Bill Text: NY A06505 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to providing insurance corporations with a tax credit for investments made in rural business growth funds; establishes the New York agriculture and rural jobs fund.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A06505 Detail]
Download: New_York-2019-A06505-Introduced.html
Bill Title: Relates to providing insurance corporations with a tax credit for investments made in rural business growth funds; establishes the New York agriculture and rural jobs fund.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A06505 Detail]
Download: New_York-2019-A06505-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6505 2019-2020 Regular Sessions IN ASSEMBLY March 8, 2019 ___________ Introduced by M. of A. WOERNER -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to providing insurance corpo- rations with a tax credit for investments made in rural business growth funds; and to amend the state finance law, in relation to establishing the New York agriculture and rural jobs fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 44 to read 2 as follows: 3 § 44. New York agriculture and rural jobs credit. (a) Definitions. For 4 the purpose of this section the following terms shall have the following 5 meanings: 6 (1) "Affiliate" means a person that directly, or indirectly through 7 one or more intermediaries, controls, is controlled by, or is under 8 common control with another person. For the purposes of this subdivi- 9 sion, a person is "controlled by" another person if the controlling 10 person holds, directly or indirectly, the majority voting or ownership 11 interest in the controlled person or has control over the day-to-day 12 operations of the controlled person by contract or by law. 13 (2) "Closing date" means the date on which a rural business growth 14 fund has collected all of the amounts specified by subparagraphs (A) and 15 (B) of paragraph seven of subdivision (b) of this section. 16 (3) "Credit-eligible capital contribution" means an investment of cash 17 by a person in a rural business growth fund that equals the amount spec- 18 ified on a tax credit certificate issued by the department under subpar- 19 agraph (B) of paragraph six of subdivision (b) of this section. The 20 investment shall purchase an equity interest in the rural business 21 growth fund or purchase, at par value or premium, a debt instrument 22 issued by the rural growth fund that meets all of the following crite- 23 ria: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01212-03-9A. 6505 2 1 (A) The debt instrument has an original maturity date of at least five 2 years after the date of issuance. 3 (B) The debt instrument has a repayment schedule that is not faster 4 than a level principal amortization over five years. 5 (C) The debt instrument has no interest, distribution, or payment 6 features dependent on the rural business growth fund's profitability or 7 the success of the rural growth investments. 8 (4) "Eligible investment authority" means the amount stated on the 9 notice issued under subparagraph (A) of paragraph six of subdivision (b) 10 of this section certifying the rural business growth fund. At least 11 sixty-five percent of a rural business growth fund's eligible investment 12 authority shall be comprised of credit-eligible capital contributions. 13 (5) "Jobs created" means the number of persons employed by a rural 14 business concern having received a growth investment from a rural busi- 15 ness growth fund during the taxable year which shall be determined by 16 ascertaining the number of such individuals employed full-time by such 17 rural business concern on the thirty-first day of March, the thirtieth 18 day of June, the thirtieth day of September and the thirty-first day of 19 December during each taxable year following its initial growth invest- 20 ment, by adding together the number of such individuals ascertained on 21 each of such dates and dividing the sum so obtained by the number of 22 dates occurring within such taxable year in the amount that such number 23 exceeds the jobs retained number. An individual employed full-time means 24 an employee in a job consisting of at least thirty-five hours per week, 25 or two or more employees who are in jobs that together constitute the 26 equivalent of a job of at least thirty-five hours per week. 27 (6) "Jobs retained" means the number of persons employed by a rural 28 business concern having received a growth investment from a rural busi- 29 ness growth fund during the taxable year which shall be determined by 30 ascertaining the number of such individuals employed full-time by such 31 rural business concern on the thirty-first day of March, the thirtieth 32 day of June, the thirtieth day of September and the thirty-first day of 33 December during the year in which the rural business concern received 34 its initial growth investment from a rural business growth fund, by 35 adding together the number of such individuals ascertained on each of 36 such dates