Bill Text: NY S04727 | 2017-2018 | General Assembly | Amended


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: Moderate Partisan Bill (Republican 18-2)

Status: (Vetoed) 2018-11-05 - VETOED MEMO.266 [S04727 Detail]

Download: New_York-2017-S04727-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         4727--B
                               2017-2018 Regular Sessions
                    IN SENATE
                                    February 24, 2017
                                       ___________
        Introduced  by  Sens.  SEWARD,  AKSHAR,  AMEDORE, BONACIC, CROCI, FUNKE,
          GALLIVAN, GRIFFO, HELMING, LITTLE, MARCHIONE, O'MARA, ORTT, RANZENHOF-
          ER, RITCHIE, ROBACH, SAVINO, SERINO, TEDISCO, VALESKY  --  read  twice
          and ordered printed, and when printed to be committed to the Committee
          on  Investigations  and  Government  Operations  -- recommitted to the
          Committee on Investigations and Government  Operations  in  accordance
          with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee
        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 division, a
     9  person  is  "controlled  by"  another  person  if the controlling person
    10  holds, directly or indirectly, the majority voting or ownership interest
    11  in the controlled person or has control over the  day-to-day  operations
    12  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.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08845-09-8

        S. 4727--B                          2
     1    (3) "Credit-eligible capital contribution" means an investment of cash
     2  by a person in a rural business growth fund that equals the amount spec-
     3  ified on a tax credit certificate issued by the department under subpar-
     4  agraph (B) of paragraph six of subdivision (b) of  this  section.    The
     5  investment  shall  purchase  an  equity  interest  in the rural business
     6  growth fund or purchase, at par value  or  premium,  a  debt  instrument
     7  issued  by  the rural growth fund that meets all of the following crite-
     8  ria:
     9    (A) The debt instrument has an original maturity date of at least five
    10  years after the date of issuance.
    11    (B) The debt instrument has a repayment schedule that  is  not  faster
    12  than a level principal amortization over five years.
    13    (C)  The  debt  instrument  has  no interest, distribution, or payment
    14  features dependent on the rural business growth fund's profitability  or
    15  the success of the rural growth investments.
    16    (4)  "Eligible  investment  authority"  means the amount stated on the
    17  notice issued under subparagraph (A) of paragraph six of subdivision (b)
    18  of this section certifying the rural  business  growth  fund.  At  least
    19  sixty-five percent of a rural business growth fund's eligible investment
    20  authority shall be comprised of credit-eligible capital contributions.
    21    (5)  A business's "principal business operations" are in this state if
    22  at least eighty percent of  the  business's  employees  reside  in  this
    23  state,  the  individuals  who  receive  eighty percent of the business's
    24  payroll reside in this state, or the business  has  agreed  to  use  the
    25  proceeds  of  a  rural  growth  investment  to  relocate at least eighty
    26  percent of its employees to this state or pay at least eighty percent of
    27  its payroll to individuals residing in this state.
    28    (6) "Rural area" shall have the same meaning as defined in subdivision
    29  seven of section four hundred eighty-one of the executive law.
    30    (7) "Rural business concern" means an operating company that,  at  the
    31  time if the initial investment in the company by a rural business growth
    32  fund,  has  its  principal  business operations in this state, has fewer
    33  than one hundred fifty employees or not more than ten million dollars in
    34  net income for the preceding taxable  year,  and  meets  either  of  the
    35  following criteria:
    36    (A)  The  business's  principal  business  operations are located in a
    37  rural area; or
    38    (B) The business produces or provides any goods or  services  normally
    39  used  by  farmers,  ranchers,  or  producers  and  harvesters of aquatic
    40  products in their business operations, or  to  improve  the  welfare  or
    41  livelihood of such persons, or is involved in the processing and market-
    42  ing of agricultural products, farm supply, and input suppliers, provided
    43  that such business is not located in a municipality with a population of
    44  more  than  fifty  thousand.    For  the  purposes of this section, "net
    45  income" means federal adjusted gross income as required to  be  reported
    46  under  the Internal Revenue Code less federal and state taxes imposed on
    47  or measured by income.   Any business which is  classified  as  a  rural
    48  business  concern at the time of the initial investment in said business
    49  by a rural business growth fund shall remain classified as a rural busi-
    50  ness concern and may receive follow-on investments from any rural  busi-
    51  ness  growth  fund, and such follow-on investments shall be rural growth
    52  investments even though such business may not meet the definition  of  a
    53  rural business concern at the time of such follow-on investments.
    54    (8)  "Rural  business  growth  fund"  means an entity certified by the
    55  department under this section.

