Bill Text: NY A03009 | 2025-2026 | General Assembly | Introduced
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2025-2026 state fiscal year; relates to the inflation reduction credit (Part A); provides for a middle-class tax cut; extends the temporary personal income tax high income surcharge (Part B); enhances the empire state child credit for three years (Part C); relates to the eligibility for the New York state low income housing tax credit program; increases to the aggregate amount of the allocable tax credit (Part D); relates to the tax credit for the rehabilitation of historic properties; allows a transferee of a taxpayer to be allowed such credit (Part E); relates to the purchase of residential real property by certain purchasers (Subpart A); relates to depreciation and interest deduction adjustments for properties owned by institutional investors in residential properties (Subpart B)(Part F); relates to establishing the CATALIST NY program (Part G); relates to the excelsior jobs program; establishes the semiconductor research and development program; establishes tax credits for participation in such program; establishes the semiconductor manufacturing workforce training incentive program; establishes tax credits for participation in such program; repeals the employee training incentive program (Subpart A); amends provisions relating to application of the empire state jobs retention program on or after June 1, 2025 (Subpart B) (Part H); relates to film production and post-production credits; creates the Empire state independent film production credit (Part I); relates to the definition of "independently owned" for the purposes of the newspaper and broadcast media jobs program (Part J); allows certain unused amounts of the empire state digital gaming media production credit to be rolled over to the following tax year or years (Part K); extends portions of the New York city musical and theatrical production tax credit (Part L); clarifies that the accessing of notices by a taxpayer shall not give the taxpayer the right to a hearing in the division of tax appeals (Part M); relates to tax warrants and warrant-related records (Part N); provides that where property is owned solely by a person or persons who received the STAR exemption for three consecutive years without having filed returns for the applicable income tax years, but who demonstrated their eligibility for the exemption to the commissioner of taxation and finance's satisfaction by filing statements, such person or persons shall be presumed to satisfy the applicable income-eligibility requirements each year thereafter and shall not be required to continue to file such statements in the absence of a specific request therefor from such commissioner; makes related provisions (Part O); repeals certain provisions of law relating to certain reporting requirements of industrial development agencies (Part P); relates to the timing of estimated tax payments by a partnership or S corporation that makes the annual election to be taxed pursuant to article twenty-four-A or twenty-four-B of the tax law (Part Q); increases the estimated tax threshold under article nine-a of the tax law to five thousand dollars beginning January 1, 2026 (Part R); establishes a tax credit for organ donation (Part S); relates to making the estate tax three-year gift addback rule permanent (Part T); expands the credit for employment of persons with disabilities to the first five thousand dollars of first-year wages (Part U); relates to reporting of federal partnership adjustments for personal income tax (Part V); establishes a credit against the tax on personal income of certain residents of a city having a population of one million or more inhabitants beginning in the 2025 tax year (Part W); authorizes credits for relocation and employment assistance and making available relocation assistance credits per employees; sets forth the amount of such credit; defines terms; makes related provisions (Part X); extends the clean heating fuel tax credit for three years (Part Y); extends the alternative fuels and electric vehicle recharging property credit for three years (Part Z); relates to extending the sales tax exemption for vending machine transactions (Part AA); relates to extending the workers with disabilities tax credit (Part BB); relates to extending the hire a vet tax credit until 2029 (Part CC); extends the musical and theatrical production credit (Part DD); relates to extending the financial institution data match system for state tax collection purposes (Part EE); simplifies the parimutuel tax rate system; repeals provisions relating thereto (Subpart A); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; amends provisions relating to simulcasting, in relation to the effectiveness thereof; amends provisions relating to simulcasting and the imposition of certain taxes, in relation to the effectiveness thereof (Subpart B)(Part FF); sets rates for tax on certain gaming revenues (Part GG); relates to the utilization of funds in the Capital off-track betting corporation's capital acquisition fund for certain purposes (Part HH); provides for additional fees to be paid from New York resident wagers to be used for health and safety of thoroughbred race horses (Part II).
Spectrum: Committee Bill
Status: (Introduced) 2025-01-22 - referred to ways and means [A03009 Detail]
Download: New_York-2025-A03009-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ S. 3009 A. 3009 SENATE - ASSEMBLY January 22, 2025 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to the inflation refund credit (Part A); to amend the tax law, in relation to providing for a middle-class tax cut and extending the temporary personal income tax high income surcharge (Part B); to amend the tax law, in relation to enhancing the empire state child credit for three years (Part C); to amend the public housing law, in relation to certain eligibility for the New York state low income housing tax credit program and increases to the aggregate amount of the allocable tax credit (Part D); to amend the tax law, in relation to credits for the rehabilitation of historic properties (Part E); to amend the real property law, in relation to the purchase of residential real property by certain purchasers (Subpart A); and to amend the tax law, in relation to depreciation and interest deduction adjustments for properties owned by institutional investors in residential properties (Subpart B)(Part F); to amend the economic development law and the tax law, in relation to establishing the CATALIST NY program (Part G); to amend the economic development law and the tax law, in relation to the excelsior jobs program; and to repeal article 22 of the economic development law relating to the employee training incentive program (Subpart A); and to amend the economic development law, in relation to the empire state jobs retention program (Subpart B) (Part H); to amend the tax law, in relation to film production and post-production credits (Part I); to amend the economic development law, in relation to the newspaper and broadcast media jobs program (Part J); to amend the tax law, in relation to the empire state digital gaming media production credit (Part K); to amend subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to estab- lishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, in relation to the effectiveness thereof; and to amend EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-01-5S. 3009 2 A. 3009 the tax law, in relation to the New York city musical and theatrical production tax credit (Part L); to amend the tax law, in relation to clarifying the notices afforded protest rights (Part M); to amend the tax law, in relation to the filing of tax warrants and warrant-related records (Part N); to amend the real property tax law and the tax law, in relation to simplifying STAR income determinations; and repealing certain provisions of such laws relating thereto (Part O); to repeal certain provisions of the general municipal law and the public author- ities law relating to certain reporting requirements of industrial development agencies (Part P); to amend the tax law, in relation to the pass-through entity tax and the New York city pass-through entity tax election deadline (Part Q); to amend the tax law, in relation to increasing the estimated tax threshold under article nine-A of the tax law (Part R); to amend the tax law, in relation to establishing a tax credit for organ donation (Part S); to amend the tax law, in relation to making the estate tax three-year gift addback rule permanent (Part T); to amend the tax law, in relation to expanding the credit for employment of persons with disabilities (Part U); to amend the tax law, in relation to reporting of federal partnership adjustments (Part V); to amend the tax law and the administrative code of the city of New York, in relation to establishing a credit against the tax on personal income of certain residents of a city having a population of one million or more inhabitants (Part W); to amend the general city law, chapter 772 of the laws of 1966, relating to enabling any city having a population of one million or more to raise tax revenue, and the administrative code of the city of New York, in relation to authorizing credits for relocation and employment assistance and making available relocation assistance credits per employees (Part X); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part Y); to amend the tax law, in relation to extending the alternative fuels and electric vehicle recharging prop- erty credit for three years (Part Z); to amend the tax law, in relation to extending the sales tax exemption for certain sales made through vending machines (Part AA); to amend the labor law, in relation to extending the workers with disabilities tax credit (Part BB); to amend the tax law, in relation to extending the hire a vet credit (Part CC); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to the effectiveness thereof (Part DD); to amend part U of chapter 59 of the laws of 2017, amending the tax law, relating to the financial institution data match system for state tax collection purposes, in relation to extending the effectiveness thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to simplifying the pari-mutuel tax rate system; and to repeal section 908 of the racing, pari-mutuel wagering and breeding law relating thereto (Subpart A); and to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of- state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breed- ing law and other laws relating to simulcasting, in relation to the effectiveness thereof; and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to the effectiveness thereof (Subpart B)(Part FF); to amendS. 3009 3 A. 3009 the racing, pari-mutuel wagering and breeding law, in relation to the tax on gaming revenues in certain regions; to amend part OOO of chap- ter 59 of the laws of 2021 amending the racing, pari-mutuel wagering and breeding law relating to the tax on gaming revenues, in relation to the effectiveness thereof; and providing for the repeal of such provisions of the racing, pari-mutuel wagering and breeding law relat- ing thereto (Part GG); to amend the racing, pari-mutuel wagering and breeding law, in relation to the utilization of funds in the Capital off-track betting corporations' capital acquisition funds (Part HH); and to amend the racing, pari-mutuel wagering and breeding law, in relation to enhancing the health and safety of thoroughbred horses; and providing for the repeal of such provisions upon expiration there- of (Part II) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the state fiscal plan for the 2025-2026 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through II. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, 7 including the effective date of the Part, which makes a reference to a 8 section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act. 12 PART A 13 Section 1. Section 606 of the tax law is amended by adding a new 14 subsection (qqq) to read as follows: 15 (qqq) Inflation refund credit. (1) A taxpayer who meets the eligibil- 16 ity standards in paragraph two of this subsection shall be allowed a 17 credit against the taxes imposed by this article in the amount specified 18 in paragraph three of this subsection for tax year two thousand twenty- 19 five. 20 (2) To be eligible for the credit, the taxpayer (or taxpayers filing 21 joint returns)(a) must have been a full-year resident in the state of 22 New York in tax year two thousand twenty-three, and (b) (i) must have 23 had New York adjusted gross income of three hundred thousand dollars or 24 less in tax year two thousand twenty-three if they filed a New York 25 state resident income tax return as married taxpayers filing jointly or 26 a qualified surviving spouse, or (ii) must have had New York adjusted 27 gross income of one hundred fifty thousand dollars or less in tax year 28 two thousand twenty-three if they filed a New York state resident income 29 tax return as a single taxpayer, married taxpayer filing a separate 30 return, or head of household. 31 (3) Amount of credit. (a) For taxpayers who meet the eligibility stan- 32 dards in paragraph two who filed a New York state resident income tax 33 return as married taxpayers filing jointly or a qualified surviving 34 spouse, the credit amount shall be five hundred dollars, and (b) for 35 taxpayers who meet the eligibility standards in paragraph two who filed 36 a New York state resident income tax return as a single taxpayer,S. 3009 4 A. 3009 1 married taxpayer filing a separate return, or head of household, the 2 credit amount shall be three hundred dollars. 3 (4) The amount of the credit shall be treated as an overpayment of tax 4 to be credited or refunded in accordance with the provisions of section 5 six hundred eighty-six of this article, provided, however, that no 6 interest shall be paid thereon. The commissioner shall determine the 7 taxpayer's eligibility for this credit utilizing the information avail- 8 able to the commissioner on the taxpayer's personal income tax return 9 filed for tax year two thousand twenty-three. For those taxpayers whom 10 the commissioner has determined eligible for this credit, the commis- 11 sioner shall advance a payment in the amount specified in paragraph 12 three of this subsection. A taxpayer who failed to receive an advance 13 payment that they believe was due, or who received an advance payment 14 that they believe is less than the amount that was due, may request 15 payment of the claimed deficiency in a manner prescribed by the commis- 16 sioner. 17 § 2. Notwithstanding any provision of law to the contrary, any credit 18 paid pursuant to this act, to the extent includible in gross income for 19 federal income tax purposes, shall not be subject to state or local 20 income tax. 21 § 3. This act shall take effect immediately. 22 PART B 23 Section 1. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 24 of subsection (a) of section 601 of the tax law, as amended by section 1 25 of subpart A of part A of chapter 59 of the laws of 2022, are amended to 26 read as follows: 27 (vi) For taxable years beginning in two thousand twenty-three and 28 before two thousand [twenty-eight] twenty-five the following rates shall 29 apply: 30 If the New York taxable income is: The tax is: 31 Not over $17,150 4% of the New York taxable income 32 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 33 $17,150 34 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 35 $23,600 36 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 37 $27,900 38 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 39 $161,550 40 Over $323,200 but not over $18,252 plus 6.85% of excess over 41 $2,155,350 $323,200 42 Over $2,155,350 but not over $143,754 plus 9.65% of excess over 43 $5,000,000 $2,155,350 44 Over $5,000,000 but not over $418,263 plus 10.30% of excess over 45 $25,000,000 $5,000,000 46 Over $25,000,000 $2,478,263 plus 10.90% of excess over 47 $25,000,000 48 (vii) For taxable years beginning after two thousand [twenty-seven] 49 twenty-four and before two thousand twenty-six the following rates shall 50 apply: 51 [If the New York taxable income is: The tax is:52Not over $17,150 4% of the New York taxable income53Over $17,150 but not over $23,600 $686 plus 4.5% of excess overS. 3009 5 A. 3009 1$17,1502Over $23,600 but not over $27,900 $976 plus 5.25% of excess over3$23,6004Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over5$27,9006Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess7over $161,5508Over $323,200 but not over $18,252 plus 6.85% of excess9$2,155,350 over $323,20010Over $2,155,350 $143,754 plus 8.82% of excess11over $2,155,350] 12 If the New York taxable income is: The tax is: 13 Not over $17,150 3.90% of the New York taxable 14 income 15 Over $17,150 but not over $23,600 $669 plus 4.40% of excess over 16 $17,150 17 Over $23,600 but not over $27,900 $953 plus 5.15% of excess over 18 $23,600 19 Over $27,900 but not over $161,550 $1,174 plus 5.40% of excess over 20 $27,900 21 Over $161,550 but not over $323,200 $8,391 plus 5.90% of excess over 22 $161,550 23 Over $323,200 but not over $17,928 plus 6.85% of excess 24 $2,155,350 over $323,200 25 Over $2,155,350 but not over $143,430 plus 9.65% of excess 26 $5,000,000 over $2,155,350 27 Over $5,000,000 but not over $417,939 plus 10.30% of excess 28 $25,000,000 over $5,000,000 29 Over $25,000,000 $2,477,939 plus 10.90% of excess 30 over $25,000,000 31 § 2. Subparagraph (B) of paragraph 1 of subsection (a) of section 601 32 of the tax law is amended by adding two new clauses (viii) and (ix) to 33 read as follows: 34 (viii) For taxable years beginning after two thousand twenty-five and 35 before two thousand thirty-three the following rates shall apply: 36 If the New York taxable income is: The tax is: 37 Not over $17,150 3.80% of the New York taxable 38 income 39 Over $17,150 but not over $23,600 $652 plus 4.30% of excess over 40 $17,150 41 Over $23,600 but not over $27,900 $929 plus 5.05% of excess over 42 $23,600 43 Over $27,900 but not over $161,550 $1,146 plus 5.30% of excess over 44 $27,900 45 Over $161,550 but not over $323,200 $8,229 plus 5.80% of excess 46 over $161,550 47 Over $323,200 but not over $17,605 plus 6.85% of excess 48 $2,155,350 over $323,200 49 Over $2,155,350 but not over $143,107 plus 9.65% of excess 50 $5,000,000 over $2,155,350 51 Over $5,000,000 but not over $417,616 plus 10.30% of excess 52 $25,000,000 over $5,000,000 53 Over $25,000,000 $2,477,616 plus 10.90% of excess 54 over $25,000,000S. 3009 6 A. 3009 1 (ix) For taxable years beginning after two thousand thirty-two the 2 following rates shall apply: 3 If the New York taxable income is: The tax is: 4 Not over $17,150 3.80% of the New York taxable 5 income 6 Over $17,150 but not over $23,600 $652 plus 4.30% of excess over 7 $17,150 8 Over $23,600 but not over $27,900 $929 plus 5.05% of excess over 9 $23,600 10 Over $27,900 but not over $161,550 $1,146 plus 5.30% of excess over 11 $27,900 12 Over $161,550 but not over $323,200 $8,229 plus 5.80% of excess 13 over $161,550 14 Over $323,200 but not over $17,605 plus 6.85% of excess 15 $2,155,350 over $323,200 16 Over $2,155,350 $143,107 plus 8.82% of excess 17 over $2,155,350 18 § 3. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of 19 subsection (b) of section 601 of the tax law, as amended by section 2 of 20 subpart A of part A of chapter 59 of the laws of 2022, are amended to 21 read as follows: 22 (vi) For taxable years beginning in two thousand twenty-three and 23 before two thousand [twenty-eight] twenty-five the following rates shall 24 apply: 25 If the New York taxable income is: The tax is: 26 Not over $12,800 4% of the New York taxable income 27 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 28 $12,800 29 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 30 $17,650 31 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 32 $20,900 33 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 34 $107,650 35 Over $269,300 but not over $15,371 plus 6.85% of excess over 36 $1,616,450 $269,300 37 Over $1,616,450 but not over $107,651 plus 9.65% of excess over 38 $5,000,000 $1,616,450 39 Over $5,000,000 but not over $434,163 plus 10.30% of excess over 40 $25,000,000 $5,000,000 41 Over $25,000,000 $2,494,163 plus 10.90% of excess over 42 $25,000,000 43 (vii) For taxable years beginning after two thousand [twenty-seven] 44 twenty-four and before two thousand twenty-six the following rates shall 45 apply: 46 [If the New York taxable income is: The tax is:47Not over $12,800 4% of the New York taxable income48Over $12,800 but not over $512 plus 4.5% of excess over49$17,650 $12,80050Over $17,650 but not over $730 plus 5.25% of excess over51$20,900 $17,65052Over $20,900 but not over $901 plus 5.5% of excess over53$107,650 $20,90054Over $107,650 but not over $5,672 plus 6.00% of excessS. 3009 7 A. 3009 1$269,300 over $107,6502Over $269,300 but not over $15,371 plus 6.85% of excess3$1,616,450 over $269,3004Over $1,616,450 $107,651 plus 8.82% of excess5over $1,616,450] 6 If the New York taxable income is: The tax is: 7 Not over $12,800 3.90% of the New York taxable 8 income 9 Over $12,800 but not over $499 plus 4.40% of excess over 10 $17,650 $12,800 11 Over $17,650 but not over $712 plus 5.15% of excess over 12 $20,900 $17,650 13 Over $20,900 but not over $879 plus 5.40% of excess over 14 $107,650 $20,900 15 Over $107,650 but not over $5,564 plus 5.90% of excess 16 $269,300 over $107,650 17 Over $269,300 but not over $15,101 plus 6.85% of excess 18 $1,616,450 over $269,300 19 Over $1,616,450 but not over $107,381 plus 9.65% of excess 20 $5,000,000 over $1,616,450 21 Over $5,000,000 but not over $433,894 plus 10.30% of excess 22 $25,000,000 over $5,000,000 23 Over $25,000,000 $2,493,894 plus 10.90% of excess 24 over $25,000,000 25 § 4. Subparagraph (B) of paragraph 1 of subsection (b) of section 601 26 of the tax law is amended by adding two new clauses (viii) and (ix) to 27 read as follows: 28 (viii) For taxable years beginning after two thousand twenty-five and 29 before two thousand thirty-three the following rates shall apply: 30 If the New York taxable income is: The tax is: 31 Not over $12,800 3.80% of the New York taxable 32 income 33 Over $12,800 but not over $486 plus 4.30% of excess over 34 $17,650 $12,800 35 Over $17,650 but not over $695 plus 5.05% of excess over 36 $20,900 $17,650 37 Over $20,900 but not over $859 plus 5.30% of excess over 38 $107,650 $20,900 39 Over $107,650 but not over $5,457 plus 5.80% of excess 40 $269,300 over $107,650 41 Over $269,300 but not over $14,833 plus 6.85% of excess 42 $1,616,450 over $269,300 43 Over $1,616,450 but not over $107,113 plus 9.65% of excess 44 $5,000,000 over $1,616,450 45 Over $5,000,000 but not over $433,626 plus 10.30% of excess 46 $25,000,000 over $5,000,000 47 Over $25,000,000 $2,493,626 plus 10.90% of excess 48 over $25,000,000 49 (ix) For taxable years beginning after two thousand thirty-two the 50 following rates shall apply: 51 If the New York taxable income is: The tax is: 52 Not over $12,800 3.80% of the New York taxableS. 3009 8 A. 3009 1 income 2 Over $12,800 but not over $486 plus 4.30% of excess over 3 $17,650 $12,800 4 Over $17,650 but not over $695 plus 5.05% of excess over 5 $20,900 $17,650 6 Over $20,900 but not over $859 plus 5.30% of excess over 7 $107,650 $20,900 8 Over $107,650 but not over $5,457 plus 5.80% of excess 9 $269,300 over $107,650 10 Over $269,300 but not over $14,833 plus 6.85% of excess 11 $1,616,450 over $269,300 12 Over $1,616,450 $107,113 plus 8.82% of excess 13 over $1,616,450 14 § 5. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of 15 subsection (c) of section 601 of the tax law, as amended by section 3 of 16 subpart A of part A of chapter 59 of the laws of 2022, are amended to 17 read as follows: 18 (vi) For taxable years beginning in two thousand twenty-three and 19 before two thousand [twenty-eight] twenty-five the following rates shall 20 apply: 21 If the New York taxable income is: The tax is: 22 Not over $8,500 4% of the New York taxable income 23 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 24 $8,500 25 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 26 $11,700 27 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 28 $13,900 29 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 30 $80,650 31 Over $215,400 but not over $12,356 plus 6.85% of excess over 32 $1,077,550 $215,400 33 Over $1,077,550 but not over $71,413 plus 9.65% of excess over 34 $5,000,000 $1,077,550 35 Over $5,000,000 but not over $449,929 plus 10.30% of excess over 36 $25,000,000 $5,000,000 37 Over $25,000,000 $2,509,929 plus 10.90% of excess over 38 $25,000,000 39 (vii) For taxable years beginning after two thousand [twenty-seven] 40 twenty-four and before two thousand twenty-six the following rates shall 41 apply: 42 [If the New York taxable income is: The tax is:43Not over $8,500 4% of the New York taxable income44Over $8,500 but not over $11,700 $340 plus 4.5% of excess over45$8,50046Over $11,700 but not over $13,900 $484 plus 5.25% of excess over47$11,70048Over $13,900 but not over $80,650 $600 plus 5.50% of excess over49$13,90050Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess51over $80,65052Over $215,400 but not over $12,356 plus 6.85% of excess53$1,077,550 over $215,40054Over $1,077,550 $71,413 plus 8.82% of excess55over $1,077,550]S. 3009 9 A. 3009 1 If the New York taxable income is: The tax is: 2 Not over $8,500 3.90% of the New York taxable income 3 Over $8,500 but not over $11,700 $332 plus 4.40% of excess over 4 $8,500 5 Over $11,700 but not over $13,900 $473 plus 5.15% of excess over 6 $11,700 7 Over $13,900 but not over $80,650 $586 plus 5.40% of excess over 8 $13,900 9 Over $80,650 but not over $215,400 $4,191 plus 5.90% of excess 10 over $80,650 11 Over $215,400 but not over $12,141 plus 6.85% of excess 12 $1,077,550 over $215,400 13 Over $1,077,550 but not over $71,198 plus 9.65% of excess 14 $5,000,000 over $1,077,550 15 Over $5,000,000 but not over $449,714 plus 10.30% of excess 16 $25,000,000 over $5,000,000 17 Over $25,000,000 $2,509,714 plus 10.90% of excess 18 over $25,000,000 19 § 6. Subparagraph (B) of paragraph 1 of subsection (c) of section 601 20 of the tax law is amended by adding two new clauses (viii) and (ix) to 21 read as follows: 22 (viii) For taxable years beginning after two thousand twenty-five and 23 before two thousand thirty-three the following rates shall apply: 24 If the New York taxable income is: The tax is: 25 Not over $8,500 3.80% of the New York taxable income 26 Over $8,500 but not over $11,700 $323 plus 4.30% of excess over 27 $8,500 28 Over $11,700 but not over $13,900 $461 plus 5.05% of excess over 29 $11,700 30 Over $13,900 but not over $80,650 $572 plus 5.30% of excess over 31 $13,900 32 Over $80,650 but not over $215,400 $4,110 plus 5.80% of excess 33 over $80,650 34 Over $215,400 but not over $11,926 plus 6.85% of excess 35 $1,077,550 over $215,400 36 Over $1,077,550 but not over $70,983 plus 9.65% of excess 37 $5,000,000 over $1,077,550 38 Over $5,000,000 but not over $449,499 plus 10.30% of excess 39 $25,000,000 over $5,000,000 40 Over $25,000,000 $2,509,499 plus 10.90% of excess 41 over $25,000,000 42 (ix) For taxable years beginning after two thousand thirty-two the 43 following rates shall apply: 44 If the New York taxable income is: The tax is: 45 Not over $8,500 3.80% of the New York taxable income 46 Over $8,500 but not over $11,700 $323 plus 4.30% of excess over 47 $8,500 48 Over $11,700 but not over $13,900 $461 plus 5.05% of excess over 49 $11,700 50 Over $13,900 but not over $80,650 $572 plus 5.30% of excess over 51 $13,900 52 Over $80,650 but not over $215,400 $4,110 plus 5.80% of excess 53 over $80,650 54 Over $215,400 but not over $11,926 plus 6.85% of excessS. 3009 10 A. 3009 1 $1,077,550 over $215,400 2 Over $1,077,550 $70,983 plus 8.82% of excess 3 over $1,077,550 4 § 7. The opening paragraph of subsection (d-4) of section 601 of the 5 tax law, as added by section 3 of subpart B of part A of chapter 59 of 6 the laws of 2022, is amended to read as follows: 7 Alternative tax table benefit recapture. Notwithstanding the 8 provisions of subsection (d), (d-1), (d-2) or (d-3) of this section, for 9 taxable years beginning on or after two thousand twenty-three and before 10 two thousand [twenty-eight] twenty-five, there is hereby imposed a 11 supplemental tax in addition to the tax imposed under subsections (a), 12 (b) and (c) of this section for the purpose of recapturing the benefit 13 of the tax tables contained in such subsections. During these taxable 14 years, any reference in this chapter to subsection (d), (d-1), (d-2) or 15 (d-3) of this section shall be read as a reference to this subsection. 16 § 8. Section 601 of the tax law is amended by adding three new 17 subsections (d-5), (d-6) and (d-7) to read as follows: 18 (d-5) Alternative tax table benefit recapture. Notwithstanding the 19 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-6) or (d-7) 20 of this section, for taxable years beginning on or after two thousand 21 twenty-five and before two thousand twenty-six, there is hereby imposed 22 a supplemental tax in addition to the tax imposed under subsections (a), 23 (b) and (c) of this section for the purpose of recapturing the benefit 24 of the tax tables contained in such subsections. During these taxable 25 years, any reference in this chapter to subsection (d), (d-1), (d-2), 26 (d-3), (d-4), (d-6) or (d-7) of this section shall be read as a refer- 27 ence to this subsection. 28 (1) For resident married individuals filing joint returns and resident 29 surviving spouses: 30 (A) If New York adjusted gross income is greater than $107,650, but 31 not over $25,000,000: 32 (i) the recapture base and incremental benefit shall be determined by 33 New York taxable income as follows: 34 Greater than Not over Recapture Base Incremental Benefit 35 $27,900 $161,550 $0 $333 36 $161,550 $323,200 $333 $807 37 $323,200 $2,155,350 $1,140 $3,071 38 $2,155,350 $5,000,000 $4,211 $60,350 39 $5,000,000 $25,000,000 $64,561 $32,500 40 (ii) the applicable amount shall be determined by New York taxable 41 income as follows: 42 Greater than Not over Applicable Amount 43 $27,900 $161,550 New York adjusted gross income minus $107,650 44 $161,550 $323,200 New York adjusted gross income minus $161,550 45 $323,200 $2,155,350 New York adjusted gross income minus $323,200 46 $2,155,350 $5,000,000 New York adjusted gross income minus $2,155,350 47 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 48 (iii) the phase-in fraction shall be a fraction, the numerator of 49 which shall be the lesser of fifty thousand dollars or the applicable 50 amount and the denominator of which shall be fifty thousand dollars; and 51 (iv) the supplemental tax due shall equal the sum of the recapture 52 base and the product of (i) the incremental benefit and (ii) the phase- 53 in fraction. Provided, however, that if the New York taxable income of 54 the taxpayer is less than twenty-seven thousand nine hundred dollars, 55 the supplemental tax shall equal the difference between the product ofS. 3009 11 A. 3009 1 5.40 percent and New York taxable income and the tax table computation 2 on the New York taxable income set forth in paragraph one of subsection 3 (a) of this section, multiplied by a fraction, the numerator of which is 4 the lesser of fifty thousand dollars or New York adjusted gross income 5 minus one hundred seven thousand six hundred fifty dollars, and the 6 denominator of which is fifty thousand dollars. 7 (B) If New York adjusted gross income is greater than twenty-five 8 million dollars, the supplemental tax due shall equal the difference 9 between the product of 10.90 percent and New York taxable income and the 10 tax table computation on the New York taxable income set forth in para- 11 graph one of subsection (a) of this section. 12 (2) For resident heads of households: 13 (A) If New York adjusted gross income is greater than $107,650, but 14 not over $25,000,000: 15 (i) the recapture base and incremental benefit shall be determined by 16 New York taxable income as follows: 17 Greater than Not over Recapture Base Incremental Benefit 18 $107,650 $269,300 $0 $787 19 $269,300 $1,616,450 $787 $2,559 20 $1,616,450 $5,000,000 $3,346 $45,260 21 $5,000,000 $25,000,000 $48,606 $32,500 22 (ii) the applicable amount shall be determined by New York taxable 23 income as follows: 24 Greater than Not over Applicable Amount 25 $107,650 $269,300 New York adjusted gross income minus $107,650 26 $269,300 $1,616,450 New York adjusted gross income minus $269,300 27 $1,616,450 $5,000,000 New York adjusted gross income minus $1,616,450 28 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 29 (iii) the phase-in fraction shall be a fraction, the numerator of 30 which shall be the lesser of fifty thousand dollars or the applicable 31 amount and the denominator of which shall be fifty thousand dollars; and 32 (iv) the supplemental tax due shall equal the sum of the recapture 33 base and the product of (i) the incremental benefit and (ii) the phase- 34 in fraction. Provided, however, that if the New York taxable income of 35 the taxpayer is less than one hundred seven thousand six hundred fifty 36 dollars, the supplemental tax shall equal the difference between the 37 product of 5.90 percent and New York taxable income and the tax table 38 computation on the New York taxable income set forth in paragraph one of 39 subsection (b) of this section, multiplied by a fraction, the numerator 40 of which is the lesser of fifty thousand dollars or New York adjusted 41 gross income minus one hundred seven thousand six hundred fifty dollars, 42 and the denominator of which is fifty thousand dollars. 43 (B) If New York adjusted gross income is greater than twenty-five 44 million dollars, the supplemental tax due shall equal the difference 45 between the product of 10.90 percent and New York taxable income and the 46 tax table computation on the New York taxable income set forth in para- 47 graph one of subsection (b) of this section. 48 (3) For resident unmarried individuals, resident married individuals 49 filing separate returns and resident estates and trusts: 50 (A) If New York adjusted gross income is greater than $107,650, but 51 not over $25,000,000: 52 (i) the recapture base and incremental benefit shall be determined by 53 New York taxable income as follows: 54 Greater than Not over Recapture Base Incremental Benefit 55 $80,650 $215,400 $0 $567 56 $215,400 $1,077,550 $567 $2,047S. 3009 12 A. 3009 1 $1,077,550 $5,000,000 $2,614 $30,172 2 $5,000,000 $25,000,000 $32,786 $32,500 3 (ii) the applicable amount shall be determined by New York taxable 4 income as follows: 5 Greater than Not over Applicable Amount 6 $80,650 $215,400 New York adjusted gross income minus $107,650 7 $215,400 $1,077,550 New York adjusted gross income minus $215,400 8 $1,077,550 $5,000,000 New York adjusted gross income minus $1,077,550 9 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 10 (iii) the phase-in fraction shall be a fraction, the numerator of 11 which shall be the lesser of fifty thousand dollars or the applicable 12 amount and the denominator of which shall be fifty thousand dollars; and 13 (iv) the supplemental tax due shall equal the sum of the recapture 14 base and the product of (i) the incremental benefit and (ii) the phase- 15 in fraction. Provided, however, that if the New York taxable income of 16 the taxpayer is less than eighty thousand six hundred fifty dollars, the 17 supplemental tax shall equal the difference between the product of 5.90 18 percent and New York taxable income and the tax table computation on the 19 New York taxable income set forth in paragraph one of subsection (c) of 20 this section, multiplied by a fraction, the numerator of which is the 21 lesser of fifty thousand dollars or New York adjusted gross income minus 22 one hundred seven thousand six hundred fifty dollars, and the denomina- 23 tor of which is fifty thousand dollars. 24 (B) If New York adjusted gross income is greater than twenty-five 25 million dollars, the supplemental tax due shall equal the difference 26 between the product of 10.90 percent and New York taxable income and the 27 tax table computation on the New York taxable income set forth in para- 28 graph one of subsection (c) of this section. 29 (d-6) Alternative tax table benefit recapture. Notwithstanding the 30 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-7) 31 of this section, for taxable years beginning on or after two thousand 32 twenty-six and before two thousand thirty-three, there is hereby imposed 33 a supplemental tax in addition to the tax imposed under subsections (a), 34 (b) and (c) of this section for the purpose of recapturing the benefit 35 of the tax tables contained in such subsections. During these taxable 36 years, any reference in this chapter to subsection (d), (d-1), (d-2), 37 (d-3), (d-4), (d-5) or (d-7) of this section shall be read as a refer- 38 ence to this subsection. 39 (1) For resident married individuals filing joint returns and resident 40 surviving spouses: 41 (A) If New York adjusted gross income is greater than $107,650, but 42 not over $25,000,000: 43 (i) the recapture base and incremental benefit shall be determined by 44 New York taxable income as follows: 45 Greater than Not over Recapture Base Incremental Benefit 46 $27,900 $161,550 $0 $333 47 $161,550 $323,200 $333 $808 48 $323,200 $2,155,350 $1,141 $3,393 49 $2,155,350 $5,000,000 $4,534 $60,350 50 $5,000,000 $25,000,000 $64,884 $32,500 51 (ii) the applicable amount shall be determined by New York taxable 52 income as follows: 53 Greater than Not over Applicable Amount 54 $27,900 $161,550 New York adjusted gross income 55 minus $107,650 56 $161,550 $323,200 New York adjusted gross incomeS. 3009 13 A. 3009 1 minus $161,550 2 $323,200 $2,155,350 New York adjusted gross income 3 minus $323,200 4 $2,155,350 $5,000,000 New York adjusted gross income 5 minus $2,155,350 6 $5,000,000 $25,000,000 New York adjusted gross income 7 minus $5,000,000 8 (iii) the phase-in fraction shall be a fraction, the numerator of 9 which shall be the lesser of fifty thousand dollars or the applicable 10 amount and the denominator of which shall be fifty thousand dollars; and 11 (iv) the supplemental tax due shall equal the sum of the recapture 12 base and the product of (i) the incremental benefit and (ii) the phase- 13 in fraction. Provided, however, that if the New York taxable income of 14 the taxpayer is less than twenty-seven thousand nine hundred dollars, 15 the supplemental tax shall equal the difference between the product of 16 5.30 percent and New York taxable income and the tax table computation 17 on the New York taxable income set forth in paragraph one of subsection 18 (a) of this section, multiplied by a fraction, the numerator of which 19 is the lesser of fifty thousand dollars or New York adjusted gross 20 income minus one hundred seven thousand six hundred fifty dollars, and 21 the denominator of which is fifty thousand dollars. 