Bill Text: NY A04300 | 2019-2020 | General Assembly | Introduced


Bill Title: Fosters economic development by establishing the New York state cornerstone program (focused on job retention) and the New York state discovery program (focused on job creation); provides a series of tax cuts to businesses.

Spectrum: Partisan Bill (Republican 15-0)

Status: (Introduced - Dead) 2020-07-17 - held for consideration in ways and means [A04300 Detail]

Download: New_York-2019-A04300-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4300
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 4, 2019
                                       ___________
        Introduced  by M. of A. KOLB, STEC, DiPIETRO -- Multi-Sponsored by -- M.
          of  A.  BARCLAY,  BLANKENBUSH,  CROUCH,  FINCH,  FITZPATRICK,  GIGLIO,
          GOODELL,  HAWLEY,  JOHNS,  MONTESANO, PALMESANO, RAIA -- read once and
          referred to the Committee on Ways and Means
        AN ACT to amend the general municipal law, in relation  to  establishing
          the  New York state cornerstone program; and to repeal article 18-B of
          such law relating thereto (Part A); to amend the general municipal law
          and the tax law, in  relation  to  establishing  the  New  York  state
          discovery  program  (Part B); and to amend the tax law, in relation to
          net income base and in relation to certain taxes (Part C)
          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 components of legislation relating
     2  to  the  "New  York  state  cornerstone  program  and the New York state
     3  discovery program". Each component is wholly  contained  within  a  Part
     4  identified  as Parts A through C. 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, includ-
     7  ing the effective date of the Part, which makes reference to  a  section
     8  "of  this  act", when used in connection with that particular component,
     9  shall be deemed to mean and refer to the corresponding  section  of  the
    10  Part  in  which  it  is  found. Section three of this act sets forth the
    11  general effective date of this act.
    12    § 1-a. Statement of legislative findings and declaration.  It is here-
    13  by found and declared that there exists within the state high  unemploy-
    14  ment,  limited  new  job  creation,  a  dependence  on public assistance
    15  income, insufficient support for industrial and  commercial  businesses,
    16  and  unnecessarily  high  taxes.  These  severe conditions require state
    17  government to target certain industries in order  to  stimulate  private
    18  investment,  private business development and job creation. It should be
    19  the public policy of the state to help promote the  development  of  new
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05714-01-9

        A. 4300                             2
     1  businesses,  rather  than deter them with punitive regulation and exces-
     2  sive taxes. It is further found and declared that it is the public poli-
     3  cy of the state to achieve these goals through the mutual cooperation of
     4  all  levels  of  state  and local government, the business community and
     5  academic institutions.
     6                                   PART A
     7    Section 1. Article 18-B of the general municipal law is REPEALED.
     8    § 2. The general municipal law is amended by adding a new article 18-B
     9  to read as follows:
    10                                 ARTICLE 18-B
    11                     NEW YORK STATE CORNERSTONE PROGRAM
    12  Section 955. New York cornerstone program established.
    13          956. Responsibilities of the commissioner.
    14          957. Cornerstone development board.
    15          958. Reporting requirements.
    16    § 955. New York  cornerstone  program  established.  There  is  hereby
    17  established the New York cornerstone program.
    18    §  956.  Responsibilities  of the commissioner. 1. The commissioner of
    19  economic development shall, in consultation with  the  director  of  the
    20  budget,  the commissioner of labor, and the commissioner of taxation and
    21  finance, promulgate rules and regulations,  which,  notwithstanding  any
    22  provisions  to  the  contrary in the state administrative procedure act,
    23  may be adopted on an emergency basis, relating to:
    24    (a) the application process;
    25    (b) defining types of businesses eligible, including but  not  limited
    26  to manufacturing, high-tech, bio-tech, clean-tech and agri-business;
    27    (c) limiting businesses to ten years of participation;
    28    (d)  certification  by  the  commissioner  for eligibility of business
    29  enterprises for benefits referred  to  in  this  article.  Criteria  for
    30  certification shall include, but not be limited to:
    31    (i)  requiring  a  business to have been operational in New York state
    32  for at least ten consecutive years prior to applying to the  cornerstone
    33  program;
    34    (ii)  requiring  a business to show proof that they will have to lower
    35  employment levels without certification in the program;
    36    (iii) requiring a business to  commit  to  maintaining  or  increasing
    37  current employment levels to qualify for tax benefits;
    38    (iv)  whether  certification will have the undesired effect of causing
    39  individuals to transfer from existing employment with  another  business
    40  enterprise  to similar employment with the business enterprise so certi-
    41  fied, and transferring existing employment from one or more other  muni-
    42  cipalities, towns or villages in the state;
    43    (v)  whether such enterprise is likely to enhance the economic climate
    44  of the state; and
    45    (vi) whether the commissioner of labor establishes that such  business
    46  enterprise, during the ten years preceding the submission of an applica-
    47  tion  for  certification,  has  engaged  in a substantial violation or a
    48  pattern of violations of laws regulating unemployment  insurance,  work-
    49  ers'  compensation,  public  work, child labor, employment of minorities
    50  and women, safety and health, or other laws for the protection of  work-
    51  ers  as  determined  by  final  judgment of a judicial or administrative
    52  proceeding.

        A. 4300                             3
     1    2. The commissioner of economic  development  shall,  in  consultation
     2  with  the  director  of  the  budget, the commissioner of labor, and the
     3  commissioner of taxation and finance, establish a cost benefit analysis.
     4    3.  The  commissioner  of  economic development shall, in consultation
     5  with the director of the budget, the  commissioner  of  labor,  and  the
     6  commissioner  of  taxation  and finance, establish a program and propose
     7  legislation granting tax  exemptions  previously  applicable  to  empire
     8  zones  for  business  enterprises eligible under the cornerstone program
     9  established pursuant to this article, to the  governor  and  legislature
    10  within one hundred eighty days from the effective date of this article.
    11    §  957. Cornerstone development board.  1. The cornerstone development
    12  board is hereby created.
    13    2. Such board shall  consist  of  the  commissioner  of  taxation  and
    14  finance,  the  director of the budget, the commissioner of labor and two
    15  members to be appointed by the governor; one member to be  appointed  by
    16  the temporary president of the senate; one member to be appointed by the
    17  speaker  of  the  assembly;  one  member to be appointed by the minority
    18  leader of the senate and one member to  be  appointed  by  the  minority
    19  leader of the assembly.
    20    3.  The  governor  shall  designate  from among the voting members the
    21  chair of the board. Each member of the board shall be entitled to desig-
    22  nate a representative to attend meetings of the  board  in  his  or  her
    23  place,  and  to vote or otherwise act on his or her behalf in his or her
    24  absence.
    25    4. Notice of such designation shall be furnished  in  writing  to  the
    26  board by the designating member.
    27    5.  A  representative  shall  serve at the pleasure of the designating
    28  member.
    29    6. A representative shall not be authorized to delegate any of his  or
    30  her duties or functions to any other person.
    31    §  958.  Reporting  requirements.    1.  The  department  of audit and
    32  control, the department of taxation and finance and  the  department  of
    33  economic  development  shall  prepare  reports on the management and the
    34  economic and fiscal impact of the cornerstone program.
    35    2. The analysis of the fiscal and economic impact of the program shall
    36  include, but not be limited to: a review of the cost  of  providing  the
    37  tax  benefits  referred  to  in  this  article; progress of the program;
    38  number of tax credits claimed by each certified business; number of jobs
    39  created and/or retained by  each  business  and  all  other  information
    40  requested and not prohibited by law.
    41    3.  Such reports shall be transmitted to the governor and the legisla-
    42  ture by September first, two thousand twenty and every  year  thereafter
    43  and shall be posted online for full public disclosure.
    44    §  3.  This act shall take effect immediately; provided, however, that
    45  any rules and regulations necessary to carry out the provisions of  this
    46  act shall be promulgated before such effective date.
    47                                   PART B
    48    Section  1.  This act shall be known and may be cited as the "New York
    49  state discovery act".
    50    § 2.  The general municipal law is amended by  adding  a  new  article
    51  18-D to read as follows:
    52                                 ARTICLE 18-D
    53                      NEW YORK STATE DISCOVERY PROGRAM
    54  Section 972. New York state discovery program.

