Bill Text: NY A05332 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes the manufacturing preservation and enhancement act to foster economic growth and job creation; provides manufacturing enhancement incentive wage tax credits and energy tax credits and increases the real property tax credit for manufacturers.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2020-07-13 - held for consideration in economic development [A05332 Detail]
Download: New_York-2019-A05332-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5332 2019-2020 Regular Sessions IN ASSEMBLY February 8, 2019 ___________ Introduced by M. of A. KOLB -- read once and referred to the Committee on Economic Development AN ACT to amend the economic development law, in relation to establish- ing an incentive program for manufacturers that maintain or increase employment; and to amend the tax law, in relation to establishing wage tax credit incentives for manufacturing firms enrolled in the program (Part A); and to amend the tax law, in relation to increasing the real property tax credit for manufacturers (Part B) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "manufacturing preservation and enhancement act". 3 § 2. Legislative findings and intent. The legislature finds and deter- 4 mines that historically, manufacturing firms have helped to build our 5 state. Today, manufacturing jobs are an essential part of the state's 6 economy. Accordingly, the state should offer programs that foster growth 7 in this important sector of the state economy. The purpose of this 8 legislation is to establish a tax incentive program that would provide 9 tax credits to manufacturing firms that create new jobs in the manufac- 10 turing sector over a specified period of time. 11 § 3. This act enacts into law major components of legislation provid- 12 ing for the creation of the manufacturing preservation and enhancement 13 act and increasing the real property tax credit for manufacturers. Each 14 component is wholly contained within a Part identified as Parts A and B. 15 The effective date for each particular provision contained within such 16 Part is set forth in the last section of such Part. Any provision in any 17 section contained with a Part, including the effective date of the Part, 18 which makes reference to a section "of this act", when used in 19 connection with that particular component, shall be deemed to mean and 20 refer to the corresponding section of the Part in which it is found. 21 Section five of this act sets forth the general effective date of this 22 act. 23 PART A EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06096-01-9A. 5332 2 1 Section 1. The economic development law is amended by adding a new 2 article 15 to read as follows: 3 ARTICLE 15 4 MANUFACTURING PRESERVATION AND ENHANCEMENT ACT 5 Section 270. Definitions. 6 271. Manufacturing preservation and enhancement program. 7 272. Special provisions relating to certified manufacturers. 8 273. Reporting. 9 § 270. Definitions. As used in this article, the following words and 10 terms shall have the following meanings unless the content shall indi- 11 cate another or different meaning or intent: 12 1. "Program" shall mean the manufacturing preservation and enhancement 13 program established pursuant to this article. 14 2. "Manufacturing firm" shall mean an enterprise, including corporate 15 entities, partnerships and sole proprietors, engaged in the business of 16 production of goods and products from raw materials. 17 3. "Benchmark" shall mean a specific number of eligible new jobs 18 created in the state pursuant to the program. 19 4. "MEI" shall mean the manufacturing enhancement incentive program. 20 § 271. Manufacturing preservation and enhancement program. 1. There 21 is hereby created a manufacturing preservation and enhancement program 22 within the department to provide technical and financial assistance in 23 the form of tax incentives to manufacturing firms that meet specified 24 benchmarks in job creation as established by the commissioner. 25 2. The commissioner shall determine eligibility requirements for 26 participation in the program, provided, however, that such requirements 27 shall include the following: 28 (a) An applicant to the program may not participate in the program if 29 designated as a certified business located in an empire zone created 30 pursuant to article eighteen-B of the general municipal law; and 31 (b) An applicant that has previously participated in the program may 32 not reapply for participation in the program unless it can document that 33 at the time of its reapplication for participation, it has maintained a 34 level of employment at least as great as the highest level required 35 during its previous participation in the program. 36 3. Applications for participation in the MEI shall be submitted by 37 each manufacturing firm seeking to participate in the program, and shall 38 be in the form and contain such information, exhibits and supporting 39 data as the commissioner may prescribe. No applications for partic- 40 ipation shall be accepted after December thirty-first, two thousand 41 twenty-seven. 