and dividing the sum so obtained by the number of dates 37 occurring within such taxable year. An individual employed full-time 38 means an employee in a job consisting of at least thirty-five hours per 39 week, or two or more employees who are in jobs that together constitute 40 the equivalent of a job of at least thirty-five hours per week. 41 (7) A business's "principal business operations" are in New York state 42 if New York state is its principal place of business and at least eighty 43 percent of the business's employees work in New York state, or the busi- 44 ness has agreed to use the proceeds of a rural growth investment to 45 relocate at least eighty percent of its employees to New York state 46 within twelve months of receiving the investment by a rural business 47 growth fund. 48 (8) "Rural area" shall have the same meaning as defined in subdivision 49 seven of section four hundred eighty-one of the executive law. 50 (9) "Rural business concern" means an operating company that, at the 51 time of the initial investment in the company by a rural business growth 52 fund employs no more than one hundred fifty full-time equivalent employ- 53 ees or has earned not more than ten million dollars in net income for 54 the preceding taxable year, and meets either of the following criteria: 55 (A) The business's principal business operations are located in a 56 rural area in New York state and is an agricultural enterprise or isA. 6505 3 1 related to the use of agricultural products or forest products, or is an 2 enterprise in one of the following industries: manufacturing, computer 3 hardware or software, tourism, agribusiness development to stimulate the 4 development and implementation of new and alternative production, proc- 5 essing, storage, distribution and marketing technology and improvements 6 for New York food, agriculture and forest products or if not engaged in 7 any of these industries, the department determines that the investment 8 will be beneficial to the qualified location and the economic growth of 9 New York state; or 10 (B) The business produces or provides any goods principally used by 11 farmers, ranchers, or producers and harvesters of aquatic products in 12 their business operations, or is involved in the processing and market- 13 ing of agricultural products, farm supply, and input suppliers, provided 14 that such business is located in a municipality, as defined in section 15 four hundred eighty-one of the executive law, in New York state with a 16 population of less than fifty thousand. For the purposes of this 17 section, "net income" means federal adjusted gross income as required to 18 be reported under the Internal Revenue Code less federal and state taxes 19 imposed on or measured by income. Any business which is classified as a 20 rural business concern at the time of the initial investment in said 21 business by a rural business growth fund shall remain classified as a 22 rural business concern and may receive follow-on investments from any 23 rural business growth fund, and such follow-on investments shall qualify 24 as a rural growth investment provided it otherwise meets the definition 25 of rural business concern with the exception of the employee limitation 26 and net income limitation in such definition. 27 (10) "Rural business growth fund" means an entity certified by the 28 department under this section. 29 (11) "Rural growth investment" means any capital or equity investment 30 in a rural business concern or any loan to a rural business concern with 31 a term of at least one year. 32 (12) "Tax credit certificate" means the document issued by the depart- 33 ment to a person who has made a credit-eligible capital contribution to 34 a rural business growth fund. 35 (13) "Taxable year" when used in reference to an insurance company 36 means the calendar year ending on the thirty-first day of December next 37 preceding the day the annual report is required to be returned under 38 subdivision (d) of this section. 39 (14) "Department", as used in this section, means the department of 40 economic development. 41 (b) Certification. (1) On and after August first, two thousand twenty, 42 an applicant that has developed a business plan to invest in rural busi- 43 ness concerns in this state and has successfully solicited private 44 investors to make capital contributions in support of the plan may apply 45 to the department for certification as a rural business growth fund. The 46 application shall include all of the following: 47 (A) The total eligible investment authority sought by the applicant 48 under the business plan; 49 (B) Documents and other evidence sufficient to prove that the appli- 50 cant meets all of the following criteria: (i) The applicant or an affil- 51 iate of the applicant is licensed as a rural business investment company 52 under 7 U.S.C. 2009cc, or as a small business investment company under 53 15 U.S.C. 681. 