        A. 4300                             4
     1          973. Job development fund.
     2    § 972. New York state discovery program. 1. The New York state discov-
     3  ery program is hereby established.
     4    2.  The commissioner of economic development shall, after consultation
     5  with the director of the budget, the  commissioner  of  labor,  and  the
     6  commissioner  of taxation and finance, promulgate rules and regulations,
     7  which, notwithstanding any provisions  to  the  contrary  in  the  state
     8  administrative  procedure  act,  may  be  adopted on an emergency basis,
     9  relating to:
    10    (a) the application process;
    11    (b) defining types of businesses eligible, including but  not  limited
    12  to manufacturing, high-tech, bio-tech, clean-tech and agri-business;
    13    (c) limiting businesses to ten years of participation;
    14    (d)  certification  by  the commissioner of economic development as to
    15  the eligibility of business enterprises for benefits referred to in this
    16  section, which shall be governed by criteria including, but not  limited
    17  to:
    18    (i)  requiring  an  eligible  business to be a start-up business, or a
    19  business operating in the state for two years or less;
    20    (ii) a business must offer internships to local high school  students,
    21  BOCES  students and college students per a plan developed by the commis-
    22  sioner of economic development;
    23    (iii) a business must commit to increasing current  employment  levels
    24  to qualify for tax benefits;
    25    (iv)  whether  certification will have the undesired effect of causing
    26  individuals to transfer from existing employment with  another  business
    27  enterprise  to similar employment with the business enterprise so certi-
    28  fied, and transferring existing employment from one or more other  muni-
    29  cipalities, towns or villages in the state;
    30    (v)  whether such enterprise is likely to enhance the economic climate
    31  of the state;
    32    (vi) whether the commissioner of labor establishes that such  business
    33  enterprise, during the two years preceding the submission of an applica-
    34  tion  for  certification,  has  engaged  in a substantial violation or a
    35  pattern of violations of laws regulating unemployment  insurance,  work-
    36  ers'  compensation,  public  work, child labor, employment of minorities
    37  and women, safety and health, or other laws for the protection of  work-
    38  ers  as  determined  by  final  judgment of a judicial or administrative
    39  proceeding; and
    40    (vii) whether such business meets the requirements of the cost benefit
    41  analysis as established by the commissioner of economic development.
    42    3. The department of audit and control, the department of taxation and
    43  finance and the department of economic development shall prepare reports
    44  on the management and the economic and fiscal impact  of  the  discovery
    45  program.  The  analysis of the fiscal and economic impact of the program
    46  shall include, but not be limited to: a review of the cost of  providing
    47  the  tax  benefits referred to in this article; progress of the program;
    48  number of tax credits claimed by each certified business; number of jobs
    49  created by each business and all other  information  requested  and  not
    50  prohibited by law. Such reports shall be transmitted to the governor and
    51  the  legislature  by  September first, two thousand twenty-one and every
    52  year thereafter and shall be posted online for full public disclosure.
    53    4. The department of economic development shall provide grants  of  up
    54  to  two  thousand  dollars  for  every  internship  developed under this
    55  program, to be paid for out of  the  job  development  fund  established
    56  pursuant to this article. Such grant allocations shall be divided evenly

        A. 4300                             5
     1  between  the  certified  business  and  the corresponding institution of
     2  higher education to cover costs associated with the development of  such
     3  internships.
     4    §  973.  Job  development  fund. 1. There is hereby established in the
     5  joint custody of the commissioner of taxation and finance and the  state
     6  comptroller a fund to be known as the "job development fund".
     7    2.  The  fund shall consist of monies appropriated for the division of
     8  science, technology and innovation.
     9    3. Moneys of the fund shall be expended for the purposes  of  carrying
    10  out  the provisions of section nine hundred seventy-two of this article.
    11  Moneys shall be paid out of the fund on the audit  and  warrant  of  the
    12  state comptroller on vouchers approved by the division of science, tech-
    13  nology  and  innovation.  Any  interest  received  by the comptroller on
    14  moneys on deposit in the job development fund shall be retained  in  and
    15  become part of such fund.
    16    §  3.  The  tax law is amended by adding a new section 15-a to read as
    17  follows:
    18    § 15-a. Discovery zone property tax credit. For a business  enterprise
    19  which  is  first certified under section nine hundred seventy-two of the
    20  general municipal law on or after July first, two thousand  twenty,  the
    21  credit  shall  be  for a period of ten years and shall not exceed thirty
    22  percent of the eligible real property taxes paid in the current  taxable
    23  year of eligibility.
    24    §  4. Section 210-B of the tax law is amended by adding two new subdi-
    25  vision 53 and 54 to read as follows:
    26    53. Discovery investment credit. (a) A taxpayer  shall  be  allowed  a
    27  credit,  to be computed as hereinafter provided, against the tax imposed
    28  by this article where  the  taxpayer  has  been  certified  pursuant  to
    29  section  nine  hundred  seventy-two  of the general municipal law.   The
    30  amount of such credit shall be twenty percent of the cost or other basis
    31  for federal income tax purposes of tangible personal property and  other
    32  tangible  property,  including  buildings  and  structural components of
    33  buildings, described in paragraph (b) of this subdivision, but  only  if
    34  the  acquisition, construction, reconstruction or erection of such prop-
    35  erty occurred or was commenced on or after the date of such  designation
    36  and prior to the expiration thereof. Provided, however, that in the case
    37  of  an  acquisition,  construction, reconstruction or erection which was
    38  commenced during such period and continued  or  completed  subsequently,
    39  the  credit  shall be twenty percent of the portion of the cost or other
    40  basis for federal income tax purposes attributable to such period, which
    41  portion shall be ascertained by multiplying such  cost  or  basis  by  a
    42  fraction  the  numerator  of  which  shall  be  the expenditures paid or
    43  incurred during such period for such purposes  and  the  denominator  of
    44  which  shall  be the total of all expenditures paid or incurred for such
    45  acquisition, construction, reconstruction or erection.
    46    (b) A credit shall be allowed under this subdivision with  respect  to
    47  tangible personal property and other tangible property, including build-
    48  ings  and  structural components of buildings which: (1) are depreciable
    49  pursuant to section one hundred  sixty-seven  of  the  Internal  Revenue
    50  Code,  (2) have a useful life of four years or more, (3) are acquired by
    51  purchase as defined in section  one  hundred  seventy-nine  (d)  of  the
    52  Internal  Revenue Code, and (4) are (i) principally used by the taxpayer
    53  in the production of goods  by  manufacturing,  processing,  assembling,
    54  refining, mining, extracting, farming, agriculture, horticulture, flori-
    55  culture, viticulture or commercial fishing, (ii) industrial waste treat-
    56  ment  facilities or air pollution control facilities used in the taxpay-