        S. 4727--B                          3
     1    (9) "Rural growth investment" means any capital or  equity  investment
     2  in a rural business concern or any loan to a rural business concern with
     3  a term of at least one year.
     4    (10)  "Taxable  year"  when  used in reference to an insurance company
     5  means the calendar year ending on the thirty-first day of December  next
     6  preceding  the  day  the  annual report is required to be returned under
     7  subdivision (d) of this section.
     8    (b) Certification. (1) On and after August first, two  thousand  eigh-
     9  teen, an applicant that has developed a business plan to invest in rural
    10  business  concerns  in this state and has successfully solicited private
    11  investors to make capital contributions in support of the plan may apply
    12  to the department for certification as a rural business growth fund. The
    13  application shall include all of the following:
    14    (A) The total eligible investment authority sought  by  the  applicant
    15  under the business plan;
    16    (B) Documents and other evidence sufficient to prove, to the satisfac-
    17  tion  of  the  department, that the applicant meets all of the following
    18  criteria: (i) The applicant or an affiliate of the applicant is licensed
    19  as a rural business investment company under 7 U.S.C. 2009cc,  or  as  a
    20  small business investment company under 15 U.S.C. 681.
    21    (ii)  As  of  the date the application is submitted, the applicant has
    22  invested more than one hundred million dollars in  operating  companies,
    23  including  at least fifty million dollars in operating companies located
    24  in rural areas. In computing investments under this division, the appli-
    25  cant may include investments made by affiliates of the applicant.
    26    (C) An estimate of the number of jobs that will be created or retained
    27  in this state as a result of the applicant's rural growth investments;
    28    (D) A revenue impact assessment for  the  applicant's  proposed  rural
    29  growth investments prepared by a nationally recognized third-party inde-
    30  pendent  economic  forecasting firm using a dynamic economic forecasting
    31  model.   The revenue impact assessment  shall  analyze  the  applicant's
    32  business  plan  over the ten years following the date the application is
    33  submitted to the department.
    34    (E) A signed affidavit from each investor  successfully  solicited  by
    35  the  applicant to make a credit eligible capital contribution in support
    36  of the business plan. Each affidavit shall  include  information  suffi-
    37  cient  for the tax commissioner to identify the investor and shall state
    38  the amount of the investor's credit-eligible capital contribution.
    39    (F) A nonrefundable application fee of five thousand dollars.
    40    (2) The department shall review and make a determination with  respect
    41  to  each  application  submitted under paragraph one of this subdivision
    42  within thirty days of receipt. The  department  shall  review  and  make
    43  determinations  on  the  applications in the order in which the applica-
    44  tions are received by  the  department.  Applications  received  by  the
    45  department  on the same day shall be deemed to have been received simul-
    46  taneously. Except as provided in paragraph four of  subdivision  (c)  of
    47  this  section,  the  department  shall not approve more than one hundred
    48  million dollars in eligible investment authority or more than sixty-five
    49  million dollars in credit-eligible capital contributions.
    50    (3) The department shall deny  an  application  submitted  under  this
    51  section  if any of the following are true: (A) The application is incom-
    52  plete.
    53    (B) The application fee is not paid in full.
    54    (C) The applicant does not  satisfy  all  the  criteria  described  in
    55  subparagraph (B) of paragraph one of this subdivision.

