Bill Text: NY S08320 | 2019-2020 | General Assembly | Amended


Bill Title: Extends the excelsior jobs program and certain incentives for medical equipment projects within such program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-05-20 - PRINT NUMBER 8320A [S08320 Detail]

Download: New_York-2019-S08320-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         8320--A

                    IN SENATE

                                      May 11, 2020
                                       ___________

        Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Commerce, Economic  Devel-
          opment  and  Small  Business  --  committee  discharged, bill amended,
          ordered reprinted as amended and recommitted to said committee

        AN ACT to amend the economic development law, in relation to the excels-
          ior jobs program and certain incentives for medical equipment projects
          within such program

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section 352 of the economic development law is amended by
     2  adding a new subdivision 8-b to read as follows:
     3    8-b. "Medical equipment project" means a project deemed by the commis-
     4  sioner to make products or develop technologies that are primarily  used
     5  by  medical  professionals  in  a  professional  or  home  care setting.
     6  Projects shall include, but not be limited to, the manufacture of devel-
     7  opment of products or technologies such as: personal  protective  equip-
     8  ment,  oxygen  and  oxygen  delivery systems, ventilation and aspiration
     9  devices, respiratory disease management  services,  monitoring  devices,
    10  feeding  pumps,  medical  testing  devices,  and  equipment necessary to
    11  conduct medical tests.
    12    § 2. Subdivision 1 of section 353 of the economic development law,  as
    13  amended  by  section  2  of part L of chapter 59 of the laws of 2020, is
    14  amended to read as follows:
    15    1. To be a participant in the excelsior jobs program, a business enti-
    16  ty shall operate in New York state predominantly:
    17    (a) as a financial services data center or a financial  services  back
    18  office operation;
    19    (b) in manufacturing;
    20    (c) in software development and new media;
    21    (d) in scientific research and development;
    22    (e) in agriculture;
    23    (f)  in  the  creation  or  expansion of back office operations in the
    24  state;
    25    (g) in a distribution center;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16263-02-0

        S. 8320--A                          2

     1    (h) in an  industry  with  significant  potential  for  private-sector
     2  economic  growth  and  development  in  this state as established by the
     3  commissioner in regulations promulgated pursuant  to  this  article.  In
     4  promulgating  such  regulations  the  commissioner shall include job and
     5  investment criteria;
     6    (i) as an entertainment company;
     7    (j) in music production;
     8    (k) as a life sciences company; [or]
     9    (l)  as  a  company operating in one of the industries listed in para-
    10  graphs (b) through (e) of this  subdivision  and  engaging  in  a  green
    11  project  as  defined in section three hundred fifty-two of this article;
    12  or
    13    (m) as a company operating in one of the industries  listed  in  para-
    14  graphs  (b),  (c),  (d)  or  (k)  of  this subdivision and engaging in a
    15  medical equipment project.
    16    § 3. Subdivisions 1, 2 and 3 of section 355 of the  economic  develop-
    17  ment law, as amended by section 4 of part L of chapter 59 of the laws of
    18  2020, are amended to read as follows:
    19    1. Excelsior jobs tax credit component. A participant in the excelsior
    20  jobs program shall be eligible to claim a credit for each net new job it
    21  creates in New York state. In a project that is not a green project or a
    22  medical  equipment  project,  the amount of such credit per job shall be
    23  equal to the product of the gross wages paid and up to 6.85 percent.  In
    24  a green project, the amount of such credit per job shall be equal to the
    25  product  of  the  gross  wages  paid and up to 7.5 percent. In a medical
    26  equipment project, the amount of such credit per job shall be  equal  to
    27  the product of the gross wages paid and up to 8.5 percent.
    28    2.  Excelsior  investment  tax  credit component. A participant in the
    29  excelsior jobs program shall be eligible to claim a credit on  qualified
    30  investments.  In  a  project  that  is  not a green project or a medical
    31  equipment project, the credit shall be equal to two percent of the  cost
    32  or  other basis for federal income tax purposes of the qualified invest-
    33  ment. In a green project, the credit shall be equal to five  percent  of
    34  the cost or other basis for federal income tax purposes of the qualified
    35  investment. In a medical equipment project, the credit shall be equal to
    36  seven percent of the cost or other basis for federal income tax purposes
    37  of  the  qualified  investment.    A  participant may not claim both the
    38  excelsior investment tax credit component and the investment tax  credit
    39  set  forth  in  subdivision one of section two hundred ten-B, subsection
    40  (a) of section six hundred six, the former  subsection  (i)  of  section
    41  fourteen  hundred  fifty-six,  or  subdivision  (q)  of  section fifteen
    42  hundred eleven of the tax law for the same property in any taxable year,
    43  except that a participant may claim both the  excelsior  investment  tax
    44  credit component and the investment tax credit for research and develop-
    45  ment  property.  In  addition,  a  taxpayer who or which is qualified to
    46  claim the excelsior investment tax credit component and is  also  quali-
    47  fied  to  claim  the brownfield tangible property credit component under
    48  section twenty-one of the tax law may claim either the excelsior invest-
    49  ment tax credit component or such tangible  property  credit  component,
    50  but not both with regard to a particular piece of property. A credit may
    51  not be claimed until a business enterprise has received a certificate of
    52  tax  credit,  provided  that  qualified investments made on or after the
    53  issuance of the certificate of eligibility but before  the  issuance  of
    54  the certificate of tax credit to the business enterprise, may be claimed
    55  in  the  first taxable year for which the business enterprise is allowed
    56  to claim the credit. Expenses incurred prior to the date the certificate

        S. 8320--A                          3

     1  of eligibility is issued are not eligible to be included in  the  calcu-
     2  lation of the credit.
     3    3.  Excelsior research and development tax credit component. A partic-
     4  ipant in the excelsior jobs program shall be eligible to claim a  credit
     5  equal  to  fifty  percent  of  the  portion of the participant's federal
     6  research and development tax credit that relates  to  the  participant's
     7  research and development expenditures in New York state during the taxa-
     8  ble  year;  provided however, if not a green project or a medical equip-
     9  ment project, the excelsior research and development  tax  credit  shall
    10  not exceed six percent of the qualified research and development expend-
    11  itures  attributable to activities conducted in New York state, or, if a
    12  green project or a medical equipment project, the excelsior research and
    13  development tax credit shall not exceed eight percent  of  the  research
    14  and development expenditures attributable to activities conducted in New
    15  York  state. If the federal research and development credit has expired,
    16  then the research and development expenditures relating to  the  federal
    17  research  and  development  credit shall be calculated as if the federal
    18  research and development credit structure and definition  in  effect  in
    19  two  thousand  nine  were  still  in  effect.  Notwithstanding any other
    20  provision of this chapter to  the  contrary,  research  and  development
    21  expenditures  in  this state, including salary or wage expenses for jobs
    22  related to research and development activities in  this  state,  may  be
    23  used  as the basis for the excelsior research and development tax credit
    24  component and the  qualified  emerging  technology  company  facilities,
    25  operations and training credit under the tax law.
    26    § 4. This act shall take effect immediately.
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