        A. 4300                             6
     1  er's trade or business, (iii) research and  development  property,  (iv)
     2  principally used in the ordinary course of the taxpayer's trade or busi-
     3  ness  as  a  broker  or  dealer  in connection with the purchase or sale
     4  (which  shall include but not be limited to the issuance, entering into,
     5  assumption, offset, assignment, termination,  or  transfer)  of  stocks,
     6  bonds  or  other  securities as defined in section four hundred seventy-
     7  five (c)(2) of the Internal Revenue Code, or of commodities  as  defined
     8  in  section  four hundred seventy-five (e) of the Internal Revenue Code,
     9  or (v) principally used in the ordinary course of the  taxpayer's  trade
    10  or  business  of  providing investment advisory services for a regulated
    11  investment company as defined in section eight hundred fifty-one of  the
    12  Internal  Revenue Code, or lending, loan arrangement or loan origination
    13  services to customers in connection with the  purchase  or  sale  (which
    14  shall include but not be limited to the issuance, entering into, assump-
    15  tion,  offset,  assignment,  termination,  or transfer) of securities as
    16  defined in section four hundred  seventy-five  (c)(2)  of  the  Internal
    17  Revenue Code. For purposes of clauses (iv) and (v) of this subparagraph,
    18  property  purchased  by  a  taxpayer affiliated with a regulated broker,
    19  dealer or registered investment adviser is allowed a credit  under  this
    20  subdivision  if the property is used by its affiliated regulated broker,
    21  dealer or registered investment adviser in accordance with this subdivi-
    22  sion. For purposes of determining if the property is principally used in
    23  qualifying uses, the uses by the taxpayer described in clauses (iv)  and
    24  (v) of this subparagraph may be aggregated. In addition, the uses by the
    25  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    26  investment adviser under either or both of those clauses may  be  aggre-
    27  gated.  Provided,  however,  a  taxpayer shall not be allowed the credit
    28  provided by clauses (iv) and (v) of this subparagraph unless (I)  eighty
    29  percent  or  more  of  the  employees  performing the administrative and
    30  support functions resulting from or related to the  qualifying  uses  of
    31  such  equipment are located in this state, or (II) the average number of
    32  employees that perform the administrative and support functions  result-
    33  ing  from  or  related  to the qualifying uses of such equipment and are
    34  located in this state during the taxable year for which  the  credit  is
    35  claimed  is  equal to or greater than ninety-five percent of the average
    36  number of employees that perform these functions and are located in this
    37  state during the thirty-six months immediately preceding  the  year  for
    38  which the credit is claimed, or (III) the number of employees located in
    39  this  state  during  the taxable year for which the credit is claimed is
    40  equal to or greater than ninety  percent  of  the  number  of  employees
    41  located  in  this state on December thirty-first, nineteen hundred nine-
    42  ty-eight or, if the taxpayer was not a calendar year taxpayer  in  nine-
    43  teen hundred ninety-eight, the last day of its first taxable year ending
    44  after  December  thirty-first,  nineteen  hundred  ninety-eight.  If the
    45  taxpayer becomes subject to tax in this state  after  the  taxable  year
    46  beginning  in  nineteen  hundred  ninety-eight, then the taxpayer is not
    47  required to satisfy  the  employment  test  provided  in  the  preceding
    48  sentence  of  this subparagraph for its first taxable year. For purposes
    49  of item (III) of this clause, the employment test will be based  on  the
    50  number  of  employees located in this state on the last day of the first
    51  taxable year the taxpayer is subject to tax in this state. If  the  uses
    52  of  the property must be aggregated to determine whether the property is
    53  principally used in qualifying uses, then either  each  affiliate  using
    54  the  property  must satisfy this employment test or this employment test
    55  must be satisfied through  the  aggregation  of  the  employees  of  the
    56  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered

