Bill Text: NY A01124 | 2021-2022 | General Assembly | Introduced

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Bill Title: Extends the economic transformation and facility redevelopment program and expands the program by including more correctional facility closures.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2022-01-05 - referred to economic development [A01124 Detail]

Download: New_York-2021-A01124-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1124

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     January 7, 2021
                                       ___________

        Introduced by M. of A. BYRNES -- read once and referred to the Committee
          on Economic Development

        AN ACT to amend the economic development law, the tax law and 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 econom-
          ic 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

          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 1 of part GG of chapter 58  of
     4  the laws of 2020, 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-one] twenty-three; 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-two; 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.
                                                                   LBD03062-01-1
        A. 1124                             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-two.
    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,  is
    52  amended to read as follows:
    53    §  12.  This act shall take effect immediately and shall expire and be
    54  deemed repealed December 31, [2021] 2026.
    55    § 5. This act shall take effect immediately; provided, that the amend-
    56  ments to article 18 of the economic development law made by sections one
        A. 1124                             3

     1  and two of this act shall not affect the  repeal  of  such  article  and
     2  shall  be  deemed  repealed therewith; provided, further that the amend-
     3  ments to section 35 of the tax law made by section  three  of  this  act
     4  shall not affect the repeal of such section and shall be deemed repealed
     5  therewith.