passed assembly
 05/01/2023returned to senate
 05/02/2023DELIVERED TO GOVERNOR
 05/03/2023SIGNED CHAP.59
 02/01/2023REFERRED TO FINANCE
 03/06/2023AMEND (T) AND RECOMMIT TO FINANCE
 03/06/2023PRINT NUMBER 4009A
 03/14/2023AMEND (T) AND RECOMMIT TO FINANCE
 03/14/2023PRINT NUMBER 4009B
 04/30/2023AMEND (T) AND RECOMMIT TO FINANCE
 04/30/2023PRINT NUMBER 4009C
 05/01/2023ORDERED TO THIRD READING CAL.718
 05/01/2023MESSAGE OF NECESSITY - 3 DAY MESSAGE
 05/01/2023PASSED SENATE
 05/01/2023DELIVERED TO ASSEMBLY
 05/01/2023referred to ways and means
 05/01/2023substituted for a3009c
 05/01/2023ordered to third reading rules cal.127
 05/01/2023message of necessity - 3 day message
 05/01/2023passed assembly
 05/01/2023returned to senate
 05/02/2023DELIVERED TO GOVERNOR
 05/03/2023SIGNED CHAP.59
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A03009 Memo:

Memo not available
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A03009 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 4009--C                                            A. 3009--C
 
                SENATE - ASSEMBLY
 
                                    February 1, 2023
                                       ___________
 
        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 providing the authority to
          abate interest for taxpayers impacted by declared disasters (Part  A);
          to  amend  the  tax  law,  in relation to clarifying the definition of
          limited partner for the purposes of the metropolitan  commuter  trans-
          portation  mobility tax (Part B); to amend the tax law, in relation to
          making the investment tax credit refundable for eligible  farmers  for
          five  years  (Part C); to amend the tax law, in relation to the empire
          state film production credit and the empire state film post-production
          credit (Part D); to amend the tax law, in relation to the abatement of
          penalties for underpayment of estimated tax by a corporation (Part E);
          to amend the economic development law, in  relation  to  the  COVID-19
          capital  costs  tax  credit  program  (Part  F);  to  amend the social
          services law and the tax law, in relation to creating a tax credit for
          the creation and expansion of child care (Part G); to  amend  the  tax
          law  and  the administrative code of the city of New York, in relation
          to a credit for certain businesses engaged  in  biotechnologies  (Part
          H);  to amend the tax law, in relation to extending the current corpo-
          rate tax rates (Subpart A); to amend  the  tax  law,  in  relation  to
          extending   the  rehabilitation  of  historic  properties  tax  credit
          (Subpart B); to amend the tax law, in relation to extending the empire
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12574-05-3

        S. 4009--C                          2                         A. 3009--C
 
          state commercial production tax credit for five years (Subpart C);  to
          amend the tax law, in relation to extending provisions of law relating
          to  the  grade No. 6 heating oil conversion tax credit (Subpart D); 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 estab-
          lishing  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  (Subpart  E)(Part  I);  to  amend  the tax law, in relation to
          making technical corrections to the credit for companies  who  provide
          transportation  to individuals with disabilities (Subpart A); to amend
          the tax law, in relation to eligibility for the brownfield  redevelop-
          ment  tax credit (Subpart B); to amend the tax law, in relation to the
          pass-through entity tax and city pass-through entity  tax  and  making
          technical  corrections thereto (Subpart C) (Part J); to amend the real
          property tax law, in relation to simplifying certain  senior  citizens
          real  property  tax  exemptions  (Part K); to amend chapter 540 of the
          laws of 1992, amending the real property tax law relating to  oil  and
          gas charges, in relation to the effectiveness thereof (Part L); inten-
          tionally  omitted (Part M); to amend the real property tax law and the
          state administrative procedure act,  in  relation  to  clarifying  the
          solar  or  wind  energy system appraisal model (Part N); intentionally
          omitted (Part O); to repeal certain provisions of the tax law,  relat-
          ing  to  eliminating  congestion  surcharge  registration requirements
          (Part P); to amend the tax law, in relation to the payment of  tax  on
          increased  quantities of motor fuel and Diesel motor fuel on which the
          taxes pursuant to articles 12-A, 13-A and 28 were not previously  paid
          (Part Q); to amend the tax law, in relation to extending the sales tax
          exemption for certain sales made through vending machines (Part R); to
          amend  the  tax  law, in relation to an increase in the rate of tax on
          cigarettes (Part S); to amend the tax law, in relation to the  revoca-
          tion  of  certain  certificates  and  civil penalties for refusal of a
          cigarette and tobacco inspection (Part T); to amend the  tax  law  and
          the  administrative  code  of  the  city  of  New York, in relation to
          extending the tax rate reduction under the New York state real  estate
          transfer  tax  and  the  New  York city real property transfer tax for
          conveyances of real property to existing real estate investment  funds
          (Part  U); to amend the tax law, in relation to permitting the commis-
          sioner of taxation and finance to seek judicial review of decisions of
          the tax appeals tribunal (Part V); to amend the state finance law,  in
          relation  to  clarifying the deposit timeframe for moneys deposited by
          the commissioner of taxation  and  finance  (Part  W);  to  amend  the
          racing,  pari-mutuel  wagering  and  breeding  law and the tax law, in
          relation to requiring the New York Racing Association, Inc.  to  enter
          into  a  repayment agreement with the state of New York for the repay-
          ment of funds provided by the state for the renovation of Belmont Park
          racetrack; and in relation to the membership of  the  franchise  over-
          sight  board  (Part  X); intentionally omitted (Part Y); intentionally
          omitted (Part Z);  intentionally  omitted  (Part  AA);  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; to amend chapter

        S. 4009--C                          3                         A. 3009--C
 
          346  of the laws of 1990 amending the racing, pari-mutuel wagering and
          breeding law and other laws relating to simulcasting and  the  imposi-
          tion  of  certain  taxes,  in relation to extending certain provisions
          thereof;  and  to amend the racing, pari- mutuel wagering and breeding
          law, in relation to extending certain provisions  thereof  (Part  BB);
          intentionally  omitted  (Part  CC); to amend the state finance law, in
          relation to the liability of a person who presents  false  claims  for
          money  or  property  to  the state or a local government (Part DD); to
          repeal subparagraph 9 of paragraph (e) of  subdivision  1  of  section
          210-B of the tax law relating to the transferability of the investment
          tax  credit (Part EE); to amend the tax law, in relation to the amount
          of credit for cider, wine, and liquor  under  the  alcoholic  beverage
          production  credit (Part FF); and to amend the tax law, in relation to
          establishing a permanent  rate  for  the  metropolitan  transportation
          business tax surcharge (Part GG)

          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 2023-2024
     3  state  fiscal  year.  Each  component  is wholly contained within a Part
     4  identified as Parts A through GG. 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. The opening paragraph of paragraph a of  subdivision  twen-
    14  ty-eighth  of  section  171 of the tax law, as amended by chapter 451 of
    15  the laws of 2022, is amended to read as follows:
    16    [In the case of a taxpayer who is determined for federal tax  purposes
    17  under  the  provisions  of] Have the authority to postpone certain dead-
    18  lines for a period of up to ninety days, or  longer  when  necessary  to
    19  align  with  relief provided by the Internal Revenue Service pursuant to
    20  section seven thousand five hundred eight-A of the internal revenue code
    21  [to be affected by a presidentially declared disaster, or  who],  for  a
    22  taxpayer who is determined [under regulations promulgated by the commis-
    23  sioner]  to  be  affected  by a presidentially declared disaster or by a
    24  disaster emergency declared by the governor[, have authority to  provide
    25  that a period of up to ninety days, or a longer period when necessary to
    26  align with relief that has already been provided by the Internal Revenue
    27  Service  under  the  authority  to postpone certain deadlines in section
    28  seven thousand five hundred eight-A of the internal revenue code,  may].
    29  Any extension period provided pursuant to the authority in this subdivi-
    30  sion  shall  be disregarded in determining under the tax law, or under a
    31  law enacted pursuant to the authority of the tax law or  former  article
    32  2-E  of  the general city law where administered by the commissioner, in
    33  respect of any tax liability (including  any  interest,  penalty,  addi-
    34  tional amount, or addition to the tax) of such taxpayer:

        S. 4009--C                          4                         A. 3009--C
 
     1    §  2.  Paragraph  c of subdivision twenty-eighth of section 171 of the
     2  tax law, as added by chapter 8 of the laws of 1998, is amended  to  read
     3  as follows:
     4    c.  Definitions.  1. Presidentially declared disaster. For purposes of
     5  this subdivision, the term "presidentially declared disaster" means  any
     6  disaster which, with respect to an area, resulted in a subsequent deter-
     7  mination  by  the president of the United States that such area warrants
     8  assistance by the federal government under the disaster relief and emer-
     9  gency assistance act.
    10    2. Taxpayer. For purposes of this  subdivision,  the  term  "taxpayer"
    11  means any person or entity required to file a return or remit any tax to
    12  the commissioner pursuant to this chapter.
    13    §  3.  Subdivision  twenty-eighth  of  section  171  of the tax law is
    14  amended by adding a new paragraph d to read as follows:
    15    d. Where a taxpayer who,  pursuant  to  section  seven  thousand  five
    16  hundred  eight-a of the internal revenue code, is determined for federal
    17  tax purposes to be affected by a presidentially  declared  disaster,  or
    18  who is determined to be affected by a disaster emergency declared by the
    19  governor, but the commissioner has not postponed a tax deadline pursuant
    20  to  the authority in  paragraph a of this subdivision due to such disas-
    21  ter, the commissioner may abate any amount of interest from  the  under-
    22  payment  of  any tax administered by the commissioner under this chapter
    23  that accrued for the period during which the taxpayer was unable to meet
    24  such deadline due to direct impacts of the disaster.
    25    § 4. This act shall take effect immediately.
 
    26                                   PART B
 
    27    Section 1. Subsection (e) of section 800 of the tax law, as  added  by
    28  section  1  of  part  C of chapter 25 of the laws of 2009, is amended to
    29  read as follows:
    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    § 2. This act shall take effect immediately.
 
    41                                   PART C
 
    42    Section 1. Paragraph (d) of subdivision 1 of section 210-B of the  tax
    43  law,  as  amended  by  section 31 of part T of chapter 59 of the laws of
    44  2015, is amended to read as follows:
    45    (d) Except as otherwise provided in this paragraph, the credit allowed
    46  under this subdivision for any taxable year shall not reduce the tax due
    47  for such year to less than the fixed dollar minimum amount prescribed in
    48  paragraph (d) of subdivision one of section  two  hundred  ten  of  this
    49  article.  However, if the amount of credit allowable under this subdivi-
    50  sion for any taxable year reduces the tax  to  such  amount  or  if  the
    51  taxpayer  otherwise  pays  tax based on the fixed dollar minimum amount,
    52  any amount of credit allowed for a  taxable  year  commencing  prior  to

        S. 4009--C                          5                         A. 3009--C
 
     1  January  first, nineteen hundred eighty-seven and not deductible in such
     2  taxable year may be carried over to the following year or years and  may
     3  be  deducted  from  the  taxpayer's tax for such year or years but in no
     4  event  shall  such credit be carried over to taxable years commencing on
     5  or after January first, two thousand  two,  and  any  amount  of  credit
     6  allowed  for  a taxable year commencing on or after January first, nine-
     7  teen hundred eighty-seven and not deductible in such year may be carried
     8  over to the fifteen taxable years next following such taxable  year  and
     9  may be deducted from the taxpayer's tax for such year or years.  In lieu
    10  of  such carryover, (i) any such taxpayer which qualifies as a new busi-
    11  ness under paragraph (f) of this subdivision  may  elect  to  treat  the
    12  amount  of  such  carryover  as  an overpayment of tax to be credited or
    13  refunded in accordance with the provisions of section ten hundred eight-
    14  y-six of this chapter, and (ii) any such taxpayer that  is  an  eligible
    15  farmer,  as defined in subdivision eleven of this section, may for taxa-
    16  ble years beginning before January  first,  two  thousand  twenty-eight,
    17  elect  to treat the amount of such carryover as an overpayment of tax to
    18  be credited or refunded in accordance with the provisions of section one
    19  thousand eighty-six of this chapter, provided, however,  the  provisions
    20  of  subsection  (c)  of section ten hundred eighty-eight of this chapter
    21  notwithstanding, no interest shall be paid thereon.
    22    § 2. Paragraph 5 of subsection (a) of section 606 of the tax  law,  as
    23  amended  by  chapter  170  of  the  laws  of 1994, is amended to read as
    24  follows:
    25    (5) If the amount of credit allowable under this  subsection  for  any
    26  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    27  allowed for a taxable year commencing prior to January  first,  nineteen
    28  hundred  eighty-seven may be carried over to the following year or years
    29  and may be deducted from the taxpayer's tax for such year or years,  but
    30  in  no event shall such credit be carried over to taxable years commenc-
    31  ing on or after January first, nineteen hundred  ninety-seven,  and  any
    32  amount of credit allowed for a taxable year commencing on or after Janu-
    33  ary first, nineteen hundred eighty-seven and not deductible in such year
    34  may be carried over to the ten taxable years next following such taxable
    35  year and may be deducted from the taxpayer's tax for such year or years.
    36  In  lieu  of carrying over any such excess, (A) a taxpayer who qualifies
    37  as an owner of a new business for purposes  of  paragraph  ten  of  this
    38  subsection may, at [his] the taxpayer's option, receive such excess as a
    39  refund,  and  (B)  a  taxpayer  that is an eligible farmer as defined in
    40  subsection (n) of this section may, at the taxpayer's option, for  taxa-
    41  ble  years  beginning  before  January  first, two thousand twenty-eight
    42  receive such excess as a refund. Any refund paid pursuant to this  para-
    43  graph  shall  be  deemed  to  be  a  refund  of an overpayment of tax as
    44  provided in section six hundred eighty-six of  this  article,  provided,
    45  however, that no interest shall be paid thereon.
    46    §  3.  This  act  shall take effect immediately, and apply to property
    47  placed in service on or after January 1, 2023.
 
    48                                   PART D
 
    49    Section 1.  Paragraph 2 of subdivision (a) of section 24  of  the  tax
    50  law,  as  separately amended by sections 1 and 2 of part M of chapter 59
    51  of the laws of 2020, is amended 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 [twenty-
    54  five] thirty percent and the qualified production costs paid or incurred

        S. 4009--C                          6                         A. 3009--C
 
     1  in the 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) except
    10  with respect to a  qualified  independent  film  production  company  or
    11  pilot,  at least ten percent of the total principal photography shooting
    12  days spent in the production of such qualified film must be spent  at  a
    13  qualified film production facility. However, if the qualified production
    14  costs  (excluding  post  production costs) which are attributable to the
    15  use of tangible property or the performance of services at  a  qualified
    16  film  production  facility  in  the production of such qualified film is
    17  less than three million dollars,  then  the  portion  of  the  qualified
    18  production  costs  attributable  to  the use of tangible property or the
    19  performance of services in the production of such qualified film outside
    20  of a qualified film production facility shall be  allowed  only  if  the
    21  shooting days spent in New York outside of a film production facility in
    22  the  production  of  such  qualified  film  equal or exceed seventy-five
    23  percent of the total shooting days spent within  and  without  New  York
    24  outside  of  a film production facility in the production of such quali-
    25  fied film. The credit shall be allowed for the taxable year in which the
    26  production of such qualified film is completed. However, in the case  of
    27  a  qualified  film that receives funds from additional pool 2, no credit
    28  shall be claimed before the later of (1) the taxable year the production
    29  of the qualified film is complete,  or  (2)  the  [first]  taxable  year
    30  [beginning  immediately  after  the]  that  includes the last day of the
    31  allocation year for which the film has  been  allocated  credit  by  the
    32  [governor's  office  for  motion  picture  and television] department of
    33  economic development. If the amount  of  the  credit  is  at  least  one
    34  million  dollars but less than five million dollars, the credit shall be
    35  claimed over a two year period beginning in the first  taxable  year  in
    36  which the credit may be claimed and in the next succeeding taxable year,
    37  with  one-half  of  the  amount  of credit allowed being claimed in each
    38  year. If the amount of the credit is at least five million dollars,  the
    39  credit  shall be claimed over a three year period beginning in the first
    40  taxable year in which the credit may be claimed  and  in  the  next  two
    41  succeeding  taxable  years,  with  one-third of the amount of the credit
    42  allowed being claimed in each year.
    43    § 2. Paragraph 5 of subdivision (a) of section 24 of the tax  law,  as
    44  amended  by  section  2  of part M of chapter 59 of the laws of 2022, is
    45  amended to read as follows:
    46    (5) For the period two thousand fifteen through two thousand  [twenty-
    47  nine]  thirty-four,  in  addition to the amount of credit established in
    48  paragraph two of this subdivision, a taxpayer shall be allowed a  credit
    49  equal  to (i) the product (or pro rata share of the product, in the case
    50  of a member of a partnership) of ten percent and the [amount  of]  wages
    51  [or],  salaries  or other compensation constituting qualified production
    52  costs as defined in paragraph two of subdivision (b)  of  this  section,
    53  paid  to  individuals  directly  employed  [(excluding those employed as
    54  writers, directors, music directors, producers and performers, including
    55  background  actors  with  no  scripted  lines)]  by  a  qualified   film
    56  production  company  or  a qualified independent film production company

        S. 4009--C                          7                         A. 3009--C
 
     1  for services performed by those individuals in one of the counties spec-
     2  ified in this paragraph in connection with a qualified film with a mini-
     3  mum budget of five hundred thousand dollars, and (ii)  the  product  (or
     4  pro rata share of the product, in the case of a member of a partnership)
     5  of  ten  percent  and  the  qualified production costs (excluding wages,
     6  salaries or other compensation) paid or incurred in the production of  a
     7  qualified film where the property constituting such qualified production
     8  costs  was used, and the services constituting such qualified production
     9  costs were performed in any of the counties specified in this  paragraph
    10  in  connection  with  a  qualified  film  with  a minimum budget of five
    11  hundred thousand dollars where the  majority  of  principal  photography
    12  shooting  days  in  the  production of such film were shot in any of the
    13  counties specified in this paragraph. Provided, however, that the aggre-
    14  gate total eligible qualified production costs constituting wages, sala-
    15  ries or other compensation, for writers, directors,  composers,  produc-
    16  ers,  and performers shall not exceed forty percent of the aggregate sum
    17  total of all other qualified production costs.   For purposes  of  [this
    18  additional]  the credit, the services must be performed and the property
    19  must be used in one or more of the following counties: Albany, Allegany,
    20  Broome, Cattaraugus, Cayuga,  Chautauqua,  Chemung,  Chenango,  Clinton,
    21  Columbia,  Cortland,  Delaware, Dutchess, Erie, Essex, Franklin, Fulton,
    22  Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madi-
    23  son, Monroe, Montgomery, Niagara,  Oneida,  Onondaga,  Ontario,  Orange,
    24  Orleans,  Oswego,  Otsego,  Putnam,  Rensselaer,  Saratoga, Schenectady,
    25  Schoharie, Schuyler, Seneca, St.  Lawrence,  Steuben,  Sullivan,  Tioga,
    26  Tompkins,  Ulster,  Warren,  Washington,  Wayne, Wyoming, or Yates. [The
    27  aggregate amount of tax credits allowed pursuant  to  the  authority  of
    28  this paragraph shall be five million dollars each year during the period
    29  two  thousand  fifteen  through  two  thousand twenty-nine of the annual
    30  allocation made available to the program pursuant to paragraph  four  of
    31  subdivision  (e) of this section. Such aggregate amount of credits shall
    32  be allocated by the governor's office for motion picture and  television
    33  development  among taxpayers in order of priority based upon the date of
    34  filing an application for allocation of film production credit with such
    35  office.  If the total amount of allocated credits applied for under this
    36  paragraph in any year  exceeds  the  aggregate  amount  of  tax  credits
    37  allowed for such year under this paragraph, such excess shall be treated
    38  as  having  been  applied  for on the first day of the next year. If the
    39  total amount of allocated tax credits applied for under  this  paragraph
    40  at  the  conclusion  of  any year is less than five million dollars, the
    41  remainder shall be treated as part of the annual allocation made  avail-
    42  able  to  the  program  pursuant to paragraph four of subdivision (e) of
    43  this section. However, in no event may the total of  the  credits  allo-
    44  cated  under  this  paragraph  and the credits allocated under paragraph
    45  five of subdivision (a) of section thirty-one  of  this  article  exceed
    46  five  million dollars in any year during the period two thousand fifteen
    47  through two thousand twenty-nine.]
    48    § 2-a. Paragraph 1 of subdivision (b) of section 24 of the tax law, as
    49  amended by section 4 of part B of chapter 59 of the  laws  of  2013,  is
    50  amended to read as follows:
    51    (1)  "Qualified  production  costs" means production costs only to the
    52  extent such costs are attributable to the use of  tangible  property  or
    53  the  performance of services within the state directly and predominantly
    54  in the production (including pre-production and post  production)  of  a
    55  qualified  film. In the case of an eligible relocated television series,
    56  the term "qualified production costs" shall include, in the first season

        S. 4009--C                          8                         A. 3009--C
 
     1  that the eligible relocated television series is produced  in  New  York
     2  after  relocation,  qualified  relocation costs. Provided, however, that
     3  the aggregate  total eligible qualified production costs for  producers,
     4  writers,  directors,  performers  (other  than background actors with no
     5  scripted lines), and composers shall not exceed  forty  percent  of  the
     6  aggregate sum total of all other qualified production costs.
     7    §  3.  Paragraph 2 of subdivision (b) of section 24 of the tax law, as
     8  added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
     9  amended to read as follows:
    10    (2)  "Production costs" means any costs for tangible property used and
    11  services performed directly and predominantly in the production (includ-
    12  ing  pre-production  and  post  production)   of   a   qualified   film.
    13  "Production  costs"  shall  not include (i) costs for a story, script or
    14  scenario to be used for a qualified film and (ii) wages or  salaries  or
    15  other  compensation  for writers, directors, [including music directors]
    16  composers, [producers] and performers (other than background actors with
    17  no scripted lines) to the  extent  those  wages  or  salaries  or  other
    18  compensation  exceed  five  hundred  thousand  dollars  per  individual.
    19  "Production costs"  generally  include  technical  and  crew  production
    20  costs,  such as expenditures for film production facilities, or any part
    21  thereof, props, makeup, wardrobe, film processing, camera, sound record-
    22  ing, set construction, lighting, shooting, editing and meals, and  shall
    23  include  the  wages,  salaries or other compensation of no more than two
    24  producers per qualified  film,  not  to  exceed  five  hundred  thousand
    25  dollars per producer, where only one of whom is the principal individual
    26  responsible  for  overseeing  the  creative  and  managerial  process of
    27  production of the qualified film and only one of whom is  the  principal
    28  individual  responsible  for  the  day-to-day  operational management of
    29  production of the qualified film; provided, however, that such producers
    30  are not compensated for any other position on the qualified  film  by  a
    31  qualified  film  production  company  or  a  qualified  independent film
    32  production company for services performed.
    33    § 4. Paragraph 8 of subdivision (b) of section 24 of the tax  law,  as
    34  added  by  section  2  of  part  B of chapter 59 of the laws of 2013, is
    35  amended to read as follows:
    36    (8) "Relocated television production" shall mean, notwithstanding  the
    37  limitations  in subparagraph (i) of paragraph three of this subdivision,
    38  a television production that is a talk or variety program that filmed at
    39  least [five] two seasons outside the state prior to its first  relocated
    40  season  in New York, the episodes are filmed before a studio audience of
    41  two hundred or more, and the relocated television production incurs  (i)
    42  at least thirty million dollars in annual production costs in the state,
    43  or (ii) at least ten million dollars in capital expenditures at a quali-
    44  fied production facility in the state.
    45    § 5. Subdivision (b) of section 24 of the tax law is amended by adding
    46  a new paragraph 9 to read as follows:
    47    (9)  "Eligible  relocated  television series" shall mean the first two
    48  years of a regularly occurring production intended to run in its initial
    49  broadcast, regardless of the medium or mode of its  distribution,  in  a
    50  series  of narrative and/or thematically related episodes, each of which
    51  has a running time of at least thirty minutes in  length  (inclusive  of
    52  commercial  advertisement  and  interstitial programming, if any), which
    53  had filmed a minimum of six episodes of the  television  series  outside
    54  the  state immediately prior to relocating to the state, where the tele-
    55  vision series had a total minimum budget of at least one million dollars
    56  per episode.  For the purposes of this  definition  only,  a  television

        S. 4009--C                          9                         A. 3009--C
 
     1  series produced by and for media services providers described as stream-
     2  ing  services  and/or  digital  platforms  (and excluding network/cable)
     3  shall mean a regularly occurring  production  intended  to  run  in  its
     4  initial  release  in  a  series of narrative and/or thematically related
     5  episodes, the  aggregate  length  of  which  is  at  least  seventy-five
     6  minutes,  although the episodes themselves may vary in duration from the
     7  thirty minutes specified for network/cable production.
     8    § 5-a. Subdivision (b) of section 24 of the  tax  law  is  amended  by
     9  adding a new paragraph 10 to read as follows:
    10    (10)  "Qualified relocation costs" means the costs incurred, excluding
    11  wages, salaries and other compensation, in  the  first  season  that  an
    12  eligible  relocated  television  series  relocates to New York including
    13  such costs incurred to transport sets, props and wardrobe  to  New  York
    14  and  other costs as determined by the department of economic development
    15  to the extent such costs do not exceed six million dollars.
    16    § 6. Paragraph 4 of subdivision (e) of section 24 of the tax  law,  as
    17  amended  by  section  3  of part M of chapter 59 of the laws of 2022, is
    18  amended to read as follows:
    19    (4) Additional pool 2 - The aggregate amount of tax credits allowed in
    20  subdivision (a) of this section shall be increased by an additional four
    21  hundred twenty million dollars in each year starting in two thousand ten
    22  through  two  thousand  [twenty-nine]  twenty-three  and  seven  hundred
    23  million  dollars  each year starting in two thousand twenty-four through
    24  two thousand thirty-four, provided however, seven million dollars of the
    25  annual allocation shall be available for  the  empire  state  film  post
    26  production  credit pursuant to section thirty-one of this article in two
    27  thousand thirteen and two thousand fourteen, twenty-five million dollars
    28  of the annual allocation shall be available for the  empire  state  film
    29  post production credit pursuant to section thirty-one of this article in
    30  each  year  starting in two thousand fifteen through two thousand [twen-
    31  ty-nine and] twenty-three, and forty-five million dollars of the  annual
    32  allocation  shall be available for the empire state film post production
    33  credit pursuant to section thirty-one  of  this  article  in  each  year
    34  starting  in  two thousand twenty-four through two thousand thirty-four.
    35  Provided further, five million dollars of the annual allocation shall be
    36  made available for the television writers' and directors' fees and sala-
    37  ries credit pursuant to section twenty-four-b of this  article  in  each
    38  year  starting in two thousand twenty through two thousand [twenty-nine]
    39  thirty-four. This amount shall be allocated by  the  [governor's  office
    40  for  motion  picture  and television] department of economic development
    41  among taxpayers in accordance with subdivision (a) of this  section.  If
    42  the  commissioner  of economic development determines that the aggregate
    43  amount of tax credits available from additional pool 2  for  the  empire
    44  state  film  production  tax  credit have been previously allocated, and
    45  determines that the pending applications from  eligible  applicants  for
    46  the  empire  state  film  post production tax credit pursuant to section
    47  thirty-one of this article is insufficient to  utilize  the  balance  of
    48  unallocated  empire  state  film  post  production tax credits from such
    49  pool, the remainder, after such  pending  applications  are  considered,
    50  shall  be  made  available  for  allocation in the empire state film tax
    51  credit pursuant to this  section,  subdivision  twenty  of  section  two
    52  hundred  ten-B  and  subsection  (gg) of section six hundred six of this
    53  chapter. Also, if the commissioner of  economic  development  determines
    54  that  the aggregate amount of tax credits available from additional pool
    55  2 for the empire state film post production tax credit have been  previ-
    56  ously  allocated,  and  determines  that  the  pending applications from