        A. 4300                             7
     1  investment adviser using the property. For purposes of this subdivision,
     2  the term "goods" shall not include electricity.  For  purposes  of  this
     3  paragraph, manufacturing shall mean the process of working raw materials
     4  into  wares  suitable for  use or which gives new shapes, new quality or
     5  new combination to matter which already has gone through some artificial
     6  process by the use of machinery, tools,  appliances  and  other  similar
     7  equipment.  Property  used  in  the  production  of  goods shall include
     8  machinery, equipment or other tangible  property  which  is  principally
     9  used  in  the  repair and service of other machinery, equipment or other
    10  tangible property used principally in the production of goods and  shall
    11  include all facilities used in the production operation, including stor-
    12  age  of  material  to be used in production and of the products that are
    13  produced. For purposes of this paragraph, the  terms  "industrial  waste
    14  treatment  facilities", "air pollution control facilities" and "research
    15  and development property" shall have the meanings  ascribed  thereto  by
    16  clauses (ii) and (iii), respectively, of subparagraph four of this para-
    17  graph,  and the provisions of subparagraph three of this paragraph shall
    18  apply.
    19    (c) A taxpayer shall not be allowed a credit  under  this  subdivision
    20  with  respect to any tangible personal property and other tangible prop-
    21  erty, including buildings and structural components of buildings,  which
    22  it  leases  to  any  other person or corporation except where a taxpayer
    23  leases property to an affiliated regulated broker, dealer, or registered
    24  investment adviser that uses such property  in  accordance  with  clause
    25  (iv)  or  (v) of subparagraph four of paragraph (b) of this subdivision.
    26  For purposes of the preceding sentence, any  contract  or  agreement  to
    27  lease  or rent or for a license to use such property shall be considered
    28  a lease. Provided, however, in determining whether a taxpayer  shall  be
    29  allowed  a  credit under this subdivision with respect to such property,
    30  any election  made  with  respect  to  such  property  pursuant  to  the
    31  provisions  of  paragraph eight of subsection (f) of section one hundred
    32  sixty-eight of the Internal Revenue  Code,  as  such  paragraph  was  in
    33  effect  for  agreements  entered  into  prior to January first, nineteen
    34  hundred eighty-four, shall be disregarded.
    35    (d) If the amount of credit allowed under  this  subdivision  for  any
    36  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    37  may be carried over to the following year or years and may  be  deducted
    38  from the taxpayer's tax for such year or years. Any refund paid pursuant
    39  to  this  paragraph  shall be deemed to be a refund of an overpayment of
    40  tax as provided in section  six  hundred  eighty-six  of  this  chapter,
    41  provided, however, that no interest shall be paid thereon.
    42    54. Discovery wage tax credit. (a) A taxpayer shall be allowed a cred-
    43  it,  to  be computed as hereinafter provided, against the tax imposed by
    44  this article, where the taxpayer has been certified pursuant to  section
    45  nine  hundred  seventy-two  of  the general municipal law. The amount of
    46  such credit shall be as prescribed in paragraph (c) of this subdivision.
    47    (b) "Discovery wages" means wages paid by the taxpayer  for  full-time
    48  employment  during a taxable year, provided that those wages are paid by
    49  a certified business as defined by the commissioner of economic develop-
    50  ment as required in his or her responsibilities.
    51    (c) The credit provided in this subdivision  shall  be  equal  to  the
    52  product  of  the  gross  wages  paid  and six and eighty-five hundredths
    53  percent for each net new job created during the taxable year.
    54    (d) "Net new job" shall be defined as each job that exceeds the  aver-
    55  age  number  of  individuals  employed  full-time by the taxpayer in the
    56  previous taxable year.

        A. 4300                             8
     1    (e) If the amount of this credit and carryovers of such credit allowed
     2  under this subdivision for any taxable year shall exceed the  taxpayer's
     3  tax  for  such  year,  the  excess, as well as any part of the credit or
     4  carryovers of such credit, or both, which may not be deducted  from  the
     5  tax otherwise due by reason of paragraph (c) of this subdivision, may be
     6  carried over to the following year or years and may be deducted from the
     7  taxpayer's tax for such year or years.
     8    §  5.  Section  606  of  the  tax  law  is  amended  by adding two new
     9  subsections (j-2) and (j-3) to read as follows:
    10    (j-2) Discovery investment credit. (1) A taxpayer shall be  allowed  a
    11  credit,  to be computed as hereinafter provided, against the tax imposed
    12  by this article where  the  taxpayer  has  been  certified  pursuant  to
    13  section  nine  hundred  seventy-two  of  the  general municipal law. The
    14  amount of such credit shall be twenty percent of the cost or other basis
    15  for federal income tax purposes of tangible personal property and  other
    16  tangible  property,  including  buildings  and  structural components of
    17  buildings, described in paragraph two of this subsection,  but  only  if
    18  the  acquisition, construction, reconstruction or erection of such prop-
    19  erty occurred or was commenced on or after the date of such  designation
    20  and prior to the expiration thereof. Provided, however, that in the case
    21  of  an  acquisition,  construction, reconstruction or erection which was
    22  commenced during such period and continued  or  completed  subsequently,
    23  the  credit  shall be twenty percent of the portion of the cost or other
    24  basis for federal income tax purposes attributable to such period, which
    25  portion shall be ascertained by multiplying such  cost  or  basis  by  a
    26  fraction  the  numerator  of  which  shall  be  the expenditures paid or
    27  incurred during such period for such purposes  and  the  denominator  of
    28  which  shall  be the total of all expenditures paid or incurred for such
    29  acquisition, construction, reconstruction or erection.
    30    (2) A credit shall be allowed under this subsection  with  respect  to
    31  tangible personal property and other tangible property, including build-
    32  ings  and  structural components of buildings which: (A) are depreciable
    33  pursuant to section one hundred  sixty-seven  of  the  Internal  Revenue
    34  Code,  (B) have a useful life of four years or more, (C) are acquired by
    35  purchase as defined in section  one  hundred  seventy-nine  (d)  of  the
    36  Internal  Revenue Code, and (D) are (i) principally used by the taxpayer
    37  in the production of goods  by  manufacturing,  processing,  assembling,
    38  refining, mining, extracting, farming, agriculture, horticulture, flori-
    39  culture, viticulture or commercial fishing, (ii) industrial waste treat-
    40  ment  facilities or air pollution control facilities used in the taxpay-
    41  er's trade or business, (iii) research and  development  property,  (iv)
    42  principally used in the ordinary course of the taxpayer's trade or busi-
    43  ness  as  a  broker  or  dealer  in connection with the purchase or sale
    44  (which shall include but not be limited to the issuance, entering  into,
    45  assumption,  offset,  assignment,  termination,  or transfer) of stocks,
    46  bonds or other securities as defined in section  four  hundred  seventy-
    47  five  (c)(2)  of the Internal Revenue Code, or of commodities as defined
    48  in section four hundred seventy-five (e) of the Internal  Revenue  Code,
    49  or  (v)  principally used in the ordinary course of the taxpayer's trade
    50  or business of providing  investment  advisory  services  for  regulated
    51  investment  company as defined in section eight hundred fifty-one of the
    52  Internal Revenue Code, or lending, loan arrangement or loan  origination
    53  services  to  customers  in  connection with the purchase or sale (which
    54  shall include but not be limited to the issuance, entering into, assump-
    55  tion, offset, assignment, termination, or  transfer)  of  securities  as
    56  defined  in  section  four  hundred  seventy-five(c)(2)  of the Internal