22 (B) If New York adjusted gross income is greater than twenty-five 23 million dollars, the supplemental tax due shall equal the difference 24 between the product of 10.90 percent and New York taxable income and the 25 tax table computation on the New York taxable income set forth in para- 26 graph one of subsection (a) of this section. 27 (2) For resident heads of households: 28 (A) If New York adjusted gross income is greater than $107,650, but 29 not over $25,000,000: 30 (i) the recapture base and incremental benefit shall be determined by 31 New York taxable income as follows: 32 Greater than Not over Recapture Base Incremental Benefit 33 $107,650 $269,300 $0 $787 34 $269,300 $1,616,450 $787 $2,827 35 $1,616,450 $5,000,000 $3,614 $45,260 36 $5,000,000 $25,000,000 $48,874 $32,500 37 (ii) the applicable amount shall be determined by New York taxable 38 income as follows: 39 Greater than Not over Applicable Amount 40 $107,650 $269,300 New York adjusted gross income 41 minus $107,650 42 $269,300 $1,616,450 New York adjusted gross income 43 minus $269,300 44 $1,616,450 $5,000,000 New York adjusted gross income 45 minus $1,616,450 46 $5,000,000 $25,000,000 New York adjusted gross income 47 minus $5,000,000 48 (iii) the phase-in fraction shall be a fraction, the numerator of 49 which shall be the lesser of fifty thousand dollars or the applicable 50 amount and the denominator of which shall be fifty thousand dollars; and 51 (iv) the supplemental tax due shall equal the sum of the recapture 52 base and the product of (i) the incremental benefit and (ii) the phase- 53 in fraction. Provided, however, that if the New York taxable income of 54 the taxpayer is less than one hundred seven thousand six hundred fifty 55 dollars, the supplemental tax shall equal the difference between the 56 product of 5.80 percent and New York taxable income and the tax tableS. 3009 14 A. 3009 1 computation on the New York taxable income set forth in paragraph one of 2 subsection (b) of this section, multiplied by a fraction, the numerator 3 of which is the lesser of fifty thousand dollars or New York adjusted 4 gross income minus one hundred seven thousand six hundred fifty dollars, 5 and the denominator of which is fifty thousand dollars. 6 (B) If New York adjusted gross income is greater than twenty-five 7 million dollars, the supplemental tax due shall equal the difference 8 between the product of 10.90 percent and New York taxable income and the 9 tax table computation on the New York taxable income set forth in para- 10 graph one of subsection (b) of this section. 11 (3) For resident unmarried individuals, resident married individuals 12 filing separate returns and resident estates and trusts: 13 (A) If New York adjusted gross income is greater than $107,650, but 14 not over $25,000,000: 15 (i) the recapture base and incremental benefit shall be determined by 16 New York taxable income as follows: 17 Greater than Not over Recapture Base Incremental Benefit 18 $80,650 $215,400 $0 $568 19 $215,400 $1,077,550 $568 $2,261 20 $1,077,550 $5,000,000 $2,829 $30,172 21 $5,000,000 $25,000,000 $33,001 $32,500 22 (ii) the applicable amount shall be determined by New York taxable 23 income as follows: 24 Greater than Not over Applicable Amount 25 $80,650 $215,400 New York adjusted gross income 26 minus $107,650 27 $215,400 $1,077,550 New York adjusted gross income 28 minus $215,400 29 $1,077,550 $5,000,000 New York adjusted gross income 30 minus $1,077,550 31 $5,000,000 $25,000,000 New York adjusted gross income 32 minus $5,000,000 33 (iii) the phase-in fraction shall be a fraction, the numerator of 34 which shall be the lesser of fifty thousand dollars or the applicable 35 amount and the denominator of which shall be fifty thousand dollars; and 36 (iv) the supplemental tax due shall equal the sum of the recapture 37 base and the product of (i) the incremental benefit and (ii) the phase- 38 in fraction. Provided, however, that if the New York taxable income of 39 the taxpayer is less than eighty thousand six hundred fifty dollars, the 40 supplemental tax shall equal the difference between the product of 5.80 41 percent and New York taxable income and the tax table computation on the 42 New York taxable income set forth in paragraph one of subsection (c) of 43 this section, multiplied by a fraction, the numerator of which is the 44 lesser of fifty thousand dollars or New York adjusted gross income minus 45 one hundred seven thousand six hundred fifty dollars, and the denomina- 46 tor of which is fifty thousand dollars. 47 (B) If New York adjusted gross income is greater than twenty-five 48 million dollars, the supplemental tax due shall equal the difference 49 between the product of 10.90 percent and New York taxable income and the 50 tax table computation on the New York taxable income set forth in para- 51 graph one of subsection (c) of this section. 52 (d-7) Alternative tax table benefit recapture. Notwithstanding the 53 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-6) 54 of this section, for taxable years beginning on or after two thousand 55 thirty-three, there is hereby imposed a supplemental tax in addition to 56 the tax imposed under subsections (a), (b) and (c) of this section forS. 3009 15 A. 3009 1 the purpose of recapturing the benefit of the tax tables contained in 2 such subsections. During these taxable years, any reference in this 3 chapter to subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-6) of 4 this section shall be read as a reference to this subsection. 5 (1) For resident married individuals filing joint returns and resident 6 surviving spouses: 7 (A) If New York adjusted gross income is greater than $107,650: 8 (i) the recapture base and incremental benefit shall be determined by 9 New York taxable income as follows: 10 Greater than Not over Recapture Base Incremental Benefit 11 $27,900 $161,550 $0 $333 12 $161,550 $323,200 $333 $808 13 $323,200 $2,155,350 $1,141 $3,393 14 $2,155,350 $4,534 $42,461 15 (ii) the applicable amount shall be determined by New York taxable 16 income as follows: 17 Greater than Not over Applicable Amount 18 $27,900 $161,550 New York adjusted gross income minus $107,650 19 $161,550 $323,200 New York adjusted gross income minus $161,550 20 $323,200 $2,155,350 New York adjusted gross income minus $323,200 21 $2,155,350 New York adjusted gross income minus $2,155,350 22 (iii) the phase-in fraction shall be a fraction, the numerator of 23 which shall be the lesser of fifty thousand dollars or the applicable 24 amount and the denominator of which shall be fifty thousand dollars; and 25 (iv) the supplemental tax due shall equal the sum of the recapture 26 base and the product of (i) the incremental benefit and (ii) the phase- 27 in fraction. Provided, however, that if the New York taxable income of 28 the taxpayer is less than twenty-seven thousand nine hundred dollars, 29 the supplemental tax shall equal the difference between the product of 30 5.30 percent and New York taxable income and the tax table computation 31 on the New York taxable income set forth in paragraph one of subsection 32 (a) of this section, multiplied by a fraction, the numerator of which is 33 the lesser of fifty thousand dollars or New York adjusted gross income 34 minus one hundred seven thousand six hundred fifty dollars, and the 35 denominator of which is fifty thousand dollars. 36 (2) For resident heads of households: 37 (A) If New York adjusted gross income is greater than $107,650: 38 (i) the recapture base and incremental benefit shall be determined by 39 New York taxable income as follows: 40 Greater than Not over Recapture Base Incremental Benefit 41 $107,650 $269,300 $0 $787 42 $269,300 $1,616,450 $787 $2,827 43 $1,616,450 $3,614 $31,844 44 (ii) the applicable amount shall be determined by New York taxable 45 income as follows: 46 Greater than Not over Applicable Amount 47 $107,650 $269,300 New York adjusted gross income minus $107,650 48 $269,300 $1,616,450 New York adjusted gross income minus $269,300 49 $1,616,450 New York adjusted gross income minus $1,616,450 50 (iii) the phase-in fraction shall be a fraction, the numerator of 51 which shall be the lesser of fifty thousand dollars or the applicable 52 amount and the denominator of which shall be fifty thousand dollars; and 53 (iv) the supplemental tax due shall equal the sum of the recapture 54 base and the product of (i) the incremental benefit and (ii) the phase- 55 in fraction. Provided, however, that if the New York taxable income of 56 the taxpayer is less than one hundred seven thousand six hundred fiftyS. 3009 16 A. 3009 1 dollars, the supplemental tax shall equal the difference between the 2 product of 5.80 percent and New York taxable income and the tax table 3 computation on the New York taxable income set forth in paragraph one of 4 subsection (b) of this section, multiplied by a fraction, the numerator 5 of which is the lesser of fifty thousand dollars or New York adjusted 6 gross income minus one hundred seven thousand six hundred fifty dollars, 7 and the denominator of which is fifty thousand dollars. 8 (3) For resident unmarried individuals, resident married individuals 9 filing separate returns and resident estates and trusts: 10 (A) If New York adjusted gross income is greater than $107,650: 11 (i) the recapture base and incremental benefit shall be determined by 12 New York taxable income as follows: 13 Greater than Not over Recapture Base Incremental Benefit 14 $80,650 $215,400 $0 $568 15 $215,400 $1,077,550 $568 $2,261 16 $1,077,550 $2,829 $21,228 17 (ii) the applicable amount shall be determined by New York taxable 18 income as follows: 19 Greater than Not over Applicable Amount 20 $80,650 $215,400 New York adjusted gross income minus $107,650 21 $215,400 $1,077,550 New York adjusted gross income minus $215,400 22 $1,077,550 New York adjusted gross income minus $1,077,550 23 (iii) the phase-in fraction shall be a fraction, the numerator of 24 which shall be the lesser of fifty thousand dollars or the applicable 25 amount and the denominator of which shall be fifty thousand dollars; and 26 (iv) the supplemental tax due shall equal the sum of the recapture 27 base and the product of (i) the incremental benefit and (ii) the phase- 28 in fraction. Provided, however, that if the New York taxable income of 29 the taxpayer is less than eighty thousand six hundred fifty dollars, the 30 supplemental tax shall equal the difference between the product of 5.80 31 percent and New York taxable income and the tax table computation on the 32 New York taxable income set forth in paragraph one of subsection (c) of 33 this section, multiplied by a fraction, the numerator of which is the 34 lesser of fifty thousand dollars or New York adjusted gross income minus 35 one hundred seven thousand six hundred fifty dollars, and the denomina- 36 tor of which is fifty thousand dollars. 37 § 9. This act shall take effect immediately. 38 PART C 39 Section 1. Paragraph 1 of subsection c-1 of section 606 of the tax 40 law, as amended by section 1 of part HH of chapter 56 of the laws of 41 2023, is amended to read as follows: 42 (1) [A] For taxable years beginning before January first, two thousand 43 twenty-five, and taxable years beginning on or after January first, two 44 thousand twenty-eight, a resident taxpayer shall be allowed a credit as 45 provided herein equal to the greater of one hundred dollars times the 46 number of qualifying children of the taxpayer or the applicable percent- 47 age of the child tax credit allowed the taxpayer under section twenty- 48 four of the internal revenue code for the same taxable year for each 49 qualifying child. Provided, however, in the case of a taxpayer whose 50 federal adjusted gross income exceeds the applicable threshold amount 51 set forth by section 24(b)(2) of the Internal Revenue Code, the credit 52 shall only be equal to the applicable percentage of the child tax credit 53 allowed the taxpayer under section 24 of the Internal Revenue Code for 54 each qualifying child. For the purposes of this subsection, a qualifyingS. 3009 17 A. 3009 1 child shall be a child who meets the definition of qualified child under 2 section 24(c) of the internal revenue code. The applicable percentage 3 shall be thirty-three percent. For purposes of this subsection, any 4 reference to section 24 of the Internal Revenue Code shall be a refer- 5 ence to such section as it existed immediately prior to the enactment of 6 Public Law 115-97. 7 § 2. Subsection c-1 of section 606 of the tax law is amended by adding 8 a new paragraph (1-a) to read as follows: 9 (1-a) (A) For taxable years beginning on and after January first, two 10 thousand twenty-five, and before January first, two thousand twenty-six, 11 a resident taxpayer shall be allowed a credit as provided herein, equal 12 to the sum of: 13 (i) one thousand dollars times the number of qualifying children of 14 the taxpayer aged three or younger, and 15 (ii) three hundred thirty dollars times the number of qualifying chil- 16 dren of the taxpayer who have attained age four and not yet attained age 17 seventeen. 18 (B) For taxable years beginning on and after January first, two thou- 19 sand twenty-six, and before January first, two thousand twenty-eight, a 20 resident taxpayer shall be allowed a credit as provided herein, equal to 21 the sum of: 22 (i) one thousand dollars times the number of qualifying children of 23 the taxpayer aged three or younger, and 24 (ii) five hundred dollars times the number of qualifying children of 25 the taxpayer who have attained age four and not yet attained age seven- 26 teen. 27 (C) The amount of the credit allowable under subparagraphs (A) and (B) 28 of this paragraph shall be reduced (but not below zero) by sixteen 29 dollars and fifty cents for each one thousand dollars by which the 30 taxpayer's federal adjusted gross income exceeds the threshold amount. 31 For the purposes of this subparagraph, the term "threshold amount" shall 32 mean: (i) one hundred ten thousand dollars in the case of married 33 taxpayers filing jointly or a qualified surviving spouse; (ii) seventy- 34 five thousand dollars in the case of a taxpayer filing as head of house- 35 hold; and (iii) fifty-five thousand dollars in the case of a single 36 taxpayer or married taxpayer filing a separate return. 37 (D) For the purposes of this paragraph, a qualifying child shall be an 38 individual who: (i) is a child, sibling, or stepsibling of the taxpayer, 39 or a descendent of any such relative; (ii) has the same principal place 40 of abode as the taxpayer for more than one-half of the taxable year; 41 (iii) has not attained age seventeen; (iv) has not provided over one- 42 half of such individual's own support for the calendar year in which the 43 taxable year of the taxpayer begins; (v) has not filed a joint return 44 (other than only for a claim of refund) with the individual's spouse 45 under section six hundred fifty-one of this article for the taxable 46 year; and (vi) is a citizen or national of the United States, or an 47 individual with an individual taxpayer identification number issued by 48 the internal revenue service. 49 (E) For the purposes of this paragraph, the term "child" shall mean an 50 individual who is the offspring or stepchild of the taxpayer, or an 51 eligible foster child of the taxpayer, or a legally adopted individual 52 of the taxpayer, or an individual who is lawfully placed with the 53 taxpayer for legal adoption by the taxpayer. 54 (F) (i) Except as provided in subparagraph (C) of this paragraph, if 55 an individual may be claimed as a qualifying child by two or more 56 taxpayers for a taxable year, such individual shall be treated as theS. 3009 18 A. 3009 1 qualifying child of the taxpayer who is: (I) a parent of the individual, 2 or (II) if subclause (I) does not apply, the taxpayer with the highest 3 federal adjusted gross income for such taxable year. 4 (ii) If the parents claiming any qualifying child do not file a joint 5 return together, such child shall be treated as the qualifying child of: 6 (I) the parent with whom the child resided for the longest period of 7 time during the taxable year, or (II) if the child resides with both 8 parents for the same amount of time during such taxable year, the parent 9 with the highest federal adjusted gross income who files a return pursu- 10 ant to section six hundred fifty-one of this article. 11 (iii) If the parents of an individual may claim such individual as a 12 qualifying child but no parent so claims the individual, such individual 13 may be claimed as the qualifying child of another taxpayer, but only if 14 the federal adjusted gross income of such taxpayer is higher than the 15 highest federal adjusted gross income of any parent of the individual, 16 regardless of a requirement to file a return pursuant to section six 17 hundred fifty-one of this article. 18 § 3. This act shall take effect immediately. 19 PART D 20 Section 1. Subdivision 3 of section 22 of the public housing law, as 21 added by section 1 of part CC of chapter 63 of the laws of 2000, is 22 amended to read as follows: 23 3. Amount of credit. Except as provided in subdivisions four and five 24 of this section, the amount of low-income housing credit shall be the 25 applicable percentage of the qualified basis of each eligible low-income 26 building. Buildings financed by refunded bonds using the rules of 27 section 146(i)(6) of the internal revenue code, shall be eligible for 28 credit pursuant to the rules of section 42(b)(2) of the internal revenue 29 code. 30 § 2. Subdivision 4 of section 22 of the public housing law, as amended 31 by section 4 of part J of chapter 59 of the laws of 2022, is amended to 32 read as follows: 33 4. Statewide limitation. The aggregate dollar amount of credit which 34 the commissioner may allocate to eligible low-income buildings under 35 this article shall be one hundred [seventy-two] eighty-seven million 36 dollars. The limitation provided by this subdivision applies only to 37 allocation of the aggregate dollar amount of credit by the commission- 38 er[,] and does not apply to allowance to a taxpayer of the credit with 39 respect to an eligible low-income building for each year of the credit 40 period. 41 § 3. Subdivision 4 of section 22 of the public housing law, as amended 42 by section two of this act, is amended to read as follows: 43 4. Statewide limitation. The aggregate dollar amount of credit which 44 the commissioner may allocate to eligible low-income buildings under 45 this article shall be [one] two hundred [eighty-seven] seventeen million 46 dollars. The limitation provided by this subdivision applies only to 47 allocation of the aggregate dollar amount of credit by the commissioner 48 and does not apply to allowance to a taxpayer of the credit with respect 49 to an eligible low-income building for each year of the credit period. 50 § 4. Subdivision 4 of section 22 of the public housing law, as amended 51 by section three of this act, is amended to read as follows: 52 4. Statewide limitation. The aggregate dollar amount of credit which 53 the commissioner may allocate to eligible low-income buildings under 54 this article shall be two hundred [seventeen] forty-seven millionS. 3009 19 A. 3009 1 dollars. The limitation provided by this subdivision applies only to 2 allocation of the aggregate dollar amount of credit by the commissioner 3 and does not apply to allowance to a taxpayer of the credit with respect 4 to an eligible low-income building for each year of the credit period. 5 § 5. Subdivision 4 of section 22 of the public housing law, as amended 6 by section four of this act, is amended to read as follows: 7 4. Statewide limitation. The aggregate dollar amount of credit which 8 the commissioner may allocate to eligible low-income buildings under 9 this article shall be two hundred [forty-seven] seventy-seven million 10 dollars. The limitation provided by this subdivision applies only to 11 allocation of the aggregate dollar amount of credit by the commissioner 12 and does not apply to allowance to a taxpayer of the credit with respect 13 to an eligible low-income building for each year of the credit period. 14 § 6. Subdivision 4 of section 22 of the public housing law, as amended 15 by section five of this act, is amended to read as follows: 16 4. Statewide limitation. The aggregate dollar amount of credit which 17 the commissioner may allocate to eligible low-income buildings under 18 this article shall be [two] three hundred [seventy-seven] seven million 19 dollars. The limitation provided by this subdivision applies only to 20 allocation of the aggregate dollar amount of credit by the commissioner 21 and does not apply to allowance to a taxpayer of the credit with respect 22 to an eligible low-income building for each year of the credit period. 23 § 7. This act shall take effect immediately; provided, however, 24 section two of this act shall take effect April 1, 2025; section three 25 of this act shall take effect April 1, 2026; section four of this act 26 shall take effect April 1, 2027; section five of this act shall take 27 effect April 1, 2028; and section six of this act shall take effect 28 April 1, 2029. 29 PART E 30 Section 1. Subdivision 26 of section 210-B of the tax law, as added by 31 section 17 of part A of chapter 59 of the laws of 2014, paragraphs (a) 32 and (c) as amended by section 2 of part RR of chapter 59 of the laws of 33 2018, subparagraph (i) of paragraph (a) as amended by section 2, subpar- 34 agraph (ii) of paragraph (a) as amended by section 4 and paragraph (a-1) 35 as amended by section 3 of subpart B of part I of chapter 59 of the laws 36 of 2023, paragraph (e) as amended by section 1 of part U of chapter 59 37 of the laws of 2019, paragraph (f) as added by section 2 of part CCC of 38 chapter 59 of the laws of 2021, is amended to read as follows: 39 26. Credit for rehabilitation of historic properties. (a) Application 40 of credit. (i) For taxable years beginning on or after January first, 41 two thousand ten, and before January first, two thousand thirty, a 42 taxpayer, or a transferee of such a taxpayer as described in paragraph 43 (g) of this subdivision, shall be allowed a credit as hereinafter 44 provided, against the tax imposed by this article, in an amount equal to 45 one hundred percent of the amount of credit allowed the taxpayer for the 46 same taxable year with respect to a certified historic structure, and 47 one hundred fifty percent of the amount of credit allowed the taxpayer 48 with respect to a certified historic structure that is a small project, 49 under internal revenue code section 47(c)(3), determined without regard 50 to ratably allocating the credit over a five year period as required by 51 subsection (a) of such section 47, with respect to a certified historic 52 structure located within the state. Provided, however, the credit shall 53 not exceed five million dollars.S. 3009 20 A. 3009 1 (ii) For taxable years beginning on or after January first, two thou- 2 sand thirty, a taxpayer, or a transferee of such a taxpayer as described 3 in paragraph (g) of this subdivision, shall be allowed a credit as here- 4 inafter provided, against the tax imposed by this article, in an amount 5 equal to thirty percent of the amount of credit allowed the taxpayer for 6 the same taxable year determined without regard to ratably allocating 7 the credit over a five year period as required by subsection (a) of 8 section 47 of the internal revenue code, with respect to a certified 9 historic structure under subsection (c)(3) of section 47 of the internal 10 revenue code with respect to a certified historic structure located 11 within the state. Provided, however, the credit shall not exceed one 12 hundred thousand dollars. 13 (a-1) If the taxpayer or transferee is a partner in a partnership or a 14 shareholder in a New York S corporation, then the credit caps imposed in 15 paragraph (a) of this subdivision shall be applied at the entity level, 16 so that the aggregate credit allowed to all the partners or shareholders 17 of each such entity in the taxable year does not exceed the credit cap 18 that is applicable in that taxable year. 19 (b) Tax credits allowed pursuant to this subdivision shall be allowed 20 in the taxable year that the qualified rehabilitation is placed in 21 service under section 167 of the federal internal revenue code. 22 (c) If the taxpayer is allowed a credit pursuant to section 47 of the 23 internal revenue code with respect to a qualified rehabilitation that is 24 also the subject of the credit allowed by this subdivision and that 25 credit pursuant to such section 47 is recaptured pursuant to subsection 26 (a) of section 50 of the internal revenue code, a portion of the credit 27 allowed under this subdivision must be added back by the taxpayer or 28 transferee in the same taxable year and in the same proportion as the 29 federal credit. 30 (d) The credit allowed under this subdivision for any taxable year 31 shall not reduce the tax due for such year to less than the amount 32 prescribed in paragraph (d) of subdivision one of section two hundred 33 ten of this article. However, if the amount of the credit allowed under 34 this subdivision for any taxable year reduces the tax to such amount or 35 if the taxpayer otherwise pays tax based on the fixed dollar minimum 36 amount, any amount of credit thus not deductible in such taxable year 37 shall be treated as an overpayment of tax to be recredited or refunded 38 in accordance with the provisions of section one thousand eighty-six of 39 this chapter. Provided, however, the provisions of subsection (c) of 40 section one thousand eighty-eight of this chapter notwithstanding, no 41 interest shall be paid thereon. 42 (e) [Except in the case of a qualified rehabilitation project under-43taken within a state park, state historic site, or other land owned by44the state, that is under the jurisdiction of the office of parks, recre-45ation and historic preservation, to] To be eligible for the credit 46 allowable under this subdivision, the rehabilitation project shall be in 47 whole or in part located within a census tract which is identified as 48 being at or below one hundred percent of the state median family income 49 as calculated as of April first of each year using the most recent five 50 year estimate from the American community survey published by the United 51 States Census bureau. If there is a change in the most recent five year 52 estimate, a census tract that qualified for eligibility under this 53 program before information about the change was released will remain 54 eligible for a credit under this subdivision for an additional two 55 calendar years. The eligibility restrictions set forth in this paragraph 56 shall not be applicable if:S. 3009 21 A. 3009 1 (i) a qualified rehabilitation project is undertaken within a state 2 park, state historic site, or other land owned by the state, that is 3 under the jurisdiction of the office of parks, recreation and historic 4 preservation; or 5 (ii) a qualified rehabilitation project is undertaken for the 6 provision of affordable housing and the taxpayer has entered into a 7 regulatory agreement with any state or federal agency or authority, or 8 any other government entity that is authorized to engage in the financ- 9 ing, construction or oversight of affordable housing within such enti- 10 ty's jurisdiction, and where such regulatory agreement sets forth 11 affordability requirements applicable for a period of not less than 12 thirty years and that is binding on all successors of the taxpayer. 13 (f) For purposes of this subdivision "small project" means qualified 14 rehabilitation expenditures totaling two million five hundred thousand 15 dollars or less. 16 (g)(i) A taxpayer allowed a credit pursuant to this subdivision may 17 transfer the credit, in whole or in part, to another person or entity, 18 who shall be referred to as the transferee, without regard to how any 19 tax credit authorized pursuant to section forty-seven of the internal 20 revenue code with respect to a qualified rehabilitation project may be 21 allocated and notwithstanding that such other person or entity owns no 22 interest in the qualified rehabilitation project or in an entity with an 23 ownership interest in the qualified rehabilitation project. A transferee 24 may not transfer any credit, or portion thereof, acquired by transfer. 25 (ii) A taxpayer seeking to transfer a credit allowed pursuant to this 26 subdivision must enter into a transfer contract with the transferee. The 27 transfer contract must specify: 28 (A) the building identification numbers for all buildings in the 29 project; 30 (B) the date each building was placed into service; 31 (C) the schedule of years for which the transfer credit may be claimed 32 and the amount of credit previously claimed; 33 (D) the amount of consideration received by the taxpayer for the 34 transfer credit; and 35 (E) the amount of credit being transferred. 36 (iii) No transfer shall be effective unless the taxpayer allowed a 37 credit pursuant to this subdivision and seeking to transfer the credit 38 files a transfer application with the commissioner of parks, recreation 39 and historic preservation prior to the transfer and such transfer appli- 40 cation is approved. The transfer application shall include the name and 41 federal identification numbers of the taxpayer and each proposed trans- 42 feree, the amount of credit proposed to be transferred to each proposed 43 transferee, a copy of the transfer contract, and such other information 44 as the commissioner or the commissioner of parks, recreation and histor- 45 ic preservation may require. The commissioner of parks, recreation and 46 historic preservation shall approve or deny each transfer application 47 and, if an application is denied, shall issue a written determination to 48 the taxpayer. If the transfer is approved, the commissioner of parks, 49 recreation and historic preservation shall issue a transfer approval 50 certificate that provides the name of the transferor and all transfer- 51 ees, the amount of credit being transferred and such other information 52 as the commissioner of parks, recreation and historic preservation and 53 the commissioner deem necessary. A copy of the transfer approval certif- 54 icate must be attached to each transferee's tax return. The commissioner 55 of parks, recreation and historic preservation, in consultation with the 56 commissioner, may establish such other procedures and standards deemedS. 3009 22 A. 3009 1 necessary for the transferability of credits allowed under this subdivi- 2 sion. 3 (iv) The commissioner of parks, recreation and historic preservation 4 shall forward copies of all transfer applications and attachments there- 5 to and approval certificates to the commissioner within thirty days 6 after the transfer is approved. 7 (v) A taxpayer allowed a credit pursuant to section forty-seven of the 8 internal revenue code with respect to a qualified rehabilitation that is 9 also the subject of the credit allowed by this subdivision shall remain 10 solely liable for all obligations and liabilities imposed on the taxpay- 11 er with respect to the credit allowed by this subdivision, none of which 12 shall apply to a party to whom the credit has been subsequently trans- 13 ferred. 14 § 2. Subsection (oo) of section 606 of the tax law, as amended by 15 chapter 239 of the laws of 2009, paragraph 1 as amended by chapter 472 16 of the laws of 2010, subparagraph (A) of paragraph 1 as amended by 17 section 1 of subpart B of part I of chapter 59 of the laws of 2023, 18 paragraph 3 as amended by section 1 of part RR of chapter 59 of the laws 19 of 2018, paragraph 4 as amended by section 1 of part F of chapter 59 of 20 the laws of 2013, paragraph 5 as amended by section 2 of part U of chap- 21 ter 59 of the laws of 2019, paragraph 6 as added by section 1 of part 22 CCC of chapter 59 of the laws of 2021, is amended to read as follows: 23 (oo) Credit for rehabilitation of historic properties. (1) (A) For 24 taxable years beginning on or after January first, two thousand ten and 25 before January first, two thousand thirty, a taxpayer, or a transferee 26 of such a taxpayer as described in paragraph seven of this subsection, 27 shall be allowed a credit as hereinafter provided, against the tax 28 imposed by this article, in an amount equal to one hundred percent of 29 the amount of credit allowed the taxpayer with respect to a certified 30 historic structure, and one hundred fifty percent of the amount of cred- 31 it allowed the taxpayer with respect to a certified historic structure 32 that is a small project, under internal revenue code section 47(c)(3), 33 determined without regard to ratably allocating the credit over a five 34 year period as required by subsection (a) of such section 47, with 35 respect to a certified historic structure located within the state. 36 Provided, however, the credit shall not exceed five million dollars. For 37 taxable years beginning on or after January first, two thousand thirty, 38 a taxpayer, or a transferee of such a taxpayer as described in paragraph 39 seven of this subsection, shall be allowed a credit as hereinafter 40 provided, against the tax imposed by this article, in an amount equal to 41 thirty percent of the amount of credit allowed the taxpayer with respect 42 to a certified historic structure under internal revenue code section 43 47(c)(3), determined without regard to ratably allocating the credit 44 over a five year period as required by subsection (a) of such section 45 47, with respect to a certified historic structure located within the 46 state; provided, however, the credit shall not exceed one hundred thou- 47 sand dollars. 48 (B) If the taxpayer or transferee is a partner in a partnership or a 49 shareholder of a New York S corporation, then the credit cap imposed in 50 subparagraph (A) of this paragraph shall be applied at the entity level, 51 so that the aggregate credit allowed to all the partners or shareholders 52 of each such entity in the taxable year does not exceed the credit cap 53 that is applicable in that taxable year. 54 (2) Tax credits allowed pursuant to this subsection shall be allowed 55 in the taxable year that the qualified rehabilitation is placed in 56 service under section 167 of the federal internal revenue code.S. 3009 23 A. 3009 1 (3) If the taxpayer is allowed a credit pursuant to section 47 of the 2 internal revenue code with respect to a qualified rehabilitation that is 3 also the subject of the credit allowed by this subsection and that cred- 4 it pursuant to such section 47 is recaptured pursuant to subsection (a) 5 of section 50 of the internal revenue code, a portion of the credit 6 allowed under this subsection must be added back by the taxpayer or 7 transferee in the same taxable year and in the same proportion as the 8 federal recapture. 9 (4) If the amount of the credit allowed under this subsection for any 10 taxable year shall exceed the taxpayer's tax for such year, the excess 11 shall be treated as an overpayment of tax to be credited or refunded in 12 accordance with the provisions of section six hundred eighty-six of this 13 article, provided, however, that no interest shall be paid thereon. 14 (5) [Except in the case of a qualified rehabilitation project under-15taken within a state park, state historic site, or other land owned by16the state, that is under the jurisdiction of the office of parks, recre-17ation and historic preservation, to] To be eligible for the credit 18 allowable under this subsection the rehabilitation project shall be in 19 whole or in part located within a census tract which is identified as 20 being at or below one hundred percent of the state median family income 21 as calculated as of April first of each year using the most recent five 22 year estimate from the American community survey published by the United 23 States Census bureau. If there is a change in the most recent five year 24 estimate, a census tract that qualified for eligibility under this 25 program before information about the change was released will remain 26 eligible for a credit under this subsection for an additional two calen- 27 dar years. The eligibility restrictions set forth in this paragraph 28 shall not be applicable if: 29 (A) a qualified rehabilitation project is undertaken within a state 30 park, state historic site, or other land owned by the state, that is 31 under the jurisdiction of the office of parks, recreation and historic 32 preservation; or 33 (B) a qualified rehabilitation project is undertaken for the provision 34 of affordable housing and the taxpayer has entered into a regulatory 35 agreement with any state or federal agency or authority, or any other 36 government entity that is authorized to engage in the financing, 37 construction or oversight of affordable housing within such entity's 38 jurisdiction, and where such regulatory agreement sets forth affordabil- 39 ity requirements applicable for a period of not less than thirty years 40 and that is binding on all successors of the taxpayer. 41 (6) For purposes of this subsection the term "small project" means 42 qualified rehabilitation expenditures totaling two million five hundred 43 thousand dollars or less. 44 (7)(A) A taxpayer allowed a credit pursuant to this subsection may 45 transfer the credit, in whole or in part, to another person or entity, 46 who shall be referred to as the transferee, without regard to how any 47 tax credit authorized pursuant to section forty-seven of the internal 48 revenue code with respect to a qualified rehabilitation project may be 49 allocated and notwithstanding that such other person or entity owns no 50 interest in the qualified rehabilitation project or in an entity with an 51 ownership interest in the qualified rehabilitation project. A transferee 52 may not transfer any credit, or portion thereof, acquired by transfer. 