54 (ii) As of the date the application is submitted, the applicant has 55 invested more than one hundred million dollars in operating companies in 56 rural areas located inside or outside of New York state and at leastA. 6505 4 1 twenty-five million dollars in operating companies located in New York 2 state. In computing investments under this subdivision, the applicant 3 may include investments made by affiliates of the applicant. 4 (C) An estimate of the number of (i) jobs that will be created in the 5 rural areas of New York state as a result of the applicant's rural 6 growth investments, (ii) jobs that will be retained in the rural areas 7 of New York state as a result of the applicants rural growth invest- 8 ments, and (iii) the anticipated average wage per job. 9 (D) A revenue impact assessment for the applicant's proposed rural 10 growth investments prepared by a nationally recognized third-party inde- 11 pendent economic forecasting firm using a dynamic economic forecasting 12 model. The revenue impact assessment shall analyze the applicant's 13 business plan over the ten years following the date the application is 14 submitted to the department. 15 (E) A signed affidavit from each investor successfully solicited by 16 the applicant to make a credit eligible capital contribution in support 17 of the business plan. Each affidavit shall include information suffi- 18 cient for the department to identify the investor and shall state the 19 amount of the investor's credit-eligible capital contribution. 20 (F) A nonrefundable application fee of five thousand dollars. 21 (G) A strategy, as part of its business plan, to make reasonable 22 efforts to invest in businesses that are environmentally sensitive and 23 utilize resources that promote a clean environment and energy conserva- 24 tion. 25 (2) The department shall review and make a determination with respect 26 to each application submitted under paragraph one of this subdivision 27 within thirty days of receipt. The department shall make determinations 28 on the applications in the order in which the applications are received 29 by the department. Applications received by the department on the same 30 day shall be deemed to have been received simultaneously. Except as 31 provided in paragraph four of subdivision (c) of this section, the 32 department shall not approve more than one hundred million dollars in 33 eligible investment authority or more than sixty-five million dollars in 34 credit-eligible capital contributions. 35 (3) The department shall deny an application submitted under this 36 section if any of the following are true: (A) The application is incom- 37 plete. 38 (B) The application fee is not paid in full. 39 (C) The applicant does not satisfy all the criteria described in 40 subparagraph (B) of paragraph one of this subdivision. 41 (D) The revenue impact assessment submitted under subparagraph (D) of 42 paragraph one of this subdivision does not demonstrate that the appli- 43 cant's business plan will result in a positive economic impact on this 44 state over a ten-year period that exceeds the credit eligible capital 45 contributions sought by the applicant. 46 (E) The credit-eligible capital contributions described in affidavits 47 submitted under subparagraph (E) of paragraph one of this subdivision do 48 not equal sixty-five percent of the total amount of eligible investment 49 authority sought under the applicant's business plan. 50 (F) The department has already approved the maximum amount of eligible 51 investment authority and credit-eligible capital contributions allowed 52 under paragraph two of this subdivision. 53 (4) If the department denies an application under paragraph three of 54 this subdivision, the department shall send notice of its determination 55 of the applicant. The notice shall include the reasons that the applica- 56 tion was denied. If the application was denied for any reason other thanA. 6505 5 1 the reason specified in subparagraph (F) of paragraph three of this 2 subdivision, the applicant may provide additional information to the 3 department to complete, clarify, or cure defects in the application. 4 The additional information must be submitted within thirty days after 5 the date the notice of denial was sent by the department. If the person 6 or entity submits additional information within thirty days, the depart- 7 ment shall reconsider the application within thirty days after receiving 8 such additional information. If after submission of additional informa- 9 tion, the application is approved, then the submission date shall be the 10 date of the original submission of the application. If the person or 11 entity does not submit additional information within thirty days after 12 the notice of denial was sent, the applicant may submit a new applica- 13 tion with a new submission date at any time. 14 (5) If approving multiple simultaneously submitted applications would 15 result in exceeding the overall eligible investment limit prescribed by 16 paragraph two of this subdivision, the department shall proportionally 17 reduce the eligible investment authority and the credit-eligible capital 18 contributions for each approved application as necessary to avoid 19 exceeding the limit. 