        S. 4727--B                          4
     1    (D)  The revenue impact assessment submitted under subparagraph (D) of
     2  paragraph one of this subdivision does not demonstrate that  the  appli-
     3  cant's  business  plan will result in a positive economic impact on this
     4  state over a ten-year period that exceeds the  credit  eligible  capital
     5  contributions sought by the applicant.
     6    (E)  The credit-eligible capital contributions described in affidavits
     7  submitted under subparagraph (E) of paragraph one of this subdivision do
     8  not equal sixty-five percent of the total amount of eligible  investment
     9  authority sought under the applicant's business plan.
    10    (F) The department has already approved the maximum amount of eligible
    11  investment  authority  and credit-eligible capital contributions allowed
    12  under paragraph two of this subdivision.
    13    (4) If the department denies an application under paragraph  three  of
    14  this  subdivision, the department shall send notice of its determination
    15  of the applicant. The notice shall include the reasons that the applica-
    16  tion was denied. If the application was denied for any reason other than
    17  the reason specified in subparagraph (F)  of  paragraph  three  of  this
    18  subdivision,  the  applicant  may  provide additional information to the
    19  department to complete, clarify, or cure  defects  in  the  application.
    20  The  additional  information  must be submitted within thirty days after
    21  the date the notice of denial was sent by the department. If the  person
    22  or entity submits additional information within thirty days, the depart-
    23  ment shall reconsider the application within thirty days after receiving
    24  such  additional information. If after submission of additional informa-
    25  tion, the department approves the application, then the submission  date
    26  shall  be the date of the original submission of the application. If the
    27  person or entity does not submit additional  information  within  thirty
    28  days after the notice of denial was sent, the applicant may submit a new
    29  application with a new submission date at any time.
    30    (5)  Of approving multiple simultaneously submitted applications would
    31  result in exceeding the overall eligible investment limit prescribed  by
    32  paragraph  two  of this subdivision, the department shall proportionally
    33  reduce the eligible investment authority and the credit-eligible capital
    34  contributions for  each  approved  application  as  necessary  to  avoid
    35  exceeding the limit.
    36    (6)  The department shall not deny a rural business growth fund appli-
    37  cation or reduce the requested eligible investment authority for reasons
    38  other than those described in paragraphs three and five of this subdivi-
    39  sion. If the department approves such application, the department  shall
    40  issue  all  of  the  following  notices: (A) To the applicant, a written
    41  notice certifying that the  applicant  qualifies  as  a  rural  business
    42  growth  fund  and  specifying  the  amount  of  the applicant's eligible
    43  investment authority; (B) To each investor whose affidavit was  included
    44  in  the  application,  a tax credit certificate specifying the amount of
    45  the investor's credit-eligible capital contribution; (C) To the  commis-
    46  sioner,  a copy of each tax credit certificate issued under subparagraph
    47  (B) of this paragraph.
    48    (7) A rural business growth fund shall complete all of  the  following
    49  within  sixty  days of receiving the certification issued under subpara-
    50  graph (A) of paragraph six of this subdivision:
    51    (A) Collect the credit-eligible capital contributions from each inves-
    52  tor issued a tax credit certificate under subparagraph (B) of  paragraph
    53  six of this subdivision;
    54    (B)  Collect  one or more investments of cash, which shall purchase an
    55  equity interest in the rural growth fund or a debt instrument issued  by
    56  the  rural  growth fund at par value or premium, with a maturity date of

        S. 4727--B                          5
     1  at least five years from the  closing  date  that,  when  added  to  the
     2  contributions  collected under subparagraph (A) of this paragraph, equal
     3  the fund's eligible investment authority. At least ten  percent  of  the
     4  fund's  eligible  investment  authority  shall  be  comprised  of equity
     5  investments contributed by affiliates of the rural business growth fund,
     6  including employees, officers, and directors of such affiliates.
     7    (C) Send to the department documentation sufficient to prove that  the
     8  amounts  described  in  subparagraphs (A) and (B) of this paragraph have
     9  been collected. If the rural business growth fund fails to fully  comply
    10  with this paragraph, the fund's certification shall lapse.
    11    (8)  Eligible  investment  authority and corresponding credit-eligible
    12  capital contributions that lapse under paragraph seven of this  subdivi-
    13  sion  do  not count toward limits on total eligible investment authority
    14  and credit-eligible capital contributions prescribed in paragraph two of
    15  this subdivision. Once eligible investment  authority  has  lapsed,  the
    16  department  shall  first  award  lapsed authority pro rata to each rural
    17  business growth fund that was awarded less than the  requested  eligible
    18  investment  authority  under  paragraph  five  of  this subdivision. Any
    19  remaining eligible investment authority may be awarded by the department
    20  to new applicants.
    21    (9) Application fees submitted to the department pursuant to  subpara-
    22  graph  (F) of paragraph one of this subdivision shall be credited to the
    23  New York agriculture and rural jobs fund,  created  in  section  ninety-
    24  nine-ee of the state finance law.
    25    (c) Revocation of certification. (1) The department shall revoke a tax
    26  credit  certificate  issued under subdivision (b) of this section if any
    27  of the following occur with respect to  a  rural  business  growth  fund
    28  before  the fund exits the program under paragraph five of this subdivi-
    29  sion.
    30    (A) The rural business growth fund in which the credit-eligible  capi-
    31  tal  contribution was made does not invest sixty percent of its eligible
    32  investment authority in rural growth investments in  this  state  within
    33  two  years  of  the closing date and one hundred percent of its eligible
    34  investment authority in rural growth investments in  this  state  within
    35  three years of the closing date.
    36    (B)  After  investing  one  hundred percent of its eligible investment
    37  authority in rural growth investments in this state, the rural  business
    38  growth  fund  fails to maintain that investment until the fifth anniver-
    39  sary of the closing date, including the reinvestment of such investment.
    40  For the purposes of this section, an investment is "maintained" even  if
    41  the  investment  is  sold or repaid so long as the rural business growth
    42  fund reinvests an amount equal to the capital returned or  recovered  by
    43  the  fund  from  the original investment, exclusive of any profits real-
    44  ized, in other rural growth investments  in  this  state  within  twelve
    45  months of the receipt of such capital.  Amounts received periodically by
    46  a rural business growth fund shall be treated as continually invested in
    47  rural  growth  investments  if the amounts are reinvested in one or more
    48  rural growth investments by the end of the following  calendar  year.  A
    49  rural  business growth fund is not required to reinvest capital returned
    50  from rural growth investments in the six  months  immediately  preceding
    51  the fifth anniversary of the closing date, and such rural growth invest-
    52  ments  shall  be  considered  held continuously by the rural growth fund
    53  through the fifth anniversary of the closing date.
    54    (C) The rural business growth fund invests more than  the  greater  of
    55  seven  million  five  hundred  thousand dollars or twenty percent of its
    56  eligible investment  authority  in  the  same  rural  business  concern,

