Bill Text: NY S04642 | 2019-2020 | General Assembly | Introduced


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: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2019-03-19 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S04642 Detail]

Download: New_York-2019-S04642-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4642
                               2019-2020 Regular Sessions
                    IN SENATE
                                     March 19, 2019
                                       ___________
        Introduced  by  Sen. METZGER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01212-05-9

        S. 4642                             2
     1  issued  by  the rural growth fund that meets all of the following crite-
     2  ria:
     3    (A) The debt instrument has an original maturity date of at least five
     4  years after the date of issuance.
     5    (B)  The  debt  instrument has a repayment schedule that is not faster
     6  than a level principal amortization over five years.
     7    (C) The debt instrument has  no  interest,  distribution,  or  payment
     8  features  dependent on the rural business growth fund's profitability or
     9  the success of the rural growth investments.
    10    (4) "Eligible investment authority" means the  amount  stated  on  the
    11  notice issued under subparagraph (A) of paragraph six of subdivision (b)
    12  of  this  section  certifying  the  rural business growth fund. At least
    13  sixty-five percent of a rural business growth fund's eligible investment
    14  authority shall be comprised of credit-eligible capital contributions.
    15    (5) "Jobs created" means the number of persons  employed  by  a  rural
    16  business  concern having received a growth investment from a rural busi-
    17  ness growth fund during the taxable year which shall  be  determined  by
    18  ascertaining  the  number of such individuals employed full-time by such
    19  rural business concern on the thirty-first day of March,  the  thirtieth
    20  day  of June, the thirtieth day of September and the thirty-first day of
    21  December during each taxable year following its initial  growth  invest-
    22  ment,  by  adding together the number of such individuals ascertained on
    23  each of such dates and dividing the sum so obtained  by  the  number  of
    24  dates  occurring within such taxable year in the amount that such number
    25  exceeds the jobs retained number. An individual employed full-time means
    26  an employee in a job consisting of at least thirty-five hours per  week,
    27  or  two  or  more employees who are in jobs that together constitute the
    28  equivalent of a job of at least thirty-five hours per week.
    29    (6) "Jobs retained" means the number of persons employed  by  a  rural
    30  business  concern having received a growth investment from a rural busi-
    31  ness growth fund during the taxable year which shall  be  determined  by
    32  ascertaining  the  number of such individuals employed full-time by such
    33  rural business concern on the thirty-first day of March,  the  thirtieth
    34  day  of June, the thirtieth day of September and the thirty-first day of
    35  December during the year in which the rural  business  concern  received
    36  its  initial  growth  investment  from  a rural business growth fund, by
    37  adding together the number of such individuals ascertained  on  each  of
    38  such  dates  and  dividing  the  sum  so obtained by the number of dates
    39  occurring within such taxable year.  An  individual  employed  full-time
    40  means  an employee in a job consisting of at least thirty-five hours per
    41  week, or two or more employees who are in jobs that together  constitute
    42  the equivalent of a job of at least thirty-five hours per week.
    43    (7) A business's "principal business operations" are in New York state
    44  if New York state is its principal place of business and at least eighty
    45  percent of the business's employees work in New York state, or the busi-
    46  ness  has  agreed  to  use  the proceeds of a rural growth investment to
    47  relocate at least eighty percent of its  employees  to  New  York  state
    48  within  twelve  months  of  receiving the investment by a rural business
    49  growth fund.
    50    (8) "Rural area" shall have the same meaning as defined in subdivision
    51  seven of section four hundred eighty-one of the executive law.
    52    (9) "Rural business concern" means an operating company that,  at  the
    53  time of the initial investment in the company by a rural business growth
    54  fund employs no more than one hundred fifty full-time equivalent employ-
    55  ees  or  has  earned not more than ten million dollars in net income for
    56  the preceding taxable year, and meets either of the following criteria:

        S. 4642                             3
     1    (A) The business's principal business  operations  are  located  in  a
     2  rural  area  in  New  York state and is an agricultural enterprise or is
     3  related to the use of agricultural products or forest products, or is an
     4  enterprise in one of the following industries:  manufacturing,  computer
     5  hardware or software, tourism, agribusiness development to stimulate the
     6  development  and implementation of new and alternative production, proc-
     7  essing, storage, distribution and marketing technology and  improvements
     8  for  New York food, agriculture and forest products or if not engaged in
     9  any of these industries, the department determines that  the  investment
    10  will  be beneficial to the qualified location and the economic growth of
    11  New York state; or
    12    (B) The business produces or provides any goods  principally  used  by
    13  farmers,  ranchers,  or  producers and harvesters of aquatic products in
    14  their business operations, or is involved in the processing and  market-
    15  ing of agricultural products, farm supply, and input suppliers, provided
    16  that  such  business is located in a municipality, as defined in section
    17  four hundred eighty-one of the executive law, in New York state  with  a
    18  population  of  less  than  fifty  thousand.    For the purposes of this
    19  section, "net income" means federal adjusted gross income as required to
    20  be reported under the Internal Revenue Code less federal and state taxes
    21  imposed on or measured by income.  Any business which is classified as a
    22  rural business concern at the time of the  initial  investment  in  said
    23  business  by  a  rural business growth fund shall remain classified as a
    24  rural business concern and may receive follow-on  investments  from  any
    25  rural business growth fund, and such follow-on investments shall qualify
    26  as  a rural growth investment provided it otherwise meets the definition
    27  of rural business concern with the exception of the employee  limitation
    28  and net income limitation in such definition.
    29    (10)  "Rural  business  growth  fund" means an entity certified by the
    30  department under this section.
    31    (11) "Rural growth investment" means any capital or equity  investment
    32  in a rural business concern or any loan to a rural business concern with
    33  a term of at least one year.
    34    (12) "Tax credit certificate" means the document issued by the depart-
    35  ment  to a person who has made a credit-eligible capital contribution to
    36  a rural business growth fund.
    37    (13) "Taxable year" when used in reference  to  an  insurance  company
    38  means  the calendar year ending on the thirty-first day of December next
    39  preceding the day the annual report is required  to  be  returned  under
    40  subdivision (d) of this section.
    41    (14)  "Department",  as  used in this section, means the department of
    42  economic development.
    43    (b) Certification. (1) On and after August first, two thousand twenty,
    44  an applicant that has developed a business plan to invest in rural busi-
    45  ness concerns in this  state  and  has  successfully  solicited  private
    46  investors to make capital contributions in support of the plan may apply
    47  to the department for certification as a rural business growth fund. The
    48  application shall include all of the following:
    49    (A)  The  total  eligible investment authority sought by the applicant
    50  under the business plan;
    51    (B) Documents and other evidence sufficient to prove that  the  appli-
    52  cant meets all of the following criteria: (i) The applicant or an affil-
    53  iate of the applicant is licensed as a rural business investment company
    54  under  7  U.S.C. 2009cc, or as a small business investment company under
    55  15 U.S.C. 681.