53 (B) A taxpayer seeking to transfer a credit allowed pursuant to this 54 subsection must enter into a transfer contract with the transferee. The 55 transfer contract must specify:S. 3009 24 A. 3009 1 (i) the building identification numbers for all buildings in the 2 project; 3 (ii) the date each building was placed into service; 4 (iii) the schedule of years for which the transfer credit may be 5 claimed and the amount of credit previously claimed; 6 (iv) the amount of consideration received by the taxpayer for the 7 transfer credit; and 8 (v) the amount of credit being transferred. 9 (C) No transfer shall be effective unless the taxpayer allowed a cred- 10 it pursuant to this subsection and seeking to transfer the credit files 11 a transfer application with the commissioner of parks, recreation and 12 historic preservation prior to the transfer and such transfer applica- 13 tion is approved. The transfer application shall include the name and 14 federal identification numbers of the taxpayer and each proposed trans- 15 feree, the amount of credit proposed to be transferred to each proposed 16 transferee, a copy of the transfer contract, and such other information 17 as the commissioner or the commissioner of parks, recreation and histor- 18 ic preservation may require. The commissioner of parks, recreation and 19 historic preservation shall approve or deny each transfer application 20 and, if an application is denied, shall issue a written determination to 21 the taxpayer. If the transfer is approved, the commissioner of parks, 22 recreation and historic preservation shall issue a transfer approval 23 certificate that provides the name of the transferor and all transfer- 24 ees, the amount of credit being transferred and such other information 25 as the commissioner of parks, recreation and historic preservation and 26 the commissioner deem necessary. A copy of the transfer approval certif- 27 icate must be attached to each transferee's tax return. The commissioner 28 of parks, recreation and historic preservation, in consultation with the 29 commissioner, may establish such other procedures and standards deemed 30 necessary for the transferability of credits allowed under this 31 subsection. 32 (D) The commissioner of parks, recreation and historic preservation 33 shall forward copies of all transfer applications and attachments there- 34 to and approval certificates to the commissioner within thirty days 35 after the transfer is approved. 36 (E) A taxpayer allowed a credit pursuant to section forty-seven of the 37 internal revenue code with respect to a qualified rehabilitation that is 38 also the subject of the credit allowed by this subsection shall remain 39 solely liable for all obligations and liabilities imposed on the taxpay- 40 er with respect to the credit allowed by this subsection, none of which 41 shall apply to a party to whom the credit has been subsequently trans- 42 ferred. 43 § 3. Subdivision (y) of section 1511 of the tax law, as added by chap- 44 ter 472 of the laws of 2010, subparagraph (A) of paragraph 1 as amended 45 by section 5 of subpart B of part I of chapter 59 of the laws of 2023, 46 paragraph 3 as amended by section 3 of part RR of chapter 59 of the laws 47 of 2018, paragraph 4 as amended by section 4 of part F of chapter 59 of 48 the laws of 2013, paragraph 5 as amended by section 3 of part U of chap- 49 ter 59 of the laws of 2019, paragraph 6 as added by section 3 of part 50 CCC of chapter 59 of the laws of 2021, is amended to read as follows: 51 (y) Credit for rehabilitation of historic properties. (1) (A) For 52 taxable years beginning on or after January first, two thousand ten and 53 before January first, two thousand thirty, a taxpayer, or a transferee 54 of such a taxpayer as described in paragraph seven of this subdivision, 55 shall be allowed a credit as hereinafter provided, against the tax 56 imposed by this article, in an amount equal to one hundred percent ofS. 3009 25 A. 3009 1 the amount of credit allowed the taxpayer with respect to a certified 2 historic structure, and one hundred fifty percent of the amount of cred- 3 it allowed the taxpayer with respect to a certified historic structure 4 that is a small project, under internal revenue code section 47(c)(3), 5 determined without regard to ratably allocating the credit over a five 6 year period as required by subsection (a) of such section 47, with 7 respect to a certified historic structure located within the state. 8 Provided, however, the credit shall not exceed five million dollars. For 9 taxable years beginning on or after January first, two thousand thirty, 10 a taxpayer, or a transferee of such a taxpayer as described in paragraph 11 seven of this subdivision, shall be allowed a credit as hereinafter 12 provided, against the tax imposed by this article, in an amount equal to 13 thirty percent of the amount of credit allowed the taxpayer with respect 14 to a certified historic structure under internal revenue code section 15 47(c)(3), determined without regard to ratably allocating the credit 16 over a five year period as required by subsection (a) of such section 47 17 with respect to a certified historic structure located within the state. 18 Provided, however, the credit shall not exceed one hundred thousand 19 dollars. 20 (B) If the taxpayer or transferee is a partner in a partnership, then 21 the cap imposed in subparagraph (A) of this paragraph shall be applied 22 at the entity level, so that the aggregate credit allowed to all the 23 partners of such partnership in the taxable year does not exceed the 24 credit cap that is applicable in that taxable year. 25 (2) Tax credits allowed pursuant to this subsection shall be allowed 26 in the taxable year that the qualified rehabilitation is placed in 27 service under section 167 of the federal internal revenue code. 28 (3) If the taxpayer is allowed a credit pursuant to section 47 of the 29 internal revenue code with respect to a qualified rehabilitation that is 30 also the subject of the credit allowed by this subdivision and that 31 credit pursuant to such section 47 is recaptured pursuant to subsection 32 (a) of section 50 of the internal revenue code, a portion of the credit 33 allowed under this subdivision in the taxable year the credit was 34 claimed must be added back by the taxpayer or transferee in the same 35 taxable year and in the same proportion as the federal recapture. 36 (4) The credit allowed under this subdivision for any taxable year 37 shall not reduce the tax due for such year to less than the minimum 38 fixed by paragraph four of subdivision (a) of section fifteen hundred 39 two or section fifteen hundred two-a of this article, whichever is 40 applicable. However, if the amount of credits allowed under this subdi- 41 vision for any taxable year reduces the tax to such amount, any amount 42 of credit thus not deductible in such taxable year shall be treated as 43 an overpayment of tax to be credited or refunded in accordance with the 44 provisions of section one thousand eighty-six of this chapter. Provided, 45 however, the provisions of subsection (c) of section one thousand eight- 46 y-eight of this chapter notwithstanding, no interest shall be paid ther- 47 eon. 48 (5) [Except in the case of a qualified rehabilitation project under-49taken within a state park, state historic site, or other land owned by50the state, that is under the jurisdiction of the office of parks, recre-51ation and historic preservation, to] To be eligible for the credit 52 allowable under this subdivision, the rehabilitation project shall be in 53 whole or in part located within a census tract which is identified as 54 being at or below one hundred percent of the state median family income 55 as calculated as of April first of each year using the most recent five 56 year estimate from the American community survey published by the UnitedS. 3009 26 A. 3009 1 States Census bureau. If there is a change in the most recent five year 2 estimate, a census tract that qualified for eligibility under this 3 program before information about the change was released will remain 4 eligible for a credit under this subdivision for an additional two 5 calendar years. The eligibility restrictions set forth in this paragraph 6 shall not be applicable if: 7 (A) a qualified rehabilitation project is undertaken within a state 8 park, state historic site, or other land owned by the state, that is 9 under the jurisdiction of the office of parks, recreation and historic 10 preservation; or 11 (B) a qualified rehabilitation project is undertaken for the provision 12 of affordable housing and the taxpayer has entered into a regulatory 13 agreement with any state or federal agency or authority, or any other 14 government entity that is authorized to engage in the financing, 15 construction or oversight of affordable housing within such entity's 16 jurisdiction, and where such regulatory agreement sets forth affordabil- 17 ity requirements applicable for a period of not less than thirty years 18 and that is binding on all successors of the taxpayer. 19 (6) For purposes of this subdivision "small project" means qualified 20 rehabilitation expenditures totaling two million five hundred thousand 21 dollars or less. 22 (7)(A) A taxpayer allowed a credit pursuant to this subdivision may 23 transfer the credit, in whole or in part, to another person or entity, 24 who shall be referred to as the transferee, without regard to how any 25 tax credit authorized pursuant to section forty-seven of the internal 26 revenue code with respect to a qualified rehabilitation project may be 27 allocated and notwithstanding that such other person or entity owns no 28 interest in the qualified rehabilitation project or in an entity with an 29 ownership interest in the qualified rehabilitation project. A transferee 30 may not transfer any credit, or portion thereof, acquired by transfer. 31 (B) A taxpayer seeking to transfer a credit allowed pursuant to this 32 subdivision must enter into a transfer contract with the transferee. The 33 transfer contract must specify: 34 (i) the building identification numbers for all buildings in the 35 project; 36 (ii) the date each building was placed into service; 37 (iii) the schedule of years for which the transfer credit may be 38 claimed and the amount of credit previously claimed; 39 (iv) the amount of consideration received by the taxpayer for the 40 transfer credit; and 41 (v) the amount of credit being transferred. 42 (C) No transfer shall be effective unless the taxpayer allowed a cred- 43 it pursuant to this subdivision and seeking to transfer the credit files 44 a transfer application with the commissioner of parks, recreation and 45 historic preservation prior to the transfer and such transfer applica- 46 tion is approved. The transfer application shall include the name and 47 federal identification numbers of the taxpayer and each proposed trans- 48 feree, the amount of credit proposed to be transferred to each proposed 49 transferee, a copy of the transfer contract, and such other information 50 as the commissioner or the commissioner of parks, recreation and histor- 51 ic preservation may require. The commissioner of parks, recreation and 52 historic preservation shall approve or deny each transfer application 53 and, if an application is denied, shall issue a written determination to 54 the taxpayer. If the transfer is approved, the commissioner of parks, 55 recreation and historic preservation shall issue a transfer approval 56 certificate that provides the name of the transferor and all transfer-S. 3009 27 A. 3009 1 ees, the amount of credit being transferred and such other information 2 as the commissioner of parks, recreation and historic preservation and 3 the commissioner deem necessary. A copy of the transfer approval certif- 4 icate must be attached to each transferee's tax return. The commissioner 5 of parks, recreation and historic preservation, in consultation with the 6 commissioner, may establish such other procedures and standards deemed 7 necessary for the transferability of credits allowed under this subdivi- 8 sion. 9 (D) The commissioner of parks, recreation and historic preservation 10 shall forward copies of all transfer applications and attachments there- 11 to and approval certificates to the commissioner within thirty days 12 after the transfer is approved. 13 (E) A taxpayer allowed a credit pursuant to section forty-seven of the 14 internal revenue code with respect to a qualified rehabilitation that is 15 also the subject of the credit allowed by this subdivision shall remain 16 solely liable for all obligations and liabilities imposed on the taxpay- 17 er with respect to the credit allowed by this subdivision, none of which 18 shall apply to a party to whom the credit has been subsequently trans- 19 ferred. 20 § 4. This act shall take effect immediately and shall apply to taxable 21 years beginning on and after January 1, 2026. 22 PART F 23 Section 1. This Part enacts into law major components of legislation 24 relating to the purchase of residential real property by certain 25 purchasers, and taxation relating thereto. Each component is wholly 26 contained within a Subpart identified as Subpart A and Subpart B. The 27 effective date for each particular provision contained within such 28 Subpart is set forth in the last section of such Subpart. Any provision 29 in any section contained within a Subpart, including the effective date 30 of the Subpart, which makes a reference to a section "of this act", when 31 used in connection with that particular component, shall be deemed to 32 mean and refer to the corresponding section of the Subpart in which it 33 is found. Section three of this Part sets forth the general effective 34 date of this Part. 35 SUBPART A 36 Section 1. The real property law is amended by adding a new article 16 37 to read as follows: 38 ARTICLE 16 39 SEVENTY-FIVE-DAY WAITING PERIOD FOR SALE OF SINGLE-FAMILY AND TWO-FAMILY 40 RESIDENCES TO CERTAIN PURCHASERS 41 Section 520. Definitions. 42 521. Seventy-five-day waiting period. 43 522. Enforcement. 44 § 520. Definitions. As used in this article, the following terms shall 45 have the following meanings: 46 1. "Community land trust" shall mean a nonprofit organization exempt 47 from certain taxes pursuant to section 501 (c) (3) or section 501(c) (4) 48 of the United States internal revenue code and/or that is incorporated 49 under the not-for-profit corporation law whose primary purpose is to 50 provide affordable housing by owning land and leasing or selling resi- 51 dential housing situated on that land to households that meet certain 52 income requirements.S. 3009 28 A. 3009 1 2. (a) "Covered entity" shall mean an institutional real estate inves- 2 tor or an entity that receives funding from an institutional real estate 3 investor for the purchase of a single-family residence or two-family 4 residence. 5 (b) "Covered entity" shall not include: 6 (i) an organization which is described in section 501(c)(3) of the 7 Internal Revenue Code and exempt from tax under section 501(a) of the 8 Internal Revenue Code; 9 (ii) a land bank; or 10 (iii) a community land trust. 11 3.(a) "Institutional real estate investor" shall mean an entity or 12 combined group that: 13 (i) owns ten or more single-family residences and/or two-family resi- 14 dences; 15 (ii) manages or receives funds pooled from investors and acts as a 16 fiduciary with respect to one or more investors; and 17 (iii) has fifty million dollars or more in net value or assets under 18 management on any day during the taxable year. 19 (b) An entity is considered owning a single-family residence or two- 20 family residence if it directly owns the single-family residence or 21 two-family residence or indirectly owns ten percent or more of the 22 single-family residence or two-family residence. 23 4. "Land bank" shall mean an entity created in accordance with article 24 sixteen of the not-for-profit corporation law. 25 5. "Single-family residence" shall mean a residential property 26 consisting of one dwelling unit; provided that such term shall not 27 include: 28 (a) any single-family residence that is to be used as the principal 29 residence of any person who has an ownership interest in the covered 30 entity that seeks to purchase the single-family residence; or 31 (b) any single-family residence constructed, acquired, or operated 32 with federal, state, or local appropriated funding sources. 33 6. "Two-family residence" shall mean a residential property consisting 34 of two dwelling units; provided that such term shall not include: 35 (a) any two-family residence in which one of the dwelling units is to 36 be used as the principal residence of any person who has an ownership 37 interest in the covered entity that seeks to purchase the two-family 38 residence; or 39 (b) any two-family residence constructed, acquired, or operated with 40 federal, state, or local appropriated funding sources. 41 § 521. Seventy-five-day waiting period. 1. Notwithstanding any other 42 provision of law, on and after July first, two thousand twenty-five, it 43 shall be unlawful for a covered entity to purchase, acquire, or offer to 44 purchase or acquire any interest in a single-family residence or two-fa- 45 mily residence unless the single-family residence or two-family resi- 46 dence has been listed for sale to the general public for at least seven- 47 ty-five days. 48 2. The seventy-five-day waiting period set forth in subdivision one of 49 this section shall restart if the seller changes the asking price for 50 the single-family residence or two-family residence, and a covered enti- 51 ty shall be prohibited from purchasing, acquiring, or offering to 52 purchase or acquire any interest in the single-family residence or two- 53 family residence until it has been listed for sale to the general public 54 at the new asking price for at least an additional seventy-five days.S. 3009 29 A. 3009 1 3. A covered entity that violates this section may be subject to civil 2 damages and penalties in an amount not to exceed two hundred fifty thou- 3 sand dollars. 4 4. Before finalizing the sale of a single-family or two-family resi- 5 dence, a covered entity purchasing such residence shall be required to 6 submit to the seller or anyone acting as an agent for such seller, a 7 form that has been signed by the covered entity purchaser, or an author- 8 ized agent thereof, and notarized, stating that the purchaser is a 9 covered entity. Any covered entity or covered entity's agent that 10 violates this section may be subject to civil damages and penalties in 11 an amount not to exceed ten thousand dollars. 12 5. The following form shall be completed by a covered entity purchas- 13 ing a single-family residence or two-family residence: 14 "COMPLIANCE WITH REAL PROPERTY LAW ARTICLE 16 15 Pursuant to Article 16 of the New York State Real Property Law, 16 covered entities are required to wait at least 75 days after a single- 17 family residence or two-family residence has been listed for sale to the 18 general public to purchase, acquire, or offer to purchase or acquire any 19 interest in the single-family residence or two-family residence. Prior 20 to finalizing the sale, the covered entity or its agent is required to 21 complete this form stating that the purchaser is a covered entity. 22 The buyer of this single-family residence or two-family residence is a 23 covered entity as defined in New York State Real Property Law § 520. The 24 buyer is subject to the statutory 75-day waiting period. Failure to 25 comply with the 75-day waiting period may result in civil fines and 26 penalties. 27 Any covered entity or covered entity's agent that does not complete 28 and submit this form as required by statute, or abide by the statutory 29 waiting period, may be liable for civil damages. 30 IDENTIFYING INFORMATION 31 BUYER OR BUYERS OF THIS RESIDENCE: 32 ____________________________ 33 Printed Name and Mailing Address 34 ____________________________ 35 Printed Name and Mailing Address 36 By signing this form, the buyer or its agent affirms that the statements 37 herein are true under the penalties of perjury. 38 SIGNATURE OF BUYER(S) OR ITS AGENT OF THIS SINGLE-FAMILY RESIDENCE OR 39 TWO-FAMILY RESIDENCE: 40 ____________________________ 41 Signature Date 42 ____________________________ 43 Signature Date 44 ____________________________ 45 SIGNATURE OF WITNESSES 46 ____________________________ 47 Signature Date 48 ____________________________ 49 Signature Date 50 ____________________________ 51 NOTARY ACKNOWLEDGEMENT 52 (insert notary acknowledgement for this form here)" 53 § 522. Enforcement. Notwithstanding any other provision of law, the 54 attorney general of the state of New York shall have the authority to 55 enforce the provisions of section five hundred twenty-one of this arti- 56 cle by applying, in the name of the people of the state of New York, toS. 3009 30 A. 3009 1 the supreme court of the state of New York, on notice of five days, for 2 an order enjoining the continuance of such violative activity, including 3 but not limited to by bringing an action for injunctive or declaratory 4 relief if a single-family residence or two-family residence is in the 5 process of being or has been sold in a manner that contravenes the 6 requirements of section five hundred twenty-one of this article, and 7 imposing civil damages and penalties pursuant to subdivisions three and 8 four of section five hundred twenty-one of this article, as applicable. 9 § 2. Severability. If any provision of this act, or any application of 10 any provision of this act, is held to be invalid, that shall not affect 11 the validity or effectiveness of any other provision of this act, or of 12 any other application of any provision of this act, which can be given 13 effect without that provision or application; and to that end, the 14 provisions and applications of this act are severable. 15 § 3. This act shall take effect on the one hundred twentieth day after 16 it shall have become a law. 17 SUBPART B 18 Section 1. Subdivision 9 of section 208 of the tax law is amended by 19 adding a new paragraph (c-4) to read as follows: 20 (c-4) Depreciation and interest deduction adjustments for covered 21 properties owned by an institutional real estate investor. (1) Notwith- 22 standing any other provision of this section, in the case of a corpo- 23 ration or combined group that is an institutional real estate investor 24 or a partner, member or shareholder of an entity that is an institu- 25 tional real estate investor, entire net income shall be computed with 26 the adjustments for depreciation and interest related to covered proper- 27 ties as set forth in this paragraph. 28 (2) Definitions. (A) "Institutional real estate investor" means an 29 entity or combined group that (i) owns ten or more covered properties, 30 (ii) manages funds pooled from investors and acts as a fiduciary with 31 respect to one or more investors, and (iii) has fifty million dollars or 32 more in net value or assets under management on any day during the taxa- 33 ble year. An entity is considered owning a covered property if it 34 directly owns the covered property or indirectly owns ten percent or 35 more of the covered property. 36 (B) "Covered property" means a residential property consisting of no 37 more than two dwelling units located in New York state. 38 (3) Depreciation deductions. With respect to covered properties, no 39 deduction for depreciation allowed under the internal revenue code or 40 this section shall be allowed. 41 (4) Interest deductions. With respect to covered properties, the 42 interest deduction for federal income tax purposes allowed under section 43 one hundred sixty-three of the internal revenue code shall not be 44 allowed and must be added back in the computation of entire net income, 45 except with respect to interest paid or accrued in the taxable year when 46 such covered property is sold to an individual for use as the principal 47 residence of such individual or sold to a nonprofit organization that 48 has as its principal purpose the creation, development, or preservation 49 of affordable housing. For purposes of this subparagraph, any amount of 50 interest that would have been allowed under section one hundred sixty- 51 three of the internal revenue code in connection with a covered property 52 but for an election to treat such interest as chargeable to capital 53 account shall be treated as an amount allowed under section one hundred 54 sixty-three of the internal revenue code.S. 3009 31 A. 3009 1 § 2. Section 612 of the tax law is amended by adding a new subsection 2 (y) to read as follows: 3 (y) Depreciation and interest adjustments for covered properties owned 4 by an institutional real estate investor. (1) Notwithstanding any other 5 provision of this section, in the case of a taxpayer that is a partner, 6 member or shareholder of an entity that is an institutional real estate 7 investor as defined in paragraph (c-4) of subdivision nine of section 8 two hundred eight of this chapter, New York adjusted gross income shall 9 be computed with adjustments for depreciation and interest related to 10 covered properties as set forth in this subsection. 11 (2) Depreciation deductions. With respect to covered properties, no 12 deduction for depreciation allowed under the internal revenue code or 13 this section shall be allowed. 14 (3) Federal interest deductions. With respect to covered properties, 15 the interest deduction for federal income tax purposes allowed under 16 section one hundred sixty-three of the internal revenue code shall not 17 be allowed and must be added back in the computation of New York 18 adjusted gross income, except with respect to interest paid or accrued 19 in the taxable year when such covered property is sold to an individual 20 for use as the principal residence of such individual or sold to a 21 nonprofit organization that has as its principal purpose the creation, 22 development, or preservation of affordable housing. For purposes of this 23 paragraph, any amount of interest that would have been allowed under 24 section one hundred sixty-three of the internal revenue code in 25 connection with a covered property but for an election to treat such 26 interest as chargeable to capital account shall be treated as an amount 27 allowed under section one hundred sixty-three of the internal revenue 28 code. 29 § 3. Subdivision (b) of section 1503 of the tax law is amended by 30 adding a new paragraph 17 to read as follows: 31 (17) Depreciation and interest adjustments for covered properties 32 owned by an institutional real estate investor. (A) Notwithstanding any 33 other provision of this section, in the case of a taxpayer that is an 34 institutional real estate investor or partner, member or shareholder of 35 an entity that is an institutional real estate investor as defined in 36 paragraph (c-4) of subdivision nine of section two hundred eight of this 37 chapter, entire net income shall be computed with adjustments for depre- 38 ciation and interest related to covered properties as set forth in this 39 paragraph. 40 (B) Depreciation deductions. With respect to covered properties, no 41 deduction for depreciation allowed under the internal revenue code or 42 this section shall be allowed. 43 (C) Federal interest deductions. With respect to covered properties, 44 the interest deduction for federal income tax purposes allowed under 45 section one hundred sixty-three of the internal revenue code shall not 46 be allowed and must be added back in the computation of entire net 47 income, except with respect to interest paid or accrued in the taxable 48 year when such covered property is sold to an individual for use as the 49 principal residence of such individual or sold to a nonprofit organiza- 50 tion that has as its principal purpose the creation, development, or 51 preservation of affordable housing. For purposes of this subparagraph, 52 any amount of interest that would have been allowed under section one 53 hundred sixty-three of the internal revenue code in connection with a 54 covered property but for an election to treat such interest as chargea- 55 ble to capital account shall be treated as an amount allowed under 56 section one hundred sixty-three of the internal revenue code.S. 3009 32 A. 3009 1 § 4. This act shall take effect immediately and shall apply to taxable 2 years beginning on or after January 1, 2025. 3 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 4 sion, section or part of this act shall be adjudged by any court of 5 competent jurisdiction to be invalid, such judgment shall not affect, 6 impair, or invalidate the remainder thereof, but shall be confined in 7 its operation to the clause, sentence, paragraph, subdivision, section 8 or part thereof directly involved in the controversy in which such judg- 9 ment shall have been rendered. It is hereby declared to be the intent of 10 the legislature that this act would have been enacted even if such 11 invalid provisions had not been included herein. 12 § 3. This act shall take effect immediately, provided, however, that 13 the applicable effective date of Subparts A through B of this act shall 14 be as specifically set forth in the last section of such Subparts. 15 PART G 16 Section 1. The economic development law is amended by adding a new 17 article 30 to read as follows: 18 ARTICLE 30 19 CATALIST NY PROGRAM 20 Section 510. Short title. 21 511. Statement of legislative findings and declaration. 22 512. Definitions. 23 513. Eligibility criteria. 24 514. Application and approval process. 25 515. Tax benefits. 26 516. Powers and duties of the commissioner. 27 § 510. Short title. This article shall be known and may be cited as 28 the "companies attracting talent to advance leading innovations and 29 scale technologies in New York program", or the "CATALIST NY program". 30 § 511. Statement of legislative findings and declaration. It is hereby 31 found and declared that New York state needs, as a matter of public 32 policy, to grow the innovation economy in New York state and support 33 early-stage innovation businesses during a critical phase of their 34 growth. 35 § 512. Definitions. For the purposes of this article: 36 1. "CATALIST NY incubator" shall mean a New York state incubator that 37 has been certified by the department as a CATALIST NY incubator. 38 2. "CATALIST NY small business" shall mean any business that qualifies 39 as a small business under section one hundred thirty-one of this chapter 40 that has been certified by the department as a CATALIST NY small busi- 41 ness. 42 3. "Certificate of tax benefits" shall mean the document issued to a 43 CATALIST NY small business by the department, after the department has 44 verified that such business entity has met all applicable criteria in 45 section five hundred thirteen of this article to be eligible for the 46 CATALIST NY tax benefits allowed under section five hundred fifteen of 47 this article. The certificate shall be issued in each year in which the 48 eligibility criteria are satisfied and shall specify (a) the number of 49 CATALIST NY small business net new jobs that are eligible for the tax 50 benefits pursuant to section five hundred fifteen of this article; and 51 (b) the taxable year in which such tax benefits are applicable. 52 4. "Commissioner" shall mean the commissioner of economic development. 53 5. "Department" shall mean the department of economic development.S. 3009 33 A. 3009 1 6. "New York state incubator" shall mean a business incubation program 2 that (a) provides physical space to early-stage innovation-focused busi- 3 nesses in New York state; (b) has been in operation for at least three 4 years prior to the date of application to become a CATALIST NY incuba- 5 tor; and (c) provides technical assistance, direct mentorship, entrepre- 6 neurial education, and business development services to early-stage 7 innovation-focused businesses. 8 7. "Net new job" shall mean a full-time job that: (a) is new to the 9 state; and (b) has not been transferred from employment with another 10 business located in this state through an acquisition, merger, consol- 11 idation or other reorganization of businesses, or the acquisition of 12 assets of another business, and has not been transferred from employment 13 with a related person in this state. For purposes of this subdivision, 14 full-time means at least thirty-five hours of gainful work a week. 15 § 513. Eligibility criteria. 1. To qualify as a CATALIST NY incubator, 16 a New York state incubator shall be a New York state certified incubator 17 or innovation hot spot under section sixteen-v of the New York state 18 urban development corporation act or meet all of the following require- 19 ments: (a) has been in operation in New York state for at least three 20 years, prior to submission of an application to the department for 21 certification as a CATALIST NY incubator, with a demonstrated track 22 record of supporting high growth start-up companies; (b) provide techni- 23 cal assistance, direct mentorship, entrepreneurial education, and access 24 to investment and business development services, including providing 25 assistance in the development of business plans , to incubator clients; 26 and (c) provide physical space under a written agreement for any indi- 27 vidual incubator client. Priority shall be given to entities that 28 support businesses within the following sectors: clean energy and 29 climate technology; life sciences; computing and cybersecurity; agricul- 30 tural technology; advanced manufacturing; materials; and microelectron- 31 ics. 32 2. A CATALIST NY incubator shall nominate, for certification by the 33 department as a CATALIST NY small business, small businesses that have 34 completed a program with the CATALIST NY incubator, or otherwise have a 35 direct and sustained engagement with the CATALIST NY incubator, to 36 receive tax benefits pursuant to section five hundred fifteen of this 37 article, and paragraph forty-eight of subdivision (c) of section six 38 hundred twelve of the tax law for up to a period of five taxable years 39 commencing with the taxable year during which the CATALIST NY small 40 business is certified by the department. 41 3. To be eligible to be nominated by a CATALIST NY incubator and 42 subsequently certified by the department to receive tax benefits as a 43 CATALIST NY small business, such business entity shall satisfy each of 44 the following conditions: (a) such business shall graduate from, or have 45 otherwise completed, such CATALIST NY incubator's services within the 46 previous twenty-four months and engaged with the CATALIST NY incubator 47 for at least twelve months; (b) such business shall be headquartered in 48 New York state and one or more of the persons employed as chief execu- 49 tive officer, chief technology officer, or chief operating officer shall 50 perform services in New York state; (c) at the time such business is 51 nominated, it shall have fewer than twenty full-time employees; (d) such 52 business shall demonstrate a sound financial plan and, if approved to 53 receive the tax benefits allowed under this program, such business shall 54 create at least two additional permanent full-time, New York state based 55 jobs; (e) during the taxable year immediately preceding the taxable year 56 in which such business would be eligible for the tax benefits pursuantS. 3009 34 A. 3009 1 to this program, the small business shall not exceed two million dollars 2 in gross receipts, as determined in accordance with generally accepted 3 accounting principles; and (f) any other conditions as determined by the 4 department through regulations or guidelines promulgated pursuant to 5 paragraph two of section five hundred sixteen of this article. 6 4. Such nominations and determinations shall be made in conformance 7 with program guidelines issued by the department. 8 § 514. Application and approval process. 1. New York state incubators 9 shall submit a complete application as prescribed by the commissioner to 10 be certified as a CATALIST NY incubator. 11 2. The commissioner shall establish procedures and a timeframe for the 12 New York state incubators to submit applications to be certified as 13 CATALIST NY incubators and for nominations of small businesses for 14 certification as CATALIST NY small businesses. 15 3. To nominate a small business for certification as a CATALIST NY 16 small business, a CATALIST NY incubator shall: 17 (a) provide evidence in a form and manner prescribed by the commis- 18 sioner of the eligibility of the small business being nominated pursuant 19 to paragraphs two and three of section five hundred thirteen of this 20 article for the tax benefits pursuant to section five hundred fifteen of 21 this article and paragraph forty-eight of subdivision (c) of section six 22 hundred twelve of the tax law; 23 (b) allow the department and its agents access to any and all books 24 and records the department may require to monitor compliance; and 25 (c) agree to provide any additional information required by the 26 department relevant to this article. 27 4. After reviewing a CATALIST NY incubator's nomination and determin- 28 ing that the nominated small business meets the eligibility criteria as 29 set forth in this article, the department may issue to such small busi- 30 ness a certificate of tax benefit as a CATALIST NY small business. 31 § 515. Tax benefits. 1. A CATALIST NY small business certified by the 32 department shall be eligible for an allocation by the department of 33 personal income tax benefits pursuant to paragraph forty-eight of 34 subsection (c) of section six hundred twelve of the tax law for up to 35 eight net new jobs. The tax benefits shall be available for a period of 36 five taxable years commencing with the taxable year during which the 37 department issues the certificate of tax benefits to the CATALIST NY 38 small business. 39 2. To be eligible for the tax benefits allocated pursuant to this 40 program, (a) the CATALIST NY small business employees shall be employed 41 by and work exclusively for the CATALIST NY small business in a net new 42 job during the taxable year; (b) the CATALIST NY small business employee 43 shall be engaged in work for the CATALIST NY small business for at least 44 one-half of the taxable year; and (c) the CATALIST NY small business 45 shall be in compliance with the requirements set forth in this article. 