        S. 4727--B                          6
     1  including  amounts  invested in affiliates of the rural business concern
     2  but excluding amounts reinvested in the rural business growth fund  with
     3  repaid  or  redeemed  rural  business  growth investments, provided such
     4  reinvestments  shall  not  count towards the requirement of subparagraph
     5  (A) of this paragraph.
     6    (D) The rural business growth fund makes a rural growth investment  in
     7  a  rural  business concern that directly or indirectly through an affil-
     8  iate owns, has the right to acquire an ownership interest, make  a  loan
     9  to,  or  make an investment in the rural business growth fund, an affil-
    10  iate of the rural business growth fund, or  an  investor  in  the  rural
    11  business  growth  fund.  This paragraph does not apply to investments in
    12  publicly traded securities by a rural business concern or  an  owner  or
    13  affiliate of such concern.
    14    (2)  Before taking action under paragraph one of this subdivision, the
    15  department shall notify the rural business growth fund  of  the  reasons
    16  for  the  pending action. If the rural business growth fund corrects the
    17  violations, other than violations of subparagraph (D) of  paragraph  one
    18  of  this  subdivision, outlined in the notice to the satisfaction of the
    19  department within one hundred eighty days of the date of the notice  was
    20  sent,  the  department  shall  not revoke the tax credit certificates or
    21  levy a fine.
    22    (3) If the department revokes a tax credit certificate under paragraph
    23  one of this subdivision, the commissioner shall make an  assessment  for
    24  the  amount  of  the credit claimed by the certificate holder before the
    25  certificate was revoked. The  commissioner  shall  make  the  assessment
    26  within one year after the certificate has been revoked.
    27    (4) If tax credit certificates are revoked under paragraph one of this
    28  subdivision, the associated eligible investment authority and credit-el-
    29  igible  capital  contributions  do  not  count toward the limit on total
    30  eligible investment authority and credit-eligible capital  contributions
    31  described  by  paragraph  two  of  subdivision  (b) of this section. The
    32  department shall first award reverted authority pro rata to  each  rural
    33  business  growth  fund that was awarded less than the requested eligible
    34  investment authority under paragraph five of  subdivision  (b)  of  this
    35  section.  Any  remaining eligible investment authority may be awarded by
    36  the department to new applicants.
    37    (5) (A) On or after the fifth anniversary of the closing date, a rural
    38  business growth fund that has not committed any of the acts described in
    39  paragraph one of this subdivision may apply to the  department  to  exit
    40  the  program as a rural business growth fund and no longer be subject to
    41  regulation under this section.  The  department  shall  respond  to  the
    42  application  within  thirty  days  after receiving such application.  In
    43  evaluating such request the fact that no tax  credit  certificates  have
    44  been  revoked  with  respect  to the rural business growth fund shall be
    45  sufficient evidence to prove that the  fund  is  eligible  to  exit  the
    46  program.  The  department  shall  not  unreasonably  deny an application
    47  submitted under this subdivision.
    48    (B) The department shall send notice of its determination with respect
    49  to an application submitted under subparagraph (A) of this paragraph  to
    50  the rural business growth fund. If the application is denied, the notice
    51  shall include the reasons for the determination.
    52    (C)  The  department  shall not revoke a tax credit certificate due to
    53  any actions of a rural business growth fund that occur  after  the  date
    54  the fund's application for exiting the program is approved under subpar-
    55  agraph (A) of this paragraph.