        S. 4009--C                         10                         A. 3009--C
 
     1  eligible applicants for the empire  state  film  production  tax  credit
     2  pursuant to this section is insufficient to utilize the balance of unal-
     3  located  film production tax credits from such pool, then all or part of
     4  the  remainder, after such pending applications are considered, shall be
     5  made available for allocation for the empire state film post  production
     6  credit  pursuant  to this section, subdivision thirty-two of section two
     7  hundred ten-B and subsection (qq) of section six  hundred  six  of  this
     8  chapter.  The  [governor's  office  for  motion  picture and television]
     9  department of economic development must notify taxpayers of their  allo-
    10  cation  year  and  include the allocation year on the certificate of tax
    11  credit. Taxpayers eligible to claim a credit must report the  allocation
    12  year  directly on their empire state film production credit tax form for
    13  each year a credit is claimed and include a copy of the certificate with
    14  their tax return. In the case of a qualified film  that  receives  funds
    15  from  additional pool 2, no empire state film production credit shall be
    16  claimed before the later of (1) the taxable year the production  of  the
    17  qualified film is complete, or (2) the taxable year [immediately follow-
    18  ing]  that  includes  the  last day of the allocation year for which the
    19  film has been allocated credit by  the  [governor's  office  for  motion
    20  picture and television] department of economic development.
    21    §  7.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
    22  amended by section 4 of part M of chapter 59 of the  laws  of  2022,  is
    23  amended to read as follows:
    24    (4) Additional pool 2 - The aggregate amount of tax credits allowed in
    25  subdivision (a) of this section shall be increased by an additional four
    26  hundred twenty million dollars in each year starting in two thousand ten
    27  through  two  thousand  [twenty-nine]  twenty-three  and  seven  hundred
    28  million dollars in  each  year  starting  in  two  thousand  twenty-four
    29  through  two  thousand  thirty-four,  provided  however,  seven  million
    30  dollars of the annual allocation shall be available for the empire state
    31  film post production credit pursuant to section thirty-one of this arti-
    32  cle in two thousand thirteen and two thousand  fourteen  [and],  twenty-
    33  five million dollars of the annual allocation shall be available for the
    34  empire  state film post production credit pursuant to section thirty-one
    35  of this article in each year starting in two  thousand  fifteen  through
    36  two  thousand [twenty-nine] twenty-three, and forty-five million dollars
    37  of the annual allocation shall be available for the  empire  state  film
    38  post production credit pursuant to section thirty-one of this article in
    39  each  year  starting  in  two  thousand twenty-four through two thousand
    40  thirty-four. This amount shall be allocated by  the  [governor's  office
    41  for  motion  picture  and television] department of economic development
    42  among taxpayers in accordance with subdivision (a) of this  section.  If
    43  the  commissioner  of economic development determines that the aggregate
    44  amount of tax credits available from additional pool 2  for  the  empire
    45  state  film  production  tax  credit have been previously allocated, and
    46  determines that the pending applications from  eligible  applicants  for
    47  the  empire  state  film  post production tax credit pursuant to section
    48  thirty-one of this article is insufficient to  utilize  the  balance  of
    49  unallocated  empire  state  film  post  production tax credits from such
    50  pool, the remainder, after such  pending  applications  are  considered,
    51  shall  be  made  available  for  allocation in the empire state film tax
    52  credit pursuant to this  section,  subdivision  twenty  of  section  two
    53  hundred  ten-B  and  subsection  (gg) of section six hundred six of this
    54  chapter. Also, if the commissioner of  economic  development  determines
    55  that  the aggregate amount of tax credits available from additional pool
    56  2 for the empire state film post production tax credit have been  previ-

        S. 4009--C                         11                         A. 3009--C
 
     1  ously  allocated,  and  determines  that  the  pending applications from
     2  eligible applicants for the empire  state  film  production  tax  credit
     3  pursuant to this section is insufficient to utilize the balance of unal-
     4  located  film production tax credits from such pool, then all or part of
     5  the remainder, after such pending applications are considered, shall  be
     6  made  available for allocation for the empire state film post production
     7  credit pursuant to this section, subdivision thirty-two of  section  two
     8  hundred  ten-B  and  subsection  (qq) of section six hundred six of this
     9  chapter. The [governor's  office  for  motion  picture  and  television]
    10  department  of economic development must notify taxpayers of their allo-
    11  cation year and include the allocation year on the  certificate  of  tax
    12  credit.  Taxpayers eligible to claim a credit must report the allocation
    13  year directly on their empire state film production credit tax form  for
    14  each year a credit is claimed and include a copy of the certificate with
    15  their  tax  return.  In the case of a qualified film that receives funds
    16  from additional pool 2, no empire state film production credit shall  be
    17  claimed  before  the later of (1) the taxable year the production of the
    18  qualified film is complete, or (2) the taxable year [immediately follow-
    19  ing] that includes the last day of the allocation  year  for  which  the
    20  film  has  been  allocated  credit  by the [governor's office for motion
    21  picture and television] department of economic development.
    22    § 8. Paragraph 2 of subdivision (a) of section 31 of the tax  law,  as
    23  amended  by  section  5  of part M of chapter 59 of the laws of 2020, is
    24  amended to read as follows:
    25    (2) The amount of the credit shall be the product (or pro  rata  share
    26  of  the  product,  in the case of a member of a partnership) of [twenty-
    27  five] thirty percent and the qualified post production costs paid in the
    28  production of a qualified film at a qualified post  production  facility
    29  located  within  the  metropolitan  commuter  transportation district as
    30  defined in section twelve hundred sixty-two of  the  public  authorities
    31  law  or  [thirty]  thirty-five percent and the qualified post production
    32  costs paid in the production of a qualified film  at  a  qualified  post
    33  production facility located elsewhere in the state.
    34    §  9.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
    35  amended by section 6 of part M of chapter 59 of the  laws  of  2022,  is
    36  amended to read as follows:
    37    (6)  For the period two thousand fifteen through two thousand [twenty-
    38  nine] thirty-four, in addition to the amount of  credit  established  in
    39  paragraph  two of this subdivision, a taxpayer shall be allowed a credit
    40  equal to the product (or pro rata share of the product, in the case of a
    41  member of a partnership) of ten percent and the amount of wages or sala-
    42  ries paid to individuals directly employed (excluding those employed  as
    43  writers,  directors, [music directors] composers, producers and perform-
    44  ers, [including] other than background actors with  no  scripted  lines)
    45  for services performed by those individuals in one of the counties spec-
    46  ified in this paragraph in connection with the post production work on a
    47  qualified film with a minimum budget of five hundred thousand dollars at
    48  a  qualified  post  production facility in one of the counties listed in
    49  this paragraph. For purposes of this  additional  credit,  the  services
    50  must  be  performed  in  one  or more of the following counties: Albany,
    51  Allegany, Broome, Cattaraugus, Cayuga,  Chautauqua,  Chemung,  Chenango,
    52  Clinton,  Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin,
    53  Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson,  Lewis,  Living-
    54  ston,  Madison,  Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario,
    55  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,  Schenec-
    56  tady,  Schoharie,  Schuyler,  Seneca,  St.  Lawrence, Steuben, Sullivan,

        S. 4009--C                         12                         A. 3009--C
 
     1  Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming,  or  Yates.
     2  [The  aggregate  amount of tax credits allowed pursuant to the authority
     3  of this paragraph shall be five million dollars  each  year  during  the
     4  period  two  thousand  fifteen  through  two thousand twenty-nine of the
     5  annual  allocation  made  available  to  the  empire  state  film   post
     6  production  credit  pursuant  to  paragraph  four  of subdivision (e) of
     7  section twenty-four of this article. Such aggregate  amount  of  credits
     8  shall be allocated by the governor's office for motion picture and tele-
     9  vision  development  among taxpayers in order of priority based upon the
    10  date of filing an application for allocation of post  production  credit
    11  with  such  office. If the total amount of allocated credits applied for
    12  under this paragraph in any year exceeds the  aggregate  amount  of  tax
    13  credits allowed for such year under this paragraph, such excess shall be
    14  treated as having been applied for on the first day of the next year. If
    15  the  total  amount of allocated tax credits applied for under this para-
    16  graph at the conclusion of any year is less than five  million  dollars,
    17  the  remainder shall be treated as part of the annual allocation for two
    18  thousand  seventeen  made  available  to  the  empire  state  film  post
    19  production  credit  pursuant  to  paragraph  four  of subdivision (e) of
    20  section twenty-four of this article. However, in no event may the  total
    21  of  the credits allocated under this paragraph and the credits allocated
    22  under paragraph five of subdivision (a) of section twenty-four  of  this
    23  article  exceed  five  million dollars in any year during the period two
    24  thousand fifteen through two thousand twenty-nine.]
    25    § 9-a. Paragraph 3 of subdivision (b) of section 24 of the tax law, as
    26  amended by section 5 of part F of chapter 59 of the  laws  of  2021,  is
    27  amended to read as follows:
    28    (3)  "Qualified  film"  means  a feature-length film, television film,
    29  relocated television production, television pilot or television  series,
    30  regardless  of the medium by means of which the film, pilot or series is
    31  created or conveyed. For the purposes of the  credit  provided  by  this
    32  section only, a "qualified film" whose majority of principal photography
    33  shooting  days in the production of the qualified film are shot in West-
    34  chester, Rockland, Nassau, or Suffolk county or any of the five New York
    35  City boroughs shall have a minimum budget  of  one  million  dollars.  A
    36  "qualified  film", whose majority of principal photography shooting days
    37  in the production of the qualified film are shot in any other county  of
    38  the state than those listed in the preceding sentence shall have a mini-
    39  mum budget of two hundred fifty thousand dollars. "Qualified film" shall
    40  not  include:  (i)  a documentary film, news or current affairs program,
    41  interview or  talk  program,  "how-to"  (i.e.,  instructional)  film  or
    42  program, film or program consisting primarily of stock footage, sporting
    43  event  or  sporting  program, game show, award ceremony, film or program
    44  intended primarily for industrial, corporate or institutional end-users,
    45  fundraising film or program, daytime drama (i.e., daytime "soap opera"),
    46  commercials, music videos or "reality" program; (ii)  a  production  for
    47  which records are required under section 2257 of title 18, United States
    48  code,  to be maintained with respect to any performer in such production
    49  (reporting of books, films,  etc.  with  respect  to  sexually  explicit
    50  conduct); or (iii) other than a relocated television production, a tele-
    51  vision  series  commonly  known as variety entertainment, variety sketch
    52  and variety talk, i.e., a program with components of improvisational  or
    53  scripted  content (monologues, sketches, interviews), either exclusively
    54  or in combination with other  entertainment  elements  such  as  musical
    55  performances,  dancing,  cooking,  crafts, pranks, stunts, and games and
    56  which may be further defined  in  regulations  of  the  commissioner  of

        S. 4009--C                         13                         A. 3009--C
 
     1  economic  development.  However,  a qualified film shall include a tele-
     2  vision series as described in subparagraph (iii) of this paragraph  only
     3  if an application for such series has been deemed conditionally eligible
     4  for the tax credit under this section prior to April first, two thousand
     5  twenty,  such  series  remains in continuous production for each season,
     6  and an annual application for each season of such series is  continually
     7  submitted  for  such  series  after  April first, two thousand twenty. A
     8  series that changes either or both the title of the series or the  prin-
     9  cipal cast prior to March thirty-first, two thousand twenty-three, shall
    10  be  considered  to  remain  in  continuous  production  for each season,
    11  provided the series films at the same  location  as  prior  seasons,  is
    12  produced  by the same entity, and retains at least eighty percent of the
    13  staff from the prior season.
    14    § 10. This act shall  take  effect  immediately  and  shall  apply  to
    15  initial  applications  received  on  or  after  April 1, 2023; provided,
    16  however, that the amendments  to  paragraph  4  of  subdivision  (e)  of
    17  section  24  of  the  tax law made by section six of this act shall take
    18  effect on the same date and in the same manner as section 6  of  chapter
    19  683 of the laws of 2019, as amended, takes effect.
 
    20                                   PART E
 
    21    Section  1.  Section  1085  of  the tax law is amended by adding a new
    22  subsection (e-1) to read as follows:
    23    (e-1) Waiver of addition for underpayment of estimated tax.  No  addi-
    24  tion  to  tax shall be imposed under subsection (c) of this section with
    25  respect to any underpayment to the extent  the  commissioner  determines
    26  that  by reason of casualty, disaster or other unusual circumstances the
    27  imposition of such addition to tax would  be  against  equity  and  good
    28  conscience.
    29    § 2. This act shall take effect immediately.
 
    30                                   PART F
 
    31    Section  1.  Subdivision  4 of section 484 of the economic development
    32  law, as added by section 1 of part E of chapter 59 of the laws of  2022,
    33  is amended to read as follows:
    34    4.  The  business entity must submit its application by [March thirty-
    35  first] September thirtieth, two thousand twenty-three.
    36    § 2. This act shall take effect immediately.
 
    37                                   PART G
 
    38    Section 1. Article 6 of the social services law is amended by adding a
    39  new title 1-A to read as follows:
    40                                  TITLE 1-A
    41            CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM
    42  Section 394.   Short title.
    43          394-a. Definitions.
    44          394-b. Eligibility criteria.
    45          394-c. Application and approval process.
    46          394-d. Child care creation and expansion tax credit.
    47          394-e. Allocation of credit.
    48          394-f. Powers and duties of the commissioner.
    49          394-g. Maintenance of records.

        S. 4009--C                         14                         A. 3009--C
 
     1    § 394. Short title. This title shall be known and may be cited as  the
     2  "child care creation and expansion tax credit program act".
     3    § 394-a. Definitions. For the purposes of this title:
     4    1.  "Certificate  of  tax  credit" shall mean the document issued to a
     5  business entity by the office after the office  has  verified  that  the
     6  business  entity  has  met  all  applicable eligibility criteria in this
     7  title. The certificate shall specify the exact amount of the tax  credit
     8  under  this  title that a business entity may claim, pursuant to section
     9  three hundred ninety-four-d of this title, and the service year.
    10    2. "Child care program" shall mean  a  child  day  care  for  which  a
    11  license  or  registration to operate such program has been issued by the
    12  office pursuant to section three hundred ninety of this article.
    13    3. "Child care rate" shall mean the weekly child care  subsidy  market
    14  rates,  based  on the eightieth percentile of the 2021-22 New York state
    15  child care market rate survey, for infant and toddler care provided by a
    16  licensed or registered child care program,  as  reflected  in  the  2022
    17  child  care market rate survey report published by the office in compli-
    18  ance with section 98.45 of title forty-five of the code of federal regu-
    19  lations.
    20    4. "Child care seats" shall mean the maximum number of children to  be
    21  allowed  on  the  premises of a child care program at any time that such
    22  program is in operation as specified  on  the  license  or  registration
    23  issued for such program by the office.
    24    5.  "Creates child care" shall mean the making available of child care
    25  seats in a child care program by a business entity, directly or  through
    26  a  third-party,  for employees of such business entity, where such child
    27  care program was not available prior to April first, two thousand  twen-
    28  ty-three,  provided  that  the  costs imposed on such employees for such
    29  child care program do not exceed forty percent of the child care rate.
    30    6. "Commissioner" shall mean commissioner of the  office  of  children
    31  and family services.
    32    7. "Expands child care" shall mean the increase in the number of child
    33  care  seats in a child care program made available by a business entity,
    34  directly or through a third party, for employees of such business  enti-
    35  ty,  provided  that  such  increase requires a new or amended license or
    36  registration issued by the office  pursuant  to  section  three  hundred
    37  ninety  of  this  article  on or after April first, two thousand twenty-
    38  three, and, provided further, that the costs imposed on  such  employees
    39  for  such  child  care  program do not exceed forty percent of the child
    40  care rate.
    41    8. "Occupied" shall mean, for each service year in which a child  care
    42  program is in operation, the average daily number of children in attend-
    43  ance on the premises of such child care program.
    44    9. "Office" shall mean the office of children and family services.
    45    10.  "Service  year"  shall  mean  the twelve-month period, or portion
    46  thereof, commencing on January first  and  ending  on  December  thirty-
    47  first.
    48    §  394-b.  Eligibility  criteria.  1.  To be eligible for a tax credit
    49  under the child care creation and expansion tax credit program, a  busi-
    50  ness entity must:
    51    (a)  be a business entity that is required to file a tax return pursu-
    52  ant to article nine-A, twenty-two or thirty-three of the tax law;
    53    (b) be a child care program, or contract with such child care program,
    54  as defined in this title that is  licensed  or  registered  pursuant  to
    55  section three hundred ninety of this article;

        S. 4009--C                         15                         A. 3009--C

     1    (c)  create  or  expand  child care seats, directly or through a third
     2  party, for the employees of such  business  entity  on  or  after  April
     3  first,  two thousand twenty-three and before January first, two thousand
     4  twenty-five;
     5    (d) operate a business location in New York state;
     6    (e)  be  in  substantial compliance with any child care licensing laws
     7  and regulations related to the entity's business sector  or  other  laws
     8  and regulations as determined by the commissioner; and
     9    (f)  not  owe  past due state taxes or local property taxes unless the
    10  business entity is making payments and complying with an approved  bind-
    11  ing payment agreement entered into with the taxing authority.
    12    §  394-c.  Application and approval process. 1. A business entity must
    13  submit a complete application as prescribed by the commissioner  by  the
    14  thirty-first of January after the end of the service year.
    15    2.  The  commissioner shall establish procedures for a business entity
    16  to submit applications. As part of the application, each business entity
    17  must:
    18    (a) provide evidence in a form and manner prescribed  by  the  commis-
    19  sioner of their business eligibility;
    20    (b) provide the license or registration issued to the business entity,
    21  directly or through a third party, by the office to operate a child care
    22  program  indicating  the  number  of child care seats created or, in the
    23  case of a child care program that has experienced an expansion of  child
    24  care seats, the license or registration issued by the office demonstrat-
    25  ing such expansion;
    26    (c)  provide  evidence  in a form and manner prescribed by the commis-
    27  sioner establishing:
    28    (i) the total number of child care seats that were occupied during the
    29  service year;
    30    (ii) of such total number of child care seats that were occupied,  the
    31  number  of  infant child care seats that were occupied and the number of
    32  toddler child care seats that were occupied;
    33    (iii) that, to the extent the business entity, directly or  through  a
    34  third  party, has expanded child care, the number of child care seats in
    35  existence before such expansion and the number of such child care  seats
    36  that were occupied before such expansion; and
    37    (iv)  that  the  costs  imposed on the business entity's employees for
    38  such child care program do not exceed forty percent of  the  child  care
    39  rate;
    40    (d) agree to allow the department of taxation and finance to share the
    41  business entity's tax information relevant to the administration of this
    42  title  with  the  office. However, any information shared as a result of
    43  this title shall not be available for disclosure or inspection under the
    44  state freedom of information law;
    45    (e) allow the office and its agents access to any and  all  books  and
    46  records the office may require to monitor compliance; and
    47    (f) agree to provide any additional information required by the office
    48  relevant to this title.
    49    3. After reviewing a business entity's completed final application and
    50  determining  that  the business entity meets the eligibility criteria as
    51  set forth in this title, the office may issue to that business entity  a
    52  certificate of tax credit, which shall set forth the amount of the cred-
    53  it that may be claimed and the service year.
    54    §  394-d.  Child care creation and expansion tax credit. 1. A business
    55  entity in the child care creation and expansion tax credit program  that
    56  meets   the   eligibility   requirements   of   section   three  hundred

        S. 4009--C                         16                         A. 3009--C

     1  ninety-four-b of this title may be eligible to claim a  credit  for  the
     2  portion of the service year in which the child care program was in oper-
     3  ation,  equal  to  the  sum  of: (a) the product of the number of infant
     4  child  care  seats that have been created or expanded and twenty percent
     5  of the child care rate for such infant child  care  seats  and  (b)  the
     6  product of the number of toddler child care seats that have been created
     7  or  expanded  and twenty percent of the child care rate for such toddler
     8  child care seats; provided that such infant and toddler child care seats
     9  are child care seats that are occupied.   Notwithstanding the  preceding
    10  sentence,  a credit shall not be allowed for more than twenty-five child
    11  care seats that are occupied, and the  amount  of  such  credit  may  be
    12  reduced as a result of an allocation of available funds, as described in
    13  section three hundred ninety-four-e of this title.
    14    2.  The  credit  shall  be allowed as provided in section forty-eight,
    15  subdivision fifty-nine of section two hundred ten-B, subsection (ooo) of
    16  section six hundred six and subdivision (ee) of section fifteen  hundred
    17  eleven of the tax law.
    18    §  394-e.  Allocation  of  credit. The aggregate amount of tax credits
    19  allowed under this title, subdivision fifty-nine of section two  hundred
    20  ten-B,  subsection (ooo) of section six hundred six and subdivision (ee)
    21  of section fifteen hundred eleven of the tax law  shall  be  twenty-five
    22  million  dollars  each  year during the period two thousand twenty-three
    23  and two thousand twenty-four. Such aggregate amount of credits shall  be
    24  allocated by the office on a pro rata basis to each business entity that
    25  demonstrates eligibility pursuant to section three hundred ninety-four-b
    26  of this title.
    27    §  394-f.  Powers  and duties of the commissioner. 1. The commissioner
    28  may promulgate  regulations  establishing  an  application  process  and
    29  eligibility criteria, which will be applied consistent with the purposes
    30  of  this  title  so  as  not to exceed the annual cap on tax credits set
    31  forth in this title, that, notwithstanding any provisions to the contra-
    32  ry in the state administrative procedure act, may be adopted on an emer-
    33  gency 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  eligible  businesses.  Such  certificate
    37  shall contain such information as required by the department of taxation
    38  and finance.
    39    3.  The  commissioner  shall  solely  determine the eligibility of any
    40  business entity applying for entry into the program and shall remove any
    41  business entity from the program for failing to meet any of the require-
    42  ments set forth in section three hundred ninety-four-b of this title.
    43    § 394-g. Maintenance of records. Each business entity participating in
    44  the program shall keep all relevant records for the  duration  of  their
    45  participation in the program for at least three years.
    46    §  2.  The  tax  law  is amended by adding a new section 48 to read as
    47  follows:
    48    § 48. Child care creation and expansion tax credit. (a)  Allowance  of
    49  credit.  A  taxpayer  subject to tax under article nine-A, twenty-two or
    50  thirty-three of this chapter shall be allowed a credit against such tax,
    51  pursuant to  the  provisions  referenced  in  subdivision  (f)  of  this
    52  section.  The  amount  of  the  credit is equal to the amount determined
    53  pursuant to section three hundred ninety-four-d of the  social  services
    54  law  and shall be claimed in the taxable year that includes the last day
    55  of the service year for which the  credit  is  calculated.  No  cost  or
    56  expense paid or incurred by the taxpayer that is included as part of the

        S. 4009--C                         17                         A. 3009--C
 
     1  calculation  of  this  credit shall be the basis of any other tax credit
     2  allowed under this chapter.
     3    (b) Eligibility. To be eligible for the child care creation and expan-
     4  sion  tax  credit,  the taxpayer shall have been issued a certificate of
     5  tax credit by the office of children and  family  services  pursuant  to
     6  section  three  hundred  ninety-four-c  of  the  social  services law. A
     7  taxpayer that is a partner in a partnership, member of a limited liabil-
     8  ity company or shareholder  in  a  subchapter  S  corporation  that  has
     9  received a certificate of tax credit shall be allowed its pro rata share
    10  of  the  credit  earned by the partnership, limited liability company or
    11  subchapter S corporation.
    12    (c) Tax return requirement. The taxpayer shall be required  to  attach
    13  to  its  tax return in the form prescribed by the commissioner, proof of
    14  receipt of its certificate of tax credit issued by the  commissioner  of
    15  the office of children and family services.
    16    (d)  Information  sharing. Notwithstanding any provision of this chap-
    17  ter, employees of the office of children and  family  services  and  the
    18  department shall be allowed and are directed to share and exchange:
    19    (1)  information  regarding the credit applied for, allowed or claimed
    20  pursuant to this section and taxpayers that are applying for the  credit
    21  or that are claiming the credit; and
    22    (2)  information  contained  in  or  derived  from  credit claim forms
    23  submitted to the department. Except as provided in paragraph one of this
    24  subdivision, all information exchanged between the  office  of  children
    25  and  family  services and the department shall not be subject to disclo-
    26  sure or inspection under the state's freedom of information law.
    27    (e) Credit recapture. If a certificate of tax  credit  issued  by  the
    28  office  of children and family services under title one-A of article six
    29  of the social services law is revoked by  such  office,  the  amount  of
    30  credit  described  in  this section and claimed by the taxpayer prior to
    31  that revocation shall be added back to tax in the taxable year in  which
    32  any such revocation becomes final.
    33    (f)  Cross  references.  For application of the credit provided for in
    34  this section, see the following provisions of this chapter:
    35    (1) article 9-A: section 210-B, subdivision 59;
    36    (2) article 22: section 606, subsection (ooo);
    37    (3) article 33: section 1511, subdivision (ee).
    38    § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
    39  sion 59 to read as follows:
    40    59.  Child  care  creation  and expansion tax credit. (a) Allowance of
    41  credit.   A taxpayer shall be  allowed  a  credit,  to  be  computed  as
    42  provided  in  section  forty-eight  of  this  chapter, against the taxes
    43  imposed by this article.
    44    (b) Application of credit. The credit allowed under  this  subdivision
    45  for  the taxable year shall not reduce the tax due for such year to less
    46  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
    47  section two hundred ten of this article. However, if the amount of cred-
    48  it  allowed  under this subdivision for the taxable year reduces the tax
    49  to such amount or if the taxpayer otherwise pays tax based on the  fixed
    50  dollar  minimum amount, any amount of credit thus not deductible in such
    51  taxable year shall be treated as an overpayment of tax to be credited or
    52  refunded in accordance with  the  provisions  of  section  one  thousand
    53  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    54  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    55  notwithstanding, no interest will be paid thereon.