46 3. If the certified CATALIST NY small business creates more net new 47 jobs than for which it has been allocated personal income tax benefits, 48 the allocated personal income tax benefits shall be provided to eligible 49 CATALIST NY small business employees based on the employees' dates of 50 hiring. 51 4. The CATALIST NY small business shall identify to the department, 52 through the submission of a CATALIST Jobs Plan, the titles that shall 53 receive personal income tax benefits pursuant to this section for inclu- 54 sion in the certificate of tax benefits provided to such CATALIST NY 55 small business and such titles shall be included on the certificate of 56 tax benefits provided to such business. CATALIST NY small businessesS. 3009 35 A. 3009 1 shall annually identify to the department of taxation and finance, in 2 the form and matter established by such department, the CATALIST NY 3 small business employees who are eligible to receive the personal income 4 tax benefits allocated to such business. The CATALIST NY small business 5 shall provide a copy of the certificate of tax benefits issued by the 6 department to each such employee. 7 5. For taxable years beginning on or after January first, two thousand 8 twenty-five and before January first, two thousand thirty, the aggregate 9 number of CATALIST NY small business employees allowed the tax benefits 10 under this article in any taxable year shall be four thousand five 11 hundred, the funds for which benefits shall be allotted from the funds 12 available for tax credits under article seventeen of this chapter. Such 13 aggregate number of eligible CATALIST NY small business employees shall 14 be allocated by the department among CATALIST NY small businesses in 15 order of priority based upon the date of certification under this arti- 16 cle. 17 6. No tax benefit shall be allowed for taxable years beginning on or 18 after January first, two thousand thirty-five. 19 § 516. Powers and duties of the commissioner. 1. The commissioner is 20 authorized to accept applications from New York state incubators for 21 designation as "CATALIST NY incubators", to accept nominations by CATAL- 22 IST NY incubators of small businesses for designation as CATALIST NY 23 small businesses, and to issue certificates of tax benefits under this 24 article. 25 2. The commissioner shall promulgate guidelines or regulations estab- 26 lishing a nomination process for small businesses and eligibility crite- 27 ria that will be applied consistent with the provisions of this article, 28 so as not to exceed the annual cap set forth in section five hundred 29 fifteen of this article which, notwithstanding any provisions to the 30 contrary in the state administrative procedure act, may be adopted on an 31 emergency basis. 32 3. The commissioner shall, in consultation with the department of 33 taxation and finance, develop a certificate of tax benefits that shall 34 be issued by the commissioner to eligible CATALIST NY small businesses. 35 Such certificate shall contain such information as required by the 36 department of taxation and finance. 37 4. The commissioner shall solely determine the eligibility of any 38 applicant applying to be a CATALIST NY incubator and designation as a 39 CATALIST NY small business and shall remove any such entities from the 40 program for failing to meet any of the requirements set forth in section 41 five hundred thirteen of this article, or for failing to meet the 42 requirement set forth in subdivision one of section five hundred four- 43 teen of this article. 44 5. The commissioner shall promulgate regulations or guidelines to 45 establish an application process to become certified as a CATALIST NY 46 incubator and shall include in such regulations or guidelines the 47 requirements that all nominated small businesses shall adhere to in 48 order to be considered for the tax benefits under this article. 49 § 2. Subsection (c) of section 612 of the tax law is amended by adding 50 a new paragraph 48 to read as follows: 51 (48) The amount of any wages received during the taxable year by an 52 employee specified in a certificate of tax benefits issued to a CATALIST 53 NY small business pursuant to article thirty of the economic development 54 law, to the extent included in federal adjusted gross income. Notwith- 55 standing any provision of this chapter to the contrary, the commissioner 56 may assist the commissioner of economic development in determiningS. 3009 36 A. 3009 1 whether a CATALIST NY small business, or an employee of such business, 2 is entitled to such tax benefits pursuant to article thirty of the 3 economic development law, and may utilize and, if necessary, disclose to 4 the commissioner of economic development, information derived from the 5 tax returns of such employee, such business, or related persons of such 6 business and wage reporting information relating to any employees of 7 such business or its related persons. 8 § 3. This act shall take effect immediately and shall apply to taxable 9 years beginning on or after January 1, 2025. 10 PART H 11 Section 1. This Part enacts into law major components of legislation 12 relating to the excelsior jobs program and the empire state jobs 13 retention program. Each component is wholly contained within a Subpart 14 identified as Subpart A and Subpart B. The effective date for each 15 particular provision contained within such Subpart is set forth in the 16 last section of such Subpart. Any provision in any section contained 17 within a Subpart, including the effective date of the Subpart, which 18 makes a reference to a section "of this act", when used in connection 19 with that particular component, shall be deemed to mean and refer to the 20 corresponding section of the Subpart in which it is found. Section three 21 of this Part sets forth the general effective date of this Part. 22 SUBPART A 23 Section 1. Section 352 of the economic development law is amended by 24 adding a new subdivision 25 to read as follows: 25 25. "Semiconductor supply chain project" means a project deemed by the 26 commissioner to make products or develop technologies that are primarily 27 aimed at supporting the growth of the semiconductor manufacturing and 28 related equipment and material supplier sector. "Semiconductor supply 29 chain project" shall include, but need not be limited to, semiconductor 30 device manufacturing, producers of component parts, direct input materi- 31 als and equipment necessary for the manufacture of semiconductor chips, 32 machinery, equipment, and materials necessary for the operational effi- 33 ciency of semiconductor manufacturing facilities, other such inputs 34 directly supportive of the domestic production of semiconductor chips, 35 and companies engaged in the assembly, testing, packaging and advanced 36 packaging semiconductor value chain. "Semiconductor supply chain 37 project" shall not include a project primarily composed of: (i) machin- 38 ery, equipment, or materials that are inputs to manufacturing generally, 39 but are not direct inputs to semiconductor manufacturing in specific; 40 (ii) the production of products or development of technologies that 41 would produce only marginal and incremental benefits to the semiconduc- 42 tor manufacturing sector; (iii) projects that would otherwise qualify as 43 a Green CHIPS project as defined in section twenty-four of this section. 44 § 2. Paragraphs (m) and (n) of subdivision 1 of section 353 of the 45 economic development law, as amended by chapter 494 of the laws of 2022, 46 are amended and a new paragraph (o) is added to read as follows: 47 (m) as a participant operating in one of the industries listed in 48 paragraphs (a) through (k) of this subdivision and operating or sponsor- 49 ing child care services to its employees as defined in section three 50 hundred fifty-two of this article; [or] 51 (n) as a Green CHIPS project[.]; orS. 3009 37 A. 3009 1 (o) as a company operating in one of the industries listed in para- 2 graphs (a) through (k) of this subdivision and engaging in a semiconduc- 3 tor supply chain project as defined in section three hundred fifty-two 4 of this article. 5 § 3. Subdivisions 1, 2 and 3 of section 355 of the economic develop- 6 ment law, as amended by chapter 494 of the laws of 2022, are amended to 7 read as follows: 8 1. Excelsior jobs tax credit component. A participant in the excelsior 9 jobs program shall be eligible to claim a credit for each net new job it 10 creates in New York state. In a project that is not a green project, the 11 amount of such credit per job shall be equal to the product of the gross 12 wages paid and up to 6.85 percent. In a green project, or a Green CHIPS 13 project, the amount of such credit per job shall be equal to the product 14 of the gross wages paid and up to 7.5 percent. Provided, however, given 15 the transformational nature of Green CHIPS projects, only the first two 16 hundred thousand dollars of gross wages per job shall be eligible for 17 this credit. The maximum amount of gross wages per job for a Green CHIPS 18 project may be adjusted for inflation at an annual amount determined by 19 the commissioner in a manner substantially similar to the cost of living 20 adjustments calculated by the United States Social Security Adminis- 21 tration based on changes in consumer price indices or a rate of four 22 percent per year, whichever is higher. In a semiconductor supply chain 23 project, the amount of such credit per job shall be equal to the product 24 of the gross wages paid and up to seven percent. 25 2. Excelsior investment tax credit component. A participant in the 26 excelsior jobs program shall be eligible to claim a credit on qualified 27 investments. In a project that is not a green project, the credit shall 28 be equal to two percent of the cost or other basis for federal income 29 tax purposes of the qualified investment. In a green project, the credit 30 shall be equal to five percent of the cost or other basis for federal 31 income tax purposes of the qualified investment. In a project for child 32 care services or a Green CHIPS project, the credit shall be up to five 33 percent of the cost or other basis for federal income tax purposes of 34 the qualified investment in child care services or in the Green CHIPS 35 project as applicable. In a semiconductor supply chain project, the 36 credit shall be up to three percent of the cost or other basis for 37 federal income tax purposes of the qualified investment. A participant 38 may not claim both the excelsior investment tax credit component and the 39 investment tax credit set forth in subdivision one of section two 40 hundred ten-B, subsection (a) of section six hundred six, the former 41 subsection (i) of section fourteen hundred fifty-six, or subdivision (q) 42 of section fifteen hundred eleven of the tax law for the same property 43 in any taxable year, except that a participant may claim both the 44 excelsior investment tax credit component and the investment tax credit 45 for research and development property. In addition, a taxpayer who or 46 which is qualified to claim the excelsior investment tax credit compo- 47 nent and is also qualified to claim the brownfield tangible property 48 credit component under section twenty-one of the tax law may claim 49 either the excelsior investment tax credit component or such tangible 50 property credit component, but not both with regard to a particular 51 piece of property. A credit may not be claimed until a business enter- 52 prise has received a certificate of tax credit, provided that qualified 53 investments made on or after the issuance of the certificate of eligi- 54 bility but before the issuance of the certificate of tax credit to the 55 business enterprise, may be claimed in the first taxable year for which 56 the business enterprise is allowed to claim the credit. ExpensesS. 3009 38 A. 3009 1 incurred prior to the date the certificate of eligibility is issued are 2 not eligible to be included in the calculation 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, the excelsior 9 research and development tax credit shall not exceed six percent of the 10 qualified research and development expenditures attributable to activ- 11 ities conducted in New York state, or, if a green project or a Green 12 CHIPS project, the excelsior research and development tax credit shall 13 not exceed eight percent of the research and development expenditures 14 attributable to activities conducted in New York state, or if a semicon- 15 ductor supply chain project, the excelsior research and development tax 16 credit shall not exceed seven percent of the qualified research and 17 development expenditures attributable to activities conducted in New 18 York state. If the federal research and development credit has expired, 19 then the research and development expenditures relating to the federal 20 research and development credit shall be calculated as if the federal 21 research and development credit structure and definition in effect in 22 two thousand nine were still in effect. Notwithstanding any other 23 provision of this chapter to the contrary, research and development 24 expenditures in this state, including salary or wage expenses for jobs 25 related to research and development activities in this state, may be 26 used as the basis for the excelsior research and development tax credit 27 component and the qualified emerging technology company facilities, 28 operations and training credit under the tax law. 29 § 4. Section 359 of the economic development law, as amended by chap- 30 ter 494 of the laws of 2022, is amended to read as follows: 31 § 359. Cap on tax credit. 1. Except with respect to tax credits issued 32 to Green CHIPS projects as articulated in subdivision four of this 33 section, the total amount of tax credits issued by the commissioner for 34 any taxable year may not exceed the limitations set forth in this subdi- 35 vision. Except with respect to tax credits issued to Green CHIPS 36 projects as articulated in subdivision four of this section, one-half of 37 any amount of tax credits not awarded for a particular taxable year may 38 be used by the commissioner to award tax credits in another taxable 39 year. 40 Credit components in the aggregate With respect to taxable 41 shall not exceed: years beginning in: 42 $ 50 million 2011 43 $ 100 million 2012 44 $ 150 million 2013 45 $ 200 million 2014 46 $ 250 million 2015 47 $ 183 million 2016 48 $ 183 million 2017 49 $ 183 million 2018 50 $ 183 million 2019 51 $ 183 million 2020 52 $ 183 million 2021 53 $ 133 million 2022 54 $ 83 million 2023S. 3009 39 A. 3009 1 $ 36 million 2024 2 $ 200 million 2025 3 $ 200 million 2026 4 $ 200 million 2027 5 $ 200 million 2028 6 $ 200 million 2029 7 $ 200 million 2030 8 $ 200 million 2031 9 $ 200 million 2032 10 $ 200 million 2033 11 $ 200 million 2034 12 $ 200 million 2035 13 $ 200 million 2036 14 $ 200 million 2037 15 $ 200 million 2038 16 $ 200 million 2039 17 2. Twenty-five percent of tax credits shall be allocated to businesses 18 accepted into the program under subdivision four of section three 19 hundred fifty-three of this article and seventy-five percent of tax 20 credits shall be allocated to businesses accepted into the program under 21 subdivision three of section three hundred fifty-three of this article. 22 3. Provided, however, if by September thirtieth of a calendar year, 23 the department has not allocated the full amount of credits available in 24 that year to either: (i) businesses accepted into the program under 25 subdivision four of section three hundred fifty-three of this article or 26 (ii) businesses accepted into the program under subdivision three of 27 section three hundred fifty-three of this article, the commissioner may 28 allocate any remaining tax credits to businesses referenced in this 29 paragraph as needed; provided, however, that under no circumstances may 30 the aggregate statutory cap for all program years be exceeded. One 31 hundred percent of the unawarded amounts remaining at the end of two 32 thousand twenty-nine may be allocated in subsequent years, notwithstand- 33 ing the fifty percent limitation on any amounts of tax credits not 34 awarded in taxable years two thousand eleven through two thousand twen- 35 ty-nine. Provided, however, no tax credits may be allowed for taxable 36 years beginning on or after January first, two thousand [forty] fifty. 37 4. The total amount of tax credits issued by the commissioner for the 38 taxable years two thousand twenty-two to two thousand forty-one for 39 Green CHIPS projects shall not exceed five hundred million per year. One 40 hundred percent of any amount of tax credits not awarded for a partic- 41 ular taxable year may be used by the commissioner to award tax credits 42 in another taxable year. Notwithstanding the foregoing, Green CHIPS 43 projects may be allowed to claim credits for taxable years up to January 44 first, two thousand fifty. 45 § 5. Article 22 of the economic development law is REPEALED. 46 § 6. Paragraph (a) of subdivision 50 of section 210-B of the tax law, 47 as added by section 2 of part O of chapter 59 of the laws of 2015, is 48 amended to read as follows: 49 (a) [A] For taxable years beginning before January first, two thousand 50 twenty-nine, a taxpayer that has been approved by the commissioner of 51 economic development to participate in the employee training incentive 52 program and has been issued a certificate of tax credit pursuant to 53 section four hundred forty-three of the economic development law shall 54 be allowed to claim a credit against the tax imposed by this article. 55 The credit shall equal fifty percent of a taxpayer's eligible trainingS. 3009 40 A. 3009 1 costs, up to a credit of ten thousand dollars per employee completing 2 eligible training pursuant to paragraph (a) of subdivision three of 3 section four hundred forty-one of the economic development law. The 4 credit shall equal fifty percent of the stipend paid to an intern, up to 5 a credit of three thousand dollars per intern completing eligible train- 6 ing pursuant to paragraph (b) of subdivision three of section four 7 hundred forty-one of the economic development law. In no event shall a 8 taxpayer be allowed a credit greater than the amount of credit listed on 9 the certificate of tax credit issued by the commissioner of economic 10 development. The credit will be allowed in the taxable year in which the 11 eligible training is completed. 12 § 7. Paragraph 1 of subsection (ddd) of section 606 of the tax law, as 13 added by section 3 of part O of chapter 59 of the laws of 2015, is 14 amended to read as follows: 15 (1) [A] For taxable years beginning before January first, two thousand 16 twenty-nine, a taxpayer that has been approved by the commissioner of 17 economic development to participate in the employee training incentive 18 program and has been issued a certificate of tax credit pursuant to 19 section four hundred forty-three of the economic development law shall 20 be allowed to claim a credit against the tax imposed by this article. 21 The credit shall equal fifty percent of a taxpayer's eligible training 22 costs, up to a credit of ten thousand dollars per employee completing 23 eligible training pursuant to paragraph (a) of subdivision three of 24 section four hundred forty-one of the economic development law. The 25 credit shall equal fifty percent of the stipend paid to an intern, up to 26 a credit of three thousand dollars per intern completing eligible train- 27 ing pursuant to paragraph (b) of subdivision three of section four 28 hundred forty-one of the economic development law. In no event shall a 29 taxpayer be allowed a credit greater than the amount listed on the 30 certificate of tax credit issued by the commissioner of economic devel- 31 opment. In the case of a taxpayer who is a partner in a partnership, 32 member of a limited liability company or shareholder in an S corpo- 33 ration, the taxpayer shall be allowed its pro rata share of the credit 34 earned by the partnership, limited liability company or S corporation. 35 The credit will be allowed in the taxable year in which the eligible 36 training is completed. 37 § 8. The economic development law is amended by adding a new article 38 17-A to read as follows: 39 ARTICLE 17-A 40 SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM 41 Section 359-a. Short title. 42 359-b. Statement of legislative findings and declaration. 43 359-c. Definitions. 44 359-d. Eligibility criteria. 45 359-e. Application and approval process. 46 359-f. Powers and duties of the commissioner. 47 359-g. Semiconductor research and development tax credit. 48 § 359-a. Short title. This article shall be known and may be cited as 49 the "semiconductor research and development project act". 50 § 359-b. Statement of legislative findings and declaration. It is 51 hereby found and declared that New York state needs, as a matter of 52 public policy, to create competitive financial incentives to attract 53 large scale semiconductor research and development projects to New YorkS. 3009 41 A. 3009 1 state, and to position New York state to be at the center of cutting 2 edge innovations in the semiconductor industry. 3 § 359-c. Definitions. For the purposes of this article: 4 1. "Certificate of eligibility" means the document issued by the 5 department to an applicant that has completed an application to be 6 admitted into the semiconductor research and development project program 7 and has been accepted into the program by the department. Possession of 8 a certificate of eligibility does not by itself guarantee the eligibil- 9 ity to claim the tax credit. 10 2. "Certificate of tax credit" means the document issued to a partic- 11 ipant by the department, after the department has verified that the 12 participant has met all applicable eligibility criteria in this article. 13 The certificate shall be issued annually if such criteria are satisfied 14 and shall specify the exact amount of the tax credit under this article 15 that a participant may claim and shall specify the taxable year in which 16 such credit may be claimed. 17 3. "Participant" means a business entity that: 18 (a) has completed an application prescribed by the department to be 19 admitted into the program; 20 (b) has been issued a certificate of eligibility by the department; 21 (c) has demonstrated that it meets the eligibility criteria in section 22 three hundred fifty-nine-d and subdivision two of section three hundred 23 fifty-nine-e of this article; and 24 (d) has been certified as a participant by the commissioner. 25 4. "Preliminary schedule of benefits" means the aggregate amount of 26 the tax credit that a participant in the semiconductor research and 27 development project program may be eligible to receive pursuant to this 28 article. The schedule shall indicate the annual amount of the credit a 29 participant may claim in each of its ten years of eligibility. The 30 preliminary schedule of benefits shall be issued by the department when 31 the department approves the application for admission into the program. 32 5. "Qualified investment" means an investment in tangible property 33 (including a building or a structural component of a building) owned by 34 a business enterprise which: 35 (a) is depreciable pursuant to section one hundred sixty-seven of the 36 internal revenue code; 37 (b) has a useful life of four years or more; 38 (c) is acquired by purchase as defined in section one hundred seven- 39 ty-nine (d) of the internal revenue code; 40 (d) has a situs in this state; and 41 (e) is placed in service in the state on or after the date the certif- 42 icate of eligibility is issued to the business enterprise. 43 6. "Semiconductor research and development project" means a project 44 for a physical research and development facility, deemed by the commis- 45 sioner as being primarily aimed at supporting research and development 46 within the semiconductor manufacturing and related equipment and materi- 47 al supplier sector. Such project shall incur at least one hundred 48 million dollars in qualified investment in New York state. Such project 49 must lead to the establishment and operation of a research and develop- 50 ment facility separate and apart from new or existing semiconductor or 51 semiconductor supply chain manufacturing facilities. 52 § 359-d. Eligibility criteria. 1. To be a participant in the semicon- 53 ductor research and development project program, a business entity shall 54 operate in New York state and be undertaking a semiconductor research 55 and development project as defined in section three hundred fifty-nine-c 56 of this article.S. 3009 42 A. 3009 1 2. A business entity must be in compliance with all worker protection 2 and environmental laws and regulations. In addition, a business entity 3 may not owe past due state taxes or local property taxes unless the 4 business entity is making payments and complying with an approved bind- 5 ing payment agreement entered into with the taxing authority. 6 § 359-e. Application and approval process. 1. A business enterprise 7 must submit a completed application as prescribed by the commissioner. 8 2. As part of such application, each business enterprise must: 9 (a) Agree to allow the department of taxation and finance to share the 10 business enterprise's tax information with the department. However, any 11 information shared as a result of this agreement shall not be available 12 for disclosure or inspection under the state freedom of information law; 13 (b) Agree to allow the department of labor to share its employer 14 information with the department. However, any information shared as a 15 result of this agreement shall not be available for disclosure or 16 inspection under the state freedom of information law; 17 (c) Allow the department and its agents access to any and all books 18 and records the department may require to monitor compliance; 19 (d) Provide to the department, upon request, a plan outlining the 20 schedule for meeting the investment requirements as set forth in subdi- 21 vision six of section three hundred fifty-nine-c of this article. Such 22 plan must include the amount and description of projected qualified 23 investments for which it plans to claim the semiconductor research and 24 development tax credit; 25 (e) Agree to allow the department and the department of taxation and 26 finance to share and exchange information contained in or derived from 27 the applications for admission into the semiconductor research and 28 development project program and the credit claim forms submitted to the 29 department of taxation and finance. However, any information shared as a 30 result of this agreement shall not be available for disclosure or 31 inspection under the state freedom of information law. 32 (f) Certify, under penalty of perjury, that it is in substantial 33 compliance with all environmental, worker protection, and local, state, 34 and federal tax laws. 35 3. After reviewing a business enterprise's completed application and 36 determining that the business enterprise will meet the condition set 37 forth in subdivision six of section three hundred fifty-nine-c of this 38 article, the department may admit the applicant into the program and 39 provide the applicant with a certificate of eligibility and a prelimi- 40 nary schedule of benefits by year based on the applicant's projections 41 as set forth in its application. This preliminary schedule of benefits 42 delineates the maximum possible benefits an applicant may receive. 43 4. In order to become a participant in the program, an applicant must 44 submit evidence that it satisfies the eligibility criteria specified in 45 section three hundred fifty-nine-d of this article and subdivision two 46 of this section in such form as the commissioner may prescribe. After 47 reviewing such evidence and finding it sufficient, the department shall 48 certify the applicant as a participant and issue to that participant a 49 certificate of tax credit for one taxable year. To receive a certificate 50 of tax credit for subsequent taxable years, the participant must submit 51 to the department a performance report demonstrating that the partic- 52 ipant continues to satisfy the eligibility criteria specified in this 53 article. 54 5. A participant may claim tax benefits commencing in the first taxa- 55 ble year that the business enterprise receives a certificate of tax 56 credit. A participant may claim such benefits for the next nine consec-S. 3009 43 A. 3009 1 utive taxable years, provided that the participant demonstrates to the 2 department that it continues to satisfy the eligibility criteria speci- 3 fied in section three hundred fifty-nine-d of this article and subdivi- 4 sion two of this section in each of those taxable years. 5 § 359-f. Powers and duties of the commissioner. 1. The commissioner 6 may promulgate regulations establishing an application process and 7 eligibility criteria, that will be applied consistent with the purposes 8 of this article, so as not to exceed the annual cap on tax credits set 9 forth in section three hundred fifty-nine-g of this article which, 10 notwithstanding any provisions to the contrary in the state administra- 11 tive procedure act, may be adopted on an emergency basis. 12 2. The commissioner shall, in consultation with the department of 13 taxation and finance, develop a certificate of tax credit that shall be 14 issued by the commissioner to participants. Participants must include 15 the certificate of tax credit with their tax return to receive any tax 16 benefits under this article. 17 3. The commissioner shall solely determine the eligibility of any 18 applicant applying for entry into the program and shall remove any 19 participant from the program for failing to meet any of the requirements 20 set forth in subdivision six of section three hundred fifty-nine-c of 21 this article and section three hundred fifty-nine-d of this article. 22 § 359-g. Semiconductor research and development tax credit. 1. A 23 participant in the semiconductor research and development project 24 program shall be eligible to claim a credit on qualified investments in 25 semiconductor research and development projects in New York state. The 26 amount of such credit shall be equal to fifteen percent of the cost or 27 other basis for federal income tax purposes of the qualified investment. 28 2. The total amount of tax credits listed on certificates of tax cred- 29 it issued by the commissioner shall be allotted from the funds available 30 for Green CHIPS tax credits as provided under subdivision four of 31 section three hundred fifty-nine of this chapter. 32 § 9. Section 210-B of the tax law is amended by adding a new subdivi- 33 sion 61 to read as follows: 34 61. Semiconductor research and development tax credit. (a) Allowance 35 of credit. A taxpayer that has been approved by the commissioner of 36 economic development to participate in the semiconductor research and 37 development program and has been issued a certificate of tax credit 38 pursuant to section three hundred fifty-nine-e of the economic develop- 39 ment law shall be allowed to claim a credit against the tax imposed by 40 this article. The credit shall equal up to fifteen percent of the cost 41 or other basis for federal income tax purposes of the qualified invest- 42 ment and shall be allowable in each taxable year for which the commis- 43 sioner of economic development has issued a certificate of tax credit, 44 for up to ten consecutive taxable years. In no event shall a taxpayer be 45 allowed a credit greater than the amount of credit listed on the certif- 46 icate of tax credit issued by the commissioner of economic development. 47 No cost or expense paid or incurred by the taxpayer that is the basis 48 for this credit shall be the basis for any other tax credit provided by 49 this chapter. 50 (b) Application of credit. The credit allowed under this subdivision 51 for any taxable year may not reduce the tax due for such year to less 52 than the amount prescribed in paragraph (d) of subdivision one of 53 section two hundred ten of this article. However, if the amount of cred- 54 it allowed under this subdivision for any taxable year reduces the tax 55 to such amount, or if the taxpayer otherwise pays tax based on the fixed 56 dollar minimum amount, any amount of credit thus not deductible in thatS. 3009 44 A. 3009 1 taxable year will be treated as an overpayment of tax to be credited or 2 refunded in accordance with the provisions of section one thousand 3 eighty-six of this chapter. Provided, however, the provisions of 4 subsection (c) of section one thousand eighty-eight of this chapter 5 notwithstanding, no interest will be paid thereon. 6 (c) Reporting. The taxpayer shall attach to its tax return its certif- 7 icate of tax credit issued by the commissioner of economic development 8 pursuant to section three hundred fifty-nine-e of the economic develop- 9 ment law. In no event shall the taxpayer be allowed a credit greater 10 than the amount of the credit listed on the certificate of tax credit, 11 or in the case of a taxpayer who is a partner in a partnership, a member 12 of a limited liability company, or shareholder in an S corporation, its 13 pro rata share of the amount of credit listed on the certificate of tax 14 credit. 15 (d) Credit recapture. If a certificate of eligibility or a certificate 16 of tax credit issued by the department of economic development under 17 article seventeen-A of the economic development law is revoked by such 18 department because the taxpayer does not meet the eligibility require- 19 ment set forth in subdivision six of section three hundred fifty-nine-c 20 of the economic development law, the amount of credit described in this 21 subdivision and claimed by the taxpayer prior to that revocation shall 22 be added back to tax in the taxable year in which any such revocation 23 becomes final. 24 § 10. Section 606 of the tax law is amended by adding a new subsection 25 (qqq) to read as follows: 26 (qqq) Semiconductor research and development tax credit. (1) Allowance 27 of credit. A taxpayer that has been approved by the commissioner of 28 economic development to participate in the semiconductor research and 29 development tax credit program and has been issued a certificate of tax 30 credit pursuant to section three hundred fifty-nine-e of the economic 31 development law shall be allowed to claim a credit against the tax 32 imposed by this article. The credit shall equal up to fifteen percent of 33 the cost or other basis for federal income tax purposes of the qualified 34 investment and shall be allowable in each taxable year for which the 35 commissioner of economic development has issued a certificate of tax 36 credit, for up to ten consecutive taxable years. In no event shall a 37 taxpayer be allowed a credit greater than the amount listed on the 38 certificate of tax credit issued by the commissioner of economic devel- 39 opment. In the case of a taxpayer who is a partner in a partnership, 40 member of a limited liability company or shareholder in an S corpo- 41 ration, the taxpayer shall be allowed its pro rata share of the credit 42 earned by the partnership, limited liability company or S corporation. 43 No cost or expense paid or incurred by the taxpayer that is the basis 44 for this credit shall be the basis for any other tax credit provided by 45 this chapter. 46 (2) Application of credit. If the amount of the credit allowed under 47 this subsection for any taxable year exceeds the taxpayer's tax for the 48 taxable year, the excess shall be treated as an overpayment of tax to be 49 credited or refunded in accordance with the provisions of section six 50 hundred eighty-six of this article, provided, however, no interest will 51 be paid thereon. 52 (3) Reporting. The taxpayer shall attach to its tax return its certif- 53 icate of tax credit issued by the commissioner of economic development 54 pursuant to section three hundred fifty-nine-e of the economic develop- 55 ment law. In no event shall the taxpayer be allowed a credit greater 56 than the amount of the credit listed on the certificate of tax credit,S. 3009 45 A. 3009 1 or in the case of a taxpayer who is a partner in a partnership, a member 2 of a limited liability company, or shareholder in an S corporation, its 3 pro rata share of the amount of credit listed on the certificate of tax 4 credit. 5 (4) Credit recapture. If a certificate of eligibility or a certificate 6 of tax credit issued by the department of economic development under 7 article seventeen-A of the economic development law is revoked by such 8 department because the taxpayer does not meet the eligibility require- 9 ment set forth in subdivision six of section three hundred fifty-nine-c 10 of economic development law, the amount of credit described in this 11 subdivision and claimed by the taxpayer prior to that revocation shall 12 be added back to tax in the taxable year in which any such revocation 13 becomes final. 14 § 11. The economic development law is amended by adding a new article 15 28 to read as follows: 16 ARTICLE 28 17 SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCENTIVE PROGRAM 18 Section 501. Definitions. 19 502. Eligibility criteria. 20 503. Application and approval process. 21 504. Powers and duties of the commissioner. 22 505. Recordkeeping requirements. 23 506. Cap on tax credit. 24 § 501. Definitions. As used in this article, the following terms shall 25 have the following meanings: 26 1. "Approved provider" means an entity approved by the commissioner 27 that may provide eligible training to employees of a business entity 28 participating in the semiconductor manufacturing workforce training 29 incentive program. Such criteria shall ensure that any approved provider 30 possesses adequate credentials to provide the training described in an 31 application by a business entity to the commissioner to participate in 32 the semiconductor manufacturing workforce training incentive program. 33 2. "Eligible training" means training provided to an employee hired 34 within twelve months of the business entity applying for this program by 35 the business entity or an approved provider that is: 36 (a) to upgrade, retrain or improve the productivity of employees; 37 (b) determined by the commissioner to satisfy a business need on the 38 part of a participating business entity; and 39 (c) not designed to train or upgrade skills as required by a federal 40 or state entity. 