42 4. Manufacturing firms interested in participating in the MEI shall 43 submit an application to the program. The commissioner shall review all 44 applications for participation in the program for eligibility and shall 45 register eligible applicants. The commissioner shall provide each regis- 46 tered applicant with benchmarks in job creation that must be achieved by 47 the registered applicant over the following one year. Such benchmarks 48 shall be consistent with regulations to be prescribed by the commission- 49 er. Annually, each registered applicant shall submit to the commissioner 50 a registration statement, together with such information, exhibits and 51 supporting data as the commissioner may require. Upon submission of the 52 second annual registration statement, the commissioner shall review the 53 registered applicant's file for eligibility for the tax incentives. If 54 the registered applicant has met the required benchmarks in job 55 creation, the commissioner shall provide a certificate, valid for the 56 succeeding five tax years, certifying that the registered applicant isA. 5332 3 1 eligible for tax credits pursuant to this article. The MEI certificate 2 shall include a description of the property eligible for the property 3 tax benefit and shall specify the employment level and total amount of 4 employee gross salary eligible for the wage credit. 5 § 272. Special provisions relating to certified manufacturers. During 6 the five-year certification period, certified manufacturing firms shall 7 be eligible to receive the following tax credits: 8 1. An MEI wage tax credit, which shall be computed pursuant to 9 section eight hundred sixty-one of the tax law; and 10 2. An MEI energy tax credit, which shall be computed pursuant to 11 section eight hundred sixty-two of the tax law. 12 § 273. Reporting. The commissioner shall, on or before September 13 first, two thousand twenty, and annually thereafter, submit a report to 14 the governor, the temporary president of the senate, the speaker of the 15 assembly, the minority leader of the senate and the minority leader of 16 the assembly on the operation and accomplishments of the program 17 provided for pursuant to this article. 18 § 2. The tax law is amended by adding a new article 24-A to read as 19 follows: 20 ARTICLE 24-A 21 MANUFACTURING PRESERVATION AND ENHANCEMENT ACT 22 Section 861. MEI wage tax credit. 23 862. MEI energy tax credit. 24 § 861. MEI wage tax credit. (a) Allowance of credit. A taxpayer 25 receiving an MEI certificate that has been issued pursuant to article 26 fifteen of the economic development law, and that or who is subject to 27 taxes under article nine-A or article twenty-two of this chapter, shall 28 be allowed a credit against the taxes assessed under article nine-A or 29 article twenty-two of this chapter during the tax years that the certif- 30 icate is valid. The credit shall be computed pursuant to the provisions 31 of subsection (c) of this section. 32 (b) Definitions. The term "eligible wages" shall mean the total amount 33 of employee gross salary eligible for the wage tax credit, as such 34 amount is specified in the MEI certificate issued pursuant to article 35 fifteen of the economic development law. 36 (c) Computation of wage tax credit. (1) During the first tax year of 37 the five-year period for which a valid MEI certificate has been issued 38 pursuant to article fifteen of the economic development law, provided 39 the taxpayer has maintained the employment and eligible wage require- 40 ments specified by the MEI as defined in article fifteen of the economic 41 development law, the taxpayer shall be allowed a credit of one and one- 42 half percent of the total amount of the eligible wages actually paid by 43 the taxpayer. If the taxpayer increases employment during this tax year, 44 and exceeds the level of employment required by the MEI as defined in 45 article fifteen of the economic development law, hiring and maintaining 46 additional employees and paying additional wages over and above the 47 eligible wages amount, the taxpayer shall be allowed an additional cred- 48 it of two and one-half percent of the total amount by which the wages 49 actually paid as a result of the increased level of employment exceed 50 the eligible wages. 51 (2) During the second tax year of the five-year period for which a 52 valid MEI certificate has been issued pursuant to article fifteen of the 53 economic development law, provided the taxpayer has maintained the 54 employment and eligible wage requirements specified by the MEI as 55 defined in article fifteen of the economic development law, the taxpayer 56 shall be allowed a credit of one and one-half percent of the totalA. 