        S. 4727--B                          7
     1    (6)  If  the  number of jobs created or retained by the rural business
     2  concern that received rural growth investments from the  rural  business
     3  growth fund is:
     4    (A)  Less  than  sixty percent of the number projected in the approved
     5  rural business growth fund's business plan filed as part of its applica-
     6  tion for certification under subdivision (b) of this section,  then  the
     7  state  shall receive twenty percent of any distribution or payment to an
     8  equity holder in an approved rural business growth fund in excess of the
     9  sum of the amount of equity capital invested in the fund by such  equity
    10  holder and an amount equal to any projected increase in the equity hold-
    11  er's  federal  or state tax liability, including penalties and interest,
    12  related to the equity holder's ownership, management,  or  operation  of
    13  the fund; or
    14    (B)  Greater  than  sixty  percent but less than eighty percent of the
    15  number projected in the approved rural business growth  fund's  business
    16  plan  filed  as part of its application for certification under subdivi-
    17  sion (b) of this section, then the state shall receive  ten  percent  of
    18  any  distribution  or  payment  to an equity holder in an approved rural
    19  business growth fund in excess of the sum of the amount of equity  capi-
    20  tal  invested  in  the fund by such equity holder and an amount equal to
    21  any projected increase in the  equity  holder's  federal  or  state  tax
    22  liability, including penalties and interest, related to the equity hold-
    23  er's ownership, management, or operation of the fund.
    24    (7)  A  rural business growth fund may, prior to making a rural growth
    25  investment, request from the department a written  determination  as  to
    26  whether  the business entity in which it proposes to invest qualifies as
    27  a rural business concern.  The department, not later than the  twentieth
    28  business day after the date of receipt of such request, shall notify the
    29  rural business growth fund of its determination. If the department fails
    30  to  notify the rural fund of its determination by the twentieth business
    31  day, the business in which the rural business growth  fund  proposes  to
    32  invest shall be considered an eligible rural business concern.
    33    (d) Reports. (1) Each rural business growth fund shall submit a report
    34  to  the  department on or before the fifth business day after the second
    35  and third anniversaries of the closing date. The  report  shall  provide
    36  documentation as to the rural growth investments made by the rural busi-
    37  ness growth fund.  Such documentation shall include the following:
    38    (A) A bank statement of the rural business growth fund displaying each
    39  rural growth investment;
    40    (B)  The name and location of each rural business concern in which the
    41  rural business growth fund has made a rural growth investment, including
    42  evidence that the business concern was qualified at the time the invest-
    43  ment was made.
    44    (2) On or before the last day of February of each year  following  the
    45  year  in  which the report required under paragraph one of this subdivi-
    46  sion is due, the rural business  growth  fund  shall  submit  an  annual
    47  report to the department including the following:
    48    (A) The number of employment positions created or retained as a result
    49  of the fund's rural growth investments as of the last day of the preced-
    50  ing calendar year;
    51    (B)  The  average annual salary of the positions described in subpara-
    52  graph (A) of this paragraph;
    53    (C) Any other information required by the department.
    54    (3) The department shall  adopt  rules  necessary  to  implement  this
    55  subdivision.