20 (6) If the department approves such application, the department shall: 21 (A) issue a written notice certifying that the applicant qualifies as a 22 rural business growth fund and specifying the amount of the applicant's 23 eligible investment authority and the number of jobs created and jobs 24 retained required of the rural business growth fund determined by multi- 25 plying the estimated number of jobs created and jobs retained set forth 26 in the rural business growth fund's application by a fraction, the 27 numerator of which is the investment authority awarded to the rural 28 business growth fund and the denominator of which is the investment 29 authority for which the rural business growth fund applied; (B) to each 30 investor whose affidavit was included in the application, issue a tax 31 credit certificate specifying the amount of the investor's credit-eligi- 32 ble capital contribution; and (C) to the commissioner, a copy of each 33 tax credit certificate issued under subparagraph (B) of this paragraph. 34 (7) A rural business growth fund shall complete all of the following 35 within sixty days of receiving the written notice issued under paragraph 36 six of this subdivision: 37 (A) Collect the credit-eligible capital contributions from each inves- 38 tor whose credit-eligible capital contributions are described in affida- 39 vits submitted pursuant to subparagraph (E) of paragraph one of this 40 subdivision. 41 (B) Collect one or more investments of cash, which shall purchase an 42 equity interest in the rural growth fund or a debt instrument issued by 43 the rural growth fund at par value or premium, with a maturity date of 44 at least five years from the closing date that, when added to the 45 contributions collected under subparagraph (A) of this paragraph, equal 46 the fund's eligible investment authority. At least ten percent of the 47 fund's eligible investment authority shall be comprised of equity 48 investments contributed by affiliates of the rural business growth fund, 49 including employees, officers, and directors of such affiliates. 50 (C) Send to the department documentation sufficient to prove that the 51 amounts described in subparagraphs (A) and (B) of this paragraph have 52 been collected. If the rural business growth fund fails to fully comply 53 with this paragraph, the fund's certification shall lapse. 54 (8) Eligible investment authority and corresponding credit-eligible 55 capital contributions that lapse under paragraph seven of this subdivi- 56 sion do not count toward limits on total eligible investment authorityA. 6505 6 1 and credit-eligible capital contributions prescribed in paragraph two of 2 this subdivision. Once eligible investment authority has lapsed, the 3 department shall first award lapsed authority pro rata to each rural 4 business growth fund that was awarded less than the requested eligible 5 investment authority under paragraph five of this subdivision. Any 6 remaining eligible investment authority may be awarded by the department 7 to new applicants. 8 (9) Application fees submitted to the department pursuant to subpara- 9 graph (F) of paragraph one of this subdivision shall be credited to the 10 New York agriculture and rural jobs fund, created in section ninety- 11 nine-ff of the state finance law. 12 (c) Revocation of certification and penalties. (1) The department 13 shall revoke a tax credit certificate issued under subdivision (b) of 14 this section if any of the following occur with respect to a rural busi- 15 ness growth fund before the fund exits the program under paragraph five 16 of this subdivision. 17 (A) The rural business growth fund in which the credit-eligible capi- 18 tal contribution was made does not invest sixty percent of its eligible 19 investment authority in rural growth investments in this state within 20 two years of the closing date and one hundred percent of its eligible 21 investment authority in rural growth investments in this state within 22 three years of the closing date. 23 (B) After investing one hundred percent of its eligible investment 24 authority in rural growth investments in this state, the rural business 25 growth fund fails to maintain that investment until the seventh anniver- 26 sary of the closing date. For the purposes of this section, an invest- 27 ment is "maintained" even if the investment is sold or repaid so long as 28 the rural business growth fund reinvests an amount equal to the capital 29 returned or recovered by the fund from the original investment, exclu- 30 sive of any profits realized, in other rural growth investments in this 31 state within twelve months of the receipt of such capital. Amounts 32 received periodically by a rural business growth fund shall be treated 33 as continually invested in rural growth investments if the amounts are 34 reinvested in one or more rural growth investments by the end of the 35 following calendar year. A rural business