41 3. "Manufacturing business" means a business that is engaged in the 42 process of working raw materials into products suitable for use or which 43 gives new shapes, new quality or new combinations to matter which has 44 already gone through some artificial process by the use of machinery, 45 tools, appliances, or other similar equipment. "Manufacturing" does not 46 include an operation that involves only the assembly of components, 47 provided, however, that the assembly of motor vehicles or other high 48 value-added products shall be considered manufacturing. 49 4. "Semiconductor manufacturing business" means a business deemed by 50 the commissioner to make products or develop technologies that are 51 primarily aimed at supporting the growth of the semiconductor manufac- 52 turing and related equipment and material supplier sector. This shall 53 include, but need not be limited to, semiconductor device manufacturing, 54 producers of component parts, direct input materials and equipment 55 necessary for the manufacture of semiconductor chips, machinery, equip- 56 ment, and materials necessary for the operational efficiency of semicon-S. 3009 46 A. 3009 1 ductor manufacturing facilities, other such inputs directly supportive 2 of the domestic production of semiconductor chips, and companies engaged 3 in the assembly, testing, packaging and advanced packaging semiconductor 4 value chain. The "semiconductor and supply chain" tier shall not 5 include a project primarily composed of: (a) machinery, equipment, or 6 materials that are inputs to manufacturing generally, but are not direct 7 inputs to semiconductor manufacturing in specific; or (b) the production 8 of products or development of technologies that would produce only 9 marginal and incremental benefits to the semiconductor manufacturing 10 sector. 11 5. "Wrap around services" means transportation, childcare, case 12 management and other services designed to maximize the economic impact 13 of workforce development training for participants, and to provide the 14 support services necessary to ensure trainees can access training. 15 § 502. Eligibility criteria. In order to participate in the manufac- 16 turing workforce training incentive program, a business entity must 17 satisfy the following criteria: 18 1. The business entity must operate in the state as a semiconductor 19 manufacturing business or a manufacturing business as defined in this 20 article; 21 2. The business entity must demonstrate that it is conducting eligible 22 training or obtaining eligible training from an approved provider; and 23 3. The business entity must be in compliance with all worker 24 protection and environmental laws and regulations. In addition, the 25 business entity may not owe past due state taxes or local property 26 taxes. 27 § 503. Application and approval process. 1. A business entity must 28 submit a completed application in such form and with such information as 29 prescribed by the commissioner. 30 2. As part of such application, each business entity must: 31 (a) provide such documentation as the commissioner may require in 32 order for the commissioner to determine that the business entity intends 33 to conduct eligible training or procure eligible training for its 34 employees from an approved provider; 35 (b) agree to allow the department of taxation and finance to share its 36 tax information with the department. However, any information shared as 37 a result of this agreement shall not be available for disclosure or 38 inspection under the state freedom of information law; 39 (c) agree to allow the department of labor to share its tax and 40 employer information with the department. However, any information 41 shared as a result of this agreement shall not be available for disclo- 42 sure or inspection under the state freedom of information law; 43 (d) allow the department and its agents access to any and all books 44 and records the department may require to monitor compliance; and 45 (e) agree to allow the department and the department of taxation and 46 finance to share and exchange information contained in or derived from 47 the applications for admission into the semiconductor manufacturing 48 workforce training incentive program and the credit claim forms submit- 49 ted to the department of taxation and finance. However, any information 50 shared as a result of this agreement shall not be available for disclo- 51 sure or inspection under the state freedom of information law. 52 3. The commissioner may approve an application from a business entity 53 upon determining that such business entity meets the eligibility crite- 54 ria established in section five hundred two of this article. Following 55 approval by the commissioner of an application by a business entity to 56 participate in the semiconductor manufacturing workforce training incen-S. 3009 47 A. 3009 1 tive program, the commissioner shall issue a certificate of tax credit 2 to the business entity upon its demonstrating successful completion of 3 such eligible training to the satisfaction of the commissioner. For 4 eligible training as defined by subdivision two of section five hundred 5 one of this article the amount of the credit shall be equal to seventy- 6 five percent of wages, salaries or other compensation, training costs, 7 and wrap around services, up to a credit of twenty-five thousand dollars 8 per employee receiving eligible training, up to one million dollars per 9 eligible non-semiconductor manufacturing business and up to five million 10 dollars per eligible semiconductor manufacturing business. The tax cred- 11 its shall be claimed by the qualified employer as specified in subdivi- 12 sion sixty-two of section two hundred ten-B and subsection (rrr) of 13 section six hundred six of the tax law. 14 § 504. Powers and duties of the commissioner. 1. The commissioner 15 shall promulgate regulations consistent with the purposes of this arti- 16 cle that, notwithstanding any provisions to the contrary in the state 17 administrative procedure act, may be adopted on an emergency basis. Such 18 regulations shall include, but not be limited to, eligibility criteria 19 for business entities desiring to participate in the semiconductor manu- 20 facturing workforce training incentive program, procedures for the 21 receipt and evaluation of applications from business entities to partic- 22 ipate in the program, and such other provisions as the commissioner 23 deems to be appropriate in order to implement the provisions of this 24 article. 25 2. The commissioner shall, in consultation with the department of 26 taxation and finance, develop a certificate of tax credit that shall be 27 issued by the commissioner to participating business entities. Partic- 28 ipants may be required by the commissioner of taxation and finance to 29 include the certificate of tax credit with their tax return to receive 30 any tax benefits under this article. 31 3. The commissioner shall solely determine the eligibility of any 32 applicant applying for entry into the program and shall remove any 33 participant from the program for failing to meet any of the requirements 34 set forth in section five hundred two of this article or for making a 35 material misrepresentation with respect to its participation in the 36 program. 37 § 505. Recordkeeping requirements. Each business entity participating 38 in the program shall maintain all relevant records for the duration of 39 its program participation plus three years. 40 § 506. Cap on tax credit. The total amount of tax credits listed on 41 certificates of tax credit issued by the commissioner for any taxable 42 year may not exceed twenty million dollars, and shall be allotted from 43 the funds available for tax credits under the excelsior jobs program act 44 pursuant to section three hundred fifty-nine of this chapter. 45 § 12. Section 210-B of the tax law is amended by adding a new subdivi- 46 sion 62 to read as follows: 47 62. Semiconductor manufacturing workforce training program tax credit. 48 (a) Allowance of tax credit. A taxpayer that has been approved by the 49 commissioner of economic development to participate in the semiconductor 50 manufacturing workforce training program and has been issued a certif- 51 icate of tax credit pursuant to section five hundred three of the 52 economic development law shall be allowed to claim a credit against the 53 tax imposed by this article. The credit shall equal seventy-five percent 54 of wages, salaries or other compensation, training costs, and wrap 55 around services, up to a credit of twenty-five thousand dollars per 56 employee receiving eligible training, up to one million dollars perS. 3009 48 A. 3009 1 eligible non-semiconductor manufacturing business and up to five million 2 dollars per eligible semiconductor manufacturing business pursuant to 3 subdivision three of section five hundred three of the economic develop- 4 ment law. In no event shall a taxpayer be allowed a credit greater than 5 the amount of credit listed on the certificate of tax credit issued by 6 the commissioner of economic development. The credit shall be allowed in 7 the taxable year in which the eligible training is completed. No cost or 8 other expense paid or incurred by the taxpayer that is the basis for 9 this credit shall be the basis for any other tax credit provided by this 10 chapter. 11 (b) Application of credit. The credit allowed under this subdivision 12 for any taxable year may not reduce the tax due for such year to less 13 than the amount prescribed in paragraph (d) of subdivision one of 14 section two hundred ten of this article. However, if the amount of cred- 15 it allowed under this subdivision for any taxable year reduces the tax 16 to such amount, or if the taxpayer otherwise pays tax based on the fixed 17 dollar minimum amount, any amount of credit thus not deductible in that 18 taxable year will be treated as an overpayment of tax to be credited or 19 refunded in accordance with the provisions of section one thousand 20 eighty-six of this chapter. Provided, however, the provisions of 21 subsection (c) of section one thousand eighty-eight of this chapter 22 notwithstanding, no interest will be paid thereon. 23 (c) Reporting. The taxpayer shall attach to its tax return its certif- 24 icate of tax credit issued by the commissioner of economic development 25 pursuant to section five hundred three of the economic development law. 26 In no event shall the taxpayer be allowed a credit greater than the 27 amount of the credit listed on the certificate of tax credit, or in the 28 case of a taxpayer who is a partner in a partnership, a member of a 29 limited liability company, or shareholder in an S corporation, its pro 30 rata share of the amount of credit listed in the certificate of tax 31 credit. 32 (d) Credit recapture. If a certificate of eligibility or a certificate 33 of tax credit issued by the department of the economic development under 34 article twenty-eight of the economic development law is revoked by such 35 department because the taxpayer does not meet the eligibility require- 36 ment set forth in subdivision three of section five hundred three of the 37 economic development law, the amount of credit described in this subdi- 38 vision and claimed by the taxpayer prior to that revocation shall be 39 added back to tax in the taxable year in which any such revocation 40 becomes final. 41 § 13. Section 606 of the tax law is amended by adding a new subsection 42 (rrr) to read as follows: 43 (rrr) Semiconductor workforce training program tax credit. (1) Allow- 44 ance of tax credit. A taxpayer that has been approved by the commission- 45 er of economic development to participate in the semiconductor workforce 46 training program and has been issued a certificate of tax credit pursu- 47 ant to section five hundred three of the economic development law shall 48 be allowed to claim a credit against the tax imposed by this article. 49 The credit shall equal seventy-five percent of wages, salaries or other 50 compensation, training costs, and wrap around services, up to a credit 51 of twenty-five thousand dollars per employee receiving eligible train- 52 ing, up to one million dollars per eligible non-semiconductor manufac- 53 turing business and up to five million dollars per eligible semiconduc- 54 tor manufacturing business pursuant to subdivision three of section five 55 hundred three of the economic development law. In no event shall a 56 taxpayer be allowed a credit greater than the amount listed on theS. 3009 49 A. 3009 1 certificate of tax credit issued by the commissioner of economic devel- 2 opment. In the case of a taxpayer who is a partner in a partnership, 3 member of a limited liability company or shareholder in an S corpo- 4 ration, the taxpayer shall be allowed its pro rata share of the credit 5 earned by the partnership, limited liability company or S corporation. 6 The credit shall be allowed in the taxable year in which the eligible 7 training is completed. No cost or expense paid or incurred by the 8 taxpayer that is the basis for this credit shall be the basis for any 9 other tax credit provided by this chapter. 10 (2) Application of credit. If the amount of the credit allowed under 11 this subsection for any taxable year exceeds the taxpayer's tax for the 12 taxable year, the excess shall be treated as an overpayment of tax to be 13 credited or refunded in accordance with the provisions of section six 14 hundred eighty-six of this article, provided, however, no interest will 15 be paid thereon. 16 (3) Reporting. The taxpayer shall attach to its tax return its certif- 17 icate of tax credit issued by the commissioner of economic development 18 pursuant to section five hundred three of the economic development law. 19 In no event shall the taxpayer be allowed a credit greater than the 20 amount of the credit listed on the certificate of tax credit, or in the 21 case of a taxpayer who is a partner in a partnership, a member of a 22 limited liability company, or shareholder in an S corporation, its pro 23 rata share of the amount of credit listed on the certificate of tax 24 credit. 25 (4) Credit recapture. If a certificate of eligibility or a certificate 26 of tax credit issued by the department of economic development under 27 article twenty-eight of the economic development law is revoked by such 28 department because the taxpayer does not meet the eligibility require- 29 ment set forth in subdivision three of section five hundred three of the 30 economic development law, the amount of credit described in this 31 subsection and claimed by the taxpayer prior to that revocation shall be 32 added back to tax in the taxable year in which any such revocation 33 becomes final. 34 § 14. This act shall take effect immediately and apply to taxable 35 years beginning on or after January 1, 2025; provided, however, that 36 section five of this act shall take effect December 31, 2028. 37 SUBPART B 38 Section 1. Section 421 of the economic development law, as added by 39 section 1 of part E of chapter 56 of the laws of 2011, is amended to 40 read as follows: 41 § 421. Statement of legislative findings and declaration. It is hereby 42 found and declared that New York state needs, as a matter of public 43 policy, to create competitive financial incentives to retain [strategic] 44 businesses, including small businesses and jobs that are at risk of 45 leaving the state or closing operations due to the impact on its busi- 46 ness operations of an event leading to an emergency declaration by the 47 governor. The empire state jobs retention program is created to support 48 the retention of the state's [most strategic] businesses, including 49 small businesses in the event of an emergency. 50 This legislation creates a jobs tax credit for each job of a [strate-51gic] business, including a small business directly impacted by an emer- 52 gency and protects state taxpayers' dollars by ensuring that New York 53 provides tax benefits only to businesses that can demonstrate substan-S. 3009 50 A. 3009 1 tial physical damage and economic harm resulting from an event leading 2 to an emergency declaration by the governor. 3 § 2. Section 422 of the economic development law, as added by section 4 1 of part E of chapter 56 of the laws of 2011, is amended to read as 5 follows: 6 § 422. Definitions. For the purposes of this article: 7 1. ["Agriculture" means both agricultural production (establishments8performing the complete farm or ranch operation, such as farm owner-op-9erators, tenant farm operators, and sharecroppers) and agricultural10support (establishments that perform one or more activities associated11with farm operation, such as soil preparation, planting, harvesting, and12management, on a contract or fee basis).132. "Back office operations" means a business function that may include14one or more of the following activities: customer service, information15technology and data processing, human resources, accounting and related16administrative functions.173.] "Certificate of eligibility" means the document issued by the 18 department to an applicant that has completed an application to be 19 admitted into the empire state jobs retention program and has been 20 accepted into the program by the department. Possession of a certificate 21 of eligibility does not by itself guarantee the eligibility to claim the 22 tax credit. 23 [4.] 2. "Certificate of tax credit" means the document issued to a 24 participant by the department, after the department has verified that 25 the participant has met all applicable eligibility criteria in this 26 article. The certificate shall be issued annually if such criteria are 27 satisfied and shall specify the exact amount of each tax credit under 28 this article that a participant may claim, pursuant to section four 29 hundred twenty-five of this article, and shall specify the taxable year 30 in which such credit may be claimed. 31 [5. "Distribution center" means a large scale facility involving proc-32essing, repackaging and/or movement of finished or semi-finished goods33to retail locations across a multi-state area.346. "Financial services data centers" or "financial services customer35back office operations" means operations that manage the data or36accounts of existing customers or provide product or service information37and support to customers of financial services companies, including38banks, other lenders, securities and commodities brokers and dealers,39investment banks, portfolio managers, trust offices, and insurance40companies.417.] 3. "Impacted jobs" means jobs [existing] at a business enterprise 42 [at a location or locations within the county declared an emergency by43the governor on the day immediately preceding the day on which the event44leading to the emergency declaration by the governor occurred] existing 45 the day before an event leading to an emergency declaration by the 46 governor at a location or locations which demonstrate substantial phys- 47 ical damage and economic harm caused by the event for which the emergen- 48 cy declaration was made. 49 [8. "Manufacturing" means the process of working raw materials into50products suitable for use or which gives new shapes, new quality or new51combinations to matter which has already gone through some artificial52process by the use of machinery, tools, appliances, or other similar53equipment. "Manufacturing" does not include an operation that involves54only the assembly of components, provided, however, the assembly of55motor vehicles or other high value-added products shall be considered56manufacturing.S. 3009 51 A. 3009 19.] 4. "Participant" means a business entity that: 2 (a) has completed an application prescribed by the department to be 3 admitted into the program; 4 (b) has been issued a certificate of eligibility by the department; 5 (c) has demonstrated that it meets the eligibility criteria in section 6 four hundred twenty-three and subdivision two of section four hundred 7 twenty-four of this article; and 8 (d) has been certified as a participant by the commissioner. 9 [10.] 5. "Preliminary schedule of benefits" means the maximum aggre- 10 gate amount of the tax credit that a participant in the empire state 11 jobs retention program is eligible to receive pursuant to this article. 12 The schedule shall indicate the annual amount of the credit a partic- 13 ipant may claim in [each of] its [ten years] six months of eligibility. 14 The preliminary schedule of benefits shall be issued by the department 15 when the department approves the application for admission into the 16 program. The commissioner may amend that schedule, provided that the 17 commissioner complies with the credit caps in section three hundred 18 fifty-nine of this chapter. 19 [11.] 6. "Related person" means a related person pursuant to subpara- 20 graph (c) of paragraph three of subsection (b) of section four hundred 21 sixty-five of the internal revenue code. 22 [12. "Scientific research and development" means conducting research23and experimental development in the physical, engineering, and life24sciences, including but not limited to agriculture, electronics, envi-25ronmental, biology, botany, biotechnology, computers, chemistry, food,26fisheries, forests, geology, health, mathematics, medicine, oceanogra-27phy, pharmacy, physics, veterinary, and other allied subjects. For the28purposes of this article, scientific research and development does not29include medical or veterinary laboratory testing facilities.3013. "Software development" means the creation of coded computer31instructions and includes new media as defined by the commissioner in32regulations.] 33 7. "Business entity" means a for profit business duly authorized to do 34 business in and in good standing in the state of New York. 35 § 3. Section 423 of the economic development law, as added by section 36 1 of part E of chapter 56 of the laws of 2011, is amended to read as 37 follows: 38 § 423. Eligibility criteria. 1. [To be a participant in the empire39state jobs retention program, a business entity shall operate in New40York state predominantly:41(a) as a financial services data center or a financial services back42office operation;43(b) in manufacturing;44(c) in software development and new media;45(d) in scientific research and development;46(e) in agriculture;47(f) in the creation or expansion of back office operations in the48state; or49(g) in a distribution center.502. When determining whether an applicant is operating predominantly in51one of the industries listed in subdivision one of this section, the52commissioner will examine the nature of the business activity at the53location for the proposed project and will make eligibility determi-54nations based on such activity.553.] For the purposes of this article, in order to participate in the 56 empire state jobs retention program[, a business entity operating in oneS. 3009 52 A. 3009 1of the strategic industries listed in subdivision one of this section2(a) must be located in a county in which an emergency has been declared3by the governor] on or after [January] June first, two thousand [eleven] 4 twenty-five, [(b)] a business entity must demonstrate substantial phys- 5 ical damage and economic harm at a location or locations within an area 6 for which the governor has issued an emergency declaration and resulting 7 from the event leading to the emergency declaration by the governor[,8and (c) must have had at least one hundred full-time equivalent jobs in9the county in which an emergency has been declared by the governor on10the day immediately preceding the day on which the event leading to the11emergency declaration by the governor occurred, and must retain or12exceed that number of jobs in New York state.134. A not-for-profit business entity, a business entity whose primary14function is the provision of services including personal services, busi-15ness services, or the provision of utilities, a business entity engaged16predominantly in the retail or entertainment industry, or a company17engaged in the generation or distribution of electricity, the distrib-18ution of natural gas, or the production of steam associated with the19generation of electricity are not eligible to receive the tax credit20described in this article]. 21 [5.] 2. A business entity must be in compliance with all worker 22 protection and environmental laws and regulations. In addition, a busi- 23 ness entity may not owe past due state taxes. In addition, a business 24 entity must not owe local property taxes for any year prior to the year 25 in which it applies to participate in the empire state jobs retention 26 program. 27 § 4. Section 424 of the economic development law, as added by section 28 1 of part E of chapter 56 of the laws of 2011, is amended to read as 29 follows: 30 § 424. Application and approval process. 1. A business [enterprise] 31 entity must submit a completed application as prescribed by the commis- 32 sioner. Such completed application must be submitted to the commissioner 33 within [(a)] one hundred eighty days of the declaration of an emergency 34 by the governor in the county in which the business enterprise is 35 located [or (b) one hundred eighty days of the enactment of this arti-36cle, if such date is later than the date specified in paragraph (a) of37this subdivision]; provided, however, that the eligibility period for 38 the credit shall begin upon the date of declaration of an emergency by 39 the governor covering the county in which the business entity is 40 located. 41 2. As part of such application, each business [enterprise] entity 42 must: 43 (a) agree to allow the department of taxation and finance to share its 44 tax information with the department. However, any information shared as 45 a result of this agreement shall not be available for disclosure or 46 inspection under the state freedom of information law. 47 (b) agree to allow the department of labor to share its tax and 48 employer information with the department. However, any information 49 shared as a result of this agreement shall not be available for disclo- 50 sure or inspection under the state freedom of information law. 51 (c) allow the department and its agents access to any and all books 52 and records the department may require to monitor compliance. 53 (d) agree to be permanently disqualified for empire zone tax benefits 54 at any location or locations that qualify for empire state jobs 55 retention program benefits if admitted into the empire state jobs 56 retention program.S. 3009 53 A. 3009 1 (e) provide the following information to the department upon request: 2 (i) a plan outlining the schedule for meeting the jobs retention 3 requirements as set forth in subdivision [three] one of section four 4 hundred twenty-three of this article. Such plan must include details on 5 jobs titles and expected salaries; 6 (ii) the prior three years of federal and state income or franchise 7 tax returns, unemployment insurance quarterly returns, real property tax 8 bills and audited financial statements; and 9 (iii) the employer identification or social security numbers for all 10 related persons to the applicant, including those of any members of a 11 limited liability company or partners in a partnership. 12 (f) provide a clear and detailed presentation of all related persons 13 to the applicant to assure the department that jobs are not being shift- 14 ed within the state. 15 (g) certify, under penalty of perjury, that it is in substantial 16 compliance with all environmental, worker protection, and local, state, 17 and federal tax laws. 18 3. After reviewing a business enterprise's completed application and 19 determining that the business enterprise will meet the conditions set 20 forth in subdivision [three] one of section four hundred twenty-three of 21 this article, the department may admit the applicant into the program 22 and provide the applicant with a certificate of eligibility and a 23 preliminary schedule of benefits by year based on the applicant's 24 projections as set forth in its application. This preliminary schedule 25 of benefits delineates the maximum possible benefits an applicant may 26 receive. 27 4. In order to become a participant in the program, an applicant must 28 submit evidence that it satisfies the eligibility criteria specified in 29 section four hundred twenty-three of this article and subdivision two of 30 this section in such form as the commissioner may prescribe. After 31 reviewing such evidence and finding it sufficient, the department shall 32 certify the applicant as a participant and issue to that participant a 33 certificate of tax credit [for one taxable year. To receive a certif-34icate of tax credit for subsequent taxable years, the participant must35submit to the department a performance report demonstrating that the36participant continues to satisfy the eligibility criteria specified in37section four hundred twenty-three of this article and subdivision two of38this section]. 39 5. A participant may claim tax benefits commencing in the first taxa- 40 ble year that the business enterprise receives a certificate of tax 41 credit or the first taxable year listed on its preliminary schedule of 42 benefits, whichever is later. [A participant may claim such benefits for43the next nine consecutive taxable years, provided that the participant44demonstrates to the department that it continues to satisfy the eligi-45bility criteria specified in section four hundred twenty-three of this46article and subdivision two of this section in each of those taxable47years.] 48 § 5. Section 425 of the economic development law, as added by section 49 1 of part E of chapter 56 of the laws of 2011, is amended to read as 50 follows: 51 § 425. Empire state jobs retention program credit. 1. A participant in 52 the empire state jobs retention program shall be eligible to claim a 53 credit for the impacted jobs. [The] For a business entity that employes 54 three to forty-nine employees, the amount of such credit shall be equal 55 to the product of the gross wages paid for the impacted jobs and [6.85] 56 up to 15 percent. For a business entity that employs fifty to oneS. 3009 54 A. 3009 1 hundred employees, the amount of such credit shall be equal to the prod- 2 uct of the gross wages paid for the impacted jobs and up to 7.5 percent. 3 For a business entity that employs greater than one hundred employees, 4 the amount of such credit shall be equal to the product of the gross 5 wages paid for the impacted jobs and up to 3.75 percent. An eligible 6 business entity may only receive up to $500,000 in tax credits per event 7 triggering an emergency declaration by the governor. 8 2. The tax credit established in this section shall be refundable as 9 provided in the tax law. If a participant fails to satisfy the eligibil- 10 ity criteria [in any one year], it will lose the ability to claim credit 11 [for that year]. The event of such failure shall not extend the original 12 [ten-year] six-month eligibility period. 13 3. The business enterprise shall be allowed to claim the credit as 14 prescribed in section thirty-six of the tax law[; provided, however, a15business enterprise shall not be allowed to claim the credit prior to16tax year two thousand twelve]. 17 4. A participant may be eligible for benefits under this article as 18 well as article seventeen of this chapter, provided the participant can 19 only receive benefits pursuant to subdivision two of section three 20 hundred fifty-five of this chapter for costs in excess of costs recov- 21 ered by insurance. 22 § 6. Section 426 of the economic development law, as added by section 23 1 of part E of chapter 56 of the laws of 2011, is amended to read as 24 follows: 25 § 426. Powers and duties of the commissioner. 1. The commissioner 26 shall promulgate regulations establishing [an] the type of application 27 process and the eligibility criteria, that will be applied consistent 28 with the purposes of this article, so as not to exceed thirty million 29 dollars from the annual cap on tax credits set forth in section three 30 hundred fifty-nine of this chapter which, notwithstanding any provisions 31 to the contrary in the state administrative procedure act, may be 32 adopted on an emergency basis. Such regulations shall include, but not 33 be limited to, criteria for determining whether a business entity demon- 34 strates substantial physical damage and economic harm from the event 35 leading to an emergency declaration by the governor. 36 2. The commissioner shall, in consultation with the department of 37 taxation and finance, develop a certificate of tax credit that shall be 38 issued by the commissioner to participants. Participants may be required 39 by the commissioner of taxation and finance to include the certificate 40 of tax credit with their tax return to receive any tax benefits under 41 this article. 42 3. The commissioner shall solely determine the eligibility of any 43 applicant applying for entry into the program and shall remove any 44 participant from the program for failing to meet any of the requirements 45 set forth in subdivision two of section four hundred twenty-four of this 46 article, or for failing to meet the [job retention] requirements set 47 forth in [subdivision three of] section four hundred twenty-three of 48 this article[, or for failing to meet the requirements of subdivision49five of section four hundred twenty-three of this article]. 50 § 7. This act shall take effect immediately. 51 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 52 sion, section or part of this act shall be adjudged by any court of 53 competent jurisdiction to be invalid, such judgment shall not affect, 54 impair, or invalidate the remainder thereof, but shall be confined in 55 its operation to the clause, sentence, paragraph, subdivision, section 56 or part thereof directly involved in the controversy in which such judg-S. 3009 55 A. 3009 1 ment shall have been rendered. It is hereby declared to be the intent of 2 the legislature that this act would have been enacted even if such 3 invalid provisions had not been included herein. 4 § 3. This act shall take effect immediately, provided, however, that 5 the applicable effective date of Subparts A and B of this act shall be 6 as specifically set forth in the last section of such Subparts. 7 PART I 8 Section 1. Paragraphs 2 and 5 of subdivision (a) of section 24 of the 9 tax law, paragraph 2 as amended by section 1 and paragraph 5 as amended 10 by section 2 of part D of chapter 59 of the laws of 2023, are amended 11 and a new paragraph 6 is added to read as follows: 12 (2) The amount of the credit shall be the product (or pro rata share 13 of the product, in the case of a member of a partnership) of thirty 14 percent and the qualified production costs paid or incurred in the 15 production of a qualified film, provided that: (i) the qualified 16 production costs (excluding post production costs) paid or incurred 17 which are attributable to the use of tangible property or the perform- 18 ance of services at a qualified film production facility in the 19 production of such qualified film equal or exceed seventy-five percent 20 of the production costs (excluding post production costs) paid or 21 incurred which are attributable to the use of tangible property or the 22 performance of services at any film production facility within and with- 23 out the state in the production of such qualified film, and (ii) except 24 with respect to a qualified independent film production company or 25 pilot, at least ten percent of the total principal photography shooting 26 days spent in the production of such qualified film must be spent at a 27 qualified film production facility. However, if the qualified production 28 costs (excluding post production costs) which are attributable to the 29 use of tangible property or the performance of services at a qualified 30 film production facility in the production of such qualified film is 31 less than three million dollars, then the portion of the qualified 32 production costs attributable to the use of tangible property or the 33 performance of services in the production of such qualified film outside 34 of a qualified film production facility shall be allowed only if the 35 shooting days spent in New York outside of a film production facility in 36 the production of such qualified film equal or exceed seventy-five 37 percent of the total shooting days spent within and without New York 38 outside of a film production facility in the production of such quali- 39 fied film. The credit shall be allowed for the taxable year in which the 40 production of such qualified film is completed. However, in the case of 41 a qualified film that receives funds from additional pool 2, no credit 42 shall be claimed before the later of (1) the taxable year the production 43 of the qualified film is complete, or (2) the taxable year that includes 44 the last day of the allocation year for which the film has been allo- 45 cated credit by the department of economic development. If the amount of 46 the credit is at least one million dollars but less than five million 47 dollars, the credit shall be claimed over a two year period beginning in 48 the first taxable year in which the credit may be claimed and in the 49 next succeeding taxable year, with one-half of the amount of credit 50 allowed being claimed in each year. If the amount of the credit is at 51 least five million dollars, the credit shall be claimed over a three 52 year period beginning in the first taxable year in which the credit may 53 be claimed and in the next two succeeding taxable years, with one-third 54 of the amount of the credit allowed being claimed in each year.S. 3009 56 A. 3009 1 Provided, however, in the case of a qualified film for which the credit 2 application was received on or after January first, two thousand twen- 3 ty-five, the credit shall be claimed in the taxable year that includes 4 the last day of the allocation year for which the film has been allo- 5 cated a credit by the department of economic development. 