        S. 4009--C                         18                         A. 3009--C
 
     1    §  4. Section 606 of the tax law is amended by adding a new subsection
     2  (ooo) to read as follows:
     3    (ooo)  Child  care creation and expansion tax credit. (1) Allowance of
     4  credit. A taxpayer shall be allowed a credit, to be computed as provided
     5  in section forty-eight of this chapter, against the tax imposed by  this
     6  article.
     7    (2)  Application  of credit. If the amount of the credit allowed under
     8  this subsection for the taxable year exceeds the taxpayer's tax for such
     9  year, the excess shall be treated as an overpayment of tax to be credit-
    10  ed or refunded in accordance with the provisions of section six  hundred
    11  eighty-six  of this article, provided, however, that no interest will be
    12  paid thereon.
    13    § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    14  of the tax law is amended by adding a new clause (l) to read as follows:
    15  (l) Child care creation and          Amount of credit
    16  expansion tax credit under           under subdivision fifty-nine
    17  subsection (ooo)                     of section two hundred
    18                                       ten-B
    19    §  6.  Section 1511 of the tax law is amended by adding a new subdivi-
    20  sion (ee) to read as follows:
    21    (ee) Child care creation and expansion tax credit.  (1)  Allowance  of
    22  credit. A taxpayer shall be allowed a credit, to be computed as provided
    23  in  section forty-eight of this chapter, against the tax imposed by this
    24  article.
    25    (2) Application of credit. The credit allowed under  this  subdivision
    26  shall  not  reduce the tax due for such year to be less than the minimum
    27  fixed by paragraph four of subdivision (a) of  section  fifteen  hundred
    28  two  or  section  fifteen  hundred  two-a  of this article, whichever is
    29  applicable.  However, if the amount of the  credit  allowed  under  this
    30  subdivision  for  any  taxable  year  reduces the taxpayer's tax to such
    31  amount, any amount of credit thus not deductible will be treated  as  an
    32  overpayment  of  tax  to  be credited or refunded in accordance with the
    33  provisions  of  section  one  thousand  eighty-six  of   this   chapter.
    34  Provided,  however,  the  provisions  of  subsection (c) of one thousand
    35  eighty-eight of this chapter notwithstanding, no interest shall be  paid
    36  thereon.
    37    § 7. This act shall take effect immediately.
 
    38                                   PART H
 
    39    Section  1. Subdivision (d) of section 1201-a of the tax law, as added
    40  by chapter 453 of the laws of 2009, paragraph 5 as  amended  by  chapter
    41  260 of the laws of 2015, is amended to read as follows:
    42    (d)  Biotechnology  credit.  1.  Any city in this state having a popu-
    43  lation of one million or more,  acting  through  its  local  legislative
    44  body,  is  hereby  authorized  to  adopt and amend local laws to allow a
    45  credit against the general corporation  tax[,]  and  the  unincorporated
    46  business  tax  [and the banking corporation tax] imposed pursuant to the
    47  authority of chapter seven hundred seventy-two of the laws  of  nineteen
    48  hundred  sixty-six  which shall be substantially identical to the credit
    49  [allowed under subdivision twelve-G of section two hundred ten  of  this
    50  chapter,  except  that  (A) whenever subdivision twelve-G of section two
    51  hundred ten of this chapter references the state, such  words  shall  be
    52  read as referencing the city, (B) such credit shall be allowed only to a
    53  taxpayer that (1) is a qualified emerging technology company pursuant to
    54  the provisions of paragraph (c) of subdivision one of section thirty-one

        S. 4009--C                         19                         A. 3009--C

     1  hundred  two-e  of  the public authorities law, except that such company
     2  shall mean a company located in such city,  (2)  engages  in  activities
     3  referenced  in  subparagraph five of paragraph (b) of subdivision one of
     4  section  thirty-one hundred two-e of the public authorities law, and (3)
     5  meets the eligibility  requirements  in  paragraph  (b)  of  subdivision
     6  twelve-G  of section two hundred ten of this chapter, and (C)] described
     7  in subdivision twenty-one of section 11-654 of the  administrative  code
     8  of  the  city  of New York, against the business corporation tax imposed
     9  pursuant to chapter sixty of the laws of two  thousand  fifteen,  except
    10  that  the  effective date of such credit against the general corporation
    11  tax and the unincorporated business tax shall be  as  provided  in  such
    12  local  laws.   [Subject to the limitations set forth in paragraph two of
    13  this subdivision, such]
    14    2. The credit allowed by paragraph one of this  subdivision  shall  be
    15  applied  in  a manner consistent with the credit [allowed under subdivi-
    16  sion twelve-G of section two hundred ten of this chapter]  described  in
    17  subdivision  twenty-one  of section 11-654 of the administrative code of
    18  the city of New York except as may be necessary  to  take  into  account
    19  differences  between  [article  nine-A  of  this  chapter] such business
    20  corporation tax and [the] such general corporation tax[, the]  and  such
    21  unincorporated business tax [or the banking corporation tax].
    22    [2.  (A) The percentage of the credit allowed to a taxpayer under this
    23  subdivision in any calendar year shall be:
    24    (1) If the average number  of  individuals  employed  full-time  by  a
    25  taxpayer  in  the  city  during the calendar year in which the credit is
    26  claimed is at least one hundred five percent of the taxpayer's base year
    27  employment, one hundred percent, except that in no case shall the credit
    28  allowed under this clause exceed two hundred fifty thousand dollars  per
    29  calendar  year.  Provided, however, the increase in base year employment
    30  shall not apply to a taxpayer allowed a credit  under  this  subdivision
    31  that  was,  (i) located outside of the city, (ii) not doing business, or
    32  (iii) did not have any employees, in the year preceding the  first  year
    33  that the credit was claimed.
    34    (2)  If  the  average  number  of  individuals employed full-time by a
    35  taxpayer in the city during the calendar year in  which  the  credit  is
    36  claimed  is  less  than  one hundred five percent of the taxpayer's base
    37  year employment, fifty percent, except that in no case shall the  credit
    38  allowed  under  this  clause  exceed  one  hundred  twenty-five thousand
    39  dollars per calendar year. In the case of an entity located in the  city
    40  of New York receiving space and business support services by an academic
    41  incubator  facility, as defined in subparagraph (vi) of paragraph (e) of
    42  subdivision twelve-G of section two hundred ten of this chapter, if  the
    43  average number of individuals employed full-time by such facility in the
    44  city  during  the  calendar  year in which the credit allowed under this
    45  subdivision is claimed is less than one  hundred  five  percent  of  the
    46  taxpayer's base year employment, the credit shall be zero.
    47    (B) For the purposes of this subdivision, "base year employment" means
    48  the  average number of individuals employed full-time by the taxpayer in
    49  the city in the year preceding the first  calendar  year  in  which  the
    50  credit is claimed.
    51    (C)  For  the purposes of this subdivision, average number of individ-
    52  uals employed full-time shall be computed by adding the number  of  such
    53  individuals  employed  by the taxpayer at the end of each quarter during
    54  each calendar year or other applicable period and dividing  the  sum  so
    55  obtained  by  the number of such quarters occurring within such calendar
    56  year or other applicable period.]

        S. 4009--C                         20                         A. 3009--C
 
     1    3. The aggregate amount of tax credits allowed under this  subdivision
     2  in  any  calendar year shall be up to three million dollars. Such aggre-
     3  gate amount of credits shall be allocated by the New York  city  depart-
     4  ment  of finance among eligible taxpayers on a pro rata basis. Taxpayers
     5  eligible  for  such  pro  rata allocation shall be determined by the New
     6  York city department of finance no later than February twenty-eighth  of
     7  the  succeeding  calendar  year  in  which  [the] a credit provided [in]
     8  pursuant to this subdivision is applied.
     9    4. The New York city department of finance shall establish by rule [by
    10  October thirty-first, two thousand nine,] procedures for the  allocation
    11  of  tax  credits  [as  required  by  paragraph  two of this subdivision]
    12  allowed by local laws adopted pursuant to this subdivision.  Such  rules
    13  shall  include  provisions  describing  the application process, the due
    14  dates for such applications, the standards that shall be used to  evalu-
    15  ate the applications, the documentation that will be provided to taxpay-
    16  ers  to substantiate the amount of tax credits allocated to such taxpay-
    17  ers, and such other provisions as deemed necessary and appropriate.
    18    5. Any local law adopted pursuant to this subdivision may provide  for
    19  a  credit  as  authorized  by  this  subdivision  for a maximum of three
    20  consecutive calendar years, provided, however, that any such credit:
    21    (A) may not apply to taxable years beginning before January first, two
    22  thousand ten or beginning on or after January first, two thousand  nine-
    23  teen; and
    24    (B) may not apply to taxable years beginning before January first, two
    25  thousand  twenty-three or beginning on or after January first, two thou-
    26  sand twenty-six.
    27    6.  Any city in this state having a population of one million or more,
    28  acting through its local legislative body, is authorized to provide  the
    29  credit  set  forth  in  subdivision  twenty-one of section 11-654 of the
    30  administrative code of the city of New York, against the business corpo-
    31  ration tax imposed pursuant to chapter sixty of the laws of two thousand
    32  fifteen, for a maximum of three consecutive  calendar  years,  provided,
    33  however,  that  such  credit  may  not  apply to taxable years beginning
    34  before January first, two thousand twenty-three or beginning on or after
    35  January first, two thousand twenty-six.
    36    § 2. Subparagraph 1 of paragraph (a)  of  subdivision  21  of  section
    37  11-654  of  the administrative code of the city of New York, as added by
    38  section 1 of part D of chapter 60 of the laws of  2015,  is  amended  to
    39  read as follows:
    40    (1)  A  taxpayer  that  is  a  qualified  emerging technology company,
    41  engages in biotechnologies, and meets the  eligibility  requirements  of
    42  this  subdivision,  shall be allowed a credit against the tax imposed by
    43  this subchapter. The amount of credit shall be equal to the sum  of  the
    44  amounts  specified  in  subparagraphs three, four and five of this para-
    45  graph, subject to the limitations in  [subparagraph]  subparagraphs  six
    46  and  seven  of  this paragraph [and], paragraph (b) of this subdivision,
    47  and paragraph three of subdivision (d) of section twelve  hundred  one-a
    48  of the tax law.  For the purposes of this subdivision, "qualified emerg-
    49  ing  technology  company"  shall mean a company located in the city: (i)
    50  whose primary products or services are classified as emerging  technolo-
    51  gies  and  whose  total  annual product sales are ten million dollars or
    52  less; or (ii) a company that has research and development activities  in
    53  the  city and whose ratio of research and development funds to net sales
    54  equals or exceeds the average ratio for all surveyed  companies  classi-
    55  fied as determined by the National Science Foundation in the most recent
    56  published  results from its Survey of Industry Research and Development,

        S. 4009--C                         21                         A. 3009--C
 
     1  or any comparable successor survey as determined by  the  department  of
     2  finance, and whose total annual product sales are ten million dollars or
     3  less.  For  the purposes of this subdivision, the definition of research
     4  and  development  funds  shall  be the same as that used by the National
     5  Science Foundation in the aforementioned survey.  For  the  purposes  of
     6  this  subdivision, "biotechnologies" shall mean the technologies involv-
     7  ing the scientific manipulation of living organisms, especially  at  the
     8  molecular  and/or  the  sub-molecular genetic level, to produce products
     9  conducive to improving the lives and  health  of  plants,  animals,  and
    10  humans; and the associated scientific research, pharmacological, mechan-
    11  ical,  and  computational applications and services connected with these
    12  improvements. Activities included with such  applications  and  services
    13  shall  include,  but  not  be limited to, alternative mRNA splicing, DNA
    14  sequence amplification, antigenetic  switching  bioaugmentation,  bioen-
    15  richment,  bioremediation,  chromosome walking, cytogenetic engineering,
    16  DNA diagnosis, fingerprinting,  and  sequencing,  electroporation,  gene
    17  translocation, genetic mapping, site-directed mutagenesis, bio-transduc-
    18  tion,  bio-mechanical  and bio-electrical engineering, and bio-informat-
    19  ics.
    20    § 3. This act shall take effect immediately, and shall  apply  to  tax
    21  years beginning on or after January 1, 2023.
 
    22                                   PART I
 
    23    Section  1.  This Part enacts into law major components of legislation
    24  relating to extending various taxes and tax credits. Each  component  is
    25  wholly  contained  within  a Subpart identified as Subparts A through E.
    26  The effective date for each particular provision contained  within  such
    27  Subpart  is set forth in the last section of such Subpart. Any provision
    28  in any section contained within a Subpart, including the effective  date
    29  of  the  Subpart, which makes reference to a section "of this act", when
    30  used in connection with that particular component, shall  be  deemed  to
    31  mean  and  refer to the corresponding section of the Subpart in which it
    32  is found. Section three of this Part sets forth  the  general  effective
    33  date of this Part.
 
    34                                  SUBPART A
 
    35    Section  1. The opening paragraph of paragraph (a) of subdivision 1 of
    36  section 210 of the tax law, as amended by section 1 of part HHH of chap-
    37  ter 59 of the laws of 2021, is amended to read as follows:
    38    For  taxable  years  beginning  before  January  first,  two  thousand
    39  sixteen,  the  amount  prescribed by this paragraph shall be computed at
    40  the rate of seven and  one-tenth  percent  of  the  taxpayer's  business
    41  income  base. For taxable years beginning on or after January first, two
    42  thousand sixteen, the amount prescribed by this paragraph shall  be  six
    43  and one-half percent of the taxpayer's business income base. For taxable
    44  years  beginning  on or after January first, two thousand twenty-one and
    45  before January first, two thousand [twenty-four]  twenty-seven  for  any
    46  taxpayer  with  a business income base for the taxable year of more than
    47  five million dollars, the amount prescribed by this paragraph  shall  be
    48  seven  and  one-quarter  percent of the taxpayer's business income base.
    49  The taxpayer's business income  base  shall  mean  the  portion  of  the
    50  taxpayer's  business  income apportioned within the state as hereinafter
    51  provided. However, in the case of a small business taxpayer, as  defined
    52  in  paragraph  (f)  of  this  subdivision, the amount prescribed by this

        S. 4009--C                         22                         A. 3009--C
 
     1  paragraph shall be computed pursuant to subparagraph (iv) of this  para-
     2  graph and in the case of a manufacturer, as defined in subparagraph (vi)
     3  of  this  paragraph,  the  amount  prescribed by this paragraph shall be
     4  computed  pursuant  to  subparagraph (vi) of this paragraph, and, in the
     5  case of a qualified emerging technology company, as defined in  subpara-
     6  graph  (vii)  of this paragraph, the amount prescribed by this paragraph
     7  shall be computed pursuant to subparagraph (vii) of this paragraph.
     8    § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of  section  210
     9  of the tax law, as amended by section 2 of part HHH of chapter 59 of the
    10  laws of 2021, is amended to read as follows:
    11    (1)  (i)  The  amount  prescribed  by this paragraph shall be computed
    12  at .15 percent for each dollar of the taxpayer's total business capital,
    13  or the portion thereof  apportioned  within  the  state  as  hereinafter
    14  provided  for taxable years beginning before January first, two thousand
    15  sixteen.  However, in the case of a cooperative housing  corporation  as
    16  defined  in  the internal revenue code, the applicable rate shall be .04
    17  percent until taxable years beginning on or  after  January  first,  two
    18  thousand twenty and zero percent for taxable years beginning on or after
    19  January  first,  two thousand twenty-one. The rate of tax for subsequent
    20  tax years shall be as follows: .125 percent for taxable years  beginning
    21  on  or  after  January  first,  two  thousand sixteen and before January
    22  first, two thousand seventeen; .100 percent for taxable years  beginning
    23  on  or  after  January  first, two thousand seventeen and before January
    24  first, two thousand eighteen; .075 percent for taxable  years  beginning
    25  on  or  after  January  first,  two thousand eighteen and before January
    26  first, two thousand nineteen; .050 percent for taxable  years  beginning
    27  on  or  after  January  first,  two thousand nineteen and before January
    28  first, two thousand twenty; .025 percent for taxable years beginning  on
    29  or  after  January  first, two thousand twenty and before January first,
    30  two thousand twenty-one; and .1875 percent for  years  beginning  on  or
    31  after  January  first, two thousand twenty-one and before January first,
    32  two thousand [twenty-four] twenty-seven, and zero  percent  for  taxable
    33  years  beginning  on  or after January first, two thousand [twenty-four]
    34  twenty-seven. Provided however, for taxable years beginning on or  after
    35  January  first,  two  thousand  twenty-one,  the rate of tax for a small
    36  business as defined in paragraph (f) of this subdivision shall  be  zero
    37  percent.  The rate of tax for a qualified New York manufacturer shall be
    38  .132 percent for taxable years beginning on or after January first,  two
    39  thousand  fifteen  and  before January first, two thousand sixteen, .106
    40  percent for taxable years beginning on or after January first, two thou-
    41  sand sixteen and before January  first,  two  thousand  seventeen,  .085
    42  percent for taxable years beginning on or after January first, two thou-
    43  sand  seventeen  and  before  January first, two thousand eighteen; .056
    44  percent for taxable years beginning on or after January first, two thou-
    45  sand eighteen and before January  first,  two  thousand  nineteen;  .038
    46  percent for taxable years beginning on or after January first, two thou-
    47  sand  nineteen  and  before  January  first,  two  thousand twenty; .019
    48  percent for taxable years beginning on or after January first, two thou-
    49  sand twenty and before January first, two thousand twenty-one; and  zero
    50  percent  for  years  beginning  on  or after January first, two thousand
    51  twenty-one. (ii) In no event shall the amount prescribed by  this  para-
    52  graph exceed three hundred fifty thousand dollars for qualified New York
    53  manufacturers and for all other taxpayers five million dollars.
    54    § 3. This act shall take effect immediately.
 
    55                                  SUBPART B

        S. 4009--C                         23                         A. 3009--C
 
     1    Section  1.  Subparagraph  (A)  of  paragraph  1 of subsection (oo) of
     2  section 606 of the tax law, as amended by section 1 of part CCC of chap-
     3  ter 59 of the laws of 2021, is amended to read as follows:
     4    (A)  For  taxable years beginning on or after January first, two thou-
     5  sand ten and before January first, two thousand [twenty-five] thirty,  a
     6  taxpayer  shall be allowed a credit as hereinafter provided, against the
     7  tax imposed by this article, in an amount equal to one  hundred  percent
     8  of the amount of credit allowed the taxpayer with respect to a certified
     9  historic structure, and one hundred fifty percent of the amount of cred-
    10  it  allowed  the taxpayer with respect to a certified historic structure
    11  that is a small project, under internal revenue code  section  47(c)(3),
    12  determined  without  regard to ratably allocating the credit over a five
    13  year period as required by subsection  (a)  of  such  section  47,  with
    14  respect  to  a  certified  historic  structure located within the state.
    15  Provided, however, the credit shall not exceed five million dollars. For
    16  taxable years beginning on or after January first, two  thousand  [twen-
    17  ty-five]  thirty,  a  taxpayer  shall be allowed a credit as hereinafter
    18  provided, against the tax imposed by this article, in an amount equal to
    19  thirty percent of the amount of credit allowed the taxpayer with respect
    20  to a certified historic structure under internal  revenue  code  section
    21  47(c)(3),  determined  without  regard  to ratably allocating the credit
    22  over a five year period as required by subsection (a)  of  such  section
    23  47,  with  respect  to a certified historic structure located within the
    24  state; provided, however, the credit shall not exceed one hundred  thou-
    25  sand dollars.
    26    §  2.  Subparagraph  (i) of paragraph (a) of subdivision 26 of section
    27  210-B of the tax law, as amended by section 2 of part CCC of chapter  59
    28  of the laws of 2021, is amended to read as follows:
    29    (i)  For  taxable years beginning on or after January first, two thou-
    30  sand ten, and before January first, two thousand [twenty-five] thirty, a
    31  taxpayer shall be allowed a credit as hereinafter provided, against  the
    32  tax  imposed  by this article, in an amount equal to one hundred percent
    33  of the amount of credit allowed the taxpayer for the same  taxable  year
    34  with  respect  to  a certified historic structure, and one hundred fifty
    35  percent of the amount of credit allowed the taxpayer with respect  to  a
    36  certified  historic  structure  that  is a small project, under internal
    37  revenue code section 47(c)(3),  determined  without  regard  to  ratably
    38  allocating  the credit over a five year period as required by subsection
    39  (a) of such section 47, with respect to a certified  historic  structure
    40  located within the state. Provided, however, the credit shall not exceed
    41  five million dollars.
    42    §  3.  Clause (B) of subparagraph (ii) of paragraph (a) of subdivision
    43  26 of section 210-B of the tax law, as added by section 17 of part A  of
    44  chapter  59  of the laws of 2014, is redesignated as paragraph (a-1) and
    45  is amended to read as follows:
    46    (a-1) If the taxpayer is a partner in a partnership or  a  shareholder
    47  in  a  New York S corporation, then the credit caps imposed in [subpara-
    48  graph (A)] paragraph  (a)  of  this  [paragraph]  subdivision  shall  be
    49  applied at the entity level, so that the aggregate credit allowed to all
    50  the  partners  or  shareholders  of each such entity in the taxable year
    51  does not exceed the credit cap that is applicable in that taxable year.
    52    § 4. Subparagraph (ii) of paragraph (a) of subdivision 26  of  section
    53  210-B  of  the tax law, as amended by section 2 of part RR of chapter 59
    54  of the laws of 2018, is amended to read as follows:
    55    (ii) For taxable years beginning on or after January first, two  thou-
    56  sand [twenty-five] thirty, a taxpayer shall be allowed a credit as here-

        S. 4009--C                         24                         A. 3009--C
 
     1  inafter  provided, against the tax imposed by this article, in an amount
     2  equal to thirty percent of the amount of credit allowed the taxpayer for
     3  the same taxable year determined without regard  to  ratably  allocating
     4  the  credit  over  a  five  year period as required by subsection (a) of
     5  section 47 of the internal revenue code, with  respect  to  a  certified
     6  historic structure under subsection (c)(3) of section 47 of the internal
     7  revenue  code  with  respect  to  a certified historic structure located
     8  within the state. Provided, however, the credit  shall  not  exceed  one
     9  hundred thousand dollars.
    10    §  5.  Subparagraph  (A)  of paragraph 1 of subdivision (y) of section
    11  1511 of the tax law, as amended by section 3 of part CCC of  chapter  59
    12  of the laws of 2021, is amended to read as follows:
    13    (A)  For  taxable years beginning on or after January first, two thou-
    14  sand ten and before January first, two thousand [twenty-five] thirty,  a
    15  taxpayer  shall be allowed a credit as hereinafter provided, against the
    16  tax imposed by this article, in an amount equal to one  hundred  percent
    17  of the amount of credit allowed the taxpayer with respect to a certified
    18  historic structure, and one hundred fifty percent of the amount of cred-
    19  it  allowed  the taxpayer with respect to a certified historic structure
    20  that is a small project, under internal revenue code  section  47(c)(3),
    21  determined  without  regard to ratably allocating the credit over a five
    22  year period as required by subsection  (a)  of  such  section  47,  with
    23  respect  to  a  certified  historic  structure located within the state.
    24  Provided, however, the credit shall not exceed five million dollars. For
    25  taxable years beginning on or after January first, two  thousand  [twen-
    26  ty-five]  thirty,  a  taxpayer  shall be allowed a credit as hereinafter
    27  provided, against the tax imposed by this article, in an amount equal to
    28  thirty percent of the amount of credit allowed the taxpayer with respect
    29  to a certified historic structure under internal  revenue  code  section
    30  47(c)(3),  determined  without  regard  to ratably allocating the credit
    31  over a five year period as required by subsection (a) of such section 47
    32  with respect to a certified historic structure located within the state.
    33  Provided, however, the credit shall  not  exceed  one  hundred  thousand
    34  dollars.
    35    § 6. This act shall take effect immediately.
 
    36                                  SUBPART C
 
    37    Section  1.  Paragraph  1  of subdivision (a) of section 28 of the tax
    38  law, as amended by section 1 of part AAA of chapter 59 of  the  laws  of
    39  2019, is amended to read as follows:
    40    (1)  A taxpayer which is a qualified commercial production company, or
    41  which is a sole proprietor of a qualified commercial production company,
    42  and which is subject to tax under article nine-A or twenty-two  of  this
    43  chapter,  shall  be  allowed  a credit against such tax, pursuant to the
    44  provisions referenced in subdivision (c) of this section, to be computed
    45  as provided in this section. Provided, however, to be eligible for  such
    46  credit, at least seventy-five percent of the production costs (excluding
    47  post  production  costs)  paid or incurred directly and predominantly in
    48  the actual filming or recording of  the  qualified  commercial  must  be
    49  costs  incurred  in  New  York state. The tax credit allowed pursuant to
    50  this section shall apply  to  taxable  years  beginning  before  January
    51  first, two thousand [twenty-four] twenty-nine.
    52    §  2. Paragraph (c) of subdivision 23 of section 210-B of the tax law,
    53  as amended by chapter 518 of the laws of 2018, is  amended  to  read  as
    54  follows:

        S. 4009--C                         25                         A. 3009--C
 
     1    (c)  Expiration  of  credit. The credit allowed under this subdivision
     2  shall not be applicable to taxable years beginning on or  after  January
     3  first, two thousand [twenty-four] twenty-nine.
     4    §  3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
     5  amended by chapter 518 of the laws  of  2018,  is  amended  to  read  as
     6  follows:
     7    (1)  Allowance  of credit. A taxpayer that is eligible pursuant to the
     8  provisions of section twenty-eight of this chapter shall  be  allowed  a
     9  credit  to  be  computed  as  provided  in  such section against the tax
    10  imposed by this article. The tax credit allowed pursuant to this section
    11  shall apply to taxable years beginning before January first,  two  thou-
    12  sand [twenty-four] twenty-nine.
    13    § 4. This act shall take effect immediately.
 
    14                                  SUBPART D
 
    15    Section  1.  Paragraph  1  of subdivision (a) of section 47 of the tax
    16  law, as added by section 1 of part I of chapter 59 of the laws of  2022,
    17  is amended to read as follows:
    18    (1)  Allowance  of  credit.  A  taxpayer  that  meets  the eligibility
    19  requirements of subdivision (b) of this section and is  subject  to  tax
    20  under  article  nine-A  or twenty-two of this chapter may be eligible to
    21  claim a grade no. 6 heating oil conversion tax  credit  in  the  taxable
    22  year  the  conversion  is  complete.  The credit shall be equal to fifty
    23  percent of the conversion costs for  all  of  the  taxpayer's  buildings
    24  located at a facility regulated pursuant to section 19-0302 or title ten
    25  of article seventeen of the environmental conservation law, paid by such
    26  taxpayer  on  or after January first, two thousand twenty-two and before
    27  [July] January first, two  thousand  [twenty-three]  twenty-four.    The
    28  credit cannot exceed five hundred thousand dollars per facility.
    29    § 2. This act shall take effect immediately.
 