        S. 4642                             4
     1    (ii) As of the date the application is submitted,  the  applicant  has
     2  invested more than one hundred million dollars in operating companies in
     3  rural  areas  located  inside  or outside of New York state and at least
     4  twenty-five million dollars in operating companies located in  New  York
     5  state.    In computing investments under this subdivision, the applicant
     6  may include investments made by affiliates of the applicant.
     7    (C) An estimate of the number of (i) jobs that will be created in  the
     8  rural  areas  of  New  York  state  as a result of the applicant's rural
     9  growth investments, (ii) jobs that will be retained in the  rural  areas
    10  of  New  York  state  as a result of the applicants rural growth invest-
    11  ments, and (iii) the anticipated average wage per job.
    12    (D) A revenue impact assessment for  the  applicant's  proposed  rural
    13  growth investments prepared by a nationally recognized third-party inde-
    14  pendent  economic  forecasting firm using a dynamic economic forecasting
    15  model.   The revenue impact assessment  shall  analyze  the  applicant's
    16  business  plan  over the ten years following the date the application is
    17  submitted to the department.
    18    (E) A signed affidavit from each investor  successfully  solicited  by
    19  the  applicant to make a credit eligible capital contribution in support
    20  of the business plan. Each affidavit shall  include  information  suffi-
    21  cient  for  the  department to identify the investor and shall state the
    22  amount of the investor's credit-eligible capital contribution.
    23    (F) A nonrefundable application fee of five thousand dollars.
    24    (G) A strategy, as part of its business plan, to prioritize efforts to
    25  invest in businesses that  are  environmentally  sensitive  and  utilize
    26  resources that promote a clean environment and energy conservation.
    27    (2)  The department shall review and make a determination with respect
    28  to each application submitted under paragraph one  of  this  subdivision
    29  within  thirty days of receipt. The department shall make determinations
    30  on the applications in the order in which the applications are  received
    31  by  the  department. Applications received by the department on the same
    32  day shall be deemed to have  been  received  simultaneously.  Except  as
    33  provided  in  paragraph  four  of  subdivision  (c) of this section, the
    34  department shall not approve more than one hundred  million  dollars  in
    35  eligible investment authority or more than sixty-five million dollars in
    36  credit-eligible capital contributions.
    37    (3)  The  department  shall  deny  an application submitted under this
    38  section if any of the following are true: (A) The application is  incom-
    39  plete.
    40    (B) The application fee is not paid in full.
    41    (C)  The  applicant  does  not  satisfy  all the criteria described in
    42  subparagraph (B) of paragraph one of this subdivision.
    43    (D) The revenue impact assessment submitted under subparagraph (D)  of
    44  paragraph  one  of this subdivision does not demonstrate that the appli-
    45  cant's business plan will result in a positive economic impact  on  this
    46  state  over  a  ten-year period that exceeds the credit eligible capital
    47  contributions sought by the applicant.
    48    (E) The credit-eligible capital contributions described in  affidavits
    49  submitted under subparagraph (E) of paragraph one of this subdivision do
    50  not  equal sixty-five percent of the total amount of eligible investment
    51  authority sought under the applicant's business plan.
    52    (F) The department has already approved the maximum amount of eligible
    53  investment authority and credit-eligible capital  contributions  allowed
    54  under paragraph two of this subdivision.
    55    (4)  If  the department denies an application under paragraph three of
    56  this subdivision, the department shall send notice of its  determination

        S. 4642                             5
     1  of the applicant. The notice shall include the reasons that the applica-
     2  tion was denied. If the application was denied for any reason other than
     3  the  reason  specified  in  subparagraph  (F) of paragraph three of this
     4  subdivision,  the  applicant  may  provide additional information to the
     5  department to complete, clarify, or cure  defects  in  the  application.
     6  The  additional  information  must be submitted within thirty days after
     7  the date the notice of denial was sent by the department. If the  person
     8  or entity submits additional information within thirty days, the depart-
     9  ment shall reconsider the application within thirty days after receiving
    10  such  additional information. If after submission of additional informa-
    11  tion, the application is approved, then the submission date shall be the
    12  date of the original submission of the application.  If  the  person  or
    13  entity  does  not submit additional information within thirty days after
    14  the notice of denial was sent, the applicant may submit a  new  applica-
    15  tion with a new submission date at any time.
    16    (5)  If approving multiple simultaneously submitted applications would
    17  result in exceeding the overall eligible investment limit prescribed  by
    18  paragraph  two  of this subdivision, the department shall proportionally
    19  reduce the eligible investment authority and the credit-eligible capital
    20  contributions for  each  approved  application  as  necessary  to  avoid
    21  exceeding the limit.
    22    (6) If the department approves such application, the department shall:
    23  (A)  issue a written notice certifying that the applicant qualifies as a
    24  rural business growth fund and specifying the amount of the  applicant's
    25  eligible  investment  authority  and the number of jobs created and jobs
    26  retained required of the rural business growth fund determined by multi-
    27  plying the estimated number of jobs created and jobs retained set  forth
    28  in  the  rural  business  growth  fund's  application by a fraction, the
    29  numerator of which is the investment  authority  awarded  to  the  rural
    30  business  growth  fund  and  the  denominator of which is the investment
    31  authority for which the rural business growth fund applied; (B) to  each
    32  investor  whose  affidavit  was included in the application, issue a tax
    33  credit certificate specifying the amount of the investor's credit-eligi-
    34  ble capital contribution; and (C) to the commissioner, a  copy  of  each
    35  tax credit certificate issued under subparagraph (B) of this paragraph.
    36    (7)  A  rural business growth fund shall complete all of the following
    37  within sixty days of receiving the written notice issued under paragraph
    38  six of this subdivision:
    39    (A) Collect the credit-eligible capital contributions from each inves-
    40  tor whose credit-eligible capital contributions are described in affida-
    41  vits submitted pursuant to subparagraph (E) of  paragraph  one  of  this
    42  subdivision.
    43    (B)  Collect  one or more investments of cash, which shall purchase an
    44  equity interest in the rural growth fund or a debt instrument issued  by
    45  the  rural  growth fund at par value or premium, with a maturity date of
    46  at least five years from the  closing  date  that,  when  added  to  the
    47  contributions  collected under subparagraph (A) of this paragraph, equal
    48  the fund's eligible investment authority. At least ten  percent  of  the
    49  fund's  eligible  investment  authority  shall  be  comprised  of equity
    50  investments contributed by affiliates of the rural business growth fund,
    51  including employees, officers, and directors of such affiliates.
    52    (C) Send to the department documentation sufficient to prove that  the
    53  amounts  described  in  subparagraphs (A) and (B) of this paragraph have
    54  been collected. If the rural business growth fund fails to fully  comply
    55  with this paragraph, the fund's certification shall lapse.