6 (5) For the period two thousand fifteen through two thousand [thirty-7four] thirty-six, in addition to the amount of credit established in 8 paragraph two of this subdivision, a taxpayer shall be allowed a credit 9 equal to (i) the product (or pro rata share of the product, in the case 10 of a member of a partnership) of ten percent and the wages, salaries or 11 other compensation constituting qualified production costs as defined in 12 paragraph two of subdivision (b) of this section, paid to individuals 13 directly employed by a qualified film production company or a qualified 14 independent film production company for services performed by those 15 individuals in one of the counties specified in this paragraph in 16 connection with a qualified film with a minimum budget of five hundred 17 thousand dollars, and (ii) the product (or pro rata share of the prod- 18 uct, in the case of a member of a partnership) of ten percent and the 19 qualified production costs (excluding wages, salaries or other compen- 20 sation) paid or incurred in the production of a qualified film where the 21 property constituting such qualified production costs was used, and the 22 services constituting such qualified production costs were performed in 23 any of the counties specified in this paragraph in connection with a 24 qualified film with a minimum budget of five hundred thousand dollars 25 where the majority of principal photography shooting days in the 26 production of such film were shot in any of the counties specified in 27 this paragraph. Provided, however, that the aggregate total eligible 28 qualified production costs constituting wages, salaries or other compen- 29 sation, for writers, directors, composers, producers, and performers 30 shall not exceed forty percent of the aggregate sum total of all other 31 qualified production costs. For purposes of the credit, the services 32 must be performed and the property must be used in one or more of the 33 following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chau- 34 tauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutch- 35 ess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, 36 Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, 37 Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, 38 Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. 39 Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washing- 40 ton, Wayne, Wyoming, or Yates. 41 (6) Production plus program. (i) A taxpayer who is a qualified inde- 42 pendent film production company or a qualified film production company 43 engaging in the production of a qualified film that undertakes multiple 44 productions in New York state may be eligible for a tax credit in addi- 45 tion to the credit pursuant to paragraph two of this subdivision. 46 Production companies that submit at least two initial applications to 47 the empire state film production tax credit program after January first, 48 two thousand twenty-five the sum of which total at least one hundred 49 million dollars in qualified production costs in New York state may be 50 eligible to receive an additional tax credit equal to the product of ten 51 percent and the qualified production costs incurred on all subsequent 52 films or television series applied for. 53 (ii) A taxpayer who is a qualified independent film production company 54 engaging in the production of a feature length film, television film or 55 television series as defined in the regulations promulgated for this 56 program that undertakes multiple productions in New York state may beS. 3009 57 A. 3009 1 eligible for a tax credit in addition to the credit pursuant to para- 2 graph two of this subdivision. Production companies that submit at least 3 two applications to the empire state film production tax credit program 4 after January first, two thousand twenty-five the sum of which total at 5 least twenty million in qualified production costs in New York state may 6 receive an additional tax credit equal to the product of five percent 7 and the qualified production costs incurred on all subsequent films or 8 series applied for. 9 (iii) Initial applications for feature length films and new television 10 series submitted after December thirty-first, two thousand twenty-eight 11 shall not be eligible for the program pursuant to this paragraph; 12 provided, however, a television series that enters the program pursuant 13 to this paragraph before January first, two thousand twenty-nine shall 14 continue to be eligible. 15 § 2. Paragraphs 1, 2 and 7 of subdivision (b) of section 24 of the 16 tax law, paragraph 1 as amended by section 2-a and paragraph 2 as 17 amended by section 3 of part D of chapter 59 of the laws of 2023, para- 18 graph 7 as added by section 9 of part Q of chapter 57 of the laws of 19 2010, are amended and a new paragraph 11 is added to read as follows: 20 (1) "Qualified production costs" means production costs only to the 21 extent such costs are attributable to the use of tangible property or 22 the performance of services within the state directly and predominantly 23 in the production (including pre-production and post production) of a 24 qualified film. In the case of an eligible relocated television series, 25 the term "qualified production costs" shall include, in the first season 26 that the eligible relocated television series is produced in New York 27 after relocation, qualified relocation costs. Provided, however, that 28 the aggregate total eligible qualified production costs for producers, 29 writers, directors, performers (other than background actors with no 30 scripted lines), and composers shall not exceed forty percent of the 31 aggregate sum total of all other qualified production costs. Provided, 32 further, that qualified production costs shall not include any payments 33 to a loan-out company for the provision of specific individual person- 34 nel, such as artists, crew, actors, producers, or directors, for the 35 performance of services used directly in a production unless the taxpay- 36 er has satisfied the withholding requirement pursuant to subdivision (g) 37 of this section. 38 (2) "Production costs" means any costs for tangible property used and 39 services performed directly and predominantly in the production (includ- 40 ing pre-production and post production) of a qualified film. 41 "Production costs" shall not include [(i)] costs for a story, script or 42 scenario to be used for a qualified film [and (ii) wages or salaries or43other compensation for writers, directors, composers, and performers44(other than background actors with no scripted lines) to the extent45those wages or salaries or other compensation exceed five hundred thou-46sand dollars per individual]. "Production costs" generally include the 47 wages or salaries or other compensation for writers, directors, compos- 48 ers and performers, technical and crew production costs, such as expend- 49 itures for film production facilities, or any part thereof, props, make- 50 up, wardrobe, film processing, camera, sound recording, set 51 construction, lighting, shooting, editing and meals, and shall include 52 the wages, salaries or other compensation of no more than two producers 53 per qualified film[, not to exceed five hundred thousand dollars per54producer, where only one of whom is the principal individual responsible55for overseeing the creative and managerial process of production of the56qualified film and only one of whom is the principal individual respon-S. 3009 58 A. 3009 1sible for the day-to-day operational management of production of the2qualified film; provided, however, that such producers are not compen-3sated for any other position on the qualified film by a qualified film4production company or a qualified independent film production company5for services performed]. 6 (7) "Qualified independent film production company" is a corporation, 7 partnership, limited partnership, or other entity or individual, that or 8 who (i) is principally engaged in the production of a qualified film 9 [with a maximum budget of fifteen million dollars], [and] (ii) [controls10the qualified film during production] is not publicly traded, and (iii) 11 [either is not a publicly traded entity, or no more than five percent of12the beneficial ownership of which is owned, directly or indirectly, by a13publicly traded entity]is not majority owned, fifty-one percent or more, 14 by a company publicly traded on a United States stock exchange. 15 (11) "Loan-out company" means a personal service corporation or other 16 entity with which a qualified film production company or a qualified 17 independent film production company contracts for the provision of spec- 18 ified individual personnel, such as artists, crew, actors, producers, or 19 directors for the performance of services used directly in a production. 20 "Loan-out company" shall not include entities that contracted with a 21 qualified film production company or a qualified independent film 22 production company to provide goods or ancillary contractor services 23 such as catering, construction, trailers, equipment, or transportation. 24 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 25 amended by section 2 of chapter 606 of the laws of 2023, is amended to 26 read as follows: 27 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 28 subdivision (a) of this section shall be increased by an additional four 29 hundred twenty million dollars in each year starting in two thousand ten 30 through two thousand twenty-three and seven hundred million dollars in 31 each year starting in two thousand twenty-four through two thousand 32 [thirty-four] thirty-six, provided however, seven million dollars of the 33 annual allocation shall be available for the empire state film post 34 production credit pursuant to section thirty-one of this article in two 35 thousand thirteen and two thousand fourteen, twenty-five million dollars 36 of the annual allocation shall be available for the empire state film 37 post production credit pursuant to section thirty-one of this article in 38 each year starting in two thousand fifteen through two thousand twenty- 39 three, and forty-five million dollars of the annual allocation shall be 40 available for the empire state film post production credit pursuant to 41 section thirty-one of this article in each year starting in two thousand 42 twenty-four through two thousand [thirty-four] thirty-six. Provided 43 further, five million dollars of the annual allocation shall be made 44 available for the television writers' and directors' fees and salaries 45 credit pursuant to section twenty-four-b of this article in each year 46 starting in two thousand twenty through two thousand [thirty-four] thir- 47 ty-six. This amount shall be allocated by the department of economic 48 development among taxpayers in accordance with subdivision (a) of this 49 section. If the commissioner of economic development determines that the 50 aggregate amount of tax credits available from additional pool 2 for the 51 empire state film production tax credit have been previously allocated, 52 and determines that the pending applications from eligible applicants 53 for the empire state film post production tax credit pursuant to section 54 thirty-one of this article is insufficient to utilize the balance of 55 unallocated empire state film post production tax credits from such 56 pool, the remainder, after such pending applications are considered,S. 3009 59 A. 3009 1 shall be made available for allocation in the empire state film tax 2 credit pursuant to this section, subdivision twenty of section two 3 hundred ten-B and subsection (gg) of section six hundred six of this 4 chapter. Also, if the commissioner of economic development determines 5 that the aggregate amount of tax credits available from additional pool 6 2 for the empire state film post production tax credit have been previ- 7 ously allocated, and determines that the pending applications from 8 eligible applicants for the empire state film production tax credit 9 pursuant to this section is insufficient to utilize the balance of unal- 10 located film production tax credits from such pool, then all or part of 11 the remainder, after such pending applications are considered, shall be 12 made available for allocation for the empire state film post production 13 credit pursuant to this section, subdivision thirty-two of section two 14 hundred ten-B and subsection (qq) of section six hundred six of this 15 chapter. The department of economic development must notify taxpayers of 16 their allocation year and include the allocation year on the certificate 17 of tax credit. Taxpayers eligible to claim a credit must report the 18 allocation year directly on their empire state film production credit 19 tax form for each year a credit is claimed and include a copy of the 20 certificate with their tax return. In the case of a qualified film that 21 receives funds from additional pool 2 where the taxpayer filed an 22 initial application before April first, two thousand twenty-three and 23 before January first, two thousand twenty-five, no empire state film 24 production credit shall be claimed before the later of (1) the taxable 25 year the production of the qualified film is complete, or (2) the taxa- 26 ble year immediately following the allocation year for which the film 27 has been allocated credit by the department of economic development. In 28 the case of a qualified film that receives funds from additional pool 2 29 where the taxpayer filed an initial application on or after April first, 30 two thousand twenty-three and before January first, two thousand twen- 31 ty-five, no empire state film production credit shall be claimed before 32 the later of (1) the taxable year the production of the qualified film 33 is complete, or (2) the taxable year that includes the last day of the 34 allocation year for which the film has been allocated credit by the 35 department of economic development. In the case of a qualified film for 36 which the taxpayer filed an initial application on or after January 37 first, two thousand twenty-five, the credit shall be claimed in the 38 taxable year that includes the last day of the allocation year for which 39 the production of such qualified film has been allocated a credit by the 40 department of economic development. 41 § 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 42 amended by section 3 of chapter 606 of the laws of 2023, is amended to 43 read as follows: 44 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 45 subdivision (a) of this section shall be increased by an additional four 46 hundred twenty million dollars in each year starting in two thousand ten 47 through two thousand twenty-three and seven hundred million dollars each 48 year starting in two thousand twenty-four through two thousand [thirty-49four] thirty-six, provided however, seven million dollars of the annual 50 allocation shall be available for the empire state film post production 51 credit pursuant to section thirty-one of this article in two thousand 52 thirteen and two thousand fourteen, twenty-five million dollars of the 53 annual allocation shall be available for the empire state film post 54 production credit pursuant to section thirty-one of this article in each 55 year starting in two thousand fifteen through two thousand twenty-three, 56 and forty-five million dollars of the annual allocation shall be avail-S. 3009 60 A. 3009 1 able for the empire state film post production credit pursuant to 2 section thirty-one of this article in each year starting in two thousand 3 twenty-four through two thousand [thirty-four] thirty-six. This amount 4 shall be allocated by the department of economic development among 5 taxpayers in accordance with subdivision (a) of this section. If the 6 commissioner of economic development determines that the aggregate 7 amount of tax credits available from additional pool 2 for the empire 8 state film production tax credit have been previously allocated, and 9 determines that the pending applications from eligible applicants for 10 the empire state film post production tax credit pursuant to section 11 thirty-one of this article is insufficient to utilize the balance of 12 unallocated empire state film post production tax credits from such 13 pool, the remainder, after such pending applications are considered, 14 shall be made available for allocation in the empire state film tax 15 credit pursuant to this section, subdivision twenty of section two 16 hundred ten-B and subsection (gg) of section six hundred six of this 17 chapter. Also, if the commissioner of economic development determines 18 that the aggregate amount of tax credits available from additional pool 19 2 for the empire state film post production tax credit have been previ- 20 ously allocated, and determines that the pending applications from 21 eligible applicants for the empire state film production tax credit 22 pursuant to this section is insufficient to utilize the balance of unal- 23 located film production tax credits from such pool, then all or part of 24 the remainder, after such pending applications are considered, shall be 25 made available for allocation for the empire state film post production 26 credit pursuant to this section, subdivision thirty-two of section two 27 hundred ten-B and subsection (qq) of section six hundred six of this 28 chapter. The department of economic development must notify taxpayers of 29 their allocation year and include the allocation year on the certificate 30 of tax credit. Taxpayers eligible to claim a credit must report the 31 allocation year directly on their empire state film production credit 32 tax form for each year a credit is claimed and include a copy of the 33 certificate with their tax return. In the case of a qualified film that 34 receives funds from additional pool 2 where the taxpayer filed an 35 initial application before April first, two thousand twenty-three, no 36 empire state film production credit shall be claimed before the later of 37 (1) the taxable year the production of the qualified film is complete, 38 or (2) the taxable year immediately following the allocation year for 39 which the film has been allocated credit by the department of economic 40 development. In the case of a qualified film that receives funds from 41 additional pool 2 where the taxpayer filed an initial application on or 42 after April first, two thousand twenty-three and before January first, 43 two thousand twenty-five, no empire state film production credit shall 44 be claimed before the later of (1) the taxable year the production of 45 the qualified film is complete, or (2) the taxable year that includes 46 the last day of the allocation year for which the film has been allo- 47 cated credit by the department of economic development. Provided, howev- 48 er, in the case of a qualified film for which the credit application was 49 received on or after January first, two thousand twenty-five, the credit 50 shall be claimed in the taxable year that includes the last day of the 51 allocation year for which the film has been allocated a credit by the 52 department of economic development. 53 § 5. Section 24 of the tax law is amended by adding two new subdivi- 54 sions (g) and (h) to read as follows: 55 (g) A taxpayer shall withhold from each payment to a loan-out company 56 an amount equal to six and eighty-five one hundredths (6.85) percent ofS. 3009 61 A. 3009 1 the payment otherwise due. The amounts withheld shall be deemed to be 2 withholding pursuant to part five of article twenty-two of this chapter, 3 and the taxpayer shall be deemed to have the rights, duties, and respon- 4 sibilities pursuant to such part of an employer of the individuals to 5 whom the loan-out company made payments for services performed in the 6 state. The amounts so withheld shall be allocated to the loan-out compa- 7 ny's employees in proportion to payments made to the loan-out company's 8 employees for services performed in the state. Notwithstanding any 9 other provisions of this chapter, loan-out company nonresident employees 10 performing services in the state shall be considered taxable nonresi- 11 dents and the loan-out company shall be subject to income taxation in 12 the taxable year in which the loan-out company's employees perform 13 services in the state. Such withholding liability shall be subject to 14 penalties and interest in the same manner as the employee withholding 15 taxes imposed by part five of article twenty-two of this chapter. 16 (h) Credit recapture. If a certificate of tax credit issued by the 17 department of economic development pursuant to this section is revoked 18 by such department because the taxpayer does not meet the eligibility 19 requirements of this section, the amount of credit described in this 20 section and claimed by the taxpayer prior to that revocation shall be 21 added back to tax in the taxable year in which any such revocation 22 becomes final. 23 § 6. Paragraphs 3, 5 and 6 of subdivision (a) of section 31 of the 24 tax law, paragraph 3 as amended by section 5 and paragraph 5 as added by 25 section 5-a of part B of chapter 59 of the laws of 2013, and paragraph 6 26 as amended by section 9 of part D of chapter 59 of the laws of 2023, are 27 amended to read as follows: 28 (3) (i) A taxpayer shall not be eligible for the credit established by 29 this section for qualified post production costs, excluding the costs 30 for visual effects and animation, unless the qualified post production 31 costs, excluding the costs for visual effects and animation, at a quali- 32 fied post production facility meet or exceed one million dollars seven- 33 ty-five percent of the total post production costs, excluding the costs 34 for visual effects and animation, paid or incurred in the post 35 production of the qualified film at any post production facility. (ii) A 36 taxpayer shall not be eligible for the credit established by this 37 section for qualified post production costs which are costs for visual 38 effects or animation unless the qualified post production costs for 39 visual effects or animation at a qualified post production facility meet 40 or exceed [three million] five hundred thousand dollars or [twenty] ten 41 percent of the total post production costs for visual effects or 42 animation paid or incurred in the post production of a qualified film at 43 any post production facility, whichever is less. (iii) A taxpayer may 44 claim a credit for qualified post production costs excluding the costs 45 for visual effects and animation, and for qualified post production 46 costs of visual effects and animation, provided that the criteria in 47 subparagraphs (i) and (ii) of this paragraph are both satisfied. The 48 credit shall be allowed for the taxable year in which the production of 49 such qualified film is completed. 50 (5) If the amount of the credit is at least one million dollars but 51 less than five million dollars, the credit shall be claimed over a two 52 year period beginning in the first taxable year in which the credit may 53 be claimed and in the next succeeding taxable year, with one-half of the 54 amount of credit allowed being claimed in each year. If the amount of 55 the credit is at least five million dollars, the credit shall be claimed 56 over a three year period beginning in the first taxable year in whichS. 3009 62 A. 3009 1 the credit may be claimed and in the next two succeeding taxable years, 2 with one-third of the amount of the credit allowed being claimed in each 3 year. Provided, however, in the case of a qualified film for which the 4 taxpayer filed an initial application on or after January first, two 5 thousand twenty-five, the credit shall be claimed for the taxable year 6 in which such qualified film is completed. 7 (6) For the period two thousand fifteen through two thousand [thirty-8four] thirty-six, in addition to the amount of credit established in 9 paragraph two of this subdivision, a taxpayer shall be allowed a credit 10 equal to the product (or pro rata share of the product, in the case of a 11 member of a partnership) of ten percent and the amount of wages or sala- 12 ries paid to individuals directly employed (excluding those employed as 13 writers, directors, composers, producers and performers, other than 14 background actors with no scripted lines) for services performed by 15 those individuals in one of the counties specified in this paragraph in 16 connection with the post production work on a qualified film with a 17 minimum budget of five hundred thousand dollars at a qualified post 18 production facility in one of the counties listed in this paragraph. For 19 purposes of this additional credit, the services must be performed in 20 one or more of the following counties: Albany, Allegany, Broome, Catta- 21 raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- 22 land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, 23 Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, 24 Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, 25 Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, 26 Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, 27 Ulster, Warren, Washington, Wayne, Wyoming, or Yates. 28 § 7. Paragraph 2 of subdivision b of section 31 of the tax law, as 29 added by section 12 of part Q of chapter 57 of the laws of 2010, is 30 amended and a new paragraph 5 is added to read as follows: 31 (2) "[Post] Qualified production costs" means production of original 32 content for a qualified film employing traditional, emerging and new 33 workflow techniques used in post-production for picture, sound and music 34 editorial, rerecording and mixing, visual effects, graphic design, 35 [original scoring,] animation, and musical composition in the state; but 36 shall not include the editing of previously produced content for a qual- 37 ified film. Provided, however, that the aggregate total eligible post 38 production costs for the wages, salaries or other compensation of writ- 39 ers, directors, performers (other than background actors with no script- 40 ed lines), composers, and no more than two producers, shall not exceed 41 forty percent of the aggregate sum total of all other qualified post 42 production costs. Provided, further, that qualified post production 43 costs shall not include any payments to a loan-out company for the 44 provision of specific individual personnel, such as artists, crew, 45 actors, producers, or directors, for the performance of services used 46 directly in a production unless the taxpayer has satisfied the withhold- 47 ing requirement pursuant to subdivision (f) of this section. 48 (5) "Loan-out company" means a personal service corporation or other 49 entity with which a qualified film production company or a qualified 50 independent film production company contracts for the provision of spec- 51 ified individual personnel, such as artists, crew, actors, producers, or 52 directors for the performance of services used directly in a production. 53 "Loan-out company" shall not include entities that contracted with a 54 qualified film production company or a qualified independent film 55 production company to provide goods or ancillary contractor services 56 such as catering, construction, trailers, equipment, or transportation.S. 3009 63 A. 3009 1 § 8. Section 31 of the tax law is amended by adding two new subdivi- 2 sions (f) and (g) to read as follows: 3 (f) A taxpayer shall withhold from each payment to a loan-out company 4 an amount equal to 6.85 percent of the payment otherwise due. The 5 amounts withheld shall be deemed to be withholding pursuant to part five 6 of article twenty-two of this chapter, and the taxpayer shall be deemed 7 to have the rights, duties, and responsibilities pursuant to such part 8 of an employer of the individuals to whom the loan-out company made 9 payments for services performed in the state. The amounts so withheld 10 shall be allocated to the loan-out company's employees in proportion to 11 payments made to the loan-out company's employees for services performed 12 in the state. Notwithstanding any other provisions of this chapter, 13 loan-out company nonresident employees performing services in the state 14 shall be considered taxable nonresidents and the loan-out company shall 15 be subject to income taxation in the taxable year in which the loan-out 16 company's employees perform services in the state. Such withholding 17 liability shall be subject to penalties and interest in the same manner 18 as the employee withholding taxes imposed by part five of article twen- 19 ty-two of this chapter. 20 (g) Credit recapture. If a certificate of tax credit issued by the 21 department of economic development pursuant to this section is revoked 22 by such department because the taxpayer does not meet the eligibility 23 requirements of this section, the amount of credit described in this 24 section and claimed by the taxpayer prior to that revocation shall be 25 added back to tax in the taxable year in which any such revocation 26 becomes final. 27 § 9. The tax law is amended by adding a new section 24-d to read as 28 follows: 29 § 24-d. Empire state independent film production credit. (a) (1) 30 Allowance of credit. A taxpayer which is a qualified independent film 31 production company, or which is a sole proprietor of or a member of a 32 partnership which is a qualified independent film production company, 33 and which is subject to tax under articles nine-A or twenty-two of this 34 chapter, shall be allowed a credit against such tax, pursuant to the 35 provisions referenced in subdivision (c) of this section, to be computed 36 as hereinafter provided. 37 (2) (i) The amount of the credit shall be the product (or pro rata 38 share of the product, in the case of a member of a partnership) of thir- 39 ty percent and the qualified production costs paid or incurred in the 40 production of a qualified film, provided that the qualified production 41 costs (excluding post production costs) paid or incurred which are 42 attributable to the use of tangible property or the performance of 43 services at a qualified film production facility in the production of 44 such qualified film equal or exceed seventy-five percent of the 45 production costs (excluding post production costs) paid or incurred 46 which are attributable to the use of tangible property or the perform- 47 ance of services at any film production facility within and without the 48 state in the production of such qualified film. However, if the quali- 49 fied production costs (excluding post production costs) which are 50 attributable to the use of tangible property or the performance of 51 services at a qualified film production facility in the production of 52 such qualified film is less than three million dollars, then the portion 53 of the qualified production costs attributable to the use of tangible 54 property or the performance of services in the production of such quali- 55 fied film outside of a qualified film production facility shall be 56 allowed only if the shooting days spent in New York outside of a filmS. 3009 64 A. 3009 1 production facility in the production of such qualified film equal or 2 exceed seventy-five percent of the total shooting days spent within and 3 without the state outside of a film production facility in the 4 production of such qualified film. The credit shall be allowed for the 5 taxable year in which the production of such qualified film is 6 completed. A taxpayer shall not be eligible for a tax credit established 7 by this section for the production of more than two qualified films per 8 calendar year. 9 (ii) In addition to the amount of credit established in subparagraph 10 (i) of this paragraph, a taxpayer shall be allowed a credit equal to (A) 11 the product (or pro rata share of the product, in the case of a member 12 of a partnership) of ten percent and the wages, salaries or other 13 compensation constituting qualified production costs as defined in para- 14 graph one of subdivision (b) of this section, paid to individuals 15 directly employed by a qualified independent film production company for 16 services performed by those individuals in one of the counties specified 17 in this subparagraph in connection with a qualified independent film 18 with a minimum budget of five hundred thousand dollars, and (B) the 19 product (or pro rata share of the product, in the case of a member of a 20 partnership) of ten percent and the qualified production costs (exclud- 21 ing wages, salaries or other compensation) paid or incurred in the 22 production of a qualified film where the property constituting such 23 qualified production costs was used, and the services constituting such 24 qualified production costs were performed in any of the counties speci- 25 fied in this subparagraph in connection with a qualified film with a 26 minimum budget of five hundred thousand dollars where the majority of 27 principal photography shooting days in the production of such film 28 were shot in any of the counties specified in this paragraph. Provided, 29 however, that the aggregate total eligible qualified production costs 30 constituting wages, salaries or other compensation, for writers, 31 directors, composers, producers, and performers shall not exceed forty 32 percent of the aggregate sum total of all other qualified production 33 costs. For purposes of the credit, the services must be performed and 34 the property must be used in one or more of the following counties: 35 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 36 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 37 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 38 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 39 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 40 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- 41 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or 42 Yates. 43 (3) No qualified production costs used by a taxpayer either as the 44 basis for the allowance of the credit provided for under this section or 45 used in the calculation of the credit provided for under this section 46 shall be used by such taxpayer to claim any other credit allowed pursu- 47 ant to this chapter. 48 (4) Notwithstanding the foregoing provisions of this subdivision, a 49 qualified independent film production company that has applied for cred- 50 it under the provisions of this section, agrees as a condition for the 51 granting of the credit: (i) to include in each qualified film distrib- 52 uted by DVD, or other media for the secondary market, a New York promo- 53 tional video approved by the governor's office of motion picture and 54 television development or to include in the end credits of each quali- 55 fied film "Filmed With the Support of the New York State Governor's 56 Office of Motion Picture and Television Development" and a logo providedS. 3009 65 A. 3009 1 by the governor's office of motion picture and television development, 2 and (ii) to certify that it will purchase taxable tangible property and 3 services, defined as qualified production costs pursuant to paragraph 4 one of subdivision (b) of this section, only from companies registered 5 to collect and remit state and local sales and use taxes pursuant to 6 articles twenty-eight and twenty-nine of this chapter. 7 (b) Definitions. As used in this section, the following terms shall 8 have the following meanings: 9 (1) "Qualified production costs" means production costs only to the 10 extent such costs, excluding labor costs, do not exceed sixty million 11 dollars and are attributable to the use of tangible property or the 12 performance of services within the state directly and predominantly in 13 the production (including pre-production and post production) of a qual- 14 ified film. In the case of an eligible relocated television series, the 15 term "qualified production costs" shall include, in the first season 16 that the eligible relocated television series is produced in New York 17 after relocation, qualified relocation costs. Provided, however, that 18 the aggregate total eligible qualified production costs for producers, 19 writers, directors, performers (other than background actors with no 20 scripted lines), and composers shall not exceed forty percent of the 21 aggregate sum total of all other qualified production costs. Provided, 22 further, that qualified production costs shall not include any payments 23 to a loan-out company for the provision of specified individual person- 24 nel, such as artists, crew, actors, producers, or directors, for the 25 performance of services used directly in a production unless the taxpay- 26 er has satisfied the withholding requirement pursuant to subdivision (g) 27 of this section. 28 (2) "Production costs" means any costs for tangible property used and 29 services performed directly and predominantly in the production (includ- 30 ing pre-production and post production) of a qualified film. 31 "Production costs" shall not include costs for a story, script or 32 scenario to be used for a qualified film. "Production costs" generally 33 include writers, directors, composers and performers, technical and crew 34 production costs, such as expenditures for film production facilities, 35 or any part thereof, props, makeup, wardrobe, film processing, camera, 36 sound recording, set construction, lighting, shooting, editing and 37 meals. 38 (3) "Qualified film" means a scripted narrative feature-length film, 39 television film, relocated television series or television series, 40 regardless of the medium by means of which the film or series is created 41 or conveyed. For the purposes of the credit provided by this section 42 only, a "qualified film" whose majority of principal photography shoot- 43 ing days in the production of the qualified film are shot in Westches- 44 ter, Rockland, Nassau, or Suffolk county or any of the five New York 45 City boroughs shall have a minimum budget of one million dollars. A 46 "qualified film", whose majority of principal photography shooting days 47 in the production of the qualified film are shot in any other county of 48 the state than those listed in the preceding sentence shall have a mini- 49 mum budget of two hundred fifty thousand dollars. "Qualified film" shall 50 not include: (i) a television pilot, documentary film, news or current 51 affairs program, interview or talk program, "how-to" (i.e., instruc- 52 tional) film or program, film or program consisting primarily of stock 53 footage, sporting event or sporting program, game show, award ceremony, 54 film or program intended primarily for industrial, corporate or institu- 55 tional end-users, fundraising film or program, daytime drama (i.e., 56 daytime "soap opera"), commercials, music videos or "reality" program;S. 3009 66 A. 3009 1 (ii) a production for which records are required under section 2257 of 2 title 18, United States code, to be maintained with respect to any 3 performer in such production (reporting of books, films, etc. with 4 respect to sexually explicit conduct); or (iii) a television series 5 commonly known as variety entertainment, variety sketch and variety 6 talk, i.e., a program with components of improvisational or scripted 7 content (monologues, sketches, interviews), either exclusively or in 8 combination with other entertainment elements such as musical perform- 9 ances, dancing, cooking, crafts, pranks, stunts, and games and which may 10 be further defined in regulations of the commissioner of economic devel- 11 opment. 