    30                                  SUBPART E
 
    31    Section 1. Section 6 of subpart B of part PP of chapter 59 of the laws
    32  of  2021  amending  the  tax  law  and the state finance law relating to
    33  establishing the New York city musical  and  theatrical  production  tax
    34  credit  and establishing the New York state council on the arts cultural
    35  program fund, as amended by section 7 of part F of  chapter  59  of  the
    36  laws of 2022, is amended to read as follows:
    37    §  6.  This  act shall take effect immediately; provided however, that
    38  [section] sections one, two, three and four of this act shall  apply  to
    39  taxable  years beginning on or after January 1, 2021, and before January
    40  1, [2024] 2026 and shall expire and be deemed repealed January 1, [2024]
    41  2026; provided further, however that the obligations under  paragraph  3
    42  of  subdivision  (g) of section 24-c of the tax law, as added by section
    43  one of this act, shall remain in effect until December 31, [2025] 2027.
    44    § 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
    45  amended by section 1 of part F of chapter 59 of the  laws  of  2022,  is
    46  amended to read as follows:
    47    (2)  The  amount of the credit shall be the product (or pro rata share
    48  of the product, in the case of a member of a partnership) of twenty-five
    49  percent and the sum of the qualified production  expenditures  paid  for
    50  during  the  qualified New York city musical and theatrical production's
    51  credit period. Provided however that the amount  of  the  credit  cannot
    52  exceed  three hundred fifty thousand dollars per qualified New York city

        S. 4009--C                         26                         A. 3009--C
 
     1  musical and theatrical production in a level two qualified New York city
     2  production facility and three million dollars  per  qualified  New  York
     3  city  musical  and  theatrical  production  [for productions whose first
     4  performance  is  prior to January first, two thousand twenty-three.  For
     5  productions whose first performance is on or after  January  first,  two
     6  thousand  twenty-three,  such  cap  shall  decrease  to one million five
     7  hundred thousand dollars per qualified New York city musical and  theat-
     8  rical production unless the New York city tourism economy has not suffi-
     9  ciently  recovered, as determined by the department of economic develop-
    10  ment in consultation with the division of  the  budget.  In  determining
    11  whether  the  New  York city tourism economy has sufficiently recovered,
    12  the department of economic development will perform an analysis  of  key
    13  New York city economic indicators which shall include, but not be limit-
    14  ed  to,  hotel  occupancy  rates  and  travel metrics. The department of
    15  economic development's analysis shall also be informed by the status  of
    16  any  remaining COVID-19 restrictions affecting New York city musical and
    17  theatrical  productions]  in  a  level  one  qualified  New  York   city
    18  production  facility.    In  no  event  shall  a qualified New York city
    19  musical and theatrical production be eligible for more than  one  credit
    20  under this program.
    21    §  2-a. Paragraphs 1, 2, 3 and 4 of subdivision (b) of section 24-c of
    22  the tax law, as added by section 1 of subpart B of part PP of chapter 59
    23  of the laws of 2021, are amended to read as follows:
    24    (1) "Qualified New York city musical and theatrical production"  means
    25  a  for-profit live, dramatic stage presentation that, in its original or
    26  adaptive version, is performed in a level one or level two qualified New
    27  York city production  facility,  whether  or  not  such  production  was
    28  performed in a level one or level two qualified New York city production
    29  facility  prior  to  the  state disaster emergency pursuant to executive
    30  order two hundred two of two thousand twenty,  provided,  however,  that
    31  productions performing in a level two qualified New York city production
    32  facility  shall  have a production budget greater than or equal to seven
    33  hundred fifty thousand dollars and incur qualified  production  expendi-
    34  tures greater than or equal to seven hundred fifty thousand dollars.
    35    (2)  "Qualified  production  expenditure" means any costs for tangible
    36  property used and services performed directly and predominantly  in  the
    37  production  of  a qualified musical and theatrical production within the
    38  state of New York, including: (i) expenditures for design,  construction
    39  and  operation,  including  sets,  special and visual effects, costumes,
    40  wardrobes, make-up, accessories and costs associated with sound,  light-
    41  ing, and staging; (ii) all salaries, wages, fees, and other compensation
    42  including  related  benefits  for  services performed of which the total
    43  allowable expense shall not exceed  two  hundred  thousand  dollars  per
    44  week;  and  (iii)  technical and crew production costs, such as expendi-
    45  tures for a level one or level two qualified New  York  city  production
    46  facility,  or  any  part  thereof,  props,  make-up, wardrobe, costumes,
    47  equipment used for special and  visual  effects,  sound  recording,  set
    48  construction,  and  lighting.  Qualified production expenditure does not
    49  include any costs incurred prior to the credit period of a qualified New
    50  York city musical and theatrical production company.
    51    (3) (i) "[Qualified] Level one  qualified  New  York  city  production
    52  facility" means a facility located within the [city of New York (i)] (A)
    53  borough  of  Manhattan,  bounded by and including forty-first street and
    54  fifty-fourth street and between sixth avenue and ninth avenue  in  which
    55  live  theatrical  productions  are  or  are  intended  to  be  primarily
    56  presented, [(ii)] (B) that contains at least one stage, a seating capac-

        S. 4009--C                         27                         A. 3009--C

     1  ity of five hundred or more seats, and dressing  rooms,  storage  areas,
     2  and  other  ancillary  amenities necessary for the qualified musical and
     3  theatrical production, and [(iii)] (C) for which  receipts  attributable
     4  to  [ticket  sales]  live theatrical productions constitute seventy-five
     5  percent or more of gross receipts of the facility.
     6    (ii) "Level two qualified New York city production facility"  means  a
     7  facility  located  within  the  borough  of  Manhattan (A) in which live
     8  theatrical  productions are or are intended to be  primarily  presented,
     9  (B)   that   contains at least one stage,  a  seating  capacity  of  one
    10  hundred  or  more  seats,  and  dressing rooms, storage areas, and other
    11  ancillary amenities necessary for the qualified musical  and  theatrical
    12  production,  and  (C) for which receipts attributable to live theatrical
    13  productions constitute seventy-five percent or more of gross receipts of
    14  the facility.
    15    (4) "Qualified New York city musical and theatrical production  compa-
    16  ny"  is a corporation, partnership, limited partnership, or other entity
    17  or individual which or who is principally engaged in the production of a
    18  qualified musical or theatrical production that is to be performed in  a
    19  level one or level two qualified New York city production facility.
    20    §  3.  Subparagraph  (i)  of paragraph 5 of subdivision (b) of section
    21  24-c of the tax law, as amended by section 2 of part F of chapter 59  of
    22  the laws of 2022, is amended to read as follows:
    23    (i) "The credit period of a qualified New York city musical and theat-
    24  rical production company" is the period starting on the production start
    25  date  and  ending  on  the earlier of the date the qualified musical and
    26  theatrical  production  has  expended  sufficient  qualified  production
    27  expenditures  to reach its credit cap, September thirtieth, two thousand
    28  [twenty-three] twenty-five or the date the qualified musical and  theat-
    29  rical production closes.
    30    §  3-a.  Subdivision  (b) of section 24-c of the tax law is amended by
    31  adding a new paragraph 6 to read as follows:
    32    (6) "Production budget" means all estimated costs to  be  incurred  or
    33  paid before the first public appearance.
    34    §  4.  Subdivision  (c)  of  section  24-c of the tax law, as added by
    35  section 1 of subpart B of part PP of chapter 59 of the laws of 2021,  is
    36  amended to read as follows:
    37    (c)  The  credit shall be allowed for the taxable year beginning on or
    38  after January first, two thousand twenty-one but before  January  first,
    39  two  thousand  [twenty-four]  twenty-six.    A  qualified  New York city
    40  musical and theatrical production company shall claim the credit in  the
    41  year in which its credit period ends.
    42    §  5. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the tax
    43  law, paragraph 1 as amended by section 3 of part F of chapter 59 of  the
    44  laws of 2022, and paragraph 2 as amended by section 4 of part F of chap-
    45  ter 59 of the laws of 2022, are amended to read as follows:
    46    (1)  The  aggregate  amount of tax credits allowed under this section,
    47  subdivision fifty-seven of section  two  hundred  ten-B  and  subsection
    48  (mmm)  of  section  six hundred six of this chapter shall be [two] three
    49  hundred million dollars. Such aggregate amount of credits shall be allo-
    50  cated by the department of economic development among taxpayers based on
    51  the date of first performance of the qualified  musical  and  theatrical
    52  production.
    53    (2)  The  commissioner  of economic development, after consulting with
    54  the commissioner, shall promulgate regulations to  establish  procedures
    55  for  the  allocation  of  tax  credits as required by this section. Such
    56  rules and regulations shall include provisions describing  the  applica-

        S. 4009--C                         28                         A. 3009--C
 
     1  tion  process,  the  due dates for such applications, the standards that
     2  will be used to evaluate the applications, the documentation  that  will
     3  be  provided  by applicants to substantiate to the department the amount
     4  of  qualified production expenditures of such applicants, and such other
     5  provisions as deemed  necessary  and  appropriate.  Notwithstanding  any
     6  other  provisions  to the contrary in the state administrative procedure
     7  act, such rules and regulations may be adopted on an emergency basis. In
     8  no event  shall  a  qualified  New  York  city  musical  and  theatrical
     9  production  submit an application for this program after June thirtieth,
    10  two thousand [twenty-three] twenty-five.
    11    § 5-a. Subdivision (g) of section 24-c of the tax law, as  amended  by
    12  section  5  of  part  F of chapter 59 of the laws of 2022, is amended to
    13  read as follows:
    14    (g) Any qualified New York  city  musical  and  theatrical  production
    15  company  that  performs  in  a level one or level two qualified New York
    16  city production facility and applies to  receive  a  credit  under  this
    17  section  shall  be  required  to:    (1) participate in a New York state
    18  diversity and arts job training program; (2) create and implement a plan
    19  to ensure that their production is available and accessible  for  low-or
    20  no-cost  to  low  income New Yorkers; and (3) contribute to the New York
    21  state council on the arts, cultural program fund an amount up  to  fifty
    22  percent  of  the  total credits received if its production earns ongoing
    23  revenue prospectively after the end of the  credit  period  that  is  at
    24  least equal to two hundred percent of its ongoing production costs, with
    25  such  amount  payable from twenty-five percent of net operating profits,
    26  such amounts payable on a monthly basis, up until such fifty percent  of
    27  the total credit amount is reached. Any funds deposited pursuant to this
    28  subdivision  may be used for arts and cultural grant programs of the New
    29  York state council on the arts  as  specified  in  subdivision  five  of
    30  section ninety-nine-ll of the state finance law.
    31    §  6. This act shall take effect immediately; provided that the amend-
    32  ments to section 24-c of the tax law made by sections two, two-a, three,
    33  three-a, four, five and five-a of this act shall not affect  the  repeal
    34  of such section and shall be deemed repealed therewith.
    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 dates of Subparts A through E of this act shall
    46  be as specifically set forth in the last section of such Subparts.
 
    47                                   PART J
 
    48    Section  1.  This  act enacts into law major components of legislation
    49  relating to taxation.  Each  component  is  wholly  contained  within  a
    50  Subpart  identified as Subparts A through C. The effective date for each
    51  particular provision contained within such Subpart is set forth  in  the
    52  last  section  of  such  Subpart. Any provision in any section contained
    53  within a Subpart, including the effective date  of  the  Subpart,  which
    54  makes reference to a section "of this act", when used in connection with

        S. 4009--C                         29                         A. 3009--C
 
     1  that  particular  component,  shall  be  deemed to mean and refer to the
     2  corresponding section of the Subpart in which it is found. Section three
     3  of this act sets forth the general effective date of this act.
 
     4                                  SUBPART A
 
     5    Section 1. Paragraph (b) of subdivision 38 of section 210-B of the tax
     6  law,  as  amended  by  section  2 of part L of chapter 59 of the laws of
     7  2022, is amended to read as follows:
     8    (b) Definitions. The term "accessible by  individuals  with  disabili-
     9  ties"  shall,  for  the purposes of this subdivision, refer to a vehicle
    10  that complies with federal regulations promulgated pursuant to the Amer-
    11  icans with Disabilities Act applicable to vans under twenty-two feet  in
    12  length,  by the federal Department of Transportation, in Code of Federal
    13  Regulations, title 49, parts 37 and 38[, and by the federal Architecture
    14  and Transportation Barriers Compliance Board, in Code of  Federal  Regu-
    15  lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
    16  ty  Standards, Code of Federal Regulations, title 49, part [57] 571. The
    17  term "electric vehicle" shall, for the  purposes  of  this  subdivision,
    18  have  the  same  meaning as in section sixty-six-s of the public service
    19  law.
    20    § 2. Paragraph 2 of subsection (tt) of section 606 of the tax law,  as
    21  amended  by  section  4  of part L of chapter 59 of the laws of 2022, is
    22  amended to read as follows:
    23    (2) Definitions. The term "accessible by  individuals  with  disabili-
    24  ties"  shall,  for  the  purposes of this subsection, refer to a vehicle
    25  that complies with federal regulations promulgated pursuant to the Amer-
    26  icans with Disabilities Act applicable to vans under twenty-two feet  in
    27  length,  by the federal Department of Transportation, in Code of Federal
    28  Regulations, title 49, parts 37 and 38[, and by the federal Architecture
    29  and Transportation Barriers Compliance Board, in Code of  Federal  Regu-
    30  lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
    31  ty Standards, Code of Federal Regulations, title [29] 49, part [57] 571.
    32  The  term "electric vehicle" shall, for the purposes of this subsection,
    33  have the same meaning as in section sixty-six-s of  the  public  service
    34  law.
    35    § 3. This act shall take effect immediately and shall apply to taxable
    36  years  beginning on or after January 1, 2023; provided the amendments to
    37  paragraph (2) of subsection (tt) of section 606 of the tax law  made  by
    38  section  two  of this act shall not affect the repeal of such subsection
    39  and shall be deemed repealed therewith.
 
    40                                  SUBPART B
 
    41    Section 1. Paragraph 2 of subdivision (b) of section  21  of  the  tax
    42  law,  as  amended  by  section 7 of part LL of chapter 58 of the laws of
    43  2022, is amended to read as follows:
    44    (2) Site preparation costs. The term "site  preparation  costs"  shall
    45  mean  all  amounts  properly  chargeable to a capital account, which are
    46  paid or incurred which are necessary  to  implement  a  site's  investi-
    47  gation,  remediation,  or qualification for a certificate of completion,
    48  and shall include costs of: excavation; demolition; activities undertak-
    49  en under the oversight of the department of labor or in accordance  with
    50  standards  established  by  the  department  of  health to remediate and
    51  dispose of regulated materials including asbestos, lead  or  polychlori-
    52  nated  biphenyls;  environmental  consulting;  engineering; legal costs;

        S. 4009--C                         30                         A. 3009--C
 
     1  transportation, disposal, treatment or containment of contaminated soil;
     2  remediation measures taken to address  contaminated  soil  vapor;  cover
     3  systems  consistent  with  applicable  regulations;  physical support of
     4  excavation;  dewatering  and  other work to facilitate or enable remedi-
     5  ation activities; sheeting,  shoring,  and  other  engineering  controls
     6  required  to prevent off-site migration of contamination from the quali-
     7  fied site or migrating onto the qualified site; and the costs  of  fenc-
     8  ing,  temporary  electric  wiring,  scaffolding, and security facilities
     9  until such time as the certificate of completion has been  issued.  Site
    10  preparation shall include all costs paid or incurred within sixty months
    11  after  the  last  day  of  the  tax  year  in  which  the certificate of
    12  completion is issued that are necessary for compliance with the  certif-
    13  icate of completion or subsequent modifications thereof, or the remedial
    14  program  defined  in  such  certificate  of completion including but not
    15  limited to institutional controls,  engineering  controls,  an  approved
    16  site  management plan, and an environmental easement with respect to the
    17  qualified site; provided, however, with respect to  any  qualified  site
    18  for  which  [the  department  of environmental conservation has issued a
    19  notice to the taxpayer on or after July first, two thousand fifteen  but
    20  on  or  before  June  twenty-fourth,  two  thousand  twenty-one that its
    21  request for participation has been accepted  under  subdivision  six  of
    22  section  27-1407 of the environmental conservation law] a certificate of
    23  completion was issued on or after July first, two thousand  fifteen  but
    24  on  or before June twenty-fourth, two thousand twenty-one, site prepara-
    25  tion shall include all costs paid or incurred within eighty-four  months
    26  after  the  last  day  of  the  tax  year  in  which  the certificate of
    27  completion is issued that are necessary for compliance with the  certif-
    28  icate of completion or subsequent modifications thereof, or the remedial
    29  program  defined  in  such  certificate  of completion including but not
    30  limited to institutional controls,  engineering  controls,  an  approved
    31  site  management plan, and an environmental easement with respect to the
    32  qualified site, provided, however, with respect to  any  qualified  site
    33  located  in cities with a population greater than two hundred five thou-
    34  sand and less than two hundred fifteen thousand in counties with a popu-
    35  lation greater than one million but less than one million  ten  thousand
    36  based on the latest federal decennial census for which the department of
    37  environmental conservation has issued a certificate of completion to the
    38  taxpayer  on  or  after January first, two thousand seventeen and before
    39  December thirty-first, two thousand  seventeen,  this  credit  component
    40  shall  be  allowed for up to one hundred eighty months after the date of
    41  the issuance of such certificate of completion.  Site  preparation  cost
    42  shall  not include the costs of foundation systems that exceed the cover
    43  system requirements in the regulations applicable to the qualified site.
    44    § 2. Subparagraph (i) of paragraph 3 of subdivision (a) of section  21
    45  of  the tax law, as amended by section 9 of part LL of chapter 58 of the
    46  laws of 2022, is amended to read as follows:
    47    (i) The tangible property credit  component  shall  be  equal  to  the
    48  applicable  percentage of the cost or other basis for federal income tax
    49  purposes of tangible personal  property  and  other  tangible  property,
    50  including  buildings  and  structural  components  of  buildings,  which
    51  constitute qualified tangible property and may include any related party
    52  service fee paid; provided that in determining the cost or  other  basis
    53  of such property, the taxpayer shall exclude the acquisition cost of any
    54  item  of  property with respect to which a credit under this section was
    55  allowable to  another  taxpayer;  and  provided  further  that  for  the
    56  purposes  of this section, starting with taxable year two thousand twen-

        S. 4009--C                         31                         A. 3009--C
 
     1  ty-two, on sites that comply with the track  one  remediation  standards
     2  promulgated pursuant to subdivision four of section 27-1415 of the envi-
     3  ronmental  conservation law, stadiums, baseball parks, basketball courts
     4  and  other  athletic  facilities shall be considered buildings, and that
     5  components of stadiums, baseball parks,  basketball  courts,  and  other
     6  athletic  facilities  constructed  on such sites, including sports field
     7  turf, site  lighting,  sidewalks,  access  and  entry  ways,  and  other
     8  improvements added to land, shall be considered structural components of
     9  buildings  under the internal revenue code, and shall be included in the
    10  definition of tangible property for the  purposes  of  this  section.  A
    11  related  party  service  fee shall be allowed only in the calculation of
    12  the tangible property credit component and shall not be allowed  in  the
    13  calculation  of  the  site  preparation  credit component or the on-site
    14  groundwater remediation credit component. The portion  of  the  tangible
    15  property credit component which is attributable to related party service
    16  fees  shall be allowed only as follows: (A) in the taxable year in which
    17  the qualified tangible property described in subparagraph (iii) of  this
    18  paragraph  is  placed  in service, for that portion of the related party
    19  service fees which have been earned and actually  paid  to  the  related
    20  party  on  or  before  the  last  day of such taxable year; and (B) with
    21  respect to any other taxable year for which the tangible property credit
    22  component may be claimed under this subparagraph and in which the amount
    23  of any additional related party service fees are actually  paid  by  the
    24  taxpayer  to  the  related party, the tangible property credit component
    25  for such amount shall be allowed in such taxable year. The credit compo-
    26  nent amount so determined shall be allowed for the taxable year in which
    27  such qualified tangible property is first placed in service on a  quali-
    28  fied  site  with  respect  to which a certificate of completion has been
    29  issued to the taxpayer, or for the taxable year in which the certificate
    30  of completion is issued if the qualified tangible property is placed  in
    31  service  prior  to  the  issuance of the certificate of completion. This
    32  credit component shall only be allowed for  up  to  one  hundred  twenty
    33  months after the date of the issuance of such certificate of completion,
    34  provided,  however,  that  for qualified sites to which a certificate of
    35  completion is issued on or after March twentieth, two thousand ten,  but
    36  prior to January first, two thousand twelve, the commissioner may extend
    37  the  credit  component for up to one hundred forty-four months after the
    38  date of such issuance, if the commissioner,  in  consultation  with  the
    39  commissioner of environmental conservation, determines that the require-
    40  ments  for  the  credit  would have been met if not for the restrictions
    41  related to the state disaster emergency declared pursuant  to  executive
    42  order 202 of 2020 or any extension thereof or subsequent executive order
    43  issued  in  response  to  the  novel  coronavirus  (COVID-19)  pandemic;
    44  provided, however, with respect to any  qualified  site  for  which  the
    45  department  of  environmental  conservation  has issued a certificate of
    46  completion to the taxpayer on or after March twentieth, two thousand ten
    47  and before December thirty-first,  two  thousand  fifteen,  this  credit
    48  component shall be allowed for up to one hundred eighty months after the
    49  date  of  the  issuance  of such certificate of completion; and provided
    50  further, with respect to any qualified site located  in  cities  with  a
    51  population  greater  than  two  hundred  five thousand and less than two
    52  hundred fifteen thousand in counties with a population greater than  one
    53  million  but  less  than  one  million  ten thousand based on the latest
    54  federal decennial census  for  which  the  department  of  environmental
    55  conservation  has  issued a certificate of completion to the taxpayer on
    56  or after January first, two thousand seventeen and before December thir-

        S. 4009--C                         32                         A. 3009--C
 
     1  ty-first, two thousand seventeen, this credit component shall be allowed
     2  for up to one hundred eighty months after the date of  the  issuance  of
     3  such certificate of completion.
     4    §  3.  Paragraph 2 of subdivision (a) of section 21 of the tax law, as
     5  amended by section 4 of part LL of chapter 58 of the laws  of  2022,  is
     6  amended to read as follows:
     7    (2)  Site  preparation  credit  component. The site preparation credit
     8  component shall be equal to the applicable percentage of the site prepa-
     9  ration costs paid or incurred by the taxpayer with respect to  a  quali-
    10  fied  site.  The credit component amount so determined with respect to a
    11  site's qualification for a certificate of completion  shall  be  allowed
    12  for  the  taxable year in which the effective date of the certificate of
    13  completion occurs. The credit component  amount  determined  other  than
    14  with respect to such qualification shall be allowed for the taxable year
    15  in  which  the improvement to which the applicable costs apply is placed
    16  in service for up to five taxable  years  after  the  issuance  of  such
    17  certificate  of  completion;  provided,  however, that for any qualified
    18  site to which a certificate of completion is issued  on  or  after  July
    19  first,  two  thousand  fifteen  but on or before June twenty-fourth, two
    20  thousand twenty-one, the site  preparation  credit  component  for  such
    21  costs  shall be allowed for up to seven taxable years after the issuance
    22  of such certificate of completion; and provided further,  however,  that
    23  for  any qualified site located in cities with a population greater than
    24  two hundred five thousand and less than two hundred fifteen thousand  in
    25  counties  with  a  population greater than one million but less than one
    26  million ten thousand based on the latest federal  decennial  census  for
    27  which  the department of environmental conservation has issued a certif-
    28  icate of completion to the taxpayer on or after January first, two thou-
    29  sand seventeen and before December thirty-first, two thousand seventeen,
    30  the site preparation credit component for such costs  shall  be  allowed
    31  for  up  to fifteen taxable years after the issuance of such certificate
    32  of completion.
    33    § 4. This act shall take effect immediately and  shall  be  deemed  to
    34  have been in effect on and after April 9, 2022.
 
    35                                  SUBPART C
 
    36    Section  1.  Paragraphs 1, 2 and 3 of subsection (h) of section 860 of
    37  the tax law, paragraph 1 as added by section 1 of part C of  chapter  59
    38  of the laws of 2021, and paragraph 2 as amended and paragraph 3 as added
    39  by  section 2 of subpart A of part MM of chapter 59 of the laws of 2022,
    40  are amended to read as follows:
    41    (1) In the case of an electing partnership, the sum of (i)  all  items
    42  of  income,  gain, loss, or deduction derived from or connected with New
    43  York sources to the extent they are included in the taxable income of  a
    44  nonresident partner subject to tax under article twenty-two, under para-
    45  graph  one  of  subsection (a) of section six hundred thirty-two of this
    46  chapter; [and] (ii) all items of income, gain, loss, or deduction to the
    47  extent they are included in the taxable income  of  a  resident  partner
    48  subject  to  tax under article twenty-two of this chapter; and (iii) all
    49  pass-through entity taxes including taxes paid under this article to New
    50  York, taxes paid under article twenty-four-B of this chapter to the city
    51  of New York, and taxes paid to other jurisdictions that are substantial-
    52  ly similar to the taxes paid under this article, to the extent that, for
    53  federal income tax purposes, the taxes are  paid  and  deducted  in  the
    54  taxable  year,  and  are  included in the taxable income of the partners

        S. 4009--C                         33                         A. 3009--C
 
     1  subject to tax under article twenty-two of this chapter for the  taxable
     2  year.
     3    (2)  In the case of an electing standard S corporation, the sum of (i)
     4  all items of income, gain, loss, or deduction derived from or  connected
     5  with  New  York sources to the extent they would be included under para-
     6  graph two of subsection (a) of section six hundred  thirty-two  of  this
     7  chapter  in  the  taxable  income  of a shareholder subject to tax under
     8  article twenty-two of this chapter; and  (ii)  all  pass-through  entity
     9  taxes  including  taxes  paid under this article to New York, taxes paid
    10  under article twenty-four-B of this chapter to the city of New York, and
    11  taxes paid to other jurisdictions that are substantially similar to  the
    12  taxes  paid  under  this article, to the extent that, for federal income
    13  tax purposes, the taxes are paid and deducted in the taxable  year,  and
    14  are  included  in  the taxable income of the shareholders subject to tax
    15  under article twenty-two of this chapter for the taxable year.
    16    (3) In the case of an electing resident S corporation, the sum of  (i)
    17  all  items  of  income,  gain, loss, or deduction to the extent they are
    18  included in the taxable income of a shareholder  subject  to  tax  under
    19  article  twenty-two  of  this  chapter; and (ii) all pass-through entity
    20  taxes including taxes paid under this article to New  York,  taxes  paid
    21  under article twenty-four-B of this chapter to the city of New York, and
    22  taxes  paid  to  other  jurisdictions  that are substantially similar to
    23  taxes paid under this article, to the extent that,  for  federal  income
    24  tax  purposes,  the taxes are paid and deducted in the taxable year, and
    25  are included in the taxable income of the shareholders  subject  to  tax
    26  under article twenty-two of this chapter for the taxable year.
    27    §  2.  Subsection  (c)  of  section  861 of the tax law, as amended by
    28  section 3 of subpart A of part MM of chapter 59 of the laws of 2022,  is
    29  amended to read as follows:
    30    (c) The annual election must be made [by] on or before the due date of
    31  the  first  estimated  payment under section eight hundred sixty-four of
    32  this article and will take effect for the current taxable year. Only one
    33  election may be made during each calendar year. An election  made  under
    34  this section is irrevocable [as of] after the due date.
    35    §  3.  Paragraphs  1 and 2 of subsection (b) of section 867 of the tax
    36  law, as added by section 1 of subpart B of part MM of chapter 59 of  the
    37  laws of 2022, are amended to read as follows:
    38    (1)  In  the  case of an electing city partnership, the sum of (i) all
    39  items of income, gain,  loss,  or  deduction  to  the  extent  they  are
    40  included in the city taxable income of a partner or member of the elect-
    41  ing  city  partnership who is a city taxpayer; and (ii) all pass-through
    42  entity taxes including taxes paid under article  twenty-four-A  of  this
    43  chapter  to  New  York, taxes paid under this article to the city of New
    44  York, and taxes paid to other jurisdictions that are substantially simi-
    45  lar to taxes paid under article twenty-four-A of this  chapter,  to  the
    46  extent  that,  for  federal income tax purposes, the taxes were paid and
    47  deducted in the taxable year, and  they  are  included  in  the  taxable
    48  income  of  the partners subject to tax under article twenty-two of this
    49  chapter for the taxable year.
    50    (2) In the case of an electing city resident S corporation, the sum of
    51  (i) all items of income, gain, loss, or deduction  to  the  extent  they
    52  would  be  included  in  the city taxable income of a shareholder of the
    53  electing city resident S corporation who is a city  taxpayer;  and  (ii)
    54  all  pass-through  entity taxes including taxes paid under article twen-
    55  ty-four-A of this chapter to New York, taxes paid under this article  to
    56  the  city  of  New  York, and taxes paid to other jurisdictions that are