        S. 4642                             6
     1    (8)  Eligible  investment  authority and corresponding credit-eligible
     2  capital contributions that lapse under paragraph seven of this  subdivi-
     3  sion  do  not count toward limits on total eligible investment authority
     4  and credit-eligible capital contributions prescribed in paragraph two of
     5  this  subdivision.  Once  eligible  investment authority has lapsed, the
     6  department shall first award lapsed authority pro  rata  to  each  rural
     7  business  growth  fund that was awarded less than the requested eligible
     8  investment authority under  paragraph  five  of  this  subdivision.  Any
     9  remaining eligible investment authority may be awarded by the department
    10  to new applicants.
    11    (9)  Application fees submitted to the department pursuant to subpara-
    12  graph (F) of paragraph one of this subdivision shall be credited to  the
    13  New  York  agriculture  and  rural jobs fund, created in section ninety-
    14  nine-ff of the state finance law.
    15    (c) Revocation of certification and penalties.    (1)  The  department
    16  shall  revoke  a  tax credit certificate issued under subdivision (b) of
    17  this section if any of the following occur with respect to a rural busi-
    18  ness growth fund before the fund exits the program under paragraph  five
    19  of this subdivision.
    20    (A)  The rural business growth fund in which the credit-eligible capi-
    21  tal contribution was made does not invest sixty percent of its  eligible
    22  investment  authority  in  rural growth investments in this state within
    23  two years of the closing date and one hundred percent  of  its  eligible
    24  investment  authority  in  rural growth investments in this state within
    25  three years of the closing date.
    26    (B) After investing one hundred percent  of  its  eligible  investment
    27  authority  in rural growth investments in this state, the rural business
    28  growth fund fails to maintain that investment until the seventh anniver-
    29  sary of the closing date.  For the purposes of this section, an  invest-
    30  ment is "maintained" even if the investment is sold or repaid so long as
    31  the  rural business growth fund reinvests an amount equal to the capital
    32  returned or recovered by the fund from the original  investment,  exclu-
    33  sive  of any profits realized, in other rural growth investments in this
    34  state within twelve months of the receipt  of  such  capital.    Amounts
    35  received  periodically  by a rural business growth fund shall be treated
    36  as continually invested in rural growth investments if the  amounts  are
    37  reinvested  in  one  or  more rural growth investments by the end of the
    38  following calendar year. A rural business growth fund is not required to
    39  reinvest capital returned from  rural  growth  investments  in  the  six
    40  months  immediately  preceding  the  seventh  anniversary of the closing
    41  date, and such rural growth investments shall be considered held contin-
    42  uously by the rural growth fund through the seventh anniversary  of  the
    43  closing date.
    44    (C)  The  rural  business growth fund invests more than the greater of
    45  five million dollars  or  twenty  percent  of  its  eligible  investment
    46  authority in the same rural business concern, including amounts invested
    47  in  affiliates of the rural business concern but excluding amounts rein-
    48  vested in the rural business growth fund with repaid or  redeemed  rural
    49  business growth investments, provided such reinvestments shall not count
    50  towards the requirement of subparagraph (A) of this paragraph.
    51    (D)  The rural business growth fund makes a rural growth investment in
    52  a rural business concern that directly or indirectly through  an  affil-
    53  iate  owns,  has the right to acquire an ownership interest, make a loan
    54  to, or make an investment in the rural business growth fund,  an  affil-
    55  iate  of  the  rural  business  growth fund, or an investor in the rural
    56  business growth fund. This paragraph does not apply  to  investments  in

