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A03077 Summary:

BILL NOA03077
 
SAME ASNo Same As
 
SPONSORByrnes
 
COSPNSRDeStefano, Morinello, Tague
 
MLTSPNSR
 
Amd §§400 & 402, Ec Dev L; amd §35, Tax L; amd Part V §12, Chap 61 of 2011
 
Extends the economic transformation and facility redevelopment program; expands the program by including more correctional facility closures.
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A03077 Memo:

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.
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A03077 Text:



 
                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.
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