        S. 4009--C                         34                         A. 3009--C
 
     1  substantially similar to taxes paid under article twenty-four-A of  this
     2  chapter,  to the extent that, for federal income tax purposes, the taxes
     3  were paid and deducted in the taxable year, and they are included in the
     4  taxable  income of the shareholders subject to tax under article twenty-
     5  two of this chapter for the taxable year.
     6    § 4. Subsection (e) of section 867 of the tax law, as added by section
     7  1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
     8  to read as follows:
     9    (e)  City  taxpayer. A city taxpayer means [a city resident individual
    10  subject to the tax imposed pursuant to the authority of  article  thirty
    11  of this chapter]:
    12    (1)  a  city  resident  individual,  as  defined  in subsection (a) of
    13  section thirteen hundred five of this chapter; and
    14    (2) a city resident trust or estate, as defined in subsection  (c)  of
    15  section thirteen hundred five of this chapter.
    16    § 5. Subsection (i) of section 867 of the tax law, as added by section
    17  1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
    18  to read as follows:
    19    (i) Eligible city partnership. Eligible  city  partnership  means  any
    20  partnership as provided for in section 7701(a)(2) of the Internal Reven-
    21  ue  Code that has a filing requirement under paragraph one of subsection
    22  (c) of section six hundred fifty-eight of  this  chapter  other  than  a
    23  publicly  traded  partnership as defined in section 7704 of the Internal
    24  Revenue Code, where at least one partner or member is a  city  [resident
    25  individual]  taxpayer. An eligible city partnership includes any entity,
    26  including a limited liability company,  treated  as  a  partnership  for
    27  federal  income  tax  purposes  that otherwise meets the requirements of
    28  this subsection.
    29    § 6. Subsection (j) of section 867 of the tax law, as added by section
    30  1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
    31  to read as follows:
    32    (j)  Eligible  city  resident  S corporation. Eligible city resident S
    33  corporation means any New York S  corporation  as  defined  pursuant  to
    34  subdivision  one-A  of section two hundred eight of this chapter that is
    35  subject to tax under section two hundred nine of this chapter  that  has
    36  only  city [resident individual] taxpayer shareholders. An eligible city
    37  resident S corporation includes any entity, including a limited  liabil-
    38  ity company, treated as an S corporation for federal income tax purposes
    39  that otherwise meets the requirements of this subsection.
    40    § 7. Subsection (c) of section 868 of the tax law, as added by section
    41  1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
    42  to read as follows:
    43    (c) The annual election to be taxed pursuant to this article  must  be
    44  made [by] on or before the due date of the first estimated payment under
    45  section  eight  hundred  sixty-four of this chapter and will take effect
    46  for the current taxable year. Only one election to be taxed pursuant  to
    47  this  article  may  be  made during each calendar year. An election made
    48  under this section is irrevocable [as of] after such due  date.  To  the
    49  extent  an  election  made under section eight hundred sixty-one of this
    50  chapter is revoked or otherwise invalidated an election made under  this
    51  section is automatically invalidated.
    52    §  8. This act shall take effect immediately, provided, however, that:
    53  (i) sections one and two of this act shall be deemed  to  have  been  in
    54  full force and effect on and after the effective date of part C of chap-
    55  ter  59  of  the laws of 2021; (ii) sections three and seven of this act
    56  shall be deemed to have been in full force and effect on and  after  the

        S. 4009--C                         35                         A. 3009--C
 
     1  effective date of section 1 of subpart B of part MM of chapter 59 of the
     2  laws  of  2022;  and (iii) sections four, five and six of this act shall
     3  apply to taxable years beginning on or after January 1, 2023.
     4    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
     5  sion,  section  or  part  of  this act shall be adjudged by any court of
     6  competent jurisdiction to be invalid, such judgment  shall  not  affect,
     7  impair,  or  invalidate  the remainder thereof, but shall be confined in
     8  its operation to the clause, sentence, paragraph,  subdivision,  section
     9  or part thereof directly involved in the controversy in which such judg-
    10  ment shall have been rendered. It is hereby declared to be the intent of
    11  the  legislature  that  this  act  would  have been enacted even if such
    12  invalid provisions had not been included herein.
    13    § 3. This act shall take effect immediately; provided,  however,  that
    14  the applicable effective dates of Subparts A through C of this act shall
    15  be as specifically set forth in the last section of such Subparts.
 
    16                                   PART K
 
    17    Section  1.  Paragraphs (a) and (d) of subdivision 1 of section 467 of
    18  the real property tax law, as amended by section 1 of part B of  chapter
    19  686 of the laws of 2022, are amended to read as follows:
    20    (a)  Real  property  owned  by  one  or  more persons, each of whom is
    21  sixty-five years of age or over, or real property owned by [husband  and
    22  wife]  a  married couple or by siblings, one of whom is sixty-five years
    23  of age or over, or real property owned by one or more persons,  some  of
    24  whom  qualify  under  this  section and the others of whom qualify under
    25  section four hundred fifty-nine-c of this title, shall  be  exempt  from
    26  payments  in lieu of taxes (PILOT) to the battery park city authority or
    27  from taxation by any municipal  corporation  in  which  located  to  the
    28  extent  of  fifty per centum of the assessed valuation thereof, provided
    29  the governing board of such municipality, after public hearing, adopts a
    30  local law, ordinance or resolution providing therefor. For the  purposes
    31  of  this  section,  [sibling  shall  mean a brother or a sister, whether
    32  related] the term "sibling" shall include persons whose relationship  as
    33  siblings  has been established through either half blood, whole blood or
    34  adoption.
    35    (d) The real property tax or PILOT exemption on real property owned by
    36  [husband and wife] a married couple, one of whom is sixty-five years  of
    37  age  or  over,  once  granted,  shall  not be rescinded by any municipal
    38  corporation solely because of the death of the older spouse so  long  as
    39  the surviving spouse is at least sixty-two years of age.
    40    §  2.  Subdivision  3  of section 467 of the real property tax law, as
    41  amended by section 1 of part B of chapter 686 of the laws of 2022, para-
    42  graph (a) as separately amended by chapter 488 of the laws of  2022,  is
    43  amended to read as follows:
    44    3. No exemption shall be granted:
    45    (a)(i) if the income of the owner or the combined income of the owners
    46  of  the property for the applicable income tax year [immediately preced-
    47  ing the date of making application for exemption]  exceeds  the  sum  of
    48  three  thousand  dollars, or such other sum not less than three thousand
    49  dollars nor more than [twenty-six thousand dollars beginning July first,
    50  two thousand six, twenty-seven thousand dollars  beginning  July  first,
    51  two  thousand seven, twenty-eight thousand dollars beginning July first,
    52  two thousand eight, twenty-nine thousand dollars beginning  July  first,
    53  two  thousand  nine,  fifty  thousand  dollars beginning July first, two
    54  thousand twenty-two, and in a city with a population of one  million  or

        S. 4009--C                         36                         A. 3009--C

     1  more  fifty  thousand  dollars beginning July first, two thousand seven-
     2  teen,] fifty thousand dollars, as may be  provided  by  the  local  law,
     3  ordinance or resolution adopted pursuant to this section.
     4    (ii)  Where  the taxable status date is on or before April fourteenth,
     5  the applicable income tax year shall [mean] be the [twelve-month  period
     6  for which the owner or owners filed a federal personal income tax return
     7  for  the  year before the income tax year immediately preceding the date
     8  of application and where] second most recent calendar  year.  Where  the
     9  taxable  status  date  is  on  or  after April fifteenth, the applicable
    10  income tax year shall [mean] be the [twelve-month period for  which  the
    11  owner  or  owners  filed  a  federal  personal income tax return for the
    12  income tax year immediately preceding  the  date  of  application]  most
    13  recent calendar year. Provided, however, that for taxpayers whose income
    14  tax returns are filed on the basis of a fiscal year rather than a calen-
    15  dar year, the applicable income tax year shall be the most recent fiscal
    16  year for which an income tax return has been filed.
    17    (iii) Where title is vested in [either the husband or the wife, their]
    18  a  married  person, the combined income of such person and such person's
    19  spouse may not exceed such sum, except where [the husband  or  wife,  or
    20  ex-husband  or ex-wife] one spouse or ex-spouse is absent from the prop-
    21  erty as provided in subparagraph (ii) of paragraph (d) of this  subdivi-
    22  sion,  then  only  the income of the spouse or ex-spouse residing on the
    23  property shall be considered and may not exceed such sum.  [Such  income
    24  shall  include  social security and retirement benefits, interest, divi-
    25  dends, total gain from the sale or exchange of a capital asset which may
    26  be offset by a loss from the sale or exchange of a capital asset in  the
    27  same  income  tax  year,  net rental income, salary or earnings, and net
    28  income from self-employment, but shall not include a return of  capital,
    29  gifts,  inheritances,  payments  made  to  individuals  because of their
    30  status as victims of Nazi persecution, as defined  in  P.L.  103-286  or
    31  monies  earned  through  employment  in  the  federal foster grandparent
    32  program and  any  such  income  shall  be  offset  by  all  medical  and
    33  prescription  drug  expenses  actually paid which were not reimbursed or
    34  paid for by insurance, if the governing board of a municipality, after a
    35  public hearing, adopts a local law, ordinance  or  resolution  providing
    36  therefor.  In  addition,  an  exchange  of  an  annuity  for  an annuity
    37  contract, which resulted in non-taxable gain, as determined  in  section
    38  one thousand thirty-five of the internal revenue code, shall be excluded
    39  from  such income. Provided that such exclusion shall be based on satis-
    40  factory proof that such an exchange was solely an exchange of an annuity
    41  for an annuity contract that resulted in a non-taxable  transfer  deter-
    42  mined  by  such  section of the internal revenue code. Furthermore, such
    43  income shall not include the proceeds of a reverse mortgage, as  author-
    44  ized  by  section  six-h  of  the  banking law, and sections two hundred
    45  eighty and two hundred eighty-a of  the  real  property  law;  provided,
    46  however,  that  monies  used  to  repay  a  reverse  mortgage may not be
    47  deducted from income, and provided additionally  that  any  interest  or
    48  dividends  realized  from  the  investment  of reverse mortgage proceeds
    49  shall be considered income. The provisions of  this  paragraph  notwith-
    50  standing,  such  income  shall  not  include veterans disability compen-
    51  sation, as defined in Title 38 of the United States  Code  provided  the
    52  governing  board  of  such  municipality, after public hearing, adopts a
    53  local law, ordinance or resolution providing therefor. In computing  net
    54  rental  income  and  net  income  from  self-employment  no depreciation
    55  deduction shall be allowed for the exhaustion, wear and tear of real  or
    56  personal property held for the production of income;]

        S. 4009--C                         37                         A. 3009--C

     1    (iv)  The  term "income" as used herein shall mean the "adjusted gross
     2  income" for federal income tax purposes as reported on  the  applicant's
     3  federal  or  state income tax return for the applicable income tax year,
     4  subject to any subsequent amendments or revisions, plus any social secu-
     5  rity  benefits  not  included  in  such  federal  adjusted gross income;
     6  provided that if no such return was filed for the applicable income  tax
     7  year,  the  applicant's  income shall be determined based on the amounts
     8  that would have so been reported if such a return had  been  filed;  and
     9  provided  further,  that  when  determining  income for purposes of this
    10  section, the following conditions shall be applicable:
    11    (1) the governing body of a  municipal  corporation,  after  a  public
    12  hearing,  may  adopt a local law, ordinance or resolution providing that
    13  any social security benefits that were not included in  the  applicant's
    14  federal adjusted gross income shall not be considered income;
    15    (2)  distributions  received  from an individual retirement account or
    16  individual retirement annuity that  were  included  in  the  applicant's
    17  federal  adjusted gross income shall not be considered income unless the
    18  governing body of a  municipal  corporation,  after  a  public  hearing,
    19  adopts a local law, ordinance or resolution providing otherwise;
    20    (3)  the  applicant's  income  shall  be  offset  by  all  medical and
    21  prescription drug expenses actually paid that  were  not  reimbursed  or
    22  paid  for  by  insurance,  if  the governing board of a municipal corpo-
    23  ration, after a public hearing, adopts a local law, ordinance or  resol-
    24  ution providing therefor;
    25    (4)  any  tax-exempt interest or dividends that were excluded from the
    26  applicant's federal adjusted gross income shall  be  considered  income;
    27  and
    28    (5)  any  losses  that  were applied to reduce the applicant's federal
    29  adjusted gross income shall be subject to the following limitations:
    30    (A) the net amount of loss reported on federal Schedule C, D, E, or  F
    31  shall not exceed three thousand dollars per schedule,
    32    (B)  the  net  amount of any other separate category of loss shall not
    33  exceed three thousand dollars, and
    34    (C) the aggregate amount of all losses shall not exceed fifteen  thou-
    35  sand dollars;
    36    (b)  unless  the owner shall have held an exemption under this section
    37  for [his] the owner's previous residence or  unless  the  title  of  the
    38  property shall have been vested in the owner or one of the owners of the
    39  property  for  at  least  twelve consecutive months prior to the date of
    40  making application for exemption, provided, however, that in  the  event
    41  of  the  death  of  [either a husband or wife] a married person in whose
    42  name title of the property shall have been vested at the time  of  death
    43  and then becomes vested solely in [the survivor] such person's surviving
    44  spouse  by  virtue of devise by or descent from the deceased [husband or
    45  wife] spouse, the time of ownership of  the  property  by  the  deceased
    46  [husband or wife] spouse shall be deemed also a time of ownership by the
    47  [survivor]  surviving  spouse and such ownership shall be deemed contin-
    48  uous for the purposes of computing such  period  of  twelve  consecutive
    49  months.  In  the event of a transfer by [either a husband or wife to the
    50  other] a married person to such person's spouse of all or  part  of  the
    51  title  to  the  property,  the  time of ownership of the property by the
    52  transferor spouse shall be deemed also a time of ownership by the trans-
    53  feree spouse and such ownership  shall  be  deemed  continuous  for  the
    54  purposes  of  computing  such period of twelve consecutive months. Where
    55  property of the owner or owners has been acquired  to  replace  property
    56  formerly  owned  by  such owner or owners and taken by eminent domain or

        S. 4009--C                         38                         A. 3009--C
 
     1  other involuntary proceeding, except a tax sale, the period of ownership
     2  of the former property shall be combined with the period of ownership of
     3  the property for which application is made for exemption and such  peri-
     4  ods  of ownership shall be deemed to be consecutive for purposes of this
     5  section. Where a residence is sold and replaced with another within  one
     6  year  and  both residences are within the state, the period of ownership
     7  of both properties shall be  deemed  consecutive  for  purposes  of  the
     8  exemption from taxation by a municipality within the state granting such
     9  exemption. Where the owner or owners transfer title to property which as
    10  of  the  date  of  transfer  was exempt from taxation or PILOT under the
    11  provisions of this section, the reacquisition of title by such owner  or
    12  owners  within  nine  months  of the date of transfer shall be deemed to
    13  satisfy the requirement of this paragraph that the title of the property
    14  shall have been vested in the owner or one of the owners for such period
    15  of twelve consecutive months. Where, upon or subsequent to the death  of
    16  an owner or owners, title to property which as of the date of such death
    17  was exempt from taxation or PILOT under such provisions, becomes vested,
    18  by  virtue of devise or descent from the deceased owner or owners, or by
    19  transfer by any other means within nine months after such death,  solely
    20  in  a  person or persons who, at the time of such death, maintained such
    21  property as a primary residence, the requirement of this paragraph  that
    22  the  title of the property shall have been vested in the owner or one of
    23  the owners for such period of twelve consecutive months shall be  deemed
    24  satisfied;
    25    (c)  unless the property is used exclusively for residential purposes,
    26  provided, however, that in the event any portion of such property is not
    27  so used exclusively for residential  purposes  but  is  used  for  other
    28  purposes,  such  portion  shall  be subject to taxation or PILOT and the
    29  remaining portion only shall be entitled to the  exemption  provided  by
    30  this section;
    31    (d) unless the real property is the legal residence of and is occupied
    32  in  whole or in part by the owner or by all of the owners of the proper-
    33  ty: except where, (i) an  owner  is  absent  from  the  residence  while
    34  receiving  health-related  care  as an inpatient of a residential health
    35  care facility, as defined in section twenty-eight  hundred  one  of  the
    36  public  health  law,  provided  that  any income accruing to that person
    37  shall only be income only to the extent that it exceeds the amount  paid
    38  by  such  owner,  spouse,  or  co-owner  for  care  in the facility, and
    39  provided further, that during such  confinement  such  property  is  not
    40  occupied  by  other  than the spouse or co-owner of such owner; or, (ii)
    41  the real property is owned by a [husband and/or wife, or  an  ex-husband
    42  and/or an ex-wife, and either] married person or a married couple, or by
    43  a  formerly  married person or a formerly married couple, and one spouse
    44  or ex-spouse is absent from the residence due to  divorce,  legal  sepa-
    45  ration  or  abandonment and all other provisions of this section are met
    46  provided that where  an  exemption  was  previously  granted  when  both
    47  resided  on the property, then the person remaining on the real property
    48  shall be sixty-two years of age or over.
    49    § 3. Paragraph (a) of subdivision 3-a of section 467 of the real prop-
    50  erty tax law, as amended by section 1 of part B of chapter  686  of  the
    51  laws of 2022, is amended to read as follows:
    52    (a)  For  the  purposes of this section, title to that portion of real
    53  property owned  by  a  cooperative  apartment  corporation  in  which  a
    54  tenant-stockholder  of such corporation resides and which is represented
    55  by [his] the tenant-stockholder's share  or  shares  of  stock  in  such
    56  corporation  as  determined by its or their proportional relationship to

        S. 4009--C                         39                         A. 3009--C
 
     1  the total outstanding stock of the corporation, including that owned  by
     2  the  corporation, shall be deemed to be vested in such tenant-stockhold-
     3  er.
     4    §  4.  Subdivisions  5 and 5-a of section 467 of the real property tax
     5  law, as amended by section 1 of part B of chapter 686  of  the  laws  of
     6  2022, are amended to read as follows:
     7    5. Application for such exemption must be made by the owner, or all of
     8  the  owners  of the property, on forms prescribed by the commissioner to
     9  be furnished by the appropriate assessing authority  and  shall  furnish
    10  the  information and be executed in the manner required or prescribed in
    11  such forms, and shall be filed in such assessor's office  on  or  before
    12  the appropriate taxable status date. Notwithstanding any other provision
    13  of law, at the option of the municipal corporation, any person otherwise
    14  qualifying  under  this  section shall not be denied the exemption under
    15  this section if [he] such person becomes sixty-five years of  age  after
    16  the  appropriate  taxable  status date and on or before December thirty-
    17  first of the same year.
    18    5-a. Any local law or ordinance adopted pursuant to paragraph  (a)  of
    19  subdivision  one of this section may be amended, or a local law or ordi-
    20  nance may be adopted to provide,  notwithstanding  subdivision  five  of
    21  this  section,  that an application for such exemption may be filed with
    22  the assessor after the appropriate taxable status  date  but  not  later
    23  than  the  last  date  on which a petition with respect to complaints of
    24  assessment may be filed, where failure  to  file  a  timely  application
    25  resulted  from:  (a)  a death of the applicant's spouse, child, parent[,
    26  brother or sister] or sibling; or (b) an illness of the applicant or  of
    27  the  applicant's  spouse, child, parent[, brother or sister] or sibling,
    28  which actually prevents the applicant from filing on a timely basis,  as
    29  certified  by  a  licensed physician. The assessor shall approve or deny
    30  such application as if it had been filed on or before the taxable status
    31  date.
    32    § 5. Subdivision 6 of section 467 of the real  property  tax  law,  as
    33  amended  by  section  1 of part B of chapter 686 of the laws of 2022, is
    34  amended to read as follows:
    35    6. (a) At least sixty days prior to  the  appropriate  taxable  status
    36  date,  the assessing authority shall mail to each person who was granted
    37  exemption pursuant to this section on the  latest  completed  assessment
    38  roll  an  application  form  and  a notice that such application must be
    39  filed on or before the taxable status date and be approved in order  for
    40  the exemption to be granted. The assessing authority shall, within three
    41  days  of  the  completion  and  filing of the tentative assessment roll,
    42  notify by mail any applicant [who has included with his] whose  applica-
    43  tion  includes  at  least  one self-addressed, pre-paid envelope, of the
    44  approval or denial of  the  application;  provided,  however,  that  the
    45  assessing  authority  shall, upon the receipt and filing of the applica-
    46  tion, send by mail notification of receipt  to  any  applicant  who  has
    47  included  two of such envelopes with the application. Where an applicant
    48  is entitled to a notice of denial pursuant  to  this  subdivision,  such
    49  notice shall be on a form prescribed by the commissioner and shall state
    50  the  reasons  for such denial and shall further state that the applicant
    51  may have such determination reviewed in  the  manner  provided  by  law.
    52  Failure  to  mail any such application form or notices or the failure of
    53  such person to receive any of the  same  shall  not  prevent  the  levy,
    54  collection and enforcement of the payment of the taxes or PILOT on prop-
    55  erty owned by such person.

        S. 4009--C                         40                         A. 3009--C
 
     1    (b)  Except  in cities of one million or more, any person who has been
     2  granted exemption pursuant to  this  section  on  five  (5)  consecutive
     3  completed  assessment  rolls, including any years when the exemption was
     4  granted to a property owned by [a husband and/or wife] a married  person
     5  or  a  married couple while both spouses resided in such property, shall
     6  not be subject to the requirements set forth in paragraph  (a)  of  this
     7  subdivision  provided  the  governing board of the municipality in which
     8  said property is situated after public hearing adopts a local law, ordi-
     9  nance or resolution providing therefor  however  said  person  shall  be
    10  mailed  an  application form and a notice [informing him of his] setting
    11  forth such person's rights. Such exemption shall be automatically grant-
    12  ed on each subsequent assessment roll. Provided, however, that when  tax
    13  payment  is  made by such person a sworn affidavit must be included with
    14  such payment which shall state that such person continues to be eligible
    15  for such exemption. Such affidavit shall be on a form prescribed by  the
    16  commissioner.  If  such  affidavit is not included with the tax payment,
    17  the collecting officer shall proceed pursuant to  section  five  hundred
    18  fifty-one-a of this chapter.
    19    (c)  In cities of one million or more, any person who has been granted
    20  exemption pursuant to this section shall file the completed  application
    21  with  the  appropriate assessing authority every twenty-four months from
    22  the date such exemption was granted without the necessity of having been
    23  granted exemption pursuant to  this  section  on  five  (5)  consecutive
    24  completed  assessment  rolls  including any years when the exemption was
    25  granted to a property owned by [a husband and/or wife] a married  person
    26  or a married couple while both spouses resided in such property.
    27    §  6.  Subdivision 8-a of section 467 of the real property tax law, as
    28  amended by section 1 of part B of chapter 686 of the laws  of  2022,  is
    29  amended to read as follows:
    30    8-a.  Notwithstanding  any provision of law to the contrary, the local
    31  governing body of a municipal corporation that is authorized to adopt  a
    32  local  law  pursuant  to  subdivision  eight  of this section is further
    33  authorized to adopt a local law providing that where a renewal  applica-
    34  tion  for the exemption authorized by this section has not been filed on
    35  or before the taxable status date, and  the  owner  believes  that  good
    36  cause  existed  for  the failure to file the renewal application by that
    37  date, the owner may, no later than the last  day  for  paying  taxes  or
    38  PILOT without incurring interest or penalty, submit a written request to
    39  the assessor asking [him or her] the assessor to extend the filing dead-
    40  line  and grant the exemption. Such request shall contain an explanation
    41  of why the deadline was missed, and shall be accompanied  by  a  renewal
    42  application,  reflecting  the facts and circumstances as they existed on
    43  the taxable status date. The assessor may extend the filing deadline and
    44  grant the exemption if [he or she] the assessor is  satisfied  that  (i)
    45  good  cause  existed  for the failure to file the renewal application by
    46  the taxable status date, and that (ii) the applicant is otherwise  enti-
    47  tled  to the exemption. The assessor shall make a determination and mail
    48  notice [of his or her determination] thereof to the owner. If the deter-
    49  mination states that the assessor has granted the exemption, [he or she]
    50  the assessor shall thereupon be authorized and directed to  correct  the
    51  assessment  roll  accordingly,  or,  if  another  person  has custody or
    52  control of the assessment roll, to direct that person to make the appro-
    53  priate corrections. If the correction  is  not  made  before  taxes  are
    54  levied,  the  failure to take the exemption into account in the computa-
    55  tion of the tax shall be deemed a "clerical error" for purposes of title

        S. 4009--C                         41                         A. 3009--C
 
     1  three of article five of this chapter, and shall be corrected according-
     2  ly.
     3    § 7. Paragraph (a) of subdivision 1 and paragraph (a) of subdivision 2
     4  of  section  459-c of the real property tax law, as amended by section 2
     5  of part B of chapter 686 of the laws of 2022, are  amended  to  read  as
     6  follows:
     7    (a)  Real  property owned by one or more persons with disabilities, or
     8  real property owned by a [husband, wife, or both] married  person  or  a
     9  married  couple,  or by siblings, at least one of whom has a disability,
    10  or real property owned by one or more  persons,  some  of  whom  qualify
    11  under  this  section  and  the others of whom qualify under section four
    12  hundred sixty-seven of  this  title,  and  whose  income,  as  hereafter
    13  defined,  is  limited by reason of such disability, shall be exempt from
    14  payments in lieu of taxes (PILOT) to the battery city park authority  or
    15  from  taxation  by  any  municipal  corporation  in which located to the
    16  extent of fifty per centum of the assessed valuation thereof as  herein-
    17  after provided. After a public hearing, the governing board of a county,
    18  city, town or village may adopt a local law and a school district, other
    19  than  a  school  district  subject to article fifty-two of the education
    20  law, may adopt a resolution to grant the exemption  authorized  pursuant
    21  to this section.
    22    (a)  ["sibling" shall mean a brother or a sister, whether related] the
    23  term "sibling" shall include persons whose relationship as siblings  has
    24  been established through either half blood, whole blood or adoption.
    25    § 8. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
    26  erty  tax  law,  as separately amended by section 2 of part B of chapter
    27  686 and chapter 488 of the laws of 2022, is amended to read as follows:
    28    (a) (i) if the income of the owner  or  the  combined  income  of  the
    29  owners  of  the property for the applicable income tax year [immediately
    30  preceding the date of making application for exemption] exceeds the  sum
    31  of  three  thousand dollars, or such other sum not less than three thou-
    32  sand dollars nor more than [twenty-six thousand dollars  beginning  July
    33  first,  two  thousand  six, twenty-seven thousand dollars beginning July
    34  first, two thousand seven, twenty-eight thousand dollars beginning  July
    35  first,  two  thousand eight, twenty-nine thousand dollars beginning July
    36  first, two thousand nine, and  fifty  thousand  dollars  beginning  July
    37  first,  two  thousand twenty-two, and in a city with a population of one
    38  million or more fifty thousand dollars beginning July first,  two  thou-
    39  sand  seventeen] fifty thousand dollars, as may be provided by the local
    40  law or resolution adopted pursuant to this  section.  [Income  tax  year
    41  shall mean the twelve month period for which the owner or owners filed a
    42  federal  personal  income tax return, or if no such return is filed, the
    43  calendar year.]
    44    (ii) Where the taxable status date is on or before  April  fourteenth,
    45  the  applicable income tax year shall be the second most recent calendar
    46  year.  Where the taxable status date is on or after April fifteenth, the
    47  applicable income tax year shall  be  the  most  recent  calendar  year.
    48  Provided, however, that for taxpayers whose income tax returns are filed
    49  on  the basis of a fiscal year rather than a calendar year, the applica-
    50  ble income tax year shall be the most recent fiscal year  for  which  an
    51  income tax return has been filed.
    52    (iii) Where title is vested in [either the husband or the wife, their]
    53  a  married  person, the combined income of such person and such person's
    54  spouse may not exceed such sum, except where [the husband  or  wife,  or
    55  ex-husband  or ex-wife] one spouse or ex-spouse is absent from the prop-
    56  erty due to divorce, legal separation  or  abandonment,  then  only  the