        S. 4727--B                          8
     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) On the closing date, the taxpayer shall earn a vested credit equal
    13  to the amount of the taxpayer's credit-eligible capital contribution  to
    14  the  rural  business growth fund, as specified on the tax credit certif-
    15  icate. The taxpayer may claim up to twenty-five percent of the  eligible
    16  investment  authority for the two thousand twenty-three taxable year and
    17  up to twenty percent of the eligible investment authority  for  the  two
    18  thousand  twenty-four and two thousand twenty-five taxable years, exclu-
    19  sive of amounts carried forward pursuant  to  paragraph  three  of  this
    20  subdivision.
    21    (3)  If  the  amount  of the credit for a taxable year exceeds the tax
    22  otherwise due for that year, the excess  shall  be  carried  forward  to
    23  ensuing  taxable  years  until  fully used. A taxpayer claiming a credit
    24  under this section shall submit a copy of  the  tax  credit  certificate
    25  with the taxpayer's return for each taxable year for which the credit is
    26  claimed.
    27    §  3.  The tax law is amended by adding a new section 187-q to read as
    28  follows:
    29    § 187-q. Credit for certain investments to  a  rural  business  growth
    30  fund.  1. There is hereby allowed a nonrefundable tax credit for taxpay-
    31  ers that made a credit-eligible capital contribution to a rural business
    32  growth fund and were issued a tax credit certificate under  subparagraph
    33  (B)  of  paragraph  six of subdivision (b) of section forty-four of this
    34  chapter. The credit may be claimed against the tax imposed by this arti-
    35  cle. The credit may not be sold, transferred, or allocated to any entity
    36  other than an affiliate of the taxpayer.
    37    2. On the closing date, the taxpayer shall earn a vested credit  equal
    38  to  the amount of the taxpayer's credit-eligible capital contribution to
    39  the rural business growth fund, as specified on the tax  credit  certif-
    40  icate.  The taxpayer may claim up to twenty-five percent of the eligible
    41  investment authority for the two thousand twenty-three taxable year  and
    42  up  to  twenty  percent of the eligible investment authority for the two
    43  thousand twenty-four and two thousand twenty-five taxable years,  exclu-
    44  sive  of  amounts  carried forward pursuant to subdivision three of this
    45  section.
    46    3. If the amount of the credit for a  taxable  year  exceeds  the  tax
    47  otherwise  due  for  that  year,  the excess shall be carried forward to
    48  ensuing taxable years until fully used. A  taxpayer  claiming  a  credit
    49  under  this  section  shall  submit a copy of the tax credit certificate
    50  with the taxpayer's return for each taxable year for which the credit is
    51  claimed.
    52    § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
    53  sion 53 to read as follows:
    54    53.  Credit  for  certain investments to a rural business growth fund.
    55  (1) There is hereby allowed a nonrefundable  tax  credit  for  taxpayers
    56  that  made  a  credit-eligible  capital contribution to a rural business

        S. 4727--B                          9
     1  growth fund and were issued a tax credit certificate under  subparagraph
     2  (B)  of  paragraph  six of subdivision (b) of section forty-four of this
     3  chapter. The credit may be claimed against the tax imposed by this arti-
     4  cle. The credit may not be sold, transferred, or allocated to any entity
     5  other than an affiliate of the taxpayer.
     6    (2) On the closing date, the taxpayer shall earn a vested credit equal
     7  to  the amount of the taxpayer's credit-eligible capital contribution to
     8  the rural business growth fund, as specified on the tax  credit  certif-
     9  icate.  The taxpayer may claim up to twenty-five percent of the eligible
    10  investment authority for the two thousand twenty-three taxable year  and
    11  up  to  twenty  percent of the eligible investment authority for the two
    12  thousand twenty-four and two thousand twenty-five taxable years,  exclu-
    13  sive  of  amounts  carried  forward  pursuant to paragraph three of this
    14  subdivision.
    15    (3) If the amount of the credit for a taxable  year  exceeds  the  tax
    16  otherwise  due  for  that  year,  the excess shall be carried forward to
    17  ensuing taxable years until fully used. A  taxpayer  claiming  a  credit
    18  under  this  section  shall  submit a copy of the tax credit certificate
    19  with the taxpayer's return for each taxable year for which the credit is
    20  claimed.
    21    § 5. The state finance law is amended by adding a new section 99-ee to
    22  read as follows:
    23    § 99-ee. New York agriculture and rural jobs fund. 1. There is  hereby
    24  established  in  the  joint  custody  of  the  state comptroller and the
    25  commissioner of taxation and finance a special fund to be known  as  the
    26  "New York agriculture and rural jobs fund".
    27    2.  Such fund shall consist of all application fees submitted pursuant
    28  to subparagraph (F) of paragraph  one  of  subdivision  (b)  of  section
    29  forty-four  of the tax law, and all other moneys appropriated, credited,
    30  or transferred thereto from any other fund or source pursuant to law.
    31    3. Moneys of the fund,  following  appropriation  by  the  legislature
    32  shall be expended only for the purposes of providing funding for the New
    33  York  agriculture  and rural jobs credit set forth in section forty-four
    34  of the tax law. Moneys shall be paid out of the fund on  the  audit  and
    35  warrant  of  the state comptroller on vouchers approved and certified by
    36  the commissioner of taxation and finance. Any interest received  by  the
    37  comptroller  on  moneys on deposit in the New York agriculture and rural
    38  jobs fund shall be retained in and become part of such fund.
    39    § 6. This act shall take effect July 1, 2018.
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