12 (4) "Film production facility" shall mean a building and/or complex of 13 buildings and their improvements and associated back-lot facilities in 14 which films are or are intended to be regularly produced and which 15 contain at least one sound stage, provided, however, that an armory 16 owned by the state or city of New York located in the city of New York 17 shall not be considered to be a "film production facility" unless such 18 facility is used by a qualified independent film production company. 19 (5) "Qualified film production facility" shall mean a film production 20 facility in the state, which contains at least one sound stage having a 21 minimum of seven thousand square feet of contiguous production space. 22 (6) "Qualified independent film production company" is a corporation, 23 partnership, limited partnership, or other entity or individual, that or 24 who (i) is principally engaged in the production of a qualified film, 25 (ii) is not publicly traded, and (iii) is not majority owned, fifty-one 26 percent or more, by a company publicly traded on a United States stock 27 exchange. 28 (7) "Relocated television series" shall mean the first two years of a 29 regularly occurring production intended to run in its initial broadcast, 30 regardless of the medium or mode of its distribution, in a series of 31 narrative and/or thematically related episodes, each of which has a 32 running time of at least thirty minutes in length (inclusive of commer- 33 cial advertisement and interstitial programming, if any), which had 34 filmed a minimum of six episodes of the television series outside the 35 state immediately prior to relocating to the state, where the television 36 series had a total minimum budget of at least one million dollars per 37 episode. For the purposes of this definition only, a television series 38 produced by and for media services providers described as streaming 39 services and/or digital platforms (and excluding network/cable) shall 40 mean a regularly occurring production intended to run in its initial 41 release in a series of narrative and/or thematically related episodes, 42 the aggregate length of which is at least seventy-five minutes, although 43 the episodes themselves may vary in duration from the thirty minutes 44 specified for network/cable production. 45 (8) "Qualified relocation costs" means the costs incurred, excluding 46 wages, salaries and other compensation, in the first season that a relo- 47 cated television series relocates to New York, including such costs 48 incurred to transport sets, props and wardrobe to New York and other 49 costs as determined by the department of economic development to the 50 extent such costs do not exceed six million dollars. 51 (9) "Loan-out company" means a personal service corporation or other 52 entity with which a qualified independent film production company or a 53 qualified independent film production company contracts for the 54 provision of specified individual personnel, such as artists, crew, 55 actors, producers, or directors for the performance of services used 56 directly in a production. "Loan-out company" shall not include entitiesS. 3009 67 A. 3009 1 that contracted with a qualified independent film production company or 2 a qualified independent film production company to provide goods or 3 ancillary contractor services such as catering, construction, trailers, 4 equipment, or transportation. 5 (10) If the total amount of allocated credits applied for in any 6 particular year is less than the aggregate amount of tax credits allowed 7 for such year under this section, any unused portion may be carried over 8 and added to the aggregate amount of credits allowed in the next 9 succeeding taxable year or years. 10 (c) Cross-references. For application of the credit provided for in 11 this section, see the following provisions of this chapter: 12 (1) article 9-A: section 210-B: subdivision 20-a. 13 (2) article 22: section 606: subsection (gg-1). 14 (d) Notwithstanding any provision of this chapter, employees and offi- 15 cers of the governor's office of motion picture and television develop- 16 ment and the department shall be allowed and are directed to share and 17 exchange information regarding the credits applied for, allowed, or 18 claimed pursuant to this section and taxpayers who are applying for 19 credits or who are claiming credits, including information contained in 20 or derived from credit claim forms submitted to the department and 21 applications for credit submitted to the governor's office of motion 22 picture and television development. 23 (e) Allocation of credit. The aggregate amount of tax credits allowed 24 under this section, subdivision twenty-a of section two hundred ten and 25 subsection (gg-1) of section six hundred six of this chapter in any 26 calendar year shall be (1) twenty million dollars for qualified films 27 with a budget of less than ten million dollars of qualified production; 28 and (2) eighty million dollars for qualified films with a budget of ten 29 million dollars or more of qualified production costs. There shall be at 30 least two application periods each year; such aggregate amount of cred- 31 its shall be allocated by the governor's office for motion picture and 32 television development among taxpayers in order of priority based upon 33 the date of filing of an application for allocation of the independent 34 film production credit with such office within each application period. 35 If the commissioner of economic development determines that the aggre- 36 gate amount of tax credits available for an application period under 37 paragraph one of this subdivision have been previously allocated, and 38 determines that the pending applications from eligible applicants for 39 the other application period in such calendar year is insufficient to 40 utilize the balance of unallocated tax credits for such period, then 41 such commissioner may allocate to productions eligible under such para- 42 graph any credits that remain unallocated for such period pursuant to 43 paragraph two of this subdivision. Provided, however, the total amount 44 of allocated credits applied in any calendar year shall not exceed the 45 aggregate amount of tax credits allowed for such year under this 46 section. 47 (f) (1) The commissioner of economic development shall reduce by one- 48 half of one percent the amount of credit allowed to a taxpayer and this 49 reduced amount shall be reported on a certificate of tax credit issued 50 pursuant to this section and the regulations promulgated by the commis- 51 sioner of economic development to implement this credit program. 52 (2) By January thirty-first of each year, the commissioner of economic 53 development shall report to the comptroller the total amount of such 54 reductions of tax credit during the immediately preceding calendar year. 55 On or before March thirty-first of each year, the comptroller shall 56 transfer without appropriations from the general fund to the empireS. 3009 68 A. 3009 1 state entertainment diversity job training development fund established 2 under section ninety-seven-ff of the state finance law an amount equal 3 to the total amount of such reductions reported by the commissioner of 4 economic development for the immediately preceding calendar year. 5 (g) A taxpayer shall withhold from each payment to a loan-out company 6 an amount equal to 6.85 percent of the payment otherwise due. The 7 amounts withheld shall be deemed to be withholding pursuant to part five 8 of article twenty-two of this chapter, and the taxpayer shall be deemed 9 to have the rights, duties, and responsibilities pursuant to such part 10 of an employer of the individuals to whom the loan-out company made 11 payments for services performed in the state. The amounts so withheld 12 shall be allocated to the loan-out company's employees in proportion to 13 payments made to the loan-out company's employees for services performed 14 in the state. Notwithstanding any other provisions of this chapter, 15 loan-out company nonresident employees performing services in the state 16 shall be considered taxable nonresidents and the loan-out company shall 17 be subject to income taxation in the taxable year in which the loan-out 18 company's employees perform services in the state. Such withholding 19 liability shall be subject to penalties and interest in the same manner 20 as the employee withholding taxes imposed by part five of article twen- 21 ty-two of this chapter. 22 (h) Credit recapture. If a certificate of tax credit issued by the 23 department of economic development pursuant to this section is revoked 24 by such department because the taxpayer does not meet the eligibility 25 requirements of this section, the amount of credit described in this 26 section and claimed by the taxpayer prior to that revocation shall be 27 added back to tax in the taxable year in which any such revocation 28 becomes final. 29 § 10. Section 210-B of the tax law is amended by adding a new subdivi- 30 sion 20-a to read as follows: 31 20-a. Empire state independent film production credit. (a) Allowance 32 of credit. A taxpayer who is eligible pursuant to section twenty-four-d 33 of this chapter shall be allowed a credit to be computed as provided in 34 such section twenty-four-d against the tax imposed by this article. 35 (b) Application of credit. The credit allowed under this subdivision 36 for any taxable year shall not reduce the tax due for such year to less 37 than the fixed dollar minimum amount prescribed in paragraph (d) of 38 subdivision one of section two hundred ten of this article. Provided, 39 however, that if the amount of the credit allowable under this subdivi- 40 sion for any taxable year reduces the tax to such amount or if the 41 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 42 the excess shall be treated as an overpayment of tax to be credited or 43 refunded in accordance with the provisions of section one thousand 44 eighty-six of this chapter. Provided, however, the provisions of 45 subsection (c) of section one thousand eighty-eight of this chapter 46 notwithstanding, no interest shall be paid thereon. 47 § 11. Section 606 of the tax law is amended by adding a new subsection 48 (gg-1) to read as follows: 49 (gg-1) Empire state independent film production credit. (1) Allowance 50 of credit. A taxpayer who is eligible pursuant to section twenty-four-d 51 of this chapter shall be allowed a credit to be computed as provided in 52 such section twenty-four-d against the tax imposed by this article. 53 (2) Application of credit. If the amount of the credit allowable under 54 this subsection for any taxable year exceeds the taxpayer's tax for such 55 year, the excess shall be treated as an overpayment of tax to be credit-S. 3009 69 A. 3009 1 ed or refunded as provided in section six hundred eighty-six of this 2 article, provided, however, that no interest shall be paid thereon. 3 § 12. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 4 of the tax law is amended by adding a new clause (lii) to read as 5 follows: 6 (lii) Empire state film Amount of credit for qualified 7 production credit under production costs in production of 8 subsection (gg-1) a qualified film under 9 subdivision twenty-a of 10 section two hundred ten-B 11 § 13. This act shall take effect immediately and shall apply to 12 initial applications received on or after January 1, 2025, provided, 13 however, that the amendments to paragraph 4 of subdivision (e) of 14 section 24 of the tax law made by section three of this act shall take 15 effect on the same date and in the same manner as section 6 of chapter 16 683 of the laws of 2019, takes effect. 17 PART J 18 Section 1. Subdivision 13 of section 492 of the economic development 19 law, as added by section 2 of part AAA of chapter 56 of the laws of 20 2024, is amended to read as follows: 21 13. "Independently owned" shall mean a business entity that is not[:22(a)] a publicly traded entity or no more than five percent of the bene- 23 ficial ownership of which is owned, directly or indirectly by a publicly 24 traded entity[; (b) a subsidiary; and (c) any other criteria that the25department shall determine via regulations to ensure the business is not26controlled by another business entity]. 27 § 2. This act shall take effect immediately and apply to taxable years 28 beginning on or after January 1, 2025. 29 PART K 30 Section 1. Subdivision (b) of section 45 of the tax law, as added by 31 section 1 of part OO of chapter 59 of the laws of 2022, is amended to 32 read as follows: 33 (b) Allocation of credit. The aggregate amount of tax credits allowed 34 under this section, subdivision fifty-five of section two hundred ten-B 35 and subsection (nnn) of section six hundred six of this chapter in any 36 taxable year shall be five million dollars. Such credit shall be allo- 37 cated by the department of economic development in order of priority 38 based upon the date of filing an application for allocation of digital 39 gaming media production credit with such office. If the total amount of 40 allocated credits applied for in any particular year exceeds the aggre- 41 gate amount of tax credits allowed for such year under this section, 42 such excess shall be treated as having been applied for on the first day 43 of the subsequent taxable year. Provided, however, that for taxable 44 years beginning on or after January first, two thousand twenty-three, if 45 the total amount of allocated credits applied for in any particular year 46 is less than the aggregate amount of tax credits allowed for such year 47 under this section, any unused portion may be carried over and added to 48 the aggregate amount of credits allowed in the next succeeding taxable 49 year or years. 50 § 2. This act shall take effect immediately. 51 PART LS. 3009 70 A. 3009 1 Section 1. Section 6 of subpart B of part PP of chapter 59 of the laws 2 of 2021 amending the tax law and the state finance law relating to 3 establishing the New York city musical and theatrical production tax 4 credit and establishing the New York state council on the arts cultural 5 program fund, as amended by section 1 of subpart E of part I of chapter 6 59 of the laws of 2023, is amended to read as follows: 7 § 6. This act shall take effect immediately; provided however, that 8 sections one, two, three and four of this act shall apply to taxable 9 years beginning on or after January 1, 2021, and before January 1, 10 [2026] 2028 and shall expire and be deemed repealed January 1, [2026] 11 2028; provided further, however that the obligations under paragraph 3 12 of subdivision (g) of section 24-c of the tax law, as added by section 13 one of this act, shall remain in effect until December 31, [2027] 2029. 14 § 2. Subparagraph (i) of paragraph 5 of subdivision (b) of section 15 24-c of the tax law, as amended by section 3 of subpart E of part I of 16 chapter 59 of the laws of 2023, is amended to read as follows: 17 (i) "The credit period of a qualified New York city musical and theat- 18 rical production company" is the period starting on the production start 19 date and ending on the earlier of the date the qualified musical and 20 theatrical production has expended sufficient qualified production 21 expenditures to reach its credit cap, September thirtieth, two thousand 22 [twenty-five] twenty-seven or the date the qualified musical and theat- 23 rical production closes. 24 § 3. Subdivision (c) of section 24-c of the tax law, as amended by 25 section 4 of subpart E of part I of chapter 59 of the laws of 2023, is 26 amended to read as follows: 27 (c) The credit shall be allowed for the taxable year beginning on or 28 after January first, two thousand twenty-one but before January first, 29 two thousand [twenty-six] twenty-eight. A qualified New York city 30 musical and theatrical production company shall claim the credit in the 31 year in which its credit period ends. 32 § 4. Subdivision (f) of section 24-c of the tax law, as added by 33 section 1 of subpart B of part PP of chapter 59 of the laws of 2021, 34 paragraphs 1 and 2 as amended by section 5 of subpart E of part I of 35 chapter 59 of the laws of 2023, is amended to read as follows: 36 (f) Maximum amount of credits. (1) The aggregate amount of tax cred- 37 its allowed under this section, subdivision fifty-seven of section two 38 hundred ten-B and subsection (mmm) of section six hundred six of this 39 chapter shall be [three] four hundred million dollars. Such aggregate 40 amount of credits shall be allocated by the department of economic 41 development among taxpayers based on the date of first performance of 42 the qualified musical and theatrical production. 43 (2) The commissioner of economic development, after consulting with 44 the commissioner, shall promulgate regulations to establish procedures 45 for the allocation of tax credits as required by this section. Such 46 rules and regulations shall include provisions describing the applica- 47 tion process, the due dates for such applications, the standards that 48 will be used to evaluate the applications, the documentation that will 49 be provided by applicants to substantiate to the department the amount 50 of qualified production expenditures of such applicants, and such other 51 provisions as deemed necessary and appropriate. Notwithstanding any 52 other provisions to the contrary in the state administrative procedure 53 act, such rules and regulations may be adopted on an emergency basis. In 54 no event shall a qualified New York city musical and theatrical 55 production submit an application for this program after June thirtieth, 56 two thousand [twenty-five] twenty-seven.S. 3009 71 A. 3009 1 § 5. This act shall take effect immediately; provided, however, that 2 the amendments to section 24-c of the tax law, made by sections two, 3 three and four of this act, shall not affect the repeal of such section 4 and shall be deemed to be repealed therewith. 5 PART M 6 Section 1. Section 35 of the tax law, as added by section 12 of part U 7 of chapter 61 of the laws of 2011, is amended to read as follows: 8 § 35. Use of electronic means of communication. Notwithstanding any 9 other provision of New York state law, where the department has obtained 10 authorization of an online services account holder, in such form as may 11 be prescribed by the commissioner, the department may use electronic 12 means of communication to furnish any document it is required to mail 13 per law or regulation. If the department furnishes such document in 14 accordance with this section, department records of such transaction 15 shall constitute appropriate and sufficient proof of delivery thereof 16 and be admissible in any action or proceeding. Provided, however, that 17 if a taxpayer uses a department system to access taxpayer information, 18 including, but not limited to, notices, documents and account balance 19 information, that is not an electronic communication furnished in lieu 20 of mailing in accordance with this section, such accessed information 21 shall not give the taxpayer the right to a hearing in the division of 22 tax appeals, unless the right to protest such information is expressly 23 authorized by this chapter or another provision of law. 24 § 2. Subdivision 1 of section 2008 of the tax law, as amended by 25 section 3 of subpart C of part V-1 of chapter 57 of the laws of 2009, is 26 amended to read as follows: 27 1. All proceedings in the division of tax appeals shall be commenced 28 by the filing of a petition with the division of tax appeals protesting 29 any written notice of the division of taxation, including any electronic 30 notice provided in accordance with section thirty-five of this chapter, 31 which has advised the petitioner of a tax deficiency, a determination of 32 tax due, a denial of a refund or credit application, a cancellation, 33 revocation or suspension of a license, permit or registration, a denial 34 of an application for a license, permit or registration or any other 35 notice which expressly gives a person the right to a hearing in the 36 division of tax appeals under this chapter or other law. Provided, 37 however, that any written communications of the division of taxation 38 that advise a taxpayer of a past-due tax liability, as defined in 39 section one hundred seventy-one-v of this chapter, shall not give a 40 person the right to a hearing in the division of tax appeals. 41 § 3. This act shall take effect immediately. 42 PART N 43 Section 1. Section 6 of the tax law, as added by chapter 765 of the 44 laws of 1985, is amended to read as follows: 45 § 6. Filing of electronic warrants and warrant-related records in the 46 department of state. [Wherever under the provisions] 1. Notwithstanding 47 any provision of this chapter or a [warrant is required to] related 48 statute to the contrary, all warrants and warrant-related records issued 49 by the department shall be filed electronically by the department in the 50 department of state [in order to create a lien on personal property such51requirement shall be satisfied if there is filed a record of the fact of52the issuance of such warrant, including the name of the person on theS. 3009 72 A. 3009 1basis of whose tax liability the warrant is issued, the last known2address of such person, and the amount of such tax liability, including3penalties and interest]. No fee shall be required to be paid for such 4 [filing of such warrant or such record] filings. [The term "filed" in5such provisions shall mean presentation to the department of state, for6filing, of such warrant or such record.] On the date of the electronic 7 filing of a warrant, as confirmed by the department of state pursuant to 8 subdivision five of this section: 9 (a) the amount of the tax stated in the warrant shall become a lien 10 upon the title to and interest in all real, personal or other property 11 located in New York state, owned by the person or persons named in the 12 warrant. The lien so created shall: 13 (i) attach to all real property and rights to real property located in 14 New York state that is owned by the person or persons named in the 15 warrant at any time during the period of the lien, including any real 16 property or rights to real property located in New York state that is 17 acquired by such person or persons after the lien arises; and 18 (ii) apply to all personal or other property and rights to personal or 19 other property located in New York state that is owned by the person or 20 persons named in the warrant at any time during the period of the lien, 21 including any personal or other property or rights to personal or other 22 property located in New York state that is acquired by such person or 23 persons after the lien arises; and 24 (b) the commissioner shall, in the right of the people of the state of 25 New York, be deemed to have obtained a judgment against the person or 26 persons named in the warrant for the amount of the tax stated in the 27 warrant. 28 2. Enforcement of a judgment obtained pursuant to subdivision one of 29 this section shall be as prescribed in article fifty-two of the civil 30 practice law and rules. 31 3. A written or electronic copy of any electronic warrant or warrant- 32 related record filed in the department of state shall be filed by the 33 department in the office of the clerk of the county named in the warrant 34 or warrant-related record. 35 4. Notwithstanding any provision of this chapter or a related statute 36 to the contrary, all warrant-related records issued by the department 37 that are authorized by applicable laws, including, but not limited to, 38 warrant satisfactions, vacaturs, amendments and expirations, and any 39 warrant-related record issued by the department on or after July first, 40 two thousand twenty-five that pertains to a warrant filed prior to July 41 first, two thousand twenty-five, shall be filed electronically by the 42 department in the department of state. No fee shall be required to be 43 paid for such filings. A written or electronic copy of the electronic 44 warrant-related record filed in the department of state shall be filed 45 by the department in the office of the clerk of the county named in the 46 warrant-related record. 47 5. The department shall file warrants and warrant-related records 48 electronically with the department of state. The department of state 49 shall provide electronic notice to the department confirming the date of 50 filing of the warrants and warrant-related records. The department of 51 state shall also make information regarding the warrants and warrant-re- 52 lated records, including the date of filing, available to the public and 53 searchable by the name of the person or persons listed in the tax 54 warrant. Upon request of the commissioner, the department of state shall 55 certify that a warrant or warrant-related record has been filed and the 56 date of such filing.S. 3009 73 A. 3009 1 6. Notwithstanding any other provision of this chapter concerning the 2 place of filing of a tax warrant and the creation thereby of a tax lien 3 and judgment, the provisions of this section shall govern such matters 4 for purposes of any taxes imposed by or pursuant to this chapter. 5 § 2. Subdivision 1 of section 174-a of the tax law, as added by chap- 6 ter 176 of the laws of 1997, is amended to read as follows: 7 1. General rule. Notwithstanding any provision of law to the contrary, 8 the provisions of the civil practice law and rules relating to the dura- 9 tion of a lien of a docketed judgment in and upon real property of a 10 judgment debtor, and the extension of any such lien, shall apply to any 11 warrant or other warrant-related document electronically filed on behalf 12 of the commissioner against a taxpayer with the [clerk of a county wher-13ein such taxpayer owns or has an interest in real property] department 14 of state, whether such warrant is being enforced by a sheriff or an 15 officer or employee of the department. 16 § 3. Section 175 of the tax law, as amended by chapter 170 of the laws 17 of 1994, is amended to read as follows: 18 § 175. Manner of execution of instruments by the commissioner. 19 Notwithstanding any other provision of law, whenever a statute author- 20 izes or requires the commissioner to execute an instrument, such instru- 21 ment shall be executed by having the name or title of the commissioner 22 appear on such instrument and, underneath such name or title, such 23 instrument shall be signed by the commissioner or by a deputy tax 24 commissioner or by the secretary to such commissioner[, and the]. An 25 electronic signature may be used in lieu of a signature affixed by hand 26 pursuant to article three of the state technology law. The seal of such 27 commissioner [shall] may be affixed or [shall] appear on such instrument 28 as a facsimile which is engraved, printed or reproduced in any other 29 manner. No acknowledgment of the execution of any such instrument shall 30 be necessary for the purpose of the recordation thereof or for any other 31 purpose. 32 § 4. This act shall take effect July 1, 2025 and shall apply to 33 warrants and warrant-related records pertaining to such warrants filed, 34 or deemed to have been filed, on or after such date; provided, however, 35 that the department of taxation and finance and the department of state 36 are authorized to take any steps necessary to implement this act on or 37 before such effective date. 38 PART O 39 Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real 40 property tax law, as amended by section 1 of part RR of chapter 59 of 41 the laws of 2019, is amended to read as follows: 42 (b-1) Income. For final assessment rolls to be used for the levy of 43 taxes for the two thousand eleven-two thousand twelve through two thou- 44 sand eighteen-two thousand nineteen school years, the parcel's affil- 45 iated income may be no greater than five hundred thousand dollars, as 46 determined by the commissioner pursuant to subdivision fourteen of this 47 section or section one hundred seventy-one-u of the tax law, in order to 48 be eligible for the basic exemption authorized by this section. Begin- 49 ning with the two thousand nineteen-two thousand twenty school year, for 50 purposes of the exemption authorized by this section, the parcel's 51 affiliated income may be no greater than two hundred fifty thousand 52 dollars, as so determined. As used herein, the term "affiliated income" 53 shall mean the combined income of all of the owners of the parcel who 54 resided primarily thereon on the applicable taxable status date, and ofS. 3009 74 A. 3009 1 any owners' spouses residing primarily thereon. For exemptions on final 2 assessment rolls to be used for the levy of taxes for the two thousand 3 eleven-two thousand twelve school year, affiliated income shall be 4 determined based upon the parties' incomes for the income tax year 5 ending in two thousand nine. In each subsequent school year, the appli- 6 cable income tax year shall be advanced by one year. The term "income" 7 as used herein shall have the same meaning as in subdivision four of 8 this section, and the provisions of clause (B) of subparagraph (ii) of 9 paragraph (b) of subdivision four of this section shall be equally 10 applicable to the basic exemption. 11 § 2. Paragraph (a) of subdivision 4 of section 425 of the real proper- 12 ty tax law, as amended by section 4 of part A of chapter 405 of the laws 13 of 1999 and subparagraph (i) as amended by section 2 of part E of chap- 14 ter 83 of the laws of 2002, is amended to read as follows: 15 (a) Age. (i) [All] At least one of the owners who resides primarily on 16 the property must be [at least] sixty-five years of age or older as of 17 the date specified herein[, or in the case of property owned by husband18and wife or by siblings, one of the owners must be at least sixty-five19years of age as of that date and the property must serve as the primary20residence of that owner]. For the two thousand--two thousand one school 21 year, eligibility for the exemption shall be based upon age as of Decem- 22 ber thirty-first, two thousand. For each subsequent school year, the 23 applicable date shall be advanced by one year. 24 (ii) [The term "siblings" as used herein shall have the same meaning25as set forth in section four hundred sixty-seven of this article.26(iii)] In the case of property owned by [husband and wife, one of27whom] a married couple, if only one of the spouses is sixty-five years 28 of age or over, the exemption, once granted, shall not be rescinded 29 solely because of the death of the older spouse so long as the surviving 30 spouse is at least sixty-two years of age as of the date specified in 31 this paragraph. 32 § 3. The opening paragraph of subparagraph (i) of paragraph (b) of 33 subdivision 4 of section 425 of the real property tax law, as amended by 34 section 3 of part E of chapter 83 of the laws of 2002, is amended to 35 read as follows: 36 The combined income of all of the owners who primarily reside on the 37 property, and of any owners' spouses primarily residing on the [prem-38ises] property, may not exceed the applicable income standard specified 39 herein. 40 § 4. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 41 425 of the real property tax law, as amended by section 1 of part B of 42 chapter 59 of the laws of 2018, is amended to read as follows: 43 (ii) The term "income" as used herein shall mean the "adjusted gross 44 income" for federal income tax purposes as reported on the applicant's 45 federal or state income tax return for the applicable income tax year, 46 subject to any subsequent amendments or revisions, reduced by distrib- 47 utions, to the extent included in federal adjusted gross income, 48 received from an individual retirement account and an individual retire- 49 ment annuity; provided that if no such return was filed for the applica- 50 ble income tax year, "income" shall mean the [adjusted gross income] 51 amount that would have been so reported if such a return had been filed. 52 Provided further, that [effective]: 53 (A) Effective with exemption applications for final assessment rolls 54 to be completed in two thousand nineteen, where an income-eligibility 55 determination is wholly or partly based upon the income of one or more 56 individuals who did not file a return for the applicable income taxS. 3009 75 A. 3009 1 year, then in order for the application to be considered complete, each 2 such individual must file a statement with the department showing the 3 source or sources of [his or her] such individual's income for that 4 income tax year, and the amount or amounts thereof, that would have been 5 reported on such a return if one had been filed. Such statement shall be 6 filed at such time, and in such form and manner, as may be prescribed by 7 the department, and shall be subject to the secrecy provisions of the 8 tax law to the same extent that a personal income tax return would be. 9 The department shall make such forms and instructions available for the 10 filing of such statements. The local assessor shall upon the request of 11 a taxpayer assist such taxpayer in the filing of the statement with the 12 department. 13 (B) Notwithstanding the foregoing provisions of this subparagraph, 14 where property is owned solely by a person or persons who received the 15 exemption for three consecutive years without having filed returns for 16 the applicable income tax years, but who demonstrated their eligibility 17 for the exemption to the commissioner's satisfaction by filing state- 18 ments pursuant to clause (A) of this subparagraph, such person or 19 persons shall be presumed to satisfy the applicable income-eligibility 20 requirements each year thereafter and shall not be required to continue 21 to file such statements in the absence of a specific request therefor 22 from the commissioner. Nothing contained herein shall be construed to 23 prevent the commissioner from denying an exemption pursuant to this 24 section when the commissioner determines that a property owner has a 25 source of income that renders that owner ineligible for that exemption. 26 § 5. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of 27 subdivision 4 of section 425 of the real property tax law are REPEALED 28 and a new clause (C) is added to read as follows: 29 (C) When the commissioner determines that property is ineligible for a 30 STAR exemption, notice of such determination and an opportunity for 31 review thereof shall be provided in the manner set forth in subdivision 32 four-b of this section. 33 § 6. Section 425 of the real property tax law is amended by adding a 34 new subdivision 4-b to read as follows: 35 4-b. Authority of the commissioner in relation to eligibility determi- 36 nations. (a) (i) Notwithstanding any provision of this section to the 37 contrary, it shall be the responsibility of the commissioner to deter- 38 mine eligibility for the basic and enhanced STAR exemptions authorized 39 by this section, in consultation with local assessors as necessary. 40 (ii) The commissioner's eligibility determinations shall be based upon 41 data the commissioner has obtained from local assessment rolls, personal 42 income tax returns, the STAR registration program, the STAR income 43 verification program and such other data sources as may be available to 44 the commissioner. 45 (iii) The process followed by the commissioner to verify eligibility 46 for the basic and enhanced STAR exemptions shall be the same, except to 47 the extent that differences are required by law. 48 (b) If the commissioner should determine that a parcel that has a 49 basic STAR exemption is eligible for an enhanced STAR exemption, the 50 commissioner shall so notify the assessor. The assessor shall thereupon 51 grant the parcel an enhanced STAR exemption without requesting a new 52 application from the owner. 53 (c) If the commissioner determines that property is not eligible for a 54 STAR exemption it has been receiving, the provisions of this subdivision 55 shall be applicable.S. 3009 76 A. 3009 1 (i) The commissioner shall provide the property owners with notice and 2 an opportunity to show the commissioner that the property is eligible to 3 receive the exemption. If the owners fail to respond to such notice 4 within forty-five days from the mailing thereof, or if their response 5 does not show to the commissioner's satisfaction that the property is 6 eligible for the exemption, the commissioner shall direct the assessor 7 or other person having custody or control of the assessment roll or tax 8 roll to remove or deny the exemption, and to correct the roll according- 9 ly. Such a directive shall be binding upon the assessor or other person 10 having custody or control of the assessment roll or tax roll, and shall 11 be implemented by such person without the need for further documentation 12 or approval. 13 (ii) Neither an assessor nor a board of assessment review has the 14 authority to consider an objection to the removal or denial of an 15 exemption pursuant to this subdivision, nor may such an action be 16 reviewed in a proceeding to review an assessment pursuant to title one 17 or one-A of article seven of this chapter. Such an action may only be 18 challenged before the department of taxation and finance. If a taxpayer 19 is dissatisfied with the department's final determination, the taxpayer 20 may appeal that determination to the state board of real property tax 21 services in a form and manner to be prescribed by the commissioner. Such 22 appeal shall be filed within forty-five days from the issuance of the 23 department's final determination. If dissatisfied with the state board 24 of real property tax services' determination, the taxpayer may seek 25 judicial review thereof pursuant to article seventy-eight of the civil 26 practice law and rules. The taxpayer shall otherwise have no right to 27 challenge such final determination in a court action, administrative 28 proceeding or any other form of legal recourse against the commissioner, 29 the department of taxation and finance, the state board of real property 30 tax services, the assessor or other person having custody or control of 31 the assessment roll or tax roll regarding such action. 