        S. 4009--C                         42                         A. 3009--C
 
     1  income  of  the  spouse  or  ex-spouse residing on the property shall be
     2  considered and may not exceed  such  sum.  [Such  income  shall  include
     3  social security and retirement benefits, interest, dividends, total gain
     4  from  the  sale  or exchange of a capital asset which may be offset by a
     5  loss from the sale or exchange of a capital asset in the same income tax
     6  year, net rental income, salary or earnings, and net income  from  self-
     7  employment,  but  shall  not include a return of capital, gifts, inheri-
     8  tances or monies earned through employment in the federal foster  grand-
     9  parent  program  and  any such income shall be offset by all medical and
    10  prescription drug expenses actually paid which were  not  reimbursed  or
    11  paid for by insurance, if the governing board of a municipality, after a
    12  public  hearing, adopts a local law or resolution providing therefor. In
    13  computing net rental income  and  net  income  from  self-employment  no
    14  depreciation  deduction  shall  be  allowed for the exhaustion, wear and
    15  tear of real or personal property held for the production of income]
    16    (iv) The term "income" as used herein shall mean the  "adjusted  gross
    17  income"  for  federal income tax purposes as reported on the applicant's
    18  federal or state income tax return for the applicable income  tax  year,
    19  subject to any subsequent amendments or revisions, plus any social secu-
    20  rity  benefits  not  included  in  such  federal  adjusted gross income;
    21  provided that if no such return was filed for the applicable income  tax
    22  year,  the  applicant's  income shall be determined based on the amounts
    23  that would have so been reported if such a return had  been  filed;  and
    24  provided  further,  that  when  determining  income for purposes of this
    25  section, the following conditions shall be applicable:
    26    (1) the governing body of a  municipal  corporation,  after  a  public
    27  hearing,  may  adopt a local law, ordinance or resolution providing that
    28  any social security benefits that were not included in  the  applicant's
    29  federal adjusted gross income shall not be considered income;
    30    (2)  distributions  received  from an individual retirement account or
    31  individual retirement annuity that  were  included  in  the  applicant's
    32  federal  adjusted gross income shall not be considered income unless the
    33  governing body of a  municipal  corporation,  after  a  public  hearing,
    34  adopts a local law, ordinance or resolution providing otherwise;
    35    (3)  the  applicant's  income  shall  be  offset  by  all  medical and
    36  prescription drug expenses actually paid that  were  not  reimbursed  or
    37  paid for by insurance, if the governing body of a municipal corporation,
    38  after  a  public  hearing,  adopts  a local law, ordinance or resolution
    39  providing therefor;
    40    (4) any tax-exempt interest or dividends that were excluded  from  the
    41  applicant's  federal  adjusted  gross income shall be considered income;
    42  and
    43    (5) any losses that were applied to  reduce  the  applicant's  federal
    44  adjusted gross income shall be subject to the following limitations:
    45    (A)  the net amount of loss reported on federal Schedule C, D, E, or F
    46  shall not exceed three thousand dollars per schedule,
    47    (B) the net amount of any other separate category of  loss  shall  not
    48  exceed three thousand dollars, and
    49    (C)  the aggregate amount of all losses shall not exceed fifteen thou-
    50  sand dollars;
    51    § 9. Paragraph (a) of subdivision 6 of section 459-c of the real prop-
    52  erty tax law, as amended by section 2 of part B of chapter  686  of  the
    53  laws of 2022, is amended to read as follows:
    54    (a)  If so provided in the local law or resolution adopted pursuant to
    55  this section, title to that portion of real property owned by a  cooper-
    56  ative apartment corporation in which a tenant-stockholder of such corpo-

        S. 4009--C                         43                         A. 3009--C
 
     1  ration   resides,   and  which  is  represented  by  [his]  the  tenant-
     2  stockholder's share or shares of stock in such corporation as determined
     3  by its or their proportional relationship to the total outstanding stock
     4  of  the  corporation,  including that owned by the corporation, shall be
     5  deemed to be vested in such tenant-stockholder.
     6    § 10. Paragraph c of subdivision 1 of section 467-b of the real  prop-
     7  erty  tax law, as amended by chapter 500 of the laws of 2001, is amended
     8  to read as follows:
     9    c. "Income" means [income from all  sources  after  deduction  of  all
    10  income  and  social  security  taxes  and  includes  social security and
    11  retirement benefits, supplemental security income and  additional  state
    12  payments,  public  assistance  benefits, interest, dividends, net rental
    13  income, salary or earnings, and net  income  from  self-employment,  but
    14  shall  not  include  gifts or inheritances, payments made to individuals
    15  because of their status as victims of Nazi persecution,  as  defined  in
    16  P.L.  103-286,  or increases in benefits accorded pursuant to the social
    17  security act or a public or private pension paid to any  member  of  the
    18  household which increase, in any given year, does not exceed the consum-
    19  er  price  index  (all  items  United States city average) for such year
    20  which take effect after the date of eligibility of head of the household
    21  receiving benefits hereunder whether received by the head of the  house-
    22  hold  or  any other member of the household] the "adjusted gross income"
    23  for federal income tax purposes as reported on the  applicant's  federal
    24  or  state  income tax return for the applicable income tax year, subject
    25  to any subsequent amendments or  revisions,  plus  any  social  security
    26  benefits  not  included  in such federal adjusted gross income; provided
    27  that if no such return was filed for the applicable income tax year, the
    28  applicant's income shall be determined based on the amounts  that  would
    29  have  so  been  reported  if  such a return had been filed; and provided
    30  further, that when determining income for purposes of this section,  the
    31  following conditions shall be applicable:
    32    (i)  the  governing  body  of  a municipal corporation, after a public
    33  hearing, may adopt a local law, ordinance or resolution  providing  that
    34  any  social  security benefits that were not included in the applicant's
    35  federal adjusted gross income shall not be considered income;
    36    (ii) distributions received from an individual retirement  account  or
    37  individual  retirement  annuity  that  were  included in the applicant's
    38  federal adjusted gross income shall not be considered income unless  the
    39  governing  body  of  a  municipal  corporation,  after a public hearing,
    40  adopts a local law, ordinance or resolution providing otherwise;
    41    (iii) the applicant's income  shall  be  offset  by  all  medical  and
    42  prescription  drug  expenses  actually  paid that were not reimbursed or
    43  paid for by insurance, if the governing body of a municipal corporation,
    44  after a public hearing, adopts a  local  law,  ordinance  or  resolution
    45  providing therefor;
    46    (iv)  any tax-exempt interest or dividends that were excluded from the
    47  applicant's federal adjusted gross income shall  be  considered  income;
    48  and
    49    (v)  any  losses  that  were applied to reduce the applicant's federal
    50  adjusted gross income shall be subject to the following limitations:
    51    (A) the net amount of loss reported on federal Schedule C, D, E, or  F
    52  shall not exceed three thousand dollars per schedule,
    53    (B)  the  net  amount of any other separate category of loss shall not
    54  exceed three thousand dollars, and
    55    (C) the aggregate amount of all losses shall not exceed fifteen  thou-
    56  sand dollars;

        S. 4009--C                         44                         A. 3009--C
 
     1    §  11. Paragraph f of subdivision 1 of section 467-c of the real prop-
     2  erty tax law, as amended by chapter 500 of the laws of 2001, is  amended
     3  to read as follows:
     4    f.  "Income" means [income received by the eligible head of the house-
     5  hold combined with the income of all other members of the household from
     6  all sources after deduction of all income and social security taxes  and
     7  includes  without  limitation,  social security and retirement benefits,
     8  supplemental security  income  and  additional  state  payments,  public
     9  assistance  benefits, interest, dividends, net rental income, salary and
    10  earnings, and net income from self employment,  but  shall  not  include
    11  gifts  or  inheritances,  payments  made to individuals because of their
    12  status as victims of Nazi persecution as defined in  P.L.  103-286,  nor
    13  increases  in benefits accorded pursuant to the social security act or a
    14  public or private pension paid to any  member  of  the  household  which
    15  increase,  in  any  given year, does not exceed the consumer price index
    16  (all items United States city average) for such year which  take  effect
    17  after  the eligibility date of an eligible head of the household receiv-
    18  ing benefits hereunder whether received by  the  eligible  head  of  the
    19  household  or  any  other  member of the household.] the "adjusted gross
    20  income" for federal income tax purposes as reported on  the  applicant's
    21  federal or state income tax return for the applicable income  tax  year,
    22  subject   to   any  subsequent amendments  or revisions, plus any social
    23  security benefits not included in such federal  adjusted  gross  income;
    24  provided  that if no  such  return was  filed  for the applicable income
    25  tax year, the applicant's income shall  be  determined  based    on  the
    26  amounts   that   would   have   so  been reported if such  a  return had
    27  been filed; and provided  further,  that  when  determining  income  for
    28  purposes   of  this  section,  the  following conditions shall be appli-
    29  cable:
    30    (1)  the  governing  body  of  a municipal corporation, after a public
    31  hearing, may adopt a local law, ordinance or resolution  providing  that
    32  any  social  security benefits that were not included in the applicant's
    33  adjusted gross income shall not be considered income;
    34    (2)   distributions  received from an individual retirement account or
    35  individual retirement annuity that  were  included  in  the  applicant's
    36  federal  adjusted gross income shall not be considered income unless the
    37  governing  body of a  municipal  corporation,  after  a  public hearing,
    38  adopts a local law, ordinance or resolution providing otherwise;
    39    (3) the applicant's  income  shall  be   offset   by all  medical  and
    40  prescription drug expenses actually paid that  were  not  reimbursed  or
    41  paid for by insurance, if the governing body of a municipal corporation,
    42  after  a  public  hearing,  adopts  a local law, ordinance or resolution
    43  providing therefor;
    44    (4)  any tax-exempt interest or dividends that were excluded from  the
    45  applicant's  federal  adjusted  gross income shall be considered income;
    46  and
    47    (5) any losses that were applied to  reduce  the  applicant's  federal
    48  adjusted gross income shall be subject to the following limitations:
    49    (i)  the net amount of loss reported on federal Schedule C, D, E, or F
    50  shall not exceed three thousand dollars per schedule,
    51    (ii) the net amount of any other separate category of  loss  shall not
    52  exceed three thousand dollars, and
    53    (iii)  the  aggregate  amount  of  all losses shall not exceed fifteen
    54  thousand dollars.
    55    (6) When the eligible head of the household has retired  on  or  after
    56  the  commencement  of the taxable period and prior to the date of making

        S. 4009--C                         45                         A. 3009--C
 
     1  an application for a rent increase exemption order/tax abatement certif-
     2  icate pursuant to this section, such person's income shall  be  adjusted
     3  by  excluding salary or earnings and projecting such person's retirement
     4  income over the entire taxable period.
     5    §  12.  This  act shall take effect immediately and shall apply to all
     6  applications for exemptions pursuant to sections 467, 459-c,  467-b  and
     7  467-c of the real property tax law on assessment rolls that are based on
     8  taxable status dates occurring on and after October 1, 2023.
 
     9                                   PART L
 
    10    Section  1. Section 2 of chapter 540 of the laws of 1992, amending the
    11  real property tax law relating to oil and gas  charges,  as  amended  by
    12  section  1  of  part  C of chapter 59 of the laws of 2020, is amended to
    13  read as follows:
    14    § 2. This act shall take effect immediately and  shall  be  deemed  to
    15  have been in full force and effect on and after April 1, 1992; provided,
    16  however that any charges imposed by section 593 of the real property tax
    17  law  as  added  by section one of this act shall first be due for values
    18  for assessment rolls with tentative completion dates after July 1, 1992,
    19  and provided further, that this act  shall  remain  in  full  force  and
    20  effect  until  March  31,  [2024] 2027, at which time section 593 of the
    21  real property tax law as added by section  one  of  this  act  shall  be
    22  repealed.
    23    § 2. This act shall take effect immediately.
 
    24                                   PART M
 
    25                            Intentionally Omitted
 
    26                                   PART N
 
    27    Section  1.  Section  575-b of the real property tax law is amended by
    28  adding a new subdivision 1-a to read as follows:
    29    1-a. Notwithstanding any provision of law to the contrary,  the  solar
    30  or  wind  energy system appraisal model authorized by this section shall
    31  be identified, formulated, adopted, published, and updated  periodically
    32  in  the manner provided in this section without regard to the provisions
    33  of article two of the state administrative procedure act.
    34    § 2. Subparagraph (viii) of paragraph (b) of subdivision 2 of  section
    35  102  of the state administrative procedure act, as amended by chapter 74
    36  of the laws of 1987, is amended to read as follows:
    37    (viii) appraisal models, discount  rates,  state  equalization  rates,
    38  class ratios, special equalization rates and special equalization ratios
    39  established pursuant to the real property tax law;
    40    §  3.  No assessing unit that failed to use the appraisal model pursu-
    41  ant to section 575-b of the real property tax law in 2022 shall be  held
    42  liable  for  failing to use such model in 2022. Within fifteen days from
    43  the effective date of this act, the commissioner of taxation and finance
    44  may readopt the 2022 appraisal model or models and  discount  rates  for
    45  use  in  2023,  without  additional consultation with the New York state
    46  energy research and development authority or the New York  state  asses-
    47  sors  association,  and  without  soliciting  or  considering additional
    48  public comments.

        S. 4009--C                         46                         A. 3009--C
 
     1    § 4. This act shall take effect immediately and  shall  be  deemed  to
     2  have  been  in  full force and effect on and after the effective date of
     3  part X of chapter 59 of the laws of 2021.
 
     4                                   PART O
 
     5                            Intentionally Omitted
 
     6                                   PART P
 
     7    Section 1. Section 1299-C of the tax law is REPEALED.
     8    § 2. Notwithstanding any provision of law to the contrary, there shall
     9  be  no  refund of any registration fees paid prior to the effective date
    10  of this act.
    11    § 3. This act shall take effect immediately.
 
    12                                   PART Q
 
    13    Section 1. Section 285-a of the tax law is amended  by  adding  a  new
    14  subdivision 4 to read as follows:
    15    4.  Upon  each sale of motor fuel, other than a sale that is otherwise
    16  exempt under this article, the distributor must charge the  tax  imposed
    17  by  this  article  to  the  purchaser  on each gallon sold. If the taxes
    18  imposed by this article have not already  been  assumed  or  paid  by  a
    19  distributor  on any quantity of such fuel for any reason, including, but
    20  not limited to, the expansion of such fuel as a  result  of  temperature
    21  fluctuation,  the  distributor must remit such taxes to the commissioner
    22  on the return for the period in which such sale was made.
    23    § 2. Section 285-b of the tax law is amended by adding a new  subdivi-
    24  sion 5 to read as follows:
    25    5.  Upon  each  sale  of  Diesel motor fuel, other than a sale that is
    26  otherwise exempt under this article, the distributor must charge the tax
    27  imposed by this article to the purchaser on each  gallon  sold.  If  the
    28  taxes imposed by this article have not already been assumed or paid by a
    29  distributor  on any quantity of such fuel for any reason, including, but
    30  not limited to, the expansion of such fuel as a  result  of  temperature
    31  fluctuation,  the  distributor must remit such taxes to the commissioner
    32  on the return for the period in which such sale was made.
    33    § 3. Section 308 of the tax law is amended by adding a new subdivision
    34  (j) to read as follows:
    35    (j) Every petroleum business subject to tax under this article that is
    36  also a distributor, as defined in section two hundred eighty-two of this
    37  chapter, must charge the tax imposed by this article to the purchaser on
    38  each gallon sold, unless otherwise exempt. If the taxes imposed by  this
    39  article have not already been assumed or paid by such petroleum business
    40  on  any quantity of such fuel for any reason, including, but not limited
    41  to, the expansion of such fuel as a result of  temperature  fluctuation,
    42  such petroleum business must remit such taxes to the commissioner on the
    43  return for the period in which such sale was made.
    44    §  4.  Section 1102 of the tax law is amended by adding a new subdivi-
    45  sion (g) to read as follows:
    46    (g) The tax imposed by this section must be charged on the sale, other
    47  than a retail sale or a sale that is otherwise exempt under  this  arti-
    48  cle,  of  each  gallon  of motor fuel or Diesel motor fuel. If the taxes
    49  imposed by this section have not already been assumed  or  paid  by  the

        S. 4009--C                         47                         A. 3009--C
 
     1  distributor  on any quantity of such fuel for any reason, including, but
     2  not limited to, the expansion of such fuel as a  result  of  temperature
     3  fluctuation,  the  distributor must remit such taxes to the commissioner
     4  on the return for the period in which such sale was made.
     5    §  5.  This act shall take effect on September 1, 2023 and shall apply
     6  to sales of motor fuel and Diesel motor fuel on or after such date.
 
     7                                   PART R
 
     8    Section 1. Subparagraph (B) of  paragraph  1  of  subdivision  (a)  of
     9  section 1115 of the tax law, as amended by section 1 of part GG of chap-
    10  ter 59 of the laws of 2022, is amended to read as follows:
    11    (B) Until May [thirty first] thirty-first, two thousand [twenty-three]
    12  twenty-four,  the food and drink excluded from the exemption provided by
    13  clauses (i), (ii) and (iii) of subparagraph (A) of this  paragraph,  and
    14  bottled  water,  shall  be exempt under this subparagraph: (i) when sold
    15  for one dollar and fifty cents or less through any vending machine  that
    16  accepts coin or currency only; or (ii) when sold for two dollars or less
    17  through  any vending machine that accepts any form of payment other than
    18  coin or currency, whether or not it also accepts coin or currency.
    19    § 2. This act shall take effect June 1, 2023.
 
    20                                   PART S
 
    21    Section 1. Subdivision 1 of section 471 of the tax law, as amended  by
    22  section  1  of  part D of chapter 134 of the laws of 2010, is amended to
    23  read as follows:
    24    1. There is hereby imposed and shall be paid a tax on  all  cigarettes
    25  possessed  in the state by any person for sale, except that no tax shall
    26  be imposed on cigarettes sold under such circumstances that  this  state
    27  is  without power to impose such tax, including sales to qualified Indi-
    28  ans for their own use and consumption on their nations' or tribes' qual-
    29  ified reservation, or sold to the United States  or  sold  to  or  by  a
    30  voluntary  unincorporated organization of the armed forces of the United
    31  States operating a place for the sale of goods pursuant  to  regulations
    32  promulgated by the appropriate executive agency of the United States, to
    33  the extent provided in such regulations and policy statements of such an
    34  agency  applicable  to  such  sales.  The tax imposed by this section is
    35  imposed on all cigarettes sold on an Indian reservation  to  non-members
    36  of  the  Indian  nation or tribe and to non-Indians and evidence of such
    37  tax shall be by means of an affixed cigarette tax stamp. Indian  nations
    38  or  tribes  may  elect to participate in the Indian tax exemption coupon
    39  system established in section four hundred seventy-one-e of this article
    40  which provides a mechanism for the collection of the tax imposed by this
    41  section on cigarette sales on qualified reservations to such non-members
    42  and non-Indians and for the delivery of quantities of  tax-exempt  ciga-
    43  rettes  to Indian nations or tribes for the personal use and consumption
    44  of qualified members of the Indian nation or tribe. If an Indian  nation
    45  or  tribe  does  not  elect  to  participate in the Indian tax exemption
    46  coupon system, the prior approval system shall be the mechanism for  the
    47  delivery  of  quantities  of  tax-exempt cigarettes to Indian nations or
    48  tribes for the personal use and consumption of qualified members of  the
    49  Indian  nation  or tribe as provided for in paragraph (b) of subdivision
    50  five of this section. Such tax on cigarettes shall be  at  the  rate  of
    51  [four]  five dollars and thirty-five cents for each twenty cigarettes or
    52  fraction thereof, provided, however, that if  a  package  of  cigarettes

        S. 4009--C                         48                         A. 3009--C
 
     1  contains  more than twenty cigarettes, the rate of tax on the cigarettes
     2  in such package in excess of twenty shall  be  one  dollar  and  [eight]
     3  thirty-three  and three-quarters cents for each five cigarettes or frac-
     4  tion  thereof.  Such tax is intended to be imposed upon only one sale of
     5  the same package of cigarettes. It shall be presumed that all cigarettes
     6  within the state are subject to tax until the contrary  is  established,
     7  and  the  burden  of proof that any cigarettes are not taxable hereunder
     8  shall be upon the person in possession thereof.
     9    § 2.  Section 471-a of the tax law, as amended by section 5 of part  D
    10  of chapter 134 of the laws of 2010, is amended to read as follows:
    11    §  471-a.  Use tax on cigarettes. There is hereby imposed and shall be
    12  paid a tax on all cigarettes used in the state  by  any  person,  except
    13  that  no  tax  shall  be imposed (1) if the tax provided in section four
    14  hundred seventy-one of this article is paid, (2) on  the  use  of  ciga-
    15  rettes  which are exempt from the tax imposed by said section, or (3) on
    16  the use of four hundred or less cigarettes, brought into the  state  on,
    17  or  in the possession of, any person. Such tax on cigarettes shall be at
    18  the rate of [four] five dollars and thirty-five cents  for  each  twenty
    19  cigarettes  or fraction thereof, provided, however, that if a package of
    20  cigarettes contains more than twenty cigarettes, the rate of tax on  the
    21  cigarettes  in  such package in excess of twenty shall be one dollar and
    22  [eight] thirty-three and three-quarters cents for each  five  cigarettes
    23  or  fraction  thereof.  Within twenty-four hours after liability for the
    24  tax accrues, each such person shall file with the commissioner a  return
    25  in  such  form  as the commissioner may prescribe together with a remit-
    26  tance of the tax shown to be due thereon. For purposes of this  article,
    27  the  word  "use"  means  the  exercise  of  any right or power actual or
    28  constructive and shall include but is not limited to the receipt,  stor-
    29  age  or  any  keeping or retention for any length of time, but shall not
    30  include possession for sale. All other provisions of this article if not
    31  inconsistent shall apply to the administration and  enforcement  of  the
    32  tax  imposed  by  this  section in the same manner as if the language of
    33  said provisions had been incorporated in full into this section.
    34    § 3. Notwithstanding any other provision of law to the  contrary,  the
    35  tax  due  on  cigarettes  possessed in New York state as of the close of
    36  business on August 31, 2023, by any person for sale solely  attributable
    37  to the increase imposed by the amendments to section 471 of the tax law,
    38  as  amended  by  section  one of this act, shall be paid by November 20,
    39  2023, subject to such terms and conditions as the commissioner of  taxa-
    40  tion and finance shall prescribe.
    41    §  4. This act shall take effect on September 1, 2023, and shall apply
    42  to all cigarettes possessed in this state by any person for sale and all
    43  cigarettes used in this state by any person on or after such date.
 
    44                                   PART T
 
    45    Section 1. Subdivision 4 of section 474 of the tax law, as amended  by
    46  chapter 61 of the laws of 1989, is amended to read as follows:
    47    4.  At  the  time of delivering cigarettes to any person each agent or
    48  wholesale dealer, and at the time of delivering tobacco products to  any
    49  person  each  distributor or wholesale dealer of tobacco products, shall
    50  make a true duplicate invoice showing the date of delivery,  the  number
    51  of packages and number of cigarettes contained therein, in each shipment
    52  of  cigarettes delivered, and the items and quantity and wholesale price
    53  of each item in each shipment of tobacco  products  delivered,  and  the
    54  name  of  the  purchaser  to whom delivery is made, and shall retain the

        S. 4009--C                         49                         A. 3009--C
 
     1  same for a period of three years subject to the use  and  inspection  of
     2  the  commissioner  [of  taxation and finance]. Each dealer shall procure
     3  and retain invoices showing the number of packages and number  of  ciga-
     4  rettes contained therein, in each shipment of cigarettes received by him
     5  or  her,  and the items and quantity and wholesale price of each item in
     6  each shipment of tobacco products received by him or her, the date ther-
     7  eof, and the name of the shipper, and shall retain the same for a period
     8  of three years subject to the use and inspection of the commissioner [of
     9  taxation and finance]. The commissioner [of  taxation  and  finance]  by
    10  regulation  may provide that whenever cigarettes or tobacco products are
    11  shipped into the state, the railroad company, express company,  trucking
    12  company  or other public carrier transporting any shipment thereof shall
    13  file with the commissioner [of taxation  and  finance]  a  copy  of  the
    14  freight  bill  within  ten  days after the delivery in the state of each
    15  shipment. All dealers shall maintain and keep  for  a  period  of  three
    16  years  such  other  records  of cigarettes or tobacco products received,
    17  sold or delivered within the state as may be required by the commission-
    18  er [of taxation and finance]. The commissioner [of taxation and finance]
    19  is hereby authorized to examine the books, papers,  invoices  and  other
    20  records  of  any person in possession, control or occupancy of any prem-
    21  ises where cigarettes or tobacco products are placed,  stored,  sold  or
    22  offered for sale, and the equipment of any such person pertaining to the
    23  stamping of cigarettes or the sale and delivery of cigarettes or tobacco
    24  products  taxable under this article, as well as the stock of cigarettes
    25  or tobacco products in any such premises or vehicle. To verify the accu-
    26  racy of the tax imposed and assessed by this article, each  such  person
    27  is hereby directed and required to give to the commissioner [of taxation
    28  and  finance]  or his or her duly authorized representatives, the means,
    29  facilities and opportunity for such examinations as are herein  provided
    30  for and required.
    31    §  2.  Paragraphs (b) and (d) of subdivision 4 of section 480-a of the
    32  tax law, as amended by section 4 of part I of chapter 59 of the laws  of
    33  2020, are amended and a new paragraph (a-1) is added to read as follows:
    34    (a-1)  If  a  retail  dealer,  including  an agent thereof, refuses to
    35  comply with the requirements of subdivision four of section four hundred
    36  seventy-four of this article its registration may be revoked (i)  for  a
    37  period  of one year, or (ii) for a second such violation within a period
    38  of five years for up to three years, or (iii) for a third or  subsequent
    39  violation within a period of seven years for a period up to ten years. A
    40  retail dealer registration shall be considered to be revoked pursuant to
    41  this  subdivision  immediately  upon  such  dealer's  receipt of written
    42  notice of revocation from the commissioner.
    43    (b) A retail dealer who is notified of a revocation of  its  registra-
    44  tion pursuant to this subdivision shall have the right to have the revo-
    45  cation reviewed by the commissioner or his or her designee by contacting
    46  the  department  at  a telephone number or an address to be disclosed in
    47  the notice of revocation within ten days of  such  dealer's  receipt  of
    48  such  notification.  The  retail  dealer may present written evidence or
    49  argument in support of its defense to the revocation, or may appear at a
    50  scheduled conference with the commissioner or his  or  her  designee  to
    51  present  oral arguments and written and oral evidence in support of such
    52  defense. The commissioner or his or her designee is authorized to  delay
    53  the  effective  date  of  the  revocation to enable the retail dealer to
    54  present further evidence or arguments in connection with the revocation.
    55  The commissioner or his or her designee shall cancel the  revocation  of
    56  registration if the commissioner or his or her designee is not satisfied

        S. 4009--C                         50                         A. 3009--C
 
     1  by  a preponderance of the evidence that the retail dealer [possessed or
     2  sold unstamped or unlawfully stamped packages  of  cigarettes]  violated
     3  paragraph (a) or (a-1) of this subdivision, as may be applicable.
     4    (d) After review of the revocation of registration by the commissioner
     5  or  his  or  her designee is complete, or the time within which a retail
     6  dealer may request such review has expired without such a request having
     7  been made, notice of the revocation  of  a  retail  dealer  registration
     8  pursuant  to  paragraph  (a)  of  this subdivision shall be given by the
     9  commissioner to the head of the division of the lottery for the  purpose
    10  of enforcement of section sixteen hundred seven of this chapter and such
    11  division  may  suspend  or  revoke  any license issued with respect to a
    12  lottery agent's specific location pursuant  to  article  thirty-four  of
    13  this  chapter  if  such  lottery  agent is a retail dealer of cigarettes
    14  whose registration for such location is suspended or revoked pursuant to
    15  this section. In addition, notice of such revocation shall also be given
    16  to the state liquor  authority  and  such  revocation  shall  constitute
    17  cause,  for  purposes  of  section one hundred eighteen of the alcoholic
    18  beverage control law, for revocation, cancellation or suspension of  any
    19  license or permit issued pursuant to such law.
    20    §  3.  Subdivision  3  of  section  480-a of the tax law is amended by
    21  adding a new paragraph (c) to read as follows:
    22    (c) If a retail dealer does not possess a valid  registration,  either
    23  because  it  failed to   obtain   a registration  or its registration is
    24  suspended or revoked and the commissioner or their designee, pursuant to
    25  their authority under this article, attempts to  inspect  such  premises
    26  for  a  violation  of  this section and such retail dealer, including an
    27  agent thereof, is found, after notice and opportunity to  be  heard,  to
    28  have  refused  such inspection, such retail dealer shall be subject to a
    29  penalty of  up  to four thousand dollars for a first refusal and  up  to
    30  eight  thousand  dollars for a second or subsequent refusal within three
    31  years of a prior refusal.
    32    § 4. This act shall take effect immediately.
 