5332 4 1 amount of the eligible wages actually paid by the taxpayer; however, if 2 the taxpayer increased employment in the preceding tax year and claimed 3 the two and one-half percent credit for employment and payment of wages 4 in excess of the MEI requirements pursuant to article fifteen of the 5 economic development law, the taxpayer shall be allowed a credit of one 6 and one-half percent of the total amount of the eligible wages actually 7 paid by the taxpayer during the preceding tax year, provided the taxpay- 8 er has maintained the increased employment and salary levels. If the 9 taxpayer again increases employment, hiring and maintaining additional 10 employees and paying additional wages over and above the previous tax 11 year's amount, the taxpayer shall be allowed an additional credit of two 12 and one-half percent of the total amount by which the wages actually 13 paid as a result of the increased level of employment exceed the wages 14 subject to the one and one-half percent credit. 15 § 862. MEI energy tax credit. (a) Allowance of credit. A taxpayer 16 receiving an MEI certificate has been issued pursuant to article fifteen 17 of the economic development law, and that or who is subject to taxes 18 under article nine-A or article twenty-two of this chapter, shall be 19 allowed a credit against the taxes assessed under article nine-A or 20 article twenty-two of this chapter during the tax years that the certif- 21 icate is valid. The credit shall be computed pursuant to the provisions 22 of subsection (c) of this section. 23 (b) Definition. The term "eligible energy costs" shall mean the 24 amounts paid by the taxpayer for electricity, natural gas, or any other 25 energy product or service which the taxpayer has used in the operation 26 of a MEI certified manufacturing firm facility pursuant to article 27 fifteen of the economic development law. 28 (c) Computation of energy credit. (1) If the taxpayer has paid eligi- 29 ble energy costs during the first tax year of the five-year period for 30 which a valid MEI certificate has been issued pursuant to article 31 fifteen of the economic development law, provided the taxpayer has main- 32 tained the employment and eligible wages requirements specified by the 33 MEI as defined in article fifteen of the economic development law, the 34 taxpayer shall be allowed an energy credit of twenty-five dollars per 35 employee required by the MEI as defined in article fifteen of the 36 economic development law. If the taxpayer increases employment during 37 this tax year, and exceeds the level of employment required by the MEI 38 as defined in article fifteen of the economic development law, hiring 39 and maintaining additional employees and paying additional wages over 40 and above the eligible wages amount, the taxpayer shall be allowed an 41 additional energy credit of fifty dollars per each additional employee. 42 The energy tax credit shall not exceed the amount of eligible energy 43 costs actually paid by the taxpayer. 44 (2) If the taxpayer has paid eligible energy costs during the second 45 tax year of the five-year period for which a valid MEI certificate has 46 been issued pursuant to article fifteen of the economic development law, 47 provided the taxpayer has maintained the employment and eligible wage 48 requirements specified by the MEI as defined in article fifteen of the 49 economic development law, the taxpayer shall be allowed an energy credit 50 of twenty-five dollars per employee required by the MEI as defined in 51 article fifteen of the economic development law; however, if the taxpay- 52 er increased employment during the preceding tax year and claimed the 53 additional energy tax credit of fifty dollars per additional employee, 54 the taxpayer shall be allowed a credit of twenty-five dollars per 55 employee up to the number of employees claimed in the previous tax year, 56 provided the taxpayer has maintained the increased employment and wageA. 5332 5 1 levels. If the taxpayer again increases employment, hiring additional 2 employees and paying additional wages over and above the previous tax 3 year's amounts, the taxpayer shall be allowed an additional credit of 4 fifty dollars for each additional employee hired during the second year. 5 The energy tax credit shall not exceed the amount of eligible energy 6 costs actually paid by the taxpayer. 7 § 3. Section 210-B of the tax law is amended by adding two new subdi- 8 visions 53 and 54 to read as follows: 9 53. MEI wage tax credit. (a) Allowance of credit. A taxpayer shall be 10 allowed a credit against the tax imposed by this article, to be computed 11 as provided in section eight hundred sixty-one of this chapter, against 12 the tax imposed by this article. 13 (b) Carryovers. The credit allowed under this subdivision for any 14 taxable year shall not reduce the tax due for such year to less than the 15 amount prescribed in paragraph (d) of subdivision one of section two 16 hundred ten of this article; provided, however, if the amount of this 17 credit allowable under this section for any taxable year reduces tax to 18 such amount, any amount of the credit not deductible in such taxable 19 year may be carried over to the following year or years and may be 20 deducted from the taxpayer's tax for such year or years. 21 54. MEI energy tax credit. (a) Allowance of credit. A taxpayer shall 22 be allowed a credit against the tax imposed by this article, to be 23 computed as provided in section eight hundred sixty-two of this chapter, 24 against the tax imposed by this article. 