growth fund is not required to 36 reinvest capital returned from rural growth investments in the six 37 months immediately preceding the seventh anniversary of the closing 38 date, and such rural growth investments shall be considered held contin- 39 uously by the rural growth fund through the seventh anniversary of the 40 closing date. 41 (C) The rural business growth fund invests more than the greater of 42 five million dollars or twenty percent of its eligible investment 43 authority in the same rural business concern, including amounts invested 44 in affiliates of the rural business concern but excluding amounts rein- 45 vested in the rural business growth fund with repaid or redeemed rural 46 business growth investments, provided such reinvestments shall not count 47 towards the requirement of subparagraph (A) of this paragraph. 48 (D) The rural business growth fund makes a rural growth investment in 49 a rural business concern that directly or indirectly through an affil- 50 iate owns, has the right to acquire an ownership interest, make a loan 51 to, or make an investment in the rural business growth fund, an affil- 52 iate of the rural business growth fund, or an investor in the rural 53 business growth fund. This paragraph does not apply to investments in 54 publicly traded securities by a rural business concern or an owner or 55 affiliate of such concern.A. 6505 7 1 (2) Before taking action under paragraph one of this subdivision, the 2 department shall notify the rural business growth fund of the reasons 3 for the pending action. If the rural business growth fund corrects the 4 violations, other than violations of subparagraph (D) of paragraph one 5 of this subdivision, outlined in the notice to the satisfaction of the 6 department within one hundred eighty days of the date of the notice was 7 sent, the department shall not revoke the tax credit certificates or 8 levy a fine. 9 (3) If the department revokes a tax credit certificate under paragraph 10 one of this subdivision, it shall notify the commissioner, who shall 11 make an assessment for the amount of the credit claimed by the certif- 12 icate holder before the certificate was revoked. The commissioner shall 13 make the assessment within one year after the certificate has been 14 revoked. 15 (4) If tax credit certificates are revoked under paragraph one of this 16 subdivision, the associated eligible investment authority and credit-el- 17 igible capital contributions do not count toward the limit on total 18 eligible investment authority and credit-eligible capital contributions 19 described by paragraph two of subdivision (b) of this section. The 20 department shall first award reverted authority pro rata to each rural 21 business growth fund that was awarded less than the requested eligible 22 investment authority under paragraph five of subdivision (b) of this 23 section. Any remaining eligible investment authority may be awarded by 24 the department to new applicants. 25 (5) (A) On or after the seventh anniversary of the closing date, a 26 rural business growth fund that has not committed any of the acts 27 described in paragraph one of this subdivision may apply to the depart- 28 ment to exit the program as a rural business growth fund and no longer 29 be subject to regulation under this section. The department shall 30 respond to the application within thirty days after receiving such 31 application. In evaluating such request the fact that no tax credit 32 certificates have been revoked with respect to the rural business growth 33 fund shall be sufficient evidence to prove that the fund is eligible to 34 exit the program. The department shall not unreasonably deny an applica- 35 tion submitted under this subdivision. 36 (B) The department shall send notice of its determination with respect 37 to an application submitted under subparagraph (A) of this paragraph to 38 the rural business growth fund. If the application is denied, the notice 39 shall include the reasons for the determination. 40 (C) The department shall not revoke a tax credit certificate due to 41 any actions of a rural business growth fund that occur after the date 42 the fund's application for exiting the program is approved under subpar- 43 agraph (A) of this paragraph. 44 (6) A rural business growth fund is subject to a penalty in the amount 45 provided by paragraph seven of this subdivision if: 46 (A) the rural business growth fund authorizes a distribution to the 47 rural business growth fund's equity or debt holders in an amount that, 48 when added to all previous distributions to the rural business growth 49 fund's equity and debt holders and any previous penalties under this 50 section, exceeds the rural business growth fund's investment authority; 51 and 52 (B) the number of jobs created and jobs retained as reported in each 53 of the annual reports submitted under paragraph one of subdivision (d) 54 of this section is less than the number of jobs created and jobs 55 retained as set forth in the rural business growth fund's notice ofA. 6505 8 1 approval pursuant to subparagraph (A) of paragraph six of subdivision 2 (b) of this section. 