        S. 4642                             7
     1  publicly  traded  securities  by a rural business concern or an owner or
     2  affiliate of such concern.
     3    (2)  Before taking action under paragraph one of this subdivision, the
     4  department shall notify the rural business growth fund  of  the  reasons
     5  for  the  pending action. If the rural business growth fund corrects the
     6  violations, other than violations of subparagraph (D) of  paragraph  one
     7  of  this  subdivision, outlined in the notice to the satisfaction of the
     8  department within one hundred eighty days of the date of the notice  was
     9  sent,  the  department  shall  not revoke the tax credit certificates or
    10  levy a fine.
    11    (3) If the department revokes a tax credit certificate under paragraph
    12  one of this subdivision, it shall notify  the  commissioner,  who  shall
    13  make  an  assessment for the amount of the credit claimed by the certif-
    14  icate holder before the certificate was revoked. The commissioner  shall
    15  make  the  assessment  within  one  year  after the certificate has been
    16  revoked.
    17    (4) If tax credit certificates are revoked under paragraph one of this
    18  subdivision, the associated eligible investment authority and credit-el-
    19  igible capital contributions do not count  toward  the  limit  on  total
    20  eligible  investment authority and credit-eligible capital contributions
    21  described by paragraph two of  subdivision  (b)  of  this  section.  The
    22  department  shall  first award reverted authority pro rata to each rural
    23  business growth fund that was awarded less than the  requested  eligible
    24  investment  authority  under  paragraph  five of subdivision (b) of this
    25  section. Any remaining eligible investment authority may be  awarded  by
    26  the department to new applicants.
    27    (5)  (A)  On  or  after the seventh anniversary of the closing date, a
    28  rural business growth fund that  has  not  committed  any  of  the  acts
    29  described  in paragraph one of this subdivision may apply to the depart-
    30  ment to exit the program as a rural business growth fund and  no  longer
    31  be  subject  to  regulation  under  this  section.  The department shall
    32  respond to the application  within  thirty  days  after  receiving  such
    33  application.    In  evaluating  such request the fact that no tax credit
    34  certificates have been revoked with respect to the rural business growth
    35  fund shall be sufficient evidence to prove that the fund is eligible  to
    36  exit the program. The department shall not unreasonably deny an applica-
    37  tion submitted under this subdivision.
    38    (B) The department shall send notice of its determination with respect
    39  to  an application submitted under subparagraph (A) of this paragraph to
    40  the rural business growth fund. If the application is denied, the notice
    41  shall include the reasons for the determination.
    42    (C) The department shall not revoke a tax credit  certificate  due  to
    43  any  actions  of  a rural business growth fund that occur after the date
    44  the fund's application for exiting the program is approved under subpar-
    45  agraph (A) of this paragraph.
    46    (6) A rural business growth fund is subject to a penalty in the amount
    47  provided by paragraph seven of this subdivision if:
    48    (A) the rural business growth fund authorizes a  distribution  to  the
    49  rural  business  growth fund's equity or debt holders in an amount that,
    50  when added to all previous distributions to the  rural  business  growth
    51  fund's  equity  and  debt  holders and any previous penalties under this
    52  section, exceeds the rural business growth fund's investment  authority;
    53  and
    54    (B)  the  number of jobs created and jobs retained as reported in each
    55  of the annual reports submitted under paragraph one of  subdivision  (d)
    56  of  this  section  is  less  than  the  number  of jobs created and jobs