        A. 4300                             9
     1  Revenue Code. For purposes of clauses (iv) and (v) of this subparagraph,
     2  property purchased by a taxpayer affiliated  with  a  regulated  broker,
     3  dealer  or  registered investment adviser is allowed a credit under this
     4  subsection  if  the property is used by its affiliated regulated broker,
     5  dealer  or  registered  investment  adviser  in  accordance  with   this
     6  subsection.  For  purposes of determining if the property is principally
     7  used in qualifying uses, the uses by the taxpayer described  in  clauses
     8  (iv)  and  (v)  of this subparagraph may be aggregated. In addition, the
     9  uses by the taxpayer,  its  affiliated  regulated  broker,  dealer,  and
    10  registered  investment adviser under either or both of those clauses may
    11  be aggregated. Provided, however, a taxpayer shall not  be  allowed  the
    12  credit  provided by clauses (iv) and (v) of this subparagraph unless (I)
    13  eighty percent or more of the employees  performing  the  administrative
    14  and  support  functions resulting from or related to the qualifying uses
    15  of such equipment are located in this state, or (II) the average  number
    16  of  employees  that  perform  the  administrative  and support functions
    17  resulting from or related to the qualifying uses of such  equipment  and
    18  are  located  in this state during the taxable year for which the credit
    19  is claimed is equal to or greater than ninety-five percent of the  aver-
    20  age  number of employees that perform these functions and are located in
    21  this state during the thirty-six months immediately preceding  the  year
    22  for  which  the  credit  is  claimed,  or  (III) the number of employees
    23  located in this state during the taxable year for which  the  credit  is
    24  claimed  is  equal  to  or  greater than ninety percent of the number of
    25  employees located in  this  state  on  December  thirty-first,  nineteen
    26  hundred ninety-eight or, if the taxpayer was not a calendar year taxpay-
    27  er  in  nineteen hundred ninety-eight, the last day of its first taxable
    28  year ending after December thirty-first, nineteen hundred  ninety-eight.
    29  If  the  taxpayer becomes subject to tax in this state after the taxable
    30  year beginning in nineteen hundred ninety-eight, then  the  taxpayer  is
    31  not  required  to  satisfy the employment test provided in the preceding
    32  sentence of this subparagraph for its first taxable year.  For  purposes
    33  of  item  (III) of this clause, the employment test will be based on the
    34  number of employees located in this state on the last day of  the  first
    35  taxable  year  the taxpayer is subject to tax in this state. If the uses
    36  of the property must be aggregated to determine whether the property  is
    37  principally  used  in  qualifying uses, then either each affiliate using
    38  the property must satisfy this employment test or this  employment  test
    39  must  be  satisfied  through  the  aggregation  of  the employees of the
    40  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    41  investment  advisor using the property. For purposes of this subsection,
    42  the term "goods" shall not include electricity.  For  purposes  of  this
    43  paragraph, manufacturing shall mean the process of working raw materials
    44  into  wares  suitable  for use or which gives new shapes, new quality or
    45  new combination to matter which already has gone through some artificial
    46  process by the use of machinery, tools,  appliances  and  other  similar
    47  equipment.  Property  used  in  the  production  of  goods shall include
    48  machinery, equipment or other tangible  property  which  is  principally
    49  used  in  the  repair and service of other machinery, equipment or other
    50  tangible property used principally in the production of goods and  shall
    51  include all facilities used in the production operation, including stor-
    52  age  of  material  to be used in production and of the products that are
    53  produced. For purposes of this paragraph, the  terms  "industrial  waste
    54  treatment  facilities", "air pollution control facilities" and "research
    55  and development property" shall have the meanings  ascribed  thereto  by

        A. 4300                            10
     1  clauses  (ii) and (iii), respectively, of subparagraph (D) of this para-
     2  graph, and the provisions of subparagraph (C) of this paragraph.
     3    (3)  A  taxpayer  shall  not be allowed a credit under this subsection
     4  with respect to any tangible personal property and other tangible  prop-
     5  erty,  including buildings and structural components of buildings, which
     6  it leases to any other person or corporation  except  where  a  taxpayer
     7  leases property to an affiliated regulated broker, dealer, or registered
     8  investment  adviser  that  uses  such property in accordance with clause
     9  (iv) or (v) of subparagraph (D) of paragraph two of this subsection. For
    10  purposes of the preceding sentence, any contract or agreement  to  lease
    11  or  rent  or  for  a  license to use such property shall be considered a
    12  lease. Provided, however, in determining whether  a  taxpayer  shall  be
    13  allowed  a  credit  under this subsection with respect to such property,
    14  any election  made  with  respect  to  such  property  pursuant  to  the
    15  provisions  of  paragraph eight of subsection (f) of section one hundred
    16  sixty-eight of the Internal Revenue  Code,  as  such  paragraph  was  in
    17  effect  for  agreements  entered  into  prior to January first, nineteen
    18  hundred eighty-four, shall be disregarded.
    19    (4) If the amount of credit allowed  under  this  subsection  for  any
    20  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    21  may be carried over to the following year or years and may  be  deducted
    22  from  the taxpayer's tax for such year or  years. Any refund paid pursu-
    23  ant to this paragraph shall be deemed to be a refund of  an  overpayment
    24  of  tax  as  provided in section six hundred eighty-six of this chapter,
    25  provided, however, that no interest shall be paid thereon.
    26    (j-3) Discovery wage tax credit. (1) A taxpayer  shall  be  allowed  a
    27  credit,  to be computed as hereinafter provided, against the tax imposed
    28  by this article, where the  taxpayer  has  been  certified  pursuant  to
    29  section  nine  hundred  seventy-two  of  the  general municipal law. The
    30  amount of such credit shall be as prescribed in paragraph three of  this
    31  subsection.
    32    (2)  "Discovery  wages" means wages paid by the taxpayer for full-time
    33  employment during a taxable year, provided that those wages are paid  by
    34  a certified business as defined by the commissioner of economic develop-
    35  ment as required in his or her responsibilities.
    36    (3) The credit provided in this subsection shall be equal to the prod-
    37  uct  of  the gross wages paid and six and eighty-five hundredths percent
    38  for each net new job created during the taxable year.
    39    (4) "Net new job" shall be defined as each job that exceeds the  aver-
    40  age  number  of  individuals  employed  full-time by the taxpayer in the
    41  previous taxable year.
    42    (5) If the amount of this credit and carryovers of such credit allowed
    43  under this subsection for any taxable year shall exceed  the  taxpayer's
    44  tax  for  such  year,  the  excess, as well as any part of the credit or
    45  carryovers of such credit, or both, which may not be deducted  from  the
    46  tax  otherwise  due by reason of paragraph three of this subsection, may
    47  be carried over to the following year or years and may be deducted  from
    48  the taxpayer's tax for such year or years.
    49    § 6. Section 1511 of the tax law is amended by adding two new subdivi-
    50  sions (dd) and (ee) to read as follows:
    51    (dd)  Discovery  investment credit.  (1) A taxpayer shall be allowed a
    52  credit, to be computed as hereinafter provided, against the tax  imposed
    53  by  this  article  where  the  taxpayer  has  been certified pursuant to
    54  section nine hundred seventy-two  of  the  general  municipal  law.  The
    55  amount of such credit shall be twenty percent of the cost or other basis
    56  for  federal income tax purposes of tangible personal property and other