3 (7) The amount of the penalty pursuant to paragraph six of this subdi- 4 vision shall be equal to the amount of the tax credit certificate issued 5 under subparagraph (B) of paragraph six of subdivision (b) of this 6 section multiplied by a fraction: 7 (A) the numerator of which is the number of jobs created and jobs 8 retained set forth in the rural business growth fund's notice of 9 approval under subparagraph (A) of paragraph six of subdivision (b) of 10 this section less the sum of jobs created and jobs retained reported to 11 the department annually pursuant to paragraph one of subdivision (d) of 12 this section; and 13 (B) the denominator of which is the number of jobs created and jobs 14 retained set forth in the rural business growth fund's notice of 15 approval under subparagraph (A) of paragraph six of subdivision (b) of 16 this section. 17 (8) Before making a distribution to the rural business growth fund's 18 equity holders, the rural business growth fund shall deduct the amount 19 of the penalty as calculated pursuant to paragraph seven of this subdi- 20 vision from the amount otherwise authorized to be distributed to the 21 equity holders and pay the penalty to the department. 22 (9) A rural business growth fund shall, prior to making a rural growth 23 investment, request from the department a written determination as to 24 whether the business entity in which it proposes to invest qualifies as 25 a rural business concern. Such request shall be in a form prescribed by 26 the department. Rural business concern determination requests shall be 27 accepted, reviewed, and approved on a rolling basis. The department, 28 not later than the twentieth business day after the date of receipt of 29 such request, provided the request includes all of the required informa- 30 tion to perform such review, shall notify the rural business growth fund 31 of its determination. If the department fails to notify such fund of its 32 determination within such twenty business days, the business in which 33 the rural business growth fund proposes to invest shall be deemed to 34 qualify as a rural business concern. 35 (d) Reports. (1) A rural business growth fund shall submit a report to 36 the department on or before the fifth business day after each anniver- 37 sary of the closing date until the rural business growth fund has exited 38 the program in accordance with paragraph five of subdivision (c) of this 39 section. The report shall document the rural business growth fund's 40 growth investments and shall include, but shall not be limited to: 41 (A) A bank statement showing each rural growth investment; 42 (B) The name, location, and industry of each rural business concern 43 receiving a rural growth investment, including either the determination 44 notice described by paragraph nine of subdivision (c) of this section or 45 evidence that such determination was requested and no notice was 46 provided; 47 (C) The number of jobs created and jobs retained in the preceding 48 twelve month reporting period as a result of the rural business growth 49 fund's rural growth investments as of the last day of that period; 50 (D) The average annual salary of the jobs described by subparagraph 51 (C) of this paragraph; and 52 (E) Any other information deemed pertinent by the rural business 53 growth fund or required by the department. 54 (2) The department shall adopt rules necessary to implement this 55 subdivision.A. 6505 9 1 § 2. Section 1511 of the tax law is amended by adding a new subdivi- 2 sion (dd) to read as follows: 3 (dd) Credit for certain investments to a rural business growth fund. 4 (1) There is hereby allowed a nonrefundable tax credit for taxpayers 5 that made a credit-eligible capital contribution to a rural business 6 growth fund and were issued a tax credit certificate under subparagraph 7 (B) of paragraph six of subdivision (b) of section forty-four of this 8 chapter. The credit may be claimed against the tax imposed by this arti- 9 cle and section one thousand one hundred twelve of the insurance law. 10 The credit may not be sold, transferred, or allocated to any entity 11 other than an affiliate of the taxpayer. 12 (2) The taxpayer may claim credits authorized by the tax credit 13 certificate in the taxable year in which the third, fourth and fifth 14 anniversaries of the closing date in connection with which the certif- 15 icate issued occurs, provided that the maximum amount of credit for a 16 tax year that may be claimed is up to one-third of the amount stated on 17 the tax credit certificate, exclusive of amounts carried forward pursu- 18 ant to paragraph three of this subdivision. 19 (3) If the amount of the credit for a taxable year exceeds the tax 20 otherwise due for that year, the excess shall be carried forward to 21 ensuing taxable years until fully used. A taxpayer claiming a credit 22 under this section shall submit a copy of the tax credit certificate 23 with the taxpayer's return for each taxable year for which the credit is 24 claimed. 