        S. 4642                             8
     1  retained as set forth in the rural  business  growth  fund's  notice  of
     2  approval  pursuant  to  subparagraph (A) of paragraph six of subdivision
     3  (b) of this section.
     4    (7) The amount of the penalty pursuant to paragraph six of this subdi-
     5  vision shall be equal to the amount of the tax credit certificate issued
     6  under  subparagraph  (B)  of  paragraph  six  of subdivision (b) of this
     7  section multiplied by a fraction:
     8    (A) the numerator of which is the number  of  jobs  created  and  jobs
     9  retained  set  forth  in  the  rural  business  growth  fund's notice of
    10  approval under subparagraph (A) of paragraph six of subdivision  (b)  of
    11  this  section less the sum of jobs created and jobs retained reported to
    12  the department annually pursuant to paragraph one of subdivision (d)  of
    13  this section; and
    14    (B)  the  denominator  of which is the number of jobs created and jobs
    15  retained set forth  in  the  rural  business  growth  fund's  notice  of
    16  approval  under  subparagraph (A) of paragraph six of subdivision (b) of
    17  this section.
    18    (8) Before making a distribution to the rural business  growth  fund's
    19  equity  holders,  the rural business growth fund shall deduct the amount
    20  of the penalty as calculated pursuant to paragraph seven of this  subdi-
    21  vision  from  the  amount  otherwise authorized to be distributed to the
    22  equity holders and pay the penalty to the department.
    23    (9) A rural business growth fund shall, prior to making a rural growth
    24  investment, request from the department a written  determination  as  to
    25  whether  the business entity in which it proposes to invest qualifies as
    26  a rural business concern.  Such request shall be in a form prescribed by
    27  the department.  Rural business concern determination requests shall  be
    28  accepted,  reviewed,  and  approved on a rolling basis.  The department,
    29  not later than the twentieth business day after the date of  receipt  of
    30  such request, provided the request includes all of the required informa-
    31  tion to perform such review, shall notify the rural business growth fund
    32  of its determination. If the department fails to notify such fund of its
    33  determination  within  such  twenty business days, the business in which
    34  the rural business growth fund proposes to invest  shall  be  deemed  to
    35  qualify as a rural business concern.
    36    (d) Reports. (1) A rural business growth fund shall submit a report to
    37  the  department  on or before the fifth business day after each anniver-
    38  sary of the closing date until the rural business growth fund has exited
    39  the program in accordance with paragraph five of subdivision (c) of this
    40  section. The report shall document  the  rural  business  growth  fund's
    41  growth investments and shall include, but shall not be limited to:
    42    (A) A bank statement showing each rural growth investment;
    43    (B)  The  name,  location, and industry of each rural business concern
    44  receiving a rural growth investment, including either the  determination
    45  notice described by paragraph nine of subdivision (c) of this section or
    46  evidence  that  such  determination  was  requested  and  no  notice was
    47  provided;
    48    (C) The number of jobs created and  jobs  retained  in  the  preceding
    49  twelve  month  reporting period as a result of the rural business growth
    50  fund's rural growth investments as of the last day of that period;
    51    (D) The average annual salary of the jobs  described  by  subparagraph
    52  (C) of this paragraph; and
    53    (E)  Any  other  information  deemed  pertinent  by the rural business
    54  growth fund or required by the department.
    55    (2) The department shall  adopt  rules  necessary  to  implement  this
    56  subdivision.

        S. 4642                             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  certificate

        S. 4642                            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.
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