        A. 4300                            11
     1  tangible property, including  buildings  and  structural  components  of
     2  buildings,  described  in paragraph two of this subdivision, but only if
     3  the acquisition, construction, reconstruction or erection of such  prop-
     4  erty  occurred or was commenced on or after the date of such designation
     5  and prior to the expiration thereof. Provided, however, that in the case
     6  of an acquisition, construction, reconstruction or  erection  which  was
     7  commenced  during  such  period and continued or completed subsequently,
     8  the credit shall be twenty percent of the portion of the cost  or  other
     9  basis for federal income tax purposes attributable to such period, which
    10  portion  shall  be  ascertained  by  multiplying such cost or basis by a
    11  fraction the numerator of  which  shall  be  the  expenditures  paid  or
    12  incurred  during  such  period  for such purposes and the denominator of
    13  which shall be the total of all expenditures paid or incurred  for  such
    14  acquisition, construction, reconstruction or erection.
    15    (2)  A  credit shall be allowed under this subdivision with respect to
    16  tangible personal property and other tangible property, including build-
    17  ings and structural components of buildings which: (A)  are  depreciable
    18  pursuant  to  section  one  hundred  sixty-seven of the Internal Revenue
    19  Code, (B) have a useful life of four years or more, (C) are acquired  by
    20  purchase  as  defined  in  section  one  hundred seventy-nine (d) of the
    21  Internal Revenue Code, and (D) are (i) principally used by the  taxpayer
    22  in  the  production  of  goods by manufacturing, processing, assembling,
    23  refining, mining, extracting, farming, agriculture, horticulture, flori-
    24  culture, viticulture or commercial fishing, (ii) industrial waste treat-
    25  ment facilities or air pollution control facilities used in the  taxpay-
    26  er's  trade  or  business, (iii) research and development property, (iv)
    27  principally used in the ordinary course of the taxpayer's trade or busi-
    28  ness as a broker or dealer in  connection  with  the  purchase  or  sale
    29  (which  shall include but not be limited to the issuance, entering into,
    30  assumption, offset, assignment, termination,  or  transfer)  of  stocks,
    31  bonds   or   other   securities  as  defined  in  section  four  hundred
    32  seventy-five(c)(2) of the Internal Revenue Code, or  of  commodities  as
    33  defined in section four hundred seventy-five (e) of the Internal Revenue
    34  Code,  or  (v) principally used in the ordinary course of the taxpayer's
    35  trade or business of providing investment advisory services for a  regu-
    36  lated  investment  company as defined in section eight hundred fifty-one
    37  of the Internal Revenue Code, or lending, loan arrangement or loan orig-
    38  ination services to customers in connection with the  purchase  or  sale
    39  (which  shall include but not be limited to the issuance, entering into,
    40  assumption, offset, assignment, termination, or transfer) of  securities
    41  as  defined  in  section four hundred seventy-five(c)(2) of the Internal
    42  Revenue Code. For purposes of clauses (iv) and (v) of this subparagraph,
    43  property purchased by a taxpayer affiliated  with  a  regulated  broker,
    44  dealer  or  registered investment adviser is allowed a credit under this
    45  subdivision if the property is used by its affiliated regulated  broker,
    46  dealer or registered investment adviser in accordance with this subdivi-
    47  sion. For purposes of determining if the property is principally used in
    48  qualifying  uses, the uses by the taxpayer described in clauses (iv) and
    49  (v) of this subparagraph may be aggregated. In addition, the uses by the
    50  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    51  investment  adviser  under either or both of those clauses may be aggre-
    52  gated. Provided, however, a taxpayer shall not  be  allowed  the  credit
    53  provided  by clauses (iv) and (v) of this subparagraph unless (I) eighty
    54  percent or more of the employees  performing  the    administrative  and
    55  support  functions  resulting  from or related to the qualifying uses of
    56  such equipment are located in this state, or (II) the average number  of

        A. 4300                            12
     1  employees  that perform the administrative and support functions result-
     2  ing from or related to the qualifying uses of  such  equipment  and  are
     3  located  in  this  state during the taxable year for which the credit is
     4  claimed  is  equal to or greater than ninety-five percent of the average
     5  number of employees that perform these functions and are located in this
     6  state during the thirty-six months immediately preceding  the  year  for
     7  which the credit is claimed, or (III) the number of employees located in
     8  this  state  during  the taxable year for which the credit is claimed is
     9  equal to or greater than ninety  percent  of  the  number  of  employees
    10  located  in  this state on December thirty-first, nineteen hundred nine-
    11  ty-eight or, if the taxpayer was not a calendar year taxpayer  in  nine-
    12  teen hundred ninety-eight, the last day of its first taxable year ending
    13  after  December  thirty-first,  nineteen  hundred  ninety-eight.  If the
    14  taxpayer becomes subject to tax in this state  after  the  taxable  year
    15  beginning  in  nineteen  hundred  ninety-eight, then the taxpayer is not
    16  required to satisfy  the  employment  test  provided  in  the  preceding
    17  sentence  of  this subparagraph for its first taxable year. For purposes
    18  of item (III) of this clause, the employment test will be based  on  the
    19  number  of  employees located in this state on the last day of the first
    20  taxable year the taxpayer is subject to tax in this state. If  the  uses
    21  of  the property must be aggregated to determine whether the property is
    22  principally used in qualifying uses, then either  each  affiliate  using
    23  the  property  must satisfy this employment test or this employment test
    24  must be satisfied through  the  aggregation  of  the  employees  of  the
    25  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    26  investment adviser using the property. For purposes of this subdivision,
    27  the term "goods" shall not include electricity.  For  purposes  of  this
    28  paragraph, manufacturing shall mean the process of working raw materials
    29  into  wares  suitable  for use or which gives new shapes, new quality or
    30  new combination to matter which already has gone through some artificial
    31  process by the use of machinery, tools,  appliances  and  other  similar
    32  equipment.  Property  used  in  the  production  of  goods shall include
    33  machinery, equipment or other tangible  property  which  is  principally
    34  used  in  the  repair and service of other machinery, equipment or other
    35  tangible property used principally in the production of goods and  shall
    36  include all facilities used in the production operation, including stor-
    37  age  of  material  to be used in production and of the products that are
    38  produced. For purposes of this paragraph, the  terms  "industrial  waste
    39  treatment  facilities", "air pollution control facilities" and "research
    40  and development property" shall have the meanings  ascribed  thereto  by
    41  clauses  (ii) and (iii), respectively, of subparagraph (D) of this para-
    42  graph, and the provisions of subparagraph (C) of  this  paragraph  shall
    43  apply.
    44    (3)  A  taxpayer  shall not be allowed a credit under this subdivision
    45  with respect to any tangible personal property and other tangible  prop-
    46  erty,  including buildings and structural components of buildings, which
    47  it leases to any other person or corporation  except  where  a  taxpayer
    48  leases property to an affiliated regulated broker, dealer, or registered
    49  investment  adviser  that  uses  such property in accordance with clause
    50  (iv) or (v) of subparagraph (D) of paragraph two  of  this  subdivision.
    51  For  purposes  of  the  preceding sentence, any contract or agreement to
    52  lease or rent or for a license to use such property shall be  considered
    53  a  lease.  Provided, however, in determining whether a taxpayer shall be
    54  allowed a credit under this subdivision with respect to  such  property,
    55  any  election  made  with  respect  to  such  property  pursuant  to the
    56  provisions of paragraph eight of subsection (f) of section  one  hundred