    33                                   PART U
 
    34    Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
    35  subdivision (b) of section 1402 of the tax law, as amended by section  1
    36  of  item UUU of subpart B of part XXX of chapter 58 of the laws of 2020,
    37  is amended to read as follows:
    38    For purposes of this subdivision, the phrase "real  estate  investment
    39  trust  transfer" shall mean any conveyance of real property or an inter-
    40  est therein to a REIT, or to a partnership or  corporation  in  which  a
    41  REIT  owns  a controlling interest immediately following the conveyance,
    42  which conveyance (I) occurs in connection with the initial formation  of
    43  the REIT, provided that the conditions set forth in clauses (i) and (ii)
    44  of  this  subparagraph  are  satisfied,  or (II) in the case of any real
    45  estate investment trust transfer occurring on or after July  thirteenth,
    46  nineteen  hundred  ninety-six  and  before September first, two thousand
    47  [twenty-three] twenty-six, is described in the  last  sentence  of  this
    48  subparagraph.
    49    §  2.  Subparagraph  2 of paragraph (xi) of subdivision (b) of section
    50  1201 of the tax law, as amended by section 2 of item UUU of subpart B of
    51  part XXX of chapter 58 of the laws  of  2020,  is  amended  to  read  as
    52  follows:
    53    (2)  any  issuance or transfer of an interest in a REIT, or in a part-
    54  nership or corporation in which a REIT owns a controlling interest imme-

        S. 4009--C                         51                         A. 3009--C
 
     1  diately following the issuance or transfer, in connection with a  trans-
     2  action described in subparagraph one of this paragraph.  Notwithstanding
     3  the  foregoing,  a transaction described in the preceding sentence shall
     4  not  constitute  a  real  estate investment trust transfer unless (A) it
     5  occurs in connection with the initial formation  of  the  REIT  and  the
     6  conditions  described  in subparagraphs three and four of this paragraph
     7  are satisfied, or (B) in the case of any real  estate  investment  trust
     8  transfer  occurring  on or after July thirteenth, nineteen hundred nine-
     9  ty-six and before September first, two thousand  [twenty-three]  twenty-
    10  six, the transaction is described in subparagraph five of this paragraph
    11  in which case the provisions of such subparagraph shall apply.
    12    §  3.  Subparagraph  (B)  of  paragraph  2 of subdivision e of section
    13  11-2102 of the administrative code of the city of New York,  as  amended
    14  by  section  3 of item UUU of subpart B of part XXX of chapter 58 of the
    15  laws of 2020, is amended to read as follows:
    16    (B) any issuance or transfer of an interest in a REIT, or in  a  part-
    17  nership or corporation in which a REIT owns a controlling interest imme-
    18  diately  following  the issuance or transfer in connection with a trans-
    19  action described in subparagraph (A) of this paragraph.  Notwithstanding
    20  the foregoing, a transaction described in the preceding  sentence  shall
    21  not  constitute  a  real  estate investment trust transfer unless (i) it
    22  occurs in connection with the initial formation  of  the  REIT  and  the
    23  conditions  described in subparagraphs (C) and (D) of this paragraph are
    24  satisfied, or (ii) in the case  of  any  real  estate  investment  trust
    25  transfer  occurring  on or after July thirteenth, nineteen hundred nine-
    26  ty-six and before September first, two thousand  [twenty-three]  twenty-
    27  six,  the transaction is described in subparagraph (E) of this paragraph
    28  in which case the provision of such subparagraph shall apply.
    29    § 4. This act shall take effect immediately.
 
    30                                   PART V

    31    Section 1. Section 2016 of the tax law, as amended by chapter  401  of
    32  the laws of 1987, is amended to read as follows:
    33    §  2016.  Judicial  review. 1. A decision of the tax appeals tribunal,
    34  which is not subject to any further administrative review, shall finally
    35  and irrevocably decide all the issues which were raised  in  proceedings
    36  before  the  division  of  tax appeals upon which such decision is based
    37  unless the petitioner or the commissioner, or both, petitions for  judi-
    38  cial review in the manner provided by article seventy-eight of the civil
    39  practice  law  and  rules, except as otherwise provided in this section,
    40  within four months after notice of such decision is served  by  the  tax
    41  appeals tribunal upon every party to the proceeding before such tribunal
    42  by certified mail or personal service[, the petitioner who commenced the
    43  proceeding petitions for judicial review in the manner provided by arti-
    44  cle  seventy-eight of the civil practice law and rules, except as other-
    45  wise provided in this section].  Such service by certified mail shall be
    46  complete upon deposit of such notice, enclosed in a  post-paid  properly
    47  addressed  wrapper,  in  a  post office or official depository under the
    48  exclusive care and custody of the United States postal service. [The]
    49    2. When the petitioner who commenced the proceeding before  the  divi-
    50  sion  of tax appeals files a petition for judicial review, such petition
    51  shall designate the tax appeals tribunal and the commissioner [of  taxa-
    52  tion and finance] as respondents in the proceeding for judicial review.
    53    3.  The  commissioner,  in consultation with the attorney general, may
    54  petition for judicial review of a decision of the tax  appeals  tribunal

        S. 4009--C                         52                         A. 3009--C
 
     1  that is premised on interpretation of the state or federal constitution,
     2  international  law, federal law, the law of other states, or other legal
     3  matters that are beyond the purview of the state legislature.  When  the
     4  commissioner  files  a petition for judicial review, such petition shall
     5  designate the tax appeals tribunal and the petitioner who commenced  the
     6  proceeding before the division of tax appeals as respondents.
     7    4.  The  tax appeals tribunal shall not participate in proceedings for
     8  judicial review of its  decisions  and  such  proceedings  for  judicial
     9  review  shall  be  commenced  in  the  appellate division of the supreme
    10  court, third department. In all other respects the provisions and stand-
    11  ards of article seventy-eight of the civil practice law and rules  shall
    12  apply.    The  record  to  be  reviewed in such proceedings for judicial
    13  review shall include the determination of the administrative law  judge,
    14  the decision of the tax appeals tribunal, the stenographic transcript of
    15  the  hearing  before the administrative law judge, the transcript of any
    16  oral proceedings before the tax appeals  tribunal  and  any  exhibit  or
    17  document  submitted  into  evidence at any proceeding in the division of
    18  tax appeals upon which such decision is based.
    19    5. Whenever the commissioner petitions for judicial review as provided
    20  in subdivision three of this section, any  interest  and  penalty  that,
    21  under the provisions of this chapter, would otherwise continue to accrue
    22  on  the  underlying  tax  liability  that is the subject of the decision
    23  shall be stayed until fifteen days after  the  issuance  of  a  judicial
    24  decision  where  no  further  appeals  of such decision are allowed. For
    25  provisions regarding the awarding of costs, see section  three  thousand
    26  thirty of this chapter.
    27    §  2.  This act shall take effect immediately and shall apply to deci-
    28  sions and orders issued by the tax appeals tribunal  on  or  after  such
    29  date.
 
    30                                   PART W

    31    Section  1.  Subdivision 1 of section 105 of the state finance law, as
    32  amended by chapter 204 of the laws  of  2002,  is  amended  to  read  as
    33  follows:
    34    1.  All moneys received by the commissioner of taxation and finance on
    35  account of the state, excepting such moneys as are required by law to be
    36  deposited to the credit of the comptroller, but including such moneys as
    37  are thereafter paid into the state treasury by the comptroller, shall be
    38  deposited by the commissioner of taxation and finance within three busi-
    39  ness days after the receipt thereof, either as a demand  deposit  or  an
    40  interest-bearing  time  deposit (other than a time certificate of depos-
    41  it), as [he] the commissioner and the comptroller may determine, in such
    42  banks, trust companies and industrial banks as in [his] the  opinion  of
    43  the  commissioner  and  the  opinion  of the comptroller are secure. The
    44  moneys so deposited shall be placed to the account of  the  commissioner
    45  of taxation and finance.  [He] The commissioner shall keep a bankbook in
    46  which  shall  be  entered  [his]  their account of deposit in and moneys
    47  drawn from the banks and trust companies and industrial banks  in  which
    48  deposits  are  made  by  [him]  the  commissioner, which [he] they shall
    49  exhibit to the comptroller for [his] inspection on the first Tuesday  of
    50  every  month  and  oftener  if required. [He] The commissioner shall not
    51  draw any moneys from such banks, trust  companies  or  industrial  banks
    52  unless  by  checks  signed and countersigned in the manner prescribed by
    53  section one hundred one, unless otherwise provided  by  law.  No  moneys
    54  shall  be paid by any such bank, trust company or industrial bank out of

        S. 4009--C                         53                         A. 3009--C
 
     1  any such deposit except upon such checks.   Moneys may be  paid  through
     2  electronic  transfer  in  accordance  with  procedures  developed by the
     3  commissioner of taxation and finance and the comptroller and  consistent
     4  with  the  requirements  of  this  section  for recording payments. Such
     5  payments through electronic transfer shall be considered,  for  purposes
     6  of  this  chapter,  to be moneys drawn by check.  Every such bank, trust
     7  company or industrial bank shall transmit  to  the  comptroller  monthly
     8  statements  of  all  moneys  received  and  paid by it on account of the
     9  commissioner of taxation and finance.
    10    § 2. This act shall take effect immediately.
 
    11                                   PART X
 
    12    Section 1. Legislative findings. The legislature finds that it  is  in
    13  the  interests  of  the state to assist The New York Racing Association,
    14  Inc., which is  the  franchised  corporation  pursuant  to  section  two
    15  hundred  six  of  the  racing, pari-mutuel wagering and breeding law, to
    16  renovate Belmont Park racetrack and  repurpose  the  Aqueduct  property.
    17  The  legislature  further finds and determines that the anticipated cost
    18  of renovating Belmont Park racetrack is four hundred fifty-five  million
    19  dollars and that the renovation of Belmont Park racetrack shall initial-
    20  ly  be  financed by the state subject to the provisions of the repayment
    21  agreement of the franchised corporation required by section two of  this
    22  act. The franchised corporation will be responsible for repayment of the
    23  state funds in accordance with the terms of such repayment agreement.
    24    §  2.  Prior  to,  and as a condition to the state initially providing
    25  funds for the renovation  of  Belmont  Park  racetrack,  the  franchised
    26  corporation shall enter into a repayment agreement with the state acting
    27  through  the budget director authorizing and directing that a portion of
    28  the funds of the franchised corporation dedicated for  capital  expendi-
    29  tures  of the franchised corporation pursuant to paragraph 3 of subdivi-
    30  sion f and paragraph 3 of subdivision f-1 of section 1612 of the tax law
    31  shall be used to repay the state for the funds provided by the state for
    32  the renovation of Belmont Park racetrack, in accordance with the  repay-
    33  ment agreement between the state and the franchised corporation. For the
    34  purposes  of this act, the terms "renovate", "renovation", and "renovat-
    35  ing" are limited to any and all construction funded by  and  subject  to
    36  the  repayment  agreement  required  by subparagraph (ii) of the opening
    37  paragraph of paragraph 3 of subdivision f of section  1612  of  the  tax
    38  law. Such agreement shall further provide that:
    39    (1)  in the event the franchised corporation receives future statutory
    40  payments enacted for the specific  purpose  of  holding  the  franchised
    41  corporation harmless for any loss of payments pursuant to paragraph 3 of
    42  subdivision  f and paragraph 3 of subdivision f-1 of section 1612 of the
    43  tax law, such statutory payments shall also be used to repay  the  state
    44  for  the  funds provided by the state for the renovation of Belmont Park
    45  racetrack;
    46    (2) the franchised corporation shall provide to  the  franchise  over-
    47  sight  board,  as  an  exhibit  to  the  agreement,  descriptions of the
    48  construction work to be paid for with the loan provided by the state  to
    49  the  franchised  corporation, which may include but shall not be limited
    50  to renderings, reports, and construction goals; provided  however,  that
    51  the  franchise  oversight board shall make such exhibit available on its
    52  website at least thirty days prior to execution of such  agreement;  and
    53  provided  further, that the franchise oversight board shall receive such
    54  exhibit at least sixty days prior to execution of such agreement;

        S. 4009--C                         54                         A. 3009--C

     1    (3) the franchise oversight board shall include a requirement  in  any
     2  request   for  proposals  for  such  renovation  that  any  projects  in
     3  connection with such work shall only be undertaken pursuant to a project
     4  labor agreement in accordance with section 222 of the labor law. For the
     5  purposes of this section, "project labor agreement" shall have the mean-
     6  ing set forth in subdivision 1 of section 213 of the racing, pari-mutuel
     7  wagering and breeding law;
     8    (4) for purposes of article 15-A of the executive law and article 3 of
     9  the  veterans'  services  law, the franchised corporation and any person
    10  entering into a contract for any project authorized pursuant to this act
    11  shall be deemed a state agency as such term is defined in such  articles
    12  and such contracts shall be deemed state contracts within the meaning of
    13  such  term as set forth in such articles. Additionally it must be demon-
    14  strated that:
    15    (i) the franchised corporation and its contractors and  subcontractors
    16  have  made  significant  efforts  to attract and retain minority, women,
    17  local, and  veteran apprentices; and (ii) the franchised corporation and
    18  its contractors and subcontractors have committed to work with  minority
    19  and  women  owned  business  enterprises pursuant to article 15-A of the
    20  executive law through joint ventures or subcontractor relationships;
    21    (5) the franchised  corporation  shall  establish  affirmative  action
    22  goals  to  provide  equal  employment  opportunities  to  all employees,
    23  including minorities,  women  and  persons  with  disabilities,  at  the
    24  Belmont Park racetrack;
    25    (6)  the  franchise  oversight  board  shall consult with the New York
    26  state energy research and development authority to determine what energy
    27  efficiencies may  be  realized  with  the  Belmont  project,  which  may
    28  include,  but  not  be  limited to, the number of zero emissions vehicle
    29  charging facilities, use of  geothermal  networks,  mini-split  systems,
    30  solar  photovoltaic  technologies,  energy  storage, and other renewable
    31  energy opportunities that the authority finds sufficient;
    32    (7) the franchise oversight board shall ensure that, subsequent to the
    33  franchised corporation relinquishing to the state its leasehold interest
    34  in real property located in South Ozone Park, commonly known as Aqueduct
    35  Racetrack, the franchised corporation shall, in  good  faith,  take  all
    36  commercially  reasonable  steps to ensure that, upon closure of Aqueduct
    37  Racetrack, any individual who was employed by the franchised corporation
    38  and held a full time equivalent job at  Aqueduct  Racetrack  or  Belmont
    39  Park  racetrack during the year two thousand twenty-three and has a full
    40  time equivalent job at the time the  franchised  corporation  terminates
    41  all  races  at  Aqueduct  and  moves all operations to Belmont, shall be
    42  offered an opportunity to continue to work at the Belmont Park racetrack
    43  in a comparable position with access to the same or  greater  number  of
    44  work hours and at the same or greater rate of pay; and
    45    (8) such agreement shall be subject to approval of the franchise over-
    46  sight board; provided, further, that the gaming commission shall publish
    47  such  agreement  on its website. Such agreement may also be amended from
    48  time to time as agreed to by the state and the  franchised  corporation;
    49  provided however, that such amendment must comply with the provisions of
    50  this act.  At any time prior to the repayment of the state funds for the
    51  renovation of Belmont Park racetrack, the state may issue state personal
    52  income  tax revenue bonds or state sales tax revenue bonds. In the event
    53  of the issuance of such bonds, the repayment agreement shall be  revised
    54  to  reflect  the obligation of the franchised corporation to fully repay
    55  the debt service costs associated with such bonds.

        S. 4009--C                         55                         A. 3009--C
 
     1    § 3. Prior to, and as a condition of, the  state  initially  providing
     2  funds  for  the  renovation  of  Belmont  Park racetrack, the franchised
     3  corporation shall also enter into an agreement  with  the  state  relin-
     4  quishing to the state its leasehold interest in real property located in
     5  South Ozone Park, commonly known as Aqueduct Racetrack, upon substantial
     6  completion  of the renovation of Belmont Park racetrack; provided howev-
     7  er, that upon such relinquishment,  such  lands  shall  fall  under  the
     8  jurisdiction  of  the  franchise  oversight  board and the provisions of
     9  section 212 of the racing, pari-mutuel wagering and breeding  law  shall
    10  govern the disposition and future real estate development of such lands.
    11  It  is  the  intention  of  the  legislature  for  race  dates presently
    12  conducted at Aqueduct racetrack to be transferred to  and  conducted  at
    13  Belmont  Park  racetrack,  when  the commission determines the franchise
    14  corporation is capable of hosting such dates. The number  of race   days
    15  at    Belmont  Park   racetrack shall be  agreed  to  in  writing by the
    16  franchised corporation, New York Thoroughbred  Breeders  Inc.,  the  New
    17  York  Thoroughbred  Horsemen's Association   (or  such  other entity  as
    18  is certified  and  approved pursuant to section 228 of the racing, pari-
    19  mutuel wagering and breeding law) and approved by the gaming commission.
    20  If such agreement cannot be made, the gaming commission shall  determine
    21  the number of race days at Belmont Park racetrack.
    22    §  4.  The  New  York State Gaming Commission shall ensure that to the
    23  extent that the law allows for a franchise agreement for  the  operation
    24  of  Belmont  Park  racetrack with a franchisee other than the franchised
    25  corporation, the term of any  such  franchise  agreement  awarded  after
    26  funding  provided  by the state for the renovation of Belmont Park race-
    27  track described by section one of this act  shall  include  a  provision
    28  obligating  such  franchisee  to  assume  the payments of the franchised
    29  corporation required by section two of this act.
    30    § 5. Subdivision 1 of section 212 of the racing, pari-mutuel  wagering
    31  and  breeding  law,  as  amended  by  chapter 18 of the laws of 2008, is
    32  amended to read as follows:
    33    1. There is hereby created a franchise  oversight  board  which  shall
    34  consist  of  five  members  [appointed  by  the  governor].  Of the five
    35  members, three  shall  be  appointed  by  the  governor,  one  shall  be
    36  appointed [upon the recommendation of] by the temporary president of the
    37  senate  and  one  shall be appointed [upon the recommendation of] by the
    38  speaker of the assembly. Of the initially appointed  board,  one  member
    39  appointed  by  the  governor shall serve for a one year term, one member
    40  appointed by the governor shall serve for  a  two  year  term,  and  one
    41  member  appointed  by  the  governor shall serve for a three year term[,
    42  while each of the members appointed by the governor upon the recommenda-
    43  tion of]. The members appointed by the temporary president of the senate
    44  and [upon the recommendation of] the speaker of the assembly shall serve
    45  for a four year term. All successors shall serve  for  a  term  of  four
    46  years.  All members shall continue in office until their successors have
    47  been appointed and qualified. The governor  shall  designate  the  chair
    48  from  among  the sitting members who shall serve as such at the pleasure
    49  of the governor.
    50    § 6. Paragraph b of subdivision 6 of section 212 of the racing,  pari-
    51  mutuel  wagering and breeding law, as amended by chapter 243 of the laws
    52  of 2020, is amended to read as follows:
    53    b. (i) The local advisory board for the  Aqueduct  racetrack  facility
    54  shall  comprise  of  fifteen members, nine of whom shall be designees of
    55  New York City Queens Community Board Ten, three designees of  the  fran-
    56  chised corporation and three designees of the video lottery gaming oper-

        S. 4009--C                         56                         A. 3009--C
 
     1  ator. At substantial completion of the Belmont project, as determined by
     2  the gaming commission, this board shall be dissolved.
     3    (ii)  (A)  Notwithstanding  subparagraph (i) of this paragraph, within
     4  thirty days after the substantial completion of the Belmont project,  as
     5  determined by the gaming commission, an Aqueduct Redevelopment Community
     6  Advisory  Board  shall  be formed to assess all bids made in response to
     7  the request for proposals on developing the  Aqueduct  property  and  is
     8  required  to hold a public hearing and adopt and submit a written recom-
     9  mendation on each bid to the franchise oversight board within sixty days
    10  of receiving such bid. The adoption of such recommendation shall be by a
    11  public vote which results in approval by a  majority  of  the  appointed
    12  members  present  during the presence of a quorum. The board recommenda-
    13  tion shall be in writing via a form provided by the franchise  oversight
    14  board  and  shall include a description of the application, the time and
    15  place of the public hearing on the application, the time  and  place  of
    16  the  meeting  at  which  the  recommendation was adopted and the vote by
    17  which the recommendation was adopted. The community board may include in
    18  its submission the reasons for the vote and any conditions  attached  to
    19  its vote.
    20    (B)  The Aqueduct Redevelopment Community Advisory Board shall consist
    21  of six members, one to be appointed by the governor, one to be appointed
    22  by the mayor of the city of New York, one to be appointed by the senator
    23  representing the senate district where the Aqueduct property is located,
    24  one to be appointed by  the  assemblymember  representing  the  assembly
    25  district  where the Aqueduct property is located, one to be appointed by
    26  the city councilmember representing  the  district  where  the  Aqueduct
    27  property  is  located,  and one to be appointed by the borough president
    28  where the Aqueduct property is located.
    29    § 7. For the avoidance of doubt, all lands vacated by  the  franchised
    30  corporation at Aqueduct racetrack shall be considered real estate devel-
    31  opment  parcels,  subject  to the restrictions set forth in subparagraph
    32  (i) of paragraph a of subdivision 8 of section 212 of the racing,  pari-
    33  mutuel wagering and breeding law.
    34    §  8. The opening paragraph of paragraph 3 of subdivision f of section
    35  1612 of the tax law is designated subparagraph (i) and  a  new  subpara-
    36  graph (ii) is added to read as follows:
    37    (ii)  Notwithstanding subparagraph (i) of this paragraph, in the event
    38  the state provides funds to the franchised  corporation  for  the  reno-
    39  vation of Belmont Park racetrack, out of the amount payable to the fran-
    40  chised corporation for capital expenditures pursuant to subparagraph (i)
    41  of  this  paragraph  during any state fiscal year, an amount pursuant to
    42  the repayment agreement between the state and the franchised corporation
    43  shall instead be deposited into the miscellaneous capital projects fund,
    44  New York racing capital improvement fund as required to repay the  state
    45  for  funds  provided  for the renovation of Belmont Park racetrack.  Any
    46  amount payable to the  franchised corporation  in any  state fiscal year
    47  for capital expenditures pursuant to subparagraph (i) of this  paragraph
    48  in  excess  of the   amount  pursuant to the repayment agreement between
    49  the state and the franchised corporation shall be deposited pursuant  to
    50  subparagraph (i) of this paragraph.  Once the state has been fully reim-
    51  bursed  for  the  costs  related to the renovation of Belmont Park race-
    52  track, this subparagraph shall no longer apply and subparagraph  (i)  of
    53  this paragraph shall apply.
    54    §  9.  The  opening  paragraph  of  paragraph  3 of subdivision f-1 of
    55  section 1612 of the tax law is designated subparagraph  (i)  and  a  new
    56  subparagraph (ii) is added to read as follows:

        S. 4009--C                         57                         A. 3009--C
 
     1    (ii)  Notwithstanding subparagraph (i) of this paragraph, in the event
     2  the state provides funds to the franchised  corporation  for  the  reno-
     3  vation  of Belmont Park racetrack, and in the event the amount deposited
     4  pursuant to subparagraph (ii) of paragraph three  of  subdivision  f  of
     5  this  section is insufficient to make the required repayment pursuant to
     6  such subparagraph during any state fiscal year, an amount payable to the
     7  franchised corporation for capital expenditures pursuant to subparagraph
     8  (i) of this paragraph shall instead be deposited into the  miscellaneous
     9  capital  projects  fund, New York racing capital improvement fund to the
    10  extent necessary, when combined with the amount set  forth  in  subpara-
    11  graph  (ii) of paragraph three of subdivision f of this section, to make
    12  any required repayment of funds provided by the  state  related  to  the
    13  renovation of Belmont Park racetrack during such fiscal year. Any amount
    14  payable to the franchised corporation in any state fiscal year for capi-
    15  tal  expenditures  pursuant  to  subparagraph  (i)  of this paragraph in
    16  excess of the amount pursuant to the  repayment  agreement  between  the
    17  state  and  the  franchised  corporation  shall be deposited pursuant to
    18  subparagraph (i) of this paragraph. Once the state has been fully  reim-
    19  bursed  for  such  costs related to the renovation of Belmont Park race-
    20  track, this subparagraph shall no longer apply and subparagraph  (i)  of
    21  this paragraph shall apply.
    22    §  10. The state comptroller is hereby authorized and directed to loan
    23  money in accordance with the provisions set forth in  subdivision  5  of
    24  section 4 of the state finance law to the miscellaneous capital projects
    25  fund, New York racing capital improvement fund.
    26    § 11. 1.  Notwithstanding any other provisions of law to the contrary,
    27  the  dormitory authority, the urban development corporation, and the New
    28  York state thruway authority are hereby  authorized  to  issue  personal
    29  income  tax  revenue  bonds or notes or state sales tax revenue bonds or
    30  notes in one or more series in an  aggregate  principal  amount  not  to
    31  exceed  four hundred fifty-five million dollars ($455,000,000) excluding
    32  bonds or notes issued to pay costs of issuance of such  bonds  or  notes
    33  and  bonds  or  notes  issued to refund or otherwise repay such bonds or
    34  notes previously issued, for the purpose of financing the renovation  of
    35  Belmont Park racetrack.
    36    2.  Notwithstanding  any  other  provision  of law to the contrary, in
    37  order to assist the dormitory authority, urban development  corporation,
    38  and  the  New  York state thruway authority in undertaking the financing
    39  for the renovation of Belmont Park racetrack, the director of the budget
    40  is hereby authorized to enter into one or more financing agreements with
    41  the dormitory authority, the urban development corporation, and the  New
    42  York  state  thruway  authority,  upon  such terms and conditions as the
    43  director of the budget and the dormitory authority, the  urban  develop-
    44  ment  corporation  and the New York state thruway authority agree, so as
    45  to annually provide to the dormitory authority,  the  urban  development
    46  corporation, and the New York state thruway authority, in the aggregate,
    47  a  sum  not  to  exceed  the  principal,  interest, and related expenses
    48  required for such bonds and notes. Any financing agreement entered  into
    49  pursuant  to this section shall provide that the obligation of the state
    50  to pay the amount therein provided shall not constitute a  debt  of  the
    51  state  within  the  meaning of any constitutional or statutory provision
    52  and shall be deemed executory only to the extent of monies available and
    53  that no liability shall be incurred  by  the  state  beyond  the  monies
    54  available  for  such  purpose,  subject  to  annual appropriation by the
    55  legislature. Any such contract or any payments made or to be made there-
    56  under may be assigned and pledged by the dormitory authority, the  urban

