NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3077
SPONSOR: Byrnes TITLE OF BILL:
An act to amend the economic development law, the tax law and part V of
chapter 61 of the laws of 2011, amending the economic development law,
the tax law and the real property tax law relating to establishing the
economic transformation and facility redevelopment program and providing
tax benefits under that program, in relation to the economic transforma-
tion and facility redevelopment program and the effectiveness thereof
PURPOSE:
To reopen the economic transformation and facility redevelopment program
in order to ease the economic impact on communities that host correc-
tional facilities slated for closure.
SUMMARY OF PROVISIONS:
Section 1 amends the economic development law to add within the defi-
nition of "closed facility" for purposes of the economic transformation
and facility redevelopment program that such facilities must include
those slated for closure by the Governor between April 1, 2019 and March
31, 2027.
Section 2 amends the economic development law governing said program to
require that recently closed correctional facilities submit an applica-
tion for acceptance into the program to the Department of Economic
Development by September 1, 2024.
Section 3 makes technical amendments to the tax law.
Section 4 extends the chapter, which enacted the economic transformation
and facility redevelopment program from December 31, 2021 to December
31, 2028.
Section 5 establishes the effective date.
JUSTIFICATION:
The economic transformation and facility redevelopment program was
established in 2011 to ameliorate the effect of closures of state
correctional and juvenile justice facilities on communities. The program
provides tax benefits for the redevelopment of closed facilities and the
economic transformation of the surrounding communities by incentivizing
the creation of new businesses. The Governor, pursuant to authority
vested in the 2019-20 enacted state budget, recently announced the
closure of two correctional facilities Livingston and Lincoln - to occur
within 90 days of the announcement. One of the facilities slated for
closure, Livingston, a medium security correctional facility, located in
the Town of Groveland, Livingston County employs a sizable workforce and
provides a significant multiplier effect. The deleterious impact such a
closure will have on the surrounding community is precisely the reason
the economic transformation and facility redevelopment program was
established in the first place. Reopening this program to the aforemen-
tioned facilities is necessary in order to maintain a level of economic
stability.
LEGISLATIVE HISTORY:
2021-22: A.1124
2019-20: A.8492
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed December 31, 2028.
STATE OF NEW YORK
________________________________________________________________________
3077
2023-2024 Regular Sessions
IN ASSEMBLY
February 2, 2023
___________
Introduced by M. of A. BYRNES, DeSTEFANO, MORINELLO, TAGUE -- read once
and referred to the Committee on Economic Development
AN ACT to amend the economic development law, the tax law and part V of
chapter 61 of the laws of 2011, amending the economic development law,
the tax law and the real property tax law relating to establishing the
economic transformation and facility redevelopment program and provid-
ing tax benefits under that program, in relation to the economic
transformation and facility redevelopment program and the effective-
ness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 11 of section 400 of the economic development
2 law, as amended by section 3 of part QQ of chapter 60 of the laws of
3 2016, paragraph (a) as amended by section 2 of part JJ of chapter 59 of
4 the laws of 2021, is amended to read as follows:
5 11. "Closed facility" means:
6 (a) a correctional facility, as defined in paragraph (a) of subdivi-
7 sion four of section two of the correction law, that has been selected
8 by the governor of the state of New York for closure after April first,
9 two thousand eleven but no later than March thirty-first, two thousand
10 twenty-six; or
11 (b) a correctional facility, as defined in paragraph (a) of subdivi-
12 sion four of section two of the correction law, that has been selected
13 by the governor of the state of New York for closure after April first,
14 two thousand nineteen but no later than March thirty-first, two thousand
15 twenty-seven; or
16 (c) a facility operated by the office of children and family services
17 under article nineteen-G of the executive law that is closed pursuant to
18 authority granted to such office in a chapter of the laws of two thou-
19 sand eleven; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03952-01-3
A. 3077 2
1 [(c)] (d) which has been closed provided that the commissioner of
2 correctional services or the commissioner of the office of children and
3 family services has notified the commissioner of such closure; or
4 [(d)] (e) a facility previously owned by the state, and when operated,
5 was operated as a psychiatric facility pursuant to section 7.17 of the
6 mental hygiene law, and located within the metropolitan commuter trans-
7 portation district but outside New York city.
8 § 2. Subdivision 1 of section 402 of the economic development law, as
9 amended by section 4 of part QQ of chapter 60 of the laws of 2016, is
10 amended to read as follows:
11 1. A business entity must submit a completed application as prescribed
12 by the commissioner by the later of (a) the date that is three years
13 after the date of the closure of the closed facility located in the
14 economic transformation area in which the business entity would operate
15 or (b) January first, two thousand fifteen. Provided however, in the
16 case of a closed facility described in paragraph [(d)] (e) of subdivi-
17 sion eleven of section four hundred of this article, a business entity
18 must submit a completed application as prescribed by the commissioner by
19 September first, two thousand sixteen. Notwithstanding the foregoing, in
20 the case of a closed facility, as described pursuant to paragraph (b) of
21 subdivision eleven of section four hundred of this article, a business
22 entity shall submit a completed application as prescribed by the commis-
23 sioner by September first, two thousand twenty-four.
24 § 3. Paragraph 1 of subdivision (h) of section 35 of the tax law, as
25 amended by section 5 of part QQ of chapter 60 of the laws of 2016, is
26 amended to read as follows:
27 (1) A taxpayer which meets the requirements in this section shall be
28 eligible to claim a credit on qualified investments with respect to the
29 project for which the certificate of eligibility is issued. The credit
30 shall be equal to ten percent of the cost or other basis for federal
31 income tax purposes of the qualified investment at a closed facility.
32 Provided however, for purposes of this credit only, a taxpayer that is
33 the owner of a closed facility described in paragraph [(d)] (e) of
34 subdivision eleven of section four hundred of the economic development
35 law, shall be allowed to include in its cost or other basis of the qual-
36 ified investment at the closed facility, any demolition costs incurred
37 at such closed facility. Those demolition costs shall be limited to the
38 following costs: (i) asbestos removal costs, (ii) rental of demolition
39 equipment, (iii) personnel costs to operate the demolition equipment,
40 (iv) costs to remove and dispose of demolition debris, (v) the costs of
41 any permits, licenses and insurance necessary for the demolition. The
42 total amount of investment tax credit allowed for all eligible partic-
43 ipants under this subdivision for qualified investments located at each
44 closed facility shall not exceed eight million dollars. The credit shall
45 be equal to six percent of the cost or other basis for federal income
46 tax purposes for all other qualified investments, but the credit allowed
47 to a taxpayer may not exceed four million dollars.
48 § 4. Section 12 of part V of chapter 61 of the laws of 2011, amending
49 the economic development law, the tax law and the real property tax law
50 relating to establishing the economic transformation and facility rede-
51 velopment program and providing tax benefits under that program, as
52 amended by section 1 of part JJ of chapter 59 of the laws of 2021, is
53 amended to read as follows:
54 § 12. This act shall take effect immediately and shall expire and be
55 deemed repealed December 31, [2026] 2028.
A. 3077 3
1 § 5. This act shall take effect immediately; provided, that the amend-
2 ments to article 18 of the economic development law made by sections one
3 and two of this act shall not affect the repeal of such article and
4 shall be deemed repealed therewith; provided, further that the amend-
5 ments to section 35 of the tax law made by section three of this act
6 shall not affect the repeal of such section and shall be deemed repealed
7 therewith.