25 (b) Carryovers. The credit allowed under this subdivision for any 26 taxable year shall not reduce the tax due for such year to less than the 27 amount prescribed in paragraph (d) of subdivision one of section two 28 hundred ten of this article; provided, however, if the amount of this 29 credit allowable under this section for any taxable year reduces tax to 30 such amount, any amount of the credit not deductible in such taxable 31 year may be carried over to the following year or years and may be 32 deducted from the taxpayer's tax for such year or years. 33 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 34 of the tax law is amended by adding two new clauses (xliv) and (xlv) to 35 read as follows: 36 (xliv) MEI wage tax credit under Amount of MEI wage tax credit 37 subsection (jjj) under subdivision fifty three of 38 section two hundred ten-B 39 (xlv) MEI energy tax credit under Amount of MEI energy tax credit 40 subsection (kkk) under subdivision fifty-four of 41 section two hundred ten-B 42 § 5. Section 606 of the tax law is amended by adding two new 43 subsections (jjj) and (kkk) to read as follows: 44 (jjj) MEI wage tax credit. (1) Allowance of credit. A taxpayer shall 45 be allowed a credit, to be computed as provided in section eight hundred 46 sixty-one of this chapter, against the tax imposed by this article. 47 (2) Application of credit. If the amount of the credit allowed under 48 this subsection for any taxable year shall exceed the taxpayer's tax for 49 such year, the excess shall be treated as an overpayment of tax to be 50 credited or refunded in accordance with the provisions of section six 51 hundred eighty-six of this article, provided, however, that no interest 52 shall be paid thereon.A. 5332 6 1 (kkk) MEI energy tax credit. (1) Allowance of credit. A taxpayer shall 2 be allowed a credit, to be computed as provided in section eight hundred 3 sixty-two of this chapter, against the tax imposed by this article. 4 (2) Application of credit. If the amount of the credit allowed under 5 this subsection for any taxable year shall exceed the taxpayer's tax for 6 such year, the excess shall be treated as an overpayment of tax to be 7 credited or refunded in accordance with the provisions of section six 8 hundred eighty-six of this article, provided, however, that no interest 9 shall be paid thereon. 10 § 6. This act shall take effect on the one hundred eightieth day after 11 it shall have become a law and shall apply to taxable years beginning on 12 or after January 1, 2020 and before January 1, 2027; provided, however, 13 that the addition, amendment and/or repeal of any rule or regulation 14 necessary for the implementation of this act on its effective date are 15 authorized and directed to be made on or before such date. 16 PART B 17 Section 1. Paragraph (a) of subdivision 43 of section 210-B of the tax 18 law, as added by section 17 of part A of chapter 59 of the laws of 2014, 19 is amended to read as follows: 20 (a) A qualified New York manufacturer, as defined in subparagraph (vi) 21 of paragraph (a) of subdivision one of section two hundred ten of this 22 article, will be allowed a credit equal to [twenty] fifty percent of the 23 real property tax it paid during the taxable year for real property 24 owned by such manufacturer in New York which was principally used during 25 the taxable year for manufacturing to the extent not deducted in deter- 26 mining entire net income. This credit will not be allowed if the real 27 property taxes that are the basis for this credit are included in the 28 calculation of another credit claimed by the taxpayer. 29 § 2. Paragraph 1 of subsection (xx) of section 606 of the tax law, as 30 amended by section 8 of part I of chapter 59 of the laws of 2015, is 31 amended to read as follows: 32 (1) A qualified New York manufacturer will be allowed a credit equal 33 to [twenty] fifty percent of the real property tax it paid during the 34 taxable year for real property owned by such manufacturer in New York 35 which was principally used during the taxable year for manufacturing to 36 the extent not deducted in computing New York adjusted gross income. 37 This credit will not be allowed if the real property taxes that are the 38 basis for this credit are included in the calculation of another credit 39 claimed by the taxpayer. 40 § 3. This act shall take effect immediately and shall apply to tax 41 years beginning on or after January 1, 2020. 42 § 4. Severability clause. If any clause, sentence, paragraph, subdivi- 43 sion, section or part of this act shall be adjudged by any court of 44 competent jurisdiction to be invalid, such judgment shall not affect, 45 impair, or invalidate the remainder thereof, but shall be confined in 46 its operation to the clause, sentence, paragraph, subdivision, section 47 or part thereof directly involved in the controversy in which such judg- 48 ment shall have been rendered. It is hereby declared to be the intent of 49 the legislature that this act would have been enacted even if such 50 invalid provisions had not been included herein. 51 § 5. This act shall take effect immediately, provided, however, that 52 the applicable effective date of Part A and Part B of this act shall be 53 as specifically set forth in the last section of such Parts.