25 § 3. The tax law is amended by adding a new section 187-q to read as 26 follows: 27 § 187-q. Credit for certain investments to a rural business growth 28 fund. 1. There is hereby allowed a nonrefundable tax credit for taxpay- 29 ers that made a credit-eligible capital contribution to a rural business 30 growth fund and were issued a tax credit certificate under subparagraph 31 (B) of paragraph six of subdivision (b) of section forty-four of this 32 chapter. The credit may be claimed against the tax imposed by this arti- 33 cle. The credit may not be sold, transferred, or allocated to any entity 34 other than an affiliate of the taxpayer. 35 2. The taxpayer may claim credits authorized by the tax credit certif- 36 icate in the taxable year in which the third, fourth, and fifth anniver- 37 saries of the closing date in connection with which the certificate 38 issued occurs, provided that the maximum amount of credit for a tax year 39 that may be claimed is up to one-third of the amount stated on the tax 40 credit certificate, exclusive of amounts carried forward pursuant to 41 subdivision three of this section. In no event shall the credit under 42 this section be allowed in an amount which will reduce the tax payable 43 to less than the applicable minimum tax fixed by section one hundred 44 eighty-three of this article. 45 3. If the amount of the credit for a taxable year exceeds the tax 46 otherwise due for that year, the excess shall be carried forward to 47 ensuing taxable years until fully used. A taxpayer claiming a credit 48 under this section shall submit a copy of the tax credit certificate 49 with the taxpayer's return for each taxable year for which the credit is 50 claimed. 51 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 52 sion 53 to read as follows: 53 53. Credit for certain investments to a rural business growth fund. 54 (1) Allowance of credit. There is hereby allowed a nonrefundable tax 55 credit for taxpayers that made a credit-eligible capital contribution to 56 a rural business growth fund and were issued a tax credit certificateA. 6505 10 1 under subparagraph (B) of paragraph six of subdivision (b) of section 2 forty-four of this chapter. The credit may be claimed against the tax 3 imposed by this article. The credit may not be sold, transferred, or 4 allocated to any entity other than an affiliate of the taxpayer. 5 (2) Amount of credit claimed. The taxpayer may claim credits author- 6 ized by the tax credit certificate in the taxable year in which the 7 third, fourth, and fifth anniversaries of the closing date in connection 8 with which the certificate issued occurs, provided that the maximum 9 amount of credit for a tax year that may be claimed is up to one-third 10 of the amount stated on the tax credit certificate, exclusive of amounts 11 carried forward pursuant to paragraph three of this subdivision. 12 (3) Application of credit. The credit allowed under this subdivision 13 for any taxable year shall not reduce the tax due for such year to less 14 than the amount prescribed in paragraph (d) of subdivision one of 15 section two hundred ten of this article. Provided, however, that if the 16 amount of the credit allowable under this subdivision for any taxable 17 year reduces the tax to such amount or if the taxpayer otherwise pays 18 tax based on the fixed dollar minimum amount, the excess shall be treat- 19 ed as an overpayment of tax to be credited in accordance with the 20 provisions of section one thousand eighty-six of this chapter. Provided, 21 further, notwithstanding the provisions of subsection (c) of section one 22 thousand eighty-eight of this chapter, no interest shall be paid there- 23 on. 24 § 5. The state finance law is amended by adding a new section 99-ff to 25 read as follows: 26 § 99-ff. New York agriculture and rural jobs fund. 1. There is hereby 27 established in the joint custody of the state comptroller and the 28 commissioner of taxation and finance a special fund to be known as the 29 "New York agriculture and rural jobs fund". 30 2. Such fund shall consist of all application fees submitted pursuant 31 to subparagraph (F) of paragraph one of subdivision (b) of section 32 forty-four of the tax law, and all other moneys appropriated, credited, 33 or transferred thereto from any other fund or source pursuant to law. 34 3. Moneys of the fund, following appropriation by the legislature 35 shall be expended only for the purposes of providing funding for the New 36 York agriculture and rural jobs credit set forth in section forty-four 37 of the tax law. Moneys shall be paid out of the fund on the audit and 38 warrant of the state comptroller on vouchers approved and certified by 39 the commissioner of taxation and finance. Any interest received by the 40 comptroller on moneys on deposit in the New York agriculture and rural 41 jobs fund shall be retained in and become part of such fund. 42 § 6. This act shall take effect July 1, 2019.