        A. 4300                            13
     1  sixty-eight  of  the  Internal  Revenue  Code,  as such paragraph was in
     2  effect for agreements entered into  prior  to  January  first,  nineteen
     3  hundred eighty-four, shall be disregarded.
     4    (4)  If  the  amount  of credit allowed under this subdivision for any
     5  taxable year shall exceed the taxpayer's tax for such year,  the  excess
     6  may  be  carried over to the following year or years and may be deducted
     7  from the taxpayer's tax for such year or years. Any refund paid pursuant
     8  to this paragraph shall be deemed to be a refund of  an  overpayment  of
     9  tax  as  provided  in  section  six  hundred eighty-six of this chapter,
    10  provided, however, that no interest shall be paid thereon.
    11    (ee) Discovery wage tax credit. (1) A  taxpayer  shall  be  allowed  a
    12  credit,  to be computed as hereinafter provided, against the tax imposed
    13  by this article, where the  taxpayer  has  been  certified  pursuant  to
    14  section  nine  hundred  seventy-two  of  the  general municipal law. The
    15  amount of such credit shall be as prescribed in paragraph three of  this
    16  subdivision.
    17    (2)  "Discovery  wages" means wages paid by the taxpayer for full-time
    18  employment during a taxable year, provided that those wages are paid  by
    19  a certified business as defined by the commissioner of economic develop-
    20  ment as required in his or her responsibilities.
    21    (3)  The  credit  provided  in  this subdivision shall be equal to the
    22  product of the gross wages  paid  and  six  and  eighty-five  hundredths
    23  percent for each net new job created during the taxable year.
    24    (4)  "Net new job" shall be defined as each job that exceeds the aver-
    25  age number of individuals employed full-time  by  the  taxpayer  in  the
    26  previous taxable year.
    27    (5) If the amount of this credit and carryovers of such credit allowed
    28  under  this subdivision for any taxable year shall exceed the taxpayer's
    29  tax for such year, the excess, as well as any  part  of  the  credit  or
    30  carryovers  of  such credit, or both, which may not be deducted from the
    31  tax otherwise due by reason of paragraph three of this subdivision,  may
    32  be  carried over to the following year or years and may be deducted from
    33  the taxpayer's tax for such year or years.
    34    § 7. This act shall take effect immediately; provided,  however,  that
    35  any  rules and regulations necessary to carry out the provisions of this
    36  act shall be promulgated by the  commissioner  of  economic  development
    37  before such effective date.
    38                                   PART C
    39    Section  1. The opening paragraph of paragraph (a) of subdivision 1 of
    40  section 210 of the tax law, as amended by section 10 of part T of  chap-
    41  ter 59 of the laws of 2015, is amended to read as follows:
    42    For  taxable  years  beginning  before  January  first,  two  thousand
    43  sixteen, the amount prescribed by this paragraph shall  be  computed  at
    44  the  rate  of  seven  and  one-tenth  percent of the taxpayer's business
    45  income base. For taxable years beginning on or after January first,  two
    46  thousand  [sixteen]  nineteen,  the  amount prescribed by this paragraph
    47  shall be [six and one-half] five and  nine  hundredths  percent  of  the
    48  taxpayer's  business  income  base.  The taxpayer's business income base
    49  shall mean the portion of the  taxpayer's  business  income  apportioned
    50  within  the  state  as  hereinafter  provided. However, in the case of a
    51  small business taxpayer, as defined in paragraph (f)  of  this  subdivi-
    52  sion, the amount prescribed by this paragraph shall be computed pursuant
    53  to  subparagraph (iv) of this paragraph and in the case of a manufactur-
    54  er, as defined in  subparagraph  (vi)  of  this  paragraph,  the  amount

        A. 4300                            14
     1  prescribed  by this paragraph shall be computed pursuant to subparagraph
     2  (vi) of this paragraph, and, in the case of a qualified  emerging  tech-
     3  nology  company, as defined in subparagraph (vii) of this paragraph, the
     4  amount  prescribed  by  this  paragraph  shall  be  computed pursuant to
     5  subparagraph (vii) of this paragraph.
     6    § 2. Subparagraph (iv) of paragraph (a) of subdivision  1  of  section
     7  210  of the tax law, as amended by section 12 of part A of chapter 59 of
     8  the laws of 2014, is amended to read as follows:
     9    (iv) (A) for taxable years beginning before January first,  two  thou-
    10  sand  sixteen,  if the business income base is not more than two hundred
    11  ninety thousand dollars the amount shall be six and one-half percent  of
    12  the  business  income base; if the business income base is more than two
    13  hundred ninety thousand dollars but not over three hundred ninety  thou-
    14  sand  dollars the amount shall be the sum of (1) eighteen thousand eight
    15  hundred fifty dollars, (2) seven and one-tenth percent of the excess  of
    16  the  business  income  base over two hundred ninety thousand dollars but
    17  not over three hundred ninety thousand dollars and (3) four and  thirty-
    18  five  hundredths  percent of the excess of the business income base over
    19  three hundred fifty thousand dollars but not over three  hundred  ninety
    20  thousand dollars;
    21    (B)  for  taxable years beginning on or after January first, two thou-
    22  sand nineteen and before January first,  two  thousand  twenty,  if  the
    23  business  income base is not more than five hundred thousand dollars the
    24  amount shall be three and one-quarter percent  of  the  business  income
    25  base;  if  the  business  income base is more than five hundred thousand
    26  dollars but not over six hundred thousand dollars the  amount  shall  be
    27  the  sum  of (1) sixteen thousand two hundred fifty dollars, (2) six and
    28  one-half percent of the excess of the business  income  base  over  five
    29  hundred  thousand  dollars but not over six hundred thousand dollars and
    30  (3) thirty-two and one-half percent of the excess of the business income
    31  base over five hundred fifty thousand dollars but not over  six  hundred
    32  thousand dollars;
    33    (C)  for  taxable years beginning on or after January first, two thou-
    34  sand twenty and before January first, two thousand  twenty-one,  if  the
    35  business  income base is not more than five hundred thousand dollars the
    36  amount shall be two and nine-tenths percent of the business income base;
    37  if the business income base is more than five hundred  thousand  dollars
    38  but not over six hundred thousand dollars the amount shall be the sum of
    39  (1) fourteen thousand five hundred dollars, (2) six and one-half percent
    40  of  the  excess  of  the business income base over five hundred thousand
    41  dollars but not over six hundred thousand  dollars  and  (3)  thirty-six
    42  percent  of  the  excess  of  the business income base over five hundred
    43  fifty thousand dollars but not over six hundred thousand dollars;
    44    (D) for taxable years beginning on or after January first,  two  thou-
    45  sand  twenty-one  and  before January first, two thousand twenty-two, if
    46  the business income base is not more than five hundred thousand  dollars
    47  the  amount  shall  be  two  and one-half percent of the business income
    48  base; if the business income base is more  than  five  hundred  thousand
    49  dollars  but  not  over six hundred thousand dollars the amount shall be
    50  the sum of (1) twelve thousand five hundred dollars, (2)  six  and  one-
    51  half percent of the excess of the business income base over five hundred
    52  thousand dollars but not over six hundred thousand dollars and (3) forty
    53  percent  of  the  excess  of  the business income base over five hundred
    54  fifty thousand dollars but not over six hundred thousand dollars; and