        S. 4009--C                         58                         A. 3009--C
 
     1  development  corporation,  and  the  New York state thruway authority as
     2  security for such bonds and notes, as authorized by this section.
     3    §  12. Notwithstanding any law to the contrary, and in accordance with
     4  section 4 of the state finance law, the comptroller is hereby authorized
     5  and directed in each state fiscal year to transfer, upon request of  the
     6  director  of  the budget, up to the unencumbered balance or an amount up
     7  to twenty-five million eight hundred thousand dollars ($25,800,000) from
     8  the  miscellaneous  capital  projects  fund,  New  York  racing  capital
     9  improvement fund to the general fund.
    10    §  13. Subparagraph (i) of paragraph a of subdivision 8 of section 212
    11  of the racing, pari-mutuel wagering and breeding law, as added by  chap-
    12  ter 18 of the laws of 2008, is amended to read as follows:
    13    (i)  represent  the interests of the state in all real estate develop-
    14  ment proposed for Aqueduct  racetrack  or  real  estate  development  at
    15  Belmont  Park  racetrack. Any such real estate development shall only be
    16  undertaken pursuant to a competitive  process  approved  by  the  board,
    17  after consultation with the applicable local advisory boards and consid-
    18  eration  of  local  zoning and planning regulation, and in a manner that
    19  will not adversely impact any historic structure that is included in  or
    20  eligible for inclusion in the National or the State Register of Historic
    21  Places,  be  consistent  with  any plan approved for such community, and
    22  shall be subject to unanimous approval of the franchise oversight  board
    23  and  all statutory and regulatory requirements; provided, however, that,
    24  subject to approval of the franchise oversight board and subject to  all
    25  statutory  and regulatory requirements, the franchised corporation shall
    26  have full powers and rights to develop, redevelop,  refurbish,  renovate
    27  or  make  such other improvements, capital expenditures or otherwise, to
    28  the racetracks and the fixtures and improvements thereon consistent with
    29  projects  specifically  identified  in  the   franchised   corporation's
    30  approved track facility improvement plan.
    31    The franchise oversight board shall be guided by the goals of ensuring
    32  the continuation of high quality thoroughbred racing at the thoroughbred
    33  racing  facilities  located  within the state, raising revenue for or in
    34  aid or support of education in this state from video lottery  gaming  at
    35  facilities  of  the  state  racing franchise, and maximizing revenue for
    36  governments from pari-mutuel wagering on racing  at  facilities  of  the
    37  state   racing   franchise.  In  consideration  of  capital  expenditure
    38  approval, the board shall ensure adequate funds are dedicated for  main-
    39  tenance  and  repair  of  existing  structures at Saratoga racetrack and
    40  Belmont Park racetrack and for the  improvement  of  onsite  backstretch
    41  personnel housing and quality of life.
    42    §  14.  This  act  shall  take  effect immediately; provided, that the
    43  amendments to section 212 of the racing, pari-mutuel wagering and breed-
    44  ing law made by sections five, six and thirteen of  this  act  shall  be
    45  deemed  repealed  as  provided  by  chapter  354 of the laws of 2005, as
    46  amended.
 
    47                                   PART Y
 
    48                            Intentionally Omitted
 
    49                                   PART Z
 
    50                            Intentionally Omitted

        S. 4009--C                         59                         A. 3009--C
 
     1                                   PART AA

     2                            Intentionally Omitted
 
     3                                   PART BB
 
     4    Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
     5  racing, pari-mutuel wagering and breeding law, as amended by  section  1
     6  of  part  EE  of  chapter  59 of the laws of 2022, is amended to read as
     7  follows:
     8    (a) Any  racing  association  or  corporation  or  regional  off-track
     9  betting  corporation,  authorized  to conduct pari-mutuel wagering under
    10  this chapter, desiring to display the simulcast of horse races on  which
    11  pari-mutuel  betting shall be permitted in the manner and subject to the
    12  conditions provided for in this article may apply to the commission  for
    13  a  license  so to do. Applications for licenses shall be in such form as
    14  may be prescribed by the commission and shall contain  such  information
    15  or  other material or evidence as the commission may require. No license
    16  shall be issued by the commission authorizing the simulcast transmission
    17  of thoroughbred races from a track located in Suffolk  county.  The  fee
    18  for  such  licenses shall be five hundred dollars per simulcast facility
    19  and for account wagering licensees that do not operate either  a  simul-
    20  cast facility that is open to the public within the state of New York or
    21  a  licensed racetrack within the state, twenty thousand dollars per year
    22  payable by the licensee to the commission for deposit into  the  general
    23  fund.  Except  as  provided  in  this  section, the commission shall not
    24  approve any application to conduct simulcasting into individual or group
    25  residences, homes or other areas for the purposes of  or  in  connection
    26  with  pari-mutuel wagering. The commission may approve simulcasting into
    27  residences, homes or other areas to be conducted jointly by one or  more
    28  regional  off-track  betting corporations and one or more of the follow-
    29  ing: a franchised corporation,  thoroughbred  racing  corporation  or  a
    30  harness racing corporation or association; provided (i) the simulcasting
    31  consists  only of those races on which pari-mutuel betting is authorized
    32  by this chapter at one or more simulcast  facilities  for  each  of  the
    33  contracting  off-track  betting  corporations which shall include wagers
    34  made in accordance with  section  one  thousand  fifteen,  one  thousand
    35  sixteen  and  one  thousand  seventeen of this article; provided further
    36  that the contract provisions or other simulcast  arrangements  for  such
    37  simulcast  facility  shall  be no less favorable than those in effect on
    38  January first, two thousand  five;  (ii)  that  each  off-track  betting
    39  corporation  having  within  its  geographic boundaries such residences,
    40  homes or other areas technically  capable  of  receiving  the  simulcast
    41  signal  shall be a contracting party; (iii) the distribution of revenues
    42  shall be subject to contractual agreement of  the  parties  except  that
    43  statutory  payments  to  non-contracting  parties,  if  any,  may not be
    44  reduced; provided, however, that nothing herein to  the  contrary  shall
    45  prevent a track from televising its races on an irregular basis primari-
    46  ly for promotional or marketing purposes as found by the commission. For
    47  purposes of this paragraph, the provisions of section one thousand thir-
    48  teen  of  this  article  shall  not  apply. Any agreement authorizing an
    49  in-home simulcasting experiment commencing prior to May fifteenth, nine-
    50  teen hundred ninety-five, may, and all its terms, be extended until June
    51  thirtieth, two thousand [twenty-three] twenty-four;  provided,  however,
    52  that  any  party to such agreement may elect to terminate such agreement

        S. 4009--C                         60                         A. 3009--C
 
     1  upon conveying written notice to all other parties of such agreement  at
     2  least  forty-five  days  prior to the effective date of the termination,
     3  via registered mail. Any party to an agreement receiving such notice  of
     4  an  intent  to  terminate, may request the commission to mediate between
     5  the parties new terms and conditions in a replacement agreement  between
     6  the  parties  as will permit continuation of an in-home experiment until
     7  June thirtieth, two thousand [twenty-three]  twenty-four;  and  (iv)  no
     8  in-home  simulcasting in the thoroughbred special betting district shall
     9  occur without the approval of the regional thoroughbred track.
    10    § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
    11  1007 of the racing, pari-mutuel wagering and breeding law, as amended by
    12  section  2  of  part EE of chapter 59 of the laws of 2022, is amended to
    13  read as follows:
    14    (iii) Of the sums retained by a receiving track located in Westchester
    15  county on races received from a franchised corporation, for  the  period
    16  commencing January first, two thousand eight and continuing through June
    17  thirtieth,  two  thousand  [twenty-three]  twenty-four,  the amount used
    18  exclusively for purses to be awarded at races conducted by such  receiv-
    19  ing track shall be computed as follows: of the sums so retained, two and
    20  one-half  percent  of the total pools. Such amount shall be increased or
    21  decreased in the amount of fifty percent  of  the  difference  in  total
    22  commissions  determined  by  comparing  the  total commissions available
    23  after July twenty-first,  nineteen  hundred  ninety-five  to  the  total
    24  commissions  that  would have been available to such track prior to July
    25  twenty-first, nineteen hundred ninety-five.
    26    § 3. The opening paragraph of subdivision 1 of  section  1014  of  the
    27  racing,  pari-mutuel  wagering and breeding law, as amended by section 3
    28  of part EE of chapter 59 of the laws of 2022,  is  amended  to  read  as
    29  follows:
    30    The  provisions of this section shall govern the simulcasting of races
    31  conducted at thoroughbred tracks located in another state or country  on
    32  any day during which a franchised corporation is conducting a race meet-
    33  ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
    34  thirtieth, two  thousand  [twenty-three]  twenty-four  and  on  any  day
    35  regardless  of  whether  or not a franchised corporation is conducting a
    36  race meeting in Saratoga county at Saratoga thoroughbred racetrack after
    37  June thirtieth, two thousand [twenty-three] twenty-four. On any  day  on
    38  which  a franchised corporation has not scheduled a racing program but a
    39  thoroughbred racing corporation located within the state  is  conducting
    40  racing, each off-track betting corporation branch office and each simul-
    41  casting  facility licensed in accordance with section one thousand seven
    42  (that has entered into a written agreement with such  facility's  repre-
    43  sentative  horsemen's  organization, as approved by the commission), one
    44  thousand eight, or one thousand nine of this article shall be authorized
    45  to accept wagers and display the live simulcast signal from thoroughbred
    46  tracks located in another  state  or  foreign  country  subject  to  the
    47  following provisions:
    48    § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
    49  and  breeding  law,  as amended by section 4 of part EE of chapter 59 of
    50  the laws of 2022, is amended to read as follows:
    51    1. The provisions of this section shall  govern  the  simulcasting  of
    52  races  conducted  at  harness tracks located in another state or country
    53  during the period July first, nineteen hundred ninety-four through  June
    54  thirtieth,  two  thousand [twenty-three] twenty-four. This section shall
    55  supersede all inconsistent provisions of this chapter.

        S. 4009--C                         61                         A. 3009--C

     1    § 5. The opening paragraph of subdivision 1 of  section  1016  of  the
     2  racing,  pari-mutuel  wagering and breeding law, as amended by section 5
     3  of part EE of chapter 59 of the laws of 2022,  is  amended  to  read  as
     4  follows:
     5    The  provisions of this section shall govern the simulcasting of races
     6  conducted at thoroughbred tracks located in another state or country  on
     7  any  day  during which a franchised corporation is not conducting a race
     8  meeting in Saratoga county at Saratoga thoroughbred racetrack until June
     9  thirtieth, two  thousand  [twenty-three]  twenty-four.  Every  off-track
    10  betting  corporation  branch  office  and  every  simulcasting  facility
    11  licensed in accordance with section one thousand seven that have entered
    12  into a written agreement with such facility's representative  horsemen's
    13  organization  as  approved  by the commission, one thousand eight or one
    14  thousand nine of this article shall be authorized to accept  wagers  and
    15  display  the  live  full-card  simulcast  signal  of thoroughbred tracks
    16  (which may include quarter horse or mixed  meetings  provided  that  all
    17  such wagering on such races shall be construed to be thoroughbred races)
    18  located  in  another  state or foreign country, subject to the following
    19  provisions; provided,  however,  no  such  written  agreement  shall  be
    20  required of a franchised corporation licensed in accordance with section
    21  one thousand seven of this article:
    22    §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
    23  wagering and breeding law, as amended by section 6 of part EE of chapter
    24  59 of the laws of 2022, is amended to read as follows:
    25    Notwithstanding any other provision of this chapter,  for  the  period
    26  July  twenty-fifth, two thousand one through September eighth, two thou-
    27  sand  [twenty-two]  twenty-three,  when  a  franchised  corporation   is
    28  conducting  a  race  meeting  within  the state at Saratoga Race Course,
    29  every off-track betting corporation branch office and every simulcasting
    30  facility licensed in accordance with section one  thousand  seven  (that
    31  has entered into a written agreement with such facility's representative
    32  horsemen's  organization  as  approved  by the commission), one thousand
    33  eight or one thousand nine of this article shall be authorized to accept
    34  wagers and display the live simulcast signal  from  thoroughbred  tracks
    35  located  in  another  state,  provided  that  such facility shall accept
    36  wagers on races run  at  all  in-state  thoroughbred  tracks  which  are
    37  conducting   racing   programs  subject  to  the  following  provisions;
    38  provided, however, no such written agreement  shall  be  required  of  a
    39  franchised  corporation licensed in accordance with section one thousand
    40  seven of this article.
    41    § 7. Section 32 of chapter 281 of  the  laws  of  1994,  amending  the
    42  racing, pari-mutuel wagering and breeding law and other laws relating to
    43  simulcasting,  as  amended  by section 7 of part EE of chapter 59 of the
    44  laws of 2022, is amended to read as follows:
    45    § 32. This act shall take effect immediately and the  pari-mutuel  tax
    46  reductions  in  section  six  of  this  act  shall  expire and be deemed
    47  repealed on  July  1,  [2023]  2024;  provided,  however,  that  nothing
    48  contained  herein  shall be deemed to affect the application, qualifica-
    49  tion, expiration, or repeal of any  provision  of  law  amended  by  any
    50  section  of  this act, and such provisions shall be applied or qualified
    51  or shall expire or be deemed repealed in the same manner,  to  the  same
    52  extent  and on the same date as the case may be as otherwise provided by
    53  law; provided further, however, that sections twenty-three  and  twenty-
    54  five of this act shall remain in full force and effect only until May 1,
    55  1997 and at such time shall be deemed to be repealed.

        S. 4009--C                         62                         A. 3009--C
 
     1    §  8.  Section  54  of  chapter  346 of the laws of 1990, amending the
     2  racing, pari-mutuel wagering and breeding law and other laws relating to
     3  simulcasting and the imposition of certain taxes, as amended by  section
     4  8  of  part  EE of chapter 59 of the laws of 2022, is amended to read as
     5  follows:
     6    §  54.  This  act  shall  take  effect immediately; provided, however,
     7  sections three through twelve of this act shall take effect  on  January
     8  1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
     9  ing  law, as added by section thirty-eight of this act, shall expire and
    10  be deemed repealed on July 1, [2023] 2024; and section eighteen of  this
    11  act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
    12  two of this act shall take effect as of the same date as chapter 772  of
    13  the laws of 1989 took effect.
    14    §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
    15  pari-mutuel wagering and breeding law, as amended by section 9  of  part
    16  EE of chapter 59 of the laws of 2022, is amended to read as follows:
    17    (a)  The  franchised  corporation  authorized  under  this  chapter to
    18  conduct pari-mutuel betting at a race meeting or races run thereat shall
    19  distribute all sums deposited in any pari-mutuel pool to the holders  of
    20  winning tickets therein, provided such tickets are presented for payment
    21  before  April  first  of  the year following the year of their purchase,
    22  less an amount that shall be established and retained by such franchised
    23  corporation of between twelve to seventeen percent of the total deposits
    24  in pools resulting from on-track regular bets, and fourteen  to  twenty-
    25  one  percent  of  the  total  deposits  in pools resulting from on-track
    26  multiple bets and fifteen to twenty-five percent of the  total  deposits
    27  in  pools  resulting from on-track exotic bets and fifteen to thirty-six
    28  percent of the total deposits in pools  resulting  from  on-track  super
    29  exotic  bets,  plus  the breaks. The retention rate to be established is
    30  subject to the prior approval of the commission.
    31    Such rate may not be changed more than once per calendar quarter to be
    32  effective on the first day of the calendar quarter.  "Exotic  bets"  and
    33  "multiple  bets"  shall  have  the  meanings  set  forth in section five
    34  hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
    35  meaning  set  forth  in  section  three hundred one of this chapter. For
    36  purposes of this section, a "pick six bet" shall mean a  single  bet  or
    37  wager on the outcomes of six races. The breaks are hereby defined as the
    38  odd  cents over any multiple of five for payoffs greater than one dollar
    39  five cents but less than five dollars, over  any  multiple  of  ten  for
    40  payoffs  greater  than  five  dollars but less than twenty-five dollars,
    41  over any multiple of twenty-five for payoffs  greater  than  twenty-five
    42  dollars but less than two hundred fifty dollars, or over any multiple of
    43  fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
    44  retained there shall be paid  by  such  franchised  corporation  to  the
    45  commissioner  of  taxation and finance, as a reasonable tax by the state
    46  for the privilege of conducting pari-mutuel betting on the races run  at
    47  the  race  meetings  held  by such franchised corporation, the following
    48  percentages of the total pool for regular and multiple bets five percent
    49  of regular bets and four percent of multiple bets plus twenty percent of
    50  the breaks; for exotic wagers seven and  one-half  percent  plus  twenty
    51  percent  of  the  breaks,  and  for super exotic bets seven and one-half
    52  percent plus fifty percent of the breaks.
    53    For the period April first, two thousand one through December  thirty-
    54  first,  two  thousand [twenty-three] twenty-four, such tax on all wagers
    55  shall be one and six-tenths percent, plus, in each such  period,  twenty
    56  percent of the breaks. Payment to the New York state thoroughbred breed-

        S. 4009--C                         63                         A. 3009--C
 
     1  ing  and  development  fund by such franchised corporation shall be one-
     2  half of one percent of total daily on-track pari-mutuel pools  resulting
     3  from regular, multiple and exotic bets and three percent of super exotic
     4  bets  and  for the period April first, two thousand one through December
     5  thirty-first, two  thousand  [twenty-three]  twenty-four,  such  payment
     6  shall  be  seven-tenths  of  one percent of regular, multiple and exotic
     7  pools.
     8    § 10. This act shall take effect immediately.

     9                                   PART CC
 
    10                            Intentionally Omitted
 
    11                                   PART DD
 
    12    Section 1. Paragraphs (a) and (b) of subdivision 4 of section  189  of
    13  the  state  finance law, as amended by section 8 of part A of chapter 56
    14  of the laws of 2013, are amended to read as follows:
    15    (a) This section shall apply to [claims, records, or  statements  made
    16  under  the]  tax  law violations only if: (i) the net income or sales of
    17  the person against whom the action is  brought  equals  or  exceeds  one
    18  million  dollars  for  any  taxable  year  subject to any action brought
    19  pursuant to this article; and (ii) the damages pleaded  in  such  action
    20  exceed  three  hundred and fifty thousand dollars; [and (iii) the person
    21  is alleged to have violated paragraph (a), (b), (c), (d),  (e),  (f)  or
    22  (g)  of subdivision one of this section; provided, however, that nothing
    23  in this subparagraph shall be deemed to modify or restrict the  applica-
    24  tion  of  such paragraphs to any act alleged that relates to a violation
    25  of the tax law] provided that for purposes of applying paragraph (h)  of
    26  subdivision  one  of  this section to a tax law violation, the person is
    27  alleged to have knowingly concealed or knowingly and improperly  avoided
    28  an obligation to pay taxes to the state or a local government.
    29    (b)  The  attorney  general shall consult with the commissioner of the
    30  department of taxation and finance prior to filing or intervening in any
    31  action under this article that is based on [the filing of false  claims,
    32  records  or  statements  made  under the tax law] a violation of the tax
    33  law. If the state declines to participate or to authorize  participation
    34  by  a  local government in such an action pursuant to subdivision two of
    35  section one hundred ninety of this article, the qui tam  plaintiff  must
    36  obtain  approval  from  the attorney general before making any motion to
    37  compel the department of taxation and finance to disclose tax records.
    38    § 2. Nothing in this act shall be deemed to  modify  or  restrict  the
    39  application of paragraph (a), (b), (c), (d), (e), (f) or (g) of subdivi-
    40  sion  1  of section 189 of the state finance law to any act alleged that
    41  relates to a violation of the tax law.
    42    § 3. This act shall take effect immediately and in  any  pending  case
    43  shall  apply  to  any  tax  obligation  knowingly concealed or knowingly
    44  avoided before, on, or after such effective date; provided however, that
    45  in any action filed after such effective date, this act shall only apply
    46  to tax obligations knowingly concealed or knowingly avoided on or  after
    47  May 1, 2020.
 
    48                                   PART EE

        S. 4009--C                         64                         A. 3009--C
 
     1    Section 1. Subparagraph 9 of paragraph (e) of subdivision 1 of section
     2  210-B of the tax law is REPEALED.
     3    § 2. This act shall take effect immediately and apply to credit claims
     4  filed on or after the effective date of this act.
 
     5                                   PART FF

     6    Section  1.  Paragraph  1  of subdivision (b) of section 37 of the tax
     7  law, as amended by section 1 of part V of chapter  60  of  the  laws  of
     8  2016, is amended to read as follows:
     9    (1) for the first five hundred thousand gallons of:
    10    i. beer[, cider, wine or liquor] produced in this state in the taxable
    11  year, the credit shall equal fourteen cents per gallon; [and]
    12    ii.  cider, artificially carbonated sparkling cider, and natural spar-
    13  kling cider, containing more than three and  two-tenths  per  centum  of
    14  alcohol by volume produced in this state in the taxable year, the credit
    15  shall equal fourteen cents per gallon;
    16    iii.  still  wine, artificially carbonated sparkling wine, and natural
    17  sparkling wine produced in this state in the taxable  year,  the  credit
    18  shall equal thirty cents per gallon;
    19    iv. liquors containing not more than twenty-four per centum of alcohol
    20  by  volume, but more than two per centum of alcohol per volume, produced
    21  in this state in the taxable year, the credit shall  equal  two  dollars
    22  and fifty-four cents per gallon;
    23    v.  liquors containing more than zero per centum of alcohol by volume,
    24  but not more than two per centum of alcohol by volume, produced in  this
    25  state in the taxable year, the credit shall equal zero;
    26    vi.  all other liquors produced in this state in the taxable year, the
    27  credit shall equal six dollars and forty-four cents per gallon; and
    28    § 2. This act shall take effect immediately and shall apply to taxable
    29  years beginning on or after January 1, 2023.
 
    30                                   PART GG
 
    31    Section 1. Paragraphs (a) and (f) of subdivision 1 of section 209-B of
    32  the tax law, paragraph (a) as amended and  paragraph  (f)  as  added  by
    33  section  7  of  part A of chapter 59 of the laws of 2014, are amended to
    34  read as follows:
    35    (a) For the privilege of exercising its  corporate  franchise,  or  of
    36  doing business, or of employing capital, or of owning or leasing proper-
    37  ty in a corporate or organized capacity, or of maintaining an office, or
    38  of  deriving  receipts from activity in the metropolitan commuter trans-
    39  portation district, for all or any part of its taxable  year,  there  is
    40  hereby  imposed  on  every  corporation,  other than a New York S corpo-
    41  ration, subject to tax under section two hundred nine of  this  article,
    42  or  any  receiver, referee, trustee, assignee or other fiduciary, or any
    43  officer or agent appointed by any court, who conducts  the  business  of
    44  any  such  corporation,  a tax surcharge, in addition to the tax imposed
    45  under section two hundred nine of this article, to be  computed  at  the
    46  rate of seventeen percent of the tax imposed under such section for such
    47  taxable  years  or  any  part  of  such taxable years ending on or after
    48  December thirty-first, nineteen hundred eighty-three and before  January
    49  first, two thousand fifteen after the deduction of any credits otherwise
    50  allowable  under this article, at the rate of twenty-five and six-tenths
    51  percent of the tax imposed under such section for taxable  years  begin-
    52  ning  on or after January first, two thousand fifteen and before January

        S. 4009--C                         65                         A. 3009--C
 
     1  first, two thousand sixteen before the deduction of any  credits  other-
     2  wise  allowable  under this article, [and] at the rate determined by the
     3  commissioner pursuant to paragraph (f) of this subdivision  of  the  tax
     4  imposed  under  such  section,  for  taxable years beginning on or after
     5  January first, two thousand sixteen and before January first, two  thou-
     6  sand twenty-four before the deduction of any credits otherwise allowable
     7  under this article, and at the rate of thirty percent of the tax imposed
     8  under  such  section  for  taxable  years  beginning on or after January
     9  first, two thousand twenty-four before  the  deduction  of  any  credits
    10  otherwise  allowable  under  this  article.  However,  such  rate of tax
    11  surcharge shall be applied only to that portion of the tax imposed under
    12  section two hundred nine of this article before  the  deduction  of  any
    13  credits  otherwise allowable under this article which is attributable to
    14  the taxpayer's business activity  carried  on  within  the  metropolitan
    15  commuter  transportation  district; and provided, further, the surcharge
    16  computed on a combined report shall include a  surcharge  on  the  fixed
    17  dollar  minimum tax for each member of the combined group subject to the
    18  surcharge under this subdivision.
    19    (f) The commissioner shall determine the rate of tax for taxable years
    20  beginning on or after January first, two  thousand  sixteen  and  before
    21  January  first, two thousand twenty-four by adjusting the rate for taxa-
    22  ble years beginning on or after January first, two thousand fifteen  and
    23  before  January  first, two thousand sixteen as necessary to ensure that
    24  the receipts attributable to such surcharge, as impacted by [the] part A
    25  of chapter fifty-nine of the laws of two thousand fourteen [which  added
    26  this  paragraph], will meet and not exceed the financial projections for
    27  state fiscal  year  two  thousand  sixteen-two  thousand  seventeen,  as
    28  reflected in state fiscal year two thousand fifteen-two thousand sixteen
    29  enacted budget. The commissioner shall annually determine the rate ther-
    30  eafter,  for  taxable years beginning before January first, two thousand
    31  twenty-four, using the financial projections for the state  fiscal  year
    32  that  commences in the year for which the rate is to be set as reflected
    33  in the enacted budget for the fiscal year  commencing  on  the  previous
    34  April first.
    35    § 2. This act shall take effect immediately.
    36    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    37  sion,  section  or  part  of  this act shall be adjudged by any court of
    38  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    39  impair,  or  invalidate  the remainder thereof, but shall be confined in
    40  its operation to the clause, sentence, paragraph,  subdivision,  section
    41  or part thereof directly involved in the controversy in which such judg-
    42  ment shall have been rendered. It is hereby declared to be the intent of
    43  the  legislature  that  this  act  would  have been enacted even if such
    44  invalid provisions had not been included herein.
    45    § 3. This act shall take effect immediately  provided,  however,  that
    46  the applicable effective date of Parts A through GG of this act shall be
    47  as specifically set forth in the last section of such Parts.
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