        A. 4300                            15
     1    (E) for taxable years beginning on or after January first,  two  thou-
     2  sand  twenty-two,  if  the  business  income  base  is not more than six
     3  hundred thousand dollars the amount shall be zero percent.
     4    § 3. Paragraph 1 of subdivision (a) of section 1502 of the tax law, as
     5  amended  by  section  4  of part N of chapter 60 of the laws of 2007, is
     6  amended to read as follows:
     7    (1) for taxable years beginning before July first, two thousand,  nine
     8  percent  of  the  taxpayer's entire net income, or portion thereof allo-
     9  cated within this state, for the taxable year, or part  thereof,  except
    10  that  for  taxable  years  beginning  prior  to  January first, nineteen
    11  hundred seventy-eight, the rate shall be four and  five-tenths  percent;
    12  for  taxable  years  beginning  after  June  thirtieth, two thousand and
    13  before July first, two thousand one, eight and one-half percent  of  the
    14  taxpayer's  entire  net income, or portion thereof allocated within this
    15  state, for the taxable year, or part thereof; for taxable  years  begin-
    16  ning  after  June thirtieth, two thousand one and before July first, two
    17  thousand two, eight percent of the  taxpayer's  entire  net  income,  or
    18  portion  thereof  allocated  within this state, for the taxable year, or
    19  part thereof; for taxable years  beginning  after  June  thirtieth,  two
    20  thousand  two  and  before  January first, two thousand seven, seven and
    21  one-half percent of the taxpayer's entire net income, or portion thereof
    22  allocated within this state, for the  taxable  year,  or  part  thereof;
    23  [and] for taxable years beginning [on or] after January first, two thou-
    24  sand  seven  and  before January first, two thousand nineteen, seven and
    25  one-tenth percent of the taxpayer's entire net income, or portion there-
    26  of allocated within this state, for the taxable year, or  part  thereof;
    27  and  for taxable years beginning on or after January first, two thousand
    28  nineteen, six and eighty-five one hundredths percent of  the  taxpayer's
    29  entire  net  income, or portion thereof allocated within this state, for
    30  the taxable year, or part thereof; or
    31    § 4. Subparagraph 1 of paragraph (b) of subdivision 1 of section 186-a
    32  of the tax law, as amended by section 4 of part Y of chapter 63  of  the
    33  laws of 2000, is amended to read as follows:
    34    (1)  two and five-tenths percent on and after January first, two thou-
    35  sand through December thirty-first, two thousand, two and forty-five one
    36  hundredths percent from January first, two thousand one through December
    37  thirty-first, two thousand one, two and four-tenths percent from January
    38  first, two thousand two through December thirty-first, two thousand two,
    39  two and twenty-five one hundredths percent from January first, two thou-
    40  sand three through December thirty-first, two thousand  three,  two  and
    41  one  hundred twenty-five one thousandths percent from January first, two
    42  thousand four through December thirty-first, two  thousand  four  [and],
    43  two  percent  commencing  January  first,  two thousand five and one and
    44  one-half percent commencing January first,  two  thousand  nineteen  and
    45  thereafter  of  that portion of its gross income derived from the trans-
    46  portation, transmission or distribution of gas or electricity  by  means
    47  of conduits, mains, pipes, wires, lines or the like and
    48    § 5. Subparagraph 1 of paragraph (a) of subdivision 2 of section 186-e
    49  of  the  tax law, as amended by section 2 of part P of chapter 59 of the
    50  laws of 2015, is amended to read as follows:
    51    (1) There is hereby imposed an excise tax on the sale of  telecommuni-
    52  cation  services,  except  for  the  sale  of  mobile  telecommunication
    53  services that are subject to tax under subparagraph two  of  this  para-
    54  graph,  by any person which is a provider of telecommunication services,
    55  to be paid by such person, at the rate of  three  and  one-half  percent
    56  prior  to  October  first, nineteen hundred ninety-eight, three and one-

        A. 4300                            16
     1  quarter  percent  from  October  first,  nineteen  hundred  ninety-eight
     2  through  December  thirty-first, nineteen hundred ninety-nine, [and] two
     3  and one-half percent [on and] after January first,  two  thousand  five,
     4  and  two  percent  on  and after January first, two thousand nineteen of
     5  gross receipt from: (i) any intrastate telecommunication services;  (ii)
     6  any  interstate and international telecommunication services (other than
     7  interstate and international private telecommunication  services)  which
     8  originate  or  terminate  in  this  state  and  which  telecommunication
     9  services are charged to a service address in this state,  regardless  of
    10  where  the  amounts  charged  for such services are billed or ultimately
    11  paid; and (iii) interstate and international  private  telecommunication
    12  services, the gross receipt to which the tax shall apply shall be deter-
    13  mined as prescribed in subdivision three of this section.
    14    § 6. This act shall take effect immediately and shall apply to taxable
    15  years beginning on or after January 1, 2019, provided, however, that any
    16  rules  and regulations necessary to carry out the provisions of this act
    17  shall be promulgated before such effective date.
    18    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    19  sion, section or part of this act shall be  adjudged  by  any  court  of
    20  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    21  impair, or invalidate the remainder thereof, but shall  be  confined  in
    22  its  operation  to the clause, sentence, paragraph, subdivision, section
    23  or part thereof directly involved in the controversy in which such judg-
    24  ment shall have been rendered. It is hereby declared to be the intent of
    25  the legislature that this act would  have  been  enacted  even  if  such
    26  invalid provisions had not been included herein.
    27    §  3.  This act shall take effect immediately, provided, however, that
    28  the applicable effective date of Parts A through C of this act shall  be
    29  as specifically set forth in the last section of such Parts.
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