32 § 7. The section heading of section 171-u of the tax law, as added by 33 section 2 of part FF of chapter 57 of the laws of 2010, is amended to 34 read as follows: 35 Verification of [income] eligibility for [basic] STAR exemption. 36 § 8. Subdivisions 1, 2, 3 and 4 of section 171-u of the tax law are 37 REPEALED, subdivision 5 is renumbered to be subdivision 2, and a new 38 subdivision 1 is added to read as follows: 39 (1) The commissioner shall verify the eligibility of properties for 40 STAR exemptions in the manner provided by section four hundred twenty- 41 five of the real property tax law. 42 § 9. Subparagraphs (B) and (E) of paragraph 1 of subsection (eee) of 43 section 606 of the tax law, subparagraph (B) as amended by section 10 of 44 part B of chapter 59 of the laws of 2018 and subparagraph (E) as amended 45 by section 2 of part H of chapter 59 of the laws of 2017, are amended to 46 read as follows: 47 (B) (i) "Affiliated income" shall mean [for purposes of the basic STAR48credit,] the combined income of all of the owners of the parcel who 49 resided primarily thereon as of [December thirty-first] July first of 50 the taxable year, and of any owners' spouses residing primarily thereon 51 as of such date[, and for purposes of the enhanced STAR credit, the52combined income of all of the owners of the parcel as of December thir-53ty-first of the taxable year, and of any owners' spouses residing prima-54rily thereon as of such date; provided that for both purposes]; provided 55 that the income to be so combined shall be the "adjusted gross income" 56 for the taxable year as reported for federal income tax purposes, orS. 3009 77 A. 3009 1 that would be reported as adjusted gross income if a federal income tax 2 return were required to be filed, reduced by distributions, to the 3 extent included in federal adjusted gross income, received from an indi- 4 vidual retirement account and an individual retirement annuity. 5 (ii) For taxable years beginning on and after January first, two thou- 6 sand nineteen, where an income-eligibility determination is wholly or 7 partly based upon the income of one or more individuals who did not file 8 a return pursuant to section six hundred fifty-one of this article for 9 the applicable income tax year, then in order to be eligible for the 10 credit authorized by this subsection, each such individual must file a 11 statement with the department showing the source or sources of [his or12her] such individual's income for that income tax year, and the amount 13 or amounts thereof, that would have been reported on such a return if 14 one had been filed. Such statement shall be filed at such time, and in 15 such form and manner, as may be prescribed by the department, and shall 16 be subject to the provisions of section six hundred ninety-seven of this 17 article to the same extent that a return would be. The department shall 18 make such forms and instructions available for the filing of such state- 19 ments. The local assessor shall upon the request of a taxpayer assist 20 such taxpayer in the filing of the statement with the department. 21 [Provided further, that if the qualified taxpayer was an owner of the22property during the taxable year but did not own it on December thirty-23first of the taxable year, then the determination as to whether the24income of an individual should be included in "affiliated income" shall25be based upon the ownership and/or residency status of that individual26as of the first day of the month during which the qualified taxpayer27ceased to be an owner of the property, rather than as of December thir-28ty-first of the taxable year.] 29 (iii) Notwithstanding the foregoing provisions of this subparagraph, 30 where property is owned solely by a person or persons who received the 31 credit for three consecutive years without having filed returns for the 32 applicable income tax years, but who demonstrated their eligibility for 33 the credit to the commissioner's satisfaction by filing statements 34 pursuant to clause (ii) of this subparagraph, such person or persons 35 shall be presumed to satisfy the applicable income-eligibility require- 36 ments each year thereafter and shall not be required to continue to file 37 such statements in the absence of a specific request therefor from the 38 commissioner. Nothing contained herein shall be construed to prevent the 39 commissioner from denying a credit pursuant to this subsection when the 40 commissioner determines that a property owner has a source of income 41 that renders that owner temporarily or permanently ineligible for that 42 credit. 43 (E) "Qualifying taxes" means the school district taxes that were or 44 are to be levied upon the taxpayer's primary residence for the associ- 45 ated fiscal year [that were actually paid by the taxpayer during the46taxable year]; or, in the case of a city school district that is subject 47 to article fifty-two of the education law, the combined city and school 48 district taxes that were or are to be levied upon the taxpayer's primary 49 residence for the associated fiscal year [that were actually paid by the50taxpayer during the taxable year]. Provided, however, that in the case 51 of a cooperative apartment, "qualifying taxes" means the school district 52 taxes that would have been levied upon the tenant-stockholder's primary 53 residence if it were separately assessed, as determined by the commis- 54 sioner based on the statement provided by the assessor pursuant to 55 subparagraph (ii) of paragraph (k) of subdivision two of section four 56 hundred twenty-five of the real property tax law, or in the case of aS. 3009 78 A. 3009 1 cooperative apartment corporation that is described in subparagraph (iv) 2 of paragraph (k) of subdivision two of section four hundred twenty-five 3 of the real property tax law, one third of such amount. In no case shall 4 the term "qualifying taxes" be construed to include penalties or inter- 5 est. 6 § 10. Paragraph 2 of subsection (eee) of section 606 of the tax law is 7 REPEALED. 8 § 11. The opening paragraph of subparagraph (A) of paragraph 4 and 9 clause (i) of subparagraph (A) of paragraph 4 of subsection (eee) of 10 section 606 of the tax law, as amended by section 8 of part A of chapter 11 73 of the laws of 2016, are amended to read as follows: 12 Beginning with taxable years after two thousand [fifteen] twenty-four, 13 an enhanced STAR credit shall be available to a qualified taxpayer where 14 both of the following conditions are satisfied: 15 (i) [All] At least one of the owners of the parcel that serves as the 16 taxpayer's primary residence [are] is at least sixty-five years of age 17 as of December thirty-first of the taxable year [or, in the case of18property owned by a married couple or by siblings, at least one of the19owners is at least sixty-five years of age as of that date. The terms20"siblings" as used herein shall have the same meaning as set forth in21section four hundred sixty-seven of the real property tax law]. In the 22 case of property owned by a married couple, [one of whom] if only one of 23 the spouses is sixty-five years of age or over, the credit, once 24 allowed, shall not be disallowed because of the death of the older 25 spouse so long as the surviving spouse is at least sixty-two years of 26 age as of December thirty-first of the taxable year. 27 § 12. Subsection (eee) of section 606 of the tax law is amended by 28 adding a new paragraph 14 to read as follows: 29 (14) The process employed by the commissioner in verifying eligibility 30 for the basic STAR credit shall be the same as for the enhanced STAR 31 credit, except to the extent that differences are required by law. 32 § 13. This act shall take effect immediately; provided, however, that 33 sections 2, 3, 5, 6, 7, 8, 11 and 12 of this act shall take effect Janu- 34 ary 1, 2026; and the amendments to clause (i) of subparagraph (B) of 35 paragraph 1 of subsection (eee) of section 606 of the tax law, as added 36 by section nine of this act, shall take effect on January 1, 2026. 37 PART P 38 Section 1. Subdivision 8 of section 874 of the general municipal law 39 is REPEALED. 40 § 2. Subdivision 3 of section 1963 of the public authorities law is 41 REPEALED. 42 § 3. Subdivision 9 of section 1964-a of the public authorities law is 43 REPEALED. 44 § 4. Subdivision 3 of section 2326 of the public authorities law is 45 REPEALED. 46 § 5. Subdivision 9 of section 2327 of the public authorities law is 47 REPEALED. 48 § 6. This act shall take effect immediately. 49 PART Q 50 Section 1. Subsection (c) of section 861 of the tax law, as amended by 51 section 2 of subpart C of part J of chapter 59 of the laws of 2023, is 52 amended to read as follows:S. 3009 79 A. 3009 1 (c) The annual election must be made on or before [the due date of the2first estimated payment under section eight hundred sixty-four of this3article] September fifteenth and will take effect for the current taxa- 4 ble year. Only one election may be made during each calendar year. An 5 election made under this section is irrevocable after [the due date] 6 September fifteenth of the taxable year. 7 § 2. Subsection (b) of section 864 of the tax law, as added by section 8 1 of part C of chapter 59 of the laws of 2021, paragraph 3 as amended by 9 chapter 555 of the laws of 2022, is amended to read as follows: 10 (b) General. The estimated tax shall be paid as follows for an elect- 11 ing partnership and an electing S corporation: 12 (1) [The estimated tax shall be paid] For an election to be taxed 13 pursuant to this article that is made on or before March fifteenth of 14 the taxable year to be valid, the electing partnership or electing S 15 corporation is required to make estimated tax payments in four equal 16 installments on March fifteenth, June fifteenth, September fifteenth and 17 December fifteenth in the calendar year prior to the year in which the 18 due date of the return required by this article falls. The amount of 19 each installment shall be twenty-five percent of the required annual 20 payment. 21 (2) [The amount of any required installment shall be twenty-five22percent of the required annual payment] For an election to be taxed 23 pursuant to this article that is made after March fifteenth but before 24 June fifteenth in the taxable year to be valid, the electing partnership 25 or electing S corporation is required to make an estimated tax payment 26 with its election that represents twenty-five percent of the required 27 annual payment. The electing partnership or electing S corporation shall 28 further make payments on June fifteenth, September fifteenth, and Decem- 29 ber fifteenth in the calendar year prior to the year in which the due 30 date of the return required by this article falls, which shall each 31 represent twenty-five percent of the required annual payment. 32 (3) For an election to be taxed pursuant to this article that is made 33 on or after June fifteenth but before September fifteenth in the taxable 34 year to be valid, the electing partnership or electing S corporation is 35 required to make an estimated tax payment with its election that repres- 36 ents fifty percent of the required annual payment. The electing partner- 37 ship or electing S corporation shall further make payments on September 38 fifteenth and December fifteenth in the calendar year prior to the year 39 in which the due date of the return required by this article falls, 40 which shall each represent twenty-five percent of the required annual 41 payment. 42 (4) For an election to be taxed pursuant to this article that is made 43 on September fifteenth in the taxable year to be valid, the electing 44 partnership or electing S corporation is required to make an estimated 45 tax payment with its election that represents seventy-five percent of 46 the required annual payment. The electing partnership or electing S 47 corporation shall further make a payment on December fifteenth in the 48 calendar year prior to the year in which the due date of the return 49 required by this article falls, which shall represent twenty-five 50 percent of the required annual payment. 51 (5) Notwithstanding paragraph four of subsection (c) of section six 52 hundred eighty-five of this chapter, the required annual payment is the 53 lesser of: (A) ninety percent of the tax shown on the return for the 54 taxable year; or (B) one hundred percent of the tax shown on the return 55 of the electing partnership or electing S corporation for the preceding 56 taxable year.S. 3009 80 A. 3009 1 § 3. Subsection (c) of section 868 of the tax law, as amended by 2 section 7 of subpart C of part J of chapter 59 of the laws of 2023, is 3 amended to read as follows: 4 (c) The annual election to be taxed pursuant to this article must be 5 made on or before [the due date of the first estimated payment under6section eight hundred sixty-four of this chapter] September fifteenth 7 and will take effect for the current taxable year. Only one election to 8 be taxed pursuant to this article may be made during each calendar year. 9 An election made under this section is irrevocable after [such due date] 10 September fifteenth of the taxable year. To the extent an election made 11 under section eight hundred sixty-one of this chapter is revoked or 12 otherwise invalidated an election made under this section is automat- 13 ically invalidated. 14 § 4. Subsection (b) of section 871 of the tax law, as added by section 15 1 of subpart B of part MM of chapter 59 of the laws of 2022, paragraph 3 16 as amended by chapter 555 of the laws of 2022, is amended to read as 17 follows: 18 (b) General. Except as provided in subsection (c) of this section, the 19 estimated tax shall be paid as follows for an electing city partnership 20 and an electing city resident S corporation: 21 (1) [The estimated tax shall be paid] For an election to be taxed 22 pursuant to this article that is made on or before March fifteenth in 23 the taxable year to be valid, the electing city partnership or electing 24 city S corporation is required to make estimated tax payments in four 25 equal installments on March fifteenth, June fifteenth, September 26 fifteenth and December fifteenth in the calendar year prior to the year 27 in which the due date of the return required by this article falls. The 28 amount of each installment shall be twenty-five percent of the required 29 annual payment. 30 (2) [The amount of any required installment shall be twenty-five31percent of the required annual payment] For an election to be taxed 32 pursuant to this article that is made after March fifteenth but before 33 June fifteenth in the taxable year to be valid, the electing city part- 34 nership or electing city S corporation is required to make an estimated 35 tax payment with its election that represents twenty-five percent of the 36 required annual payment. The electing city partnership or electing city 37 S corporation shall further make payments on June fifteenth, September 38 fifteenth, and December fifteenth in the calendar year prior to the year 39 in which the due date of the return required by this article falls, 40 which shall each represent twenty-five percent of the required annual 41 payment. 42 (3) For an election to be taxed pursuant to this article that is made 43 after June fifteenth but before September fifteenth in the taxable year 44 to be valid, the electing city partnership or electing city S corpo- 45 ration is required to make an estimated tax payment with its election 46 that represents fifty percent of the required annual payment. The elect- 47 ing city partnership or electing city S corporation shall further make 48 payments on September fifteenth and December fifteenth in the calendar 49 year prior to the year in which the due date of the return required by 50 this article falls, which shall each represent twenty-five percent of 51 the required annual payment. 52 (4) For an election to be taxed pursuant to this article that is made 53 on September fifteenth in the taxable year to be valid, the electing 54 city partnership or electing city S corporation is required to make an 55 estimated tax payment with its election that represents seventy-five 56 percent of the required annual payment. The electing city partnership orS. 3009 81 A. 3009 1 electing city S corporation shall further make a payment on December 2 fifteenth in the calendar year prior to the year in which the due date 3 of the return required by this article falls, which shall represent 4 twenty-five percent of the required annual payment. 5 (5) Without regard to paragraph four of subsection (c) of section six 6 hundred eighty-five of this chapter, the required annual payment is the 7 lesser of: (A) ninety percent of the tax shown on the return for the 8 taxable year; or (B) one hundred percent of the tax shown on the return 9 of the electing city partnership or electing city resident S corporation 10 for the preceding taxable year. 11 § 5. This act shall take effect immediately and shall apply to all 12 taxable years beginning on or after January 1, 2026. 13 PART R 14 Section 1. Subdivision (a) of section 213-a of the tax law, as amended 15 by chapter 166 of the laws of 1991, is amended to read as follows: 16 (a) Requirement of declaration.--Every taxpayer subject to the tax 17 imposed by section two hundred nine of this chapter shall make a decla- 18 ration of its estimated tax for the current privilege period, containing 19 such information as the commissioner of taxation and finance may 20 prescribe by regulations or instructions, if such estimated tax can 21 reasonably be expected to exceed one thousand dollars, or five thousand 22 dollars for taxable years beginning on or after January first, two thou- 23 sand twenty-six. If a taxpayer is subject to the tax surcharge imposed 24 under section two hundred nine-B of this article and such taxpayer's 25 estimated tax under section two hundred nine of this article can reason- 26 ably be expected to exceed one thousand dollars, or five thousand 27 dollars for taxable years beginning on or after January first, two thou- 28 sand twenty-six, such taxpayer shall also make a declaration of its 29 estimated tax surcharge for the current privilege period. 30 § 2. Subdivision (a) of section 213-b of the tax law, as amended by 31 section 4 of part Z of chapter 59 of the laws of 2019, is amended to 32 read as follows: 33 (a) First installments for certain taxpayers.--In privilege periods of 34 twelve months ending at any time during the calendar year nineteen 35 hundred seventy and thereafter, every taxpayer subject to the tax 36 imposed by section two hundred nine of this [chapter] article must pay 37 with the report required to be filed for the preceding privilege period, 38 or with an application for extension of the time for filing the report, 39 for taxable years beginning before January first, two thousand sixteen, 40 and must pay on or before the fifteenth day of the third month of such 41 privilege periods, for taxable years beginning on or after January 42 first, two thousand sixteen, an amount equal to (i) twenty-five percent 43 of the second preceding year's tax if the second preceding year's tax 44 exceeded one thousand dollars, or five thousand dollars for taxable 45 years beginning on or after January first, two thousand twenty-six, but 46 was equal to or less than one hundred thousand dollars, or (ii) forty 47 percent of the second preceding year's tax if the second preceding 48 year's tax exceeded one hundred thousand dollars. If the second preced- 49 ing year's tax under section two hundred nine of this chapter exceeded 50 one thousand dollars, or five thousand dollars for taxable years begin- 51 ning on or after January first, two thousand twenty-six, and the taxpay- 52 er is subject to the tax surcharge imposed by section two hundred nine-B 53 of this [chapter] article, the taxpayer must also pay with the tax 54 surcharge report required to be filed for the second preceding privilegeS. 3009 82 A. 3009 1 period, or with an application for extension of the time for filing the 2 report, for taxable years beginning before January first, two thousand 3 sixteen, and must pay on or before the fifteenth day of the third month 4 of such privilege periods, for taxable years beginning on or after Janu- 5 ary first, two thousand sixteen, an amount equal to (i) twenty-five 6 percent of the tax surcharge imposed for the second preceding year if 7 the second preceding year's tax was equal to or less than one hundred 8 thousand dollars, or (ii) forty percent of the tax surcharge imposed for 9 the second preceding year if the second preceding year's tax exceeded 10 one hundred thousand dollars. Provided, however, that every taxpayer 11 that is a New York S corporation must pay with the report required to be 12 filed for the preceding privilege period, or with an application for 13 extension of the time for filing the report, an amount equal to (i) 14 twenty-five percent of the preceding year's tax if the preceding year's 15 tax exceeded one thousand dollars, or five thousand dollars for taxable 16 years beginning on or after January first, two thousand twenty-six, but 17 was equal to or less than one hundred thousand dollars, or (ii) forty 18 percent of the preceding year's tax if the preceding year's tax exceeded 19 one hundred thousand dollars. 20 § 3. This act shall take effect immediately. 21 PART S 22 Section 1. Section 606 of the tax law is amended by adding a new 23 subsection (qqq) to read as follows: 24 (qqq) Organ donation credit. (1) For taxable years beginning on or 25 after January first, two thousand twenty-five, a full-year resident 26 taxpayer who, while living, donates one or more of their human organs to 27 another human being for human organ transplantation will be allowed a 28 credit against the taxes imposed by this article in the amount specified 29 in paragraph two of this subsection. For purposes of this paragraph, 30 "human organ" means all or part of a liver, pancreas, kidney, intestine, 31 lung, or bone marrow. 32 (2) A taxpayer may claim the credit allowed under this subsection only 33 once and in the taxable year in which the human organ transplantation 34 occurs. Such credit may be claimed, in an amount not to exceed ten thou- 35 sand dollars, for only the following unreimbursed expenses that are 36 incurred by the taxpayer and related to the taxpayer's organ donation: 37 (A) travel expenses; 38 (B) lodging expenses; and 39 (C) lost wages. 40 Provided, however, that this credit shall not apply to any organ 41 donation for which the taxpayer has received benefits under section 42 forty-three hundred seventy-one of the public health law. 43 (3) If the amount of the credit allowed under this subsection for any 44 taxable year shall exceed the taxpayer's tax for such year, the excess 45 shall be treated as an overpayment of tax to be credited or refunded in 46 accordance with the provisions of section six hundred eighty-six of this 47 article, provided, however, that no interest shall be paid thereon. 48 § 2. Paragraph 38 of subsection (c) of section 612 of the tax law, as 49 added by chapter 565 of the laws of 2006, the opening paragraph as 50 amended by chapter 814 of the laws of 2022, is amended to read as 51 follows: 52 (38) [An] For taxable years beginning before January first, two thou- 53 sand twenty-five, an amount of up to ten thousand dollars if a taxpayer, 54 while living, donates one or more of [his or her] the taxpayer's humanS. 3009 83 A. 3009 1 organs to another human being for human organ transplantation. For 2 purposes of this paragraph, "human organ" means all or part of a liver, 3 pancreas, kidney, intestine, lung, or bone marrow. A subtract modifica- 4 tion allowed under this paragraph shall be claimed in the taxable year 5 in which the human organ transplantation occurs. Provided, however, that 6 this deduction shall not apply to any donation for which the taxpayer 7 has received benefits under section forty-three hundred seventy-one of 8 the public health law. 9 (A) A taxpayer shall claim the subtract modification allowed under 10 this paragraph only once and such subtract modification shall be claimed 11 for only the following unreimbursed expenses which are incurred by the 12 taxpayer and related to the taxpayer's organ donation: 13 (i) travel expenses; 14 (ii) lodging expenses; and 15 (iii) lost wages. 16 (B) The subtract modification allowed under this paragraph shall not 17 be claimed by a part-year resident or a non-resident of this state. 18 § 3. This act shall take effect immediately. 19 PART T 20 Section 1. Paragraph 3 of subsection (a) of section 954 of the tax 21 law, as amended by section 1 of part F of chapter 59 of the laws of 22 2019, is amended to read as follows: 23 (3) Increased by the amount of any taxable gift under section 2503 of 24 the internal revenue code not otherwise included in the decedent's 25 federal gross estate, made during the three year period ending on the 26 decedent's date of death, but not including any gift made: (A) when the 27 decedent was not a resident of New York state; or (B) before April 28 first, two thousand fourteen; or (C) between January first, two thousand 29 nineteen and January fifteenth, two thousand nineteen; or (D) that is 30 real or tangible personal property having an actual situs outside New 31 York state at the time the gift was made. [Provided, however that this32paragraph shall not apply to the estate of a decedent dying on or after33January first, two thousand twenty-six.] 34 § 2. This act shall take effect immediately. 35 PART U 36 Section 1. Paragraphs (c) and (d) of subdivision 12 of section 210-B 37 of the tax law, as added by section 17 of part A of chapter 59 of the 38 laws of 2014, are amended to read as follows: 39 (c) Amount of credit. Except as provided in paragraph (d) of this 40 subdivision, the amount of credit for taxable years beginning before 41 January first, two thousand twenty-five shall be thirty-five percent of 42 the first six thousand dollars in qualified first-year wages earned by 43 each qualified employee and for taxable years beginning on or after 44 January first, two thousand twenty-five shall be the first five thousand 45 dollars in qualified first-year wages earned by each qualified employee. 46 "Qualified first-year wages" means wages paid or incurred by the taxpay- 47 er during the taxable year to qualified employees which are attribut- 48 able, with respect to any such employee, to services rendered during the 49 one-year period beginning with the day the employee begins work for the 50 taxpayer. 51 (d) Credit where federal work opportunity tax credit applies. With 52 respect to any qualified employee whose qualified first-year wages underS. 3009 84 A. 3009 1 paragraph (c) of this subdivision also constitute qualified first-year 2 wages for purposes of the work opportunity tax credit for vocational 3 rehabilitation referrals under section fifty-one of the internal revenue 4 code, the amount of credit under this subdivision for taxable years 5 beginning before January first, two thousand twenty-five shall be thir- 6 ty-five percent of the first six thousand dollars in qualified second- 7 year wages earned by each such employee and for taxable years beginning 8 on or after January first, two thousand twenty-five shall be the first 9 five thousand dollars in qualified second-year wages earned by each 10 qualified employee. "Qualified second-year wages" means wages paid or 11 incurred by the taxpayer during the taxable year to qualified employees 12 which are attributable, with respect to any such employee, to services 13 rendered during the one-year period beginning one year after the employ- 14 ee begins work for the taxpayer. 15 § 2. Paragraphs 3 and 4 of subsection (o) of section 606 of the tax 16 law, as added by chapter 142 of the laws of 1997, are amended to read as 17 follows: 18 (3) Amount of credit. Except as provided in paragraph four of this 19 subsection, the amount of credit for taxable years beginning before 20 January first, two thousand twenty-five shall be thirty-five percent of 21 the first six thousand dollars in qualified first-year wages earned by 22 each qualified employee and for taxable years beginning on or after 23 January first, two thousand twenty-five shall be the first five thousand 24 dollars in qualified first-year wages earned by each qualified employee. 25 "Qualified first-year wages" means wages paid or incurred by the taxpay- 26 er during the taxable year to qualified employees which are attribut- 27 able, with respect to any such employee, to services rendered during the 28 one-year period beginning with the day the employee begins work for the 29 taxpayer. 30 (4) Credit where federal work opportunity tax credit applies. With 31 respect to any qualified employee whose qualified first-year wages under 32 paragraph three of this subsection also constitute qualified first-year 33 wages for purposes of the work opportunity tax credit for vocational 34 rehabilitation referrals under section fifty-one of the internal revenue 35 code, the amount of credit under this subsection shall be for taxable 36 years beginning before January first, two thousand twenty-five thirty- 37 five percent of the first six thousand dollars in qualified second-year 38 wages earned by each such employee and for taxable years beginning on or 39 after January first, two thousand twenty-five shall be the first five 40 thousand dollars in qualified second-year wages earned by each qualified 41 employee. "Qualified second-year wages" means wages paid or incurred by 42 the taxpayer during the taxable year to qualified employees which are 43 attributable, with respect to any such employee, to services rendered 44 during the one-year period beginning one year after the employee begins 45 work for the taxpayer. 46 § 3. This act shall take effect immediately. 47 PART V 48 Section 1. Subdivision 3 of section 211 of the tax law, as amended by 49 section 19 of part A chapter 59 of the laws of 2014, is amended to read 50 as follows: 51 3. If the amount of taxable income for any year of any taxpayer 52 (including any taxpayer which has elected to be taxed under subchapter s 53 of chapter one of the internal revenue code), as returned to the United 54 States treasury department is changed or corrected by the commissionerS. 3009 85 A. 3009 1 of internal revenue or other officer of the United States or other 2 competent authority, or where a renegotiation of a contract or subcon- 3 tract with the United States results in a change in taxable income, such 4 taxpayer shall report such changed or corrected taxable income, or the 5 results of such renegotiation, within ninety days (or one hundred twenty 6 days, in the case of a taxpayer making a combined report under this 7 article for such year) after the final determination of such change or 8 correction or renegotiation, or as required by the commissioner, and 9 shall concede the accuracy of such determination or state wherein it is 10 erroneous. Provided however, if the taxpayer is a direct or indirect 11 partner of a partnership required to report adjustments in accordance 12 with section six hundred fifty-nine-a of this chapter, such taxpayer 13 shall also report such adjustments in accordance with section six 14 hundred fifty-nine-a of this chapter when such adjustments result in an 15 overpayment. The allowance of a tentative carryback adjustment based 16 upon a net operating loss carryback or net capital loss carryback pursu- 17 ant to section sixty-four hundred eleven of the internal revenue code, 18 as amended, shall be treated as a final determination for purposes of 19 this subdivision. Any taxpayer filing an amended return with such 20 department shall also file within ninety days (or one hundred twenty 21 days, in the case of a taxpayer making a combined report under this 22 article for such year) thereafter an amended report with the commission- 23 er. 24 § 2. Subsection (b) of section 653 of the tax law, as added by chapter 25 563 of the laws of 1960, is amended to read as follows: 26 (b) Partnerships. Any return, statement or other document required of 27 a partnership shall be signed by one or more partners. The fact that a 28 partner's name is signed to a return, statement, or other document, 29 shall be prima facie evidence for all purposes that such partner is 30 authorized to sign on behalf of the partnership. 31 (1) If a partnership is required to report federal adjustments arising 32 from a partnership level audit or an administrative adjustment request 33 pursuant to section six hundred fifty-nine-a of this part, the partner- 34 ship's federal partnership representative is the New York partnership 35 representative unless the partnership designates, in a manner determined 36 by the commissioner, that another person shall act on behalf of the 37 partnership. 38 (2) The New York partnership representative shall have the sole 39 authority to act on behalf of the partnership and its direct and indi- 40 rect partners shall be bound by these actions. 41 § 3. Section 659 of the tax law, as amended by section 8 of part J of 42 chapter 59 of the laws of 2014, is amended to read as follows: 43 § 659. Report of federal changes, corrections or disallowances. If the 44 amount of a taxpayer's federal taxable income, total taxable amount or 45 ordinary income portion of a lump sum distribution or includible gain of 46 a trust reported on [his] their federal income tax return for any taxa- 47 ble year, or the amount of a taxpayer's earned income credit or credit 48 for employment-related expenses set forth on such return, or the amount 49 of any federal foreign tax credit affecting the calculation of the cred- 50 it for Canadian provincial taxes under section six hundred twenty or six 51 hundred twenty-A of this article, or the amount of any claim of right 52 adjustment, is changed or corrected by the United States internal reven- 53 ue service or other competent authority or as the result of a renegoti- 54 ation of a contract or subcontract with the United States, or the amount 55 an employer is required to deduct and withhold from wages for federal 56 income tax withholding purposes is changed or corrected by such serviceS. 3009 86 A. 3009 1 or authority or if a taxpayer's claim for credit or refund of federal 2 income tax is disallowed in whole or in part, the taxpayer or employer 3 shall report such change or correction or disallowance within ninety 4 days after the final determination of such change, correction, renegoti- 5 ation or disallowance, or as otherwise required by the commissioner, and 6 shall concede the accuracy of such determination or state wherein it is 7 erroneous. Provided, however, if the taxpayer is a direct or indirect 8 partner of a partnership required to report adjustments in accordance 9 with section six hundred fifty-nine-a of this part, such taxpayer shall 10 also report such adjustments in accordance with section six hundred 11 fifty-nine-a of this part when such adjustments result in an overpay- 12 ment. The allowance of a tentative carryback adjustment based upon a net 13 operating loss carryback pursuant to section sixty-four hundred eleven 14 of the internal revenue code shall be treated as a final determination 15 for purposes of this section. Any taxpayer filing an amended federal 16 income tax return and any employer filing an amended federal return of 17 income tax withheld shall also file within ninety days thereafter an 18 amended return under this article, and shall give such information as 19 the commissioner may require. The commissioner may by regulation 20 prescribe such exceptions to the requirements of this section as [he or21she deems] they deem appropriate. For purposes of this section, (i) the 22 term "taxpayer" shall include a partnership having a resident partner or 23 having any income derived from New York sources, and a corporation with 24 respect to which the taxable year of such change, correction, disallow- 25 ance or amendment is a year with respect to which the election provided 26 for in subsection (a) of section six hundred sixty of this article is in 27 effect, and (ii) the term "federal income tax return" shall include the 28 returns of income required under sections six thousand thirty-one and 29 six thousand thirty-seven of the internal revenue code. In the case of 30 such a corporation, such report shall also include any change or 31 correction of the taxes described in paragraphs two and three of 32 subsection (f) of section thirteen hundred sixty-six of the internal 33 revenue code. Reports made under this section by a partnership or corpo- 34 ration shall indicate the portion of the change in each item of income, 35 gain, loss or deduction (and, in the case of a corporation, of each 36 change in, or disallowance of a claim for credit or refund of, a tax 37 referred to in the preceding sentence) allocable to each partner or 38 shareholder and shall set forth such identifying information with 39 respect to such partner or shareholder as may be prescribed by the 40 commissioner. 41 § 4. The tax law is amended by adding a new section 659-a to read as 42 follows: 43 § 659-a. Reporting of federal partnership adjustments. (a) If any 44 item required to be shown on a federal partnership return, for any part- 45 nership that has a resident partner or any income derived from New York 46 sources, including any gross income, gain, loss, deduction, penalty, 47 credit, or tax for any year of such partnership, including any amount of 48 any partner's distributive share, is changed or corrected by the commis- 49 sioner of internal revenue or other officer of the United States or 50 other competent authority, and the partnership is issued an adjustment 51 under section sixty-two hundred twenty-five of the internal revenue code 52 or makes a federal election for alternative payment with the United 53 States internal revenue service as part of a partnership level audit, or 54 files an administrative adjustment request, the partnership shall 55 report, in the manner prescribed by the commissioner, each change or 56 correction in sufficient detail to allow for the computation of the NewS. 3009 87 A. 3009 1 York tax change or correction for the reviewed year within ninety days 2 after the date of each final federal determination, or ninety days after 3 the filing of an administrative adjustment request. 4 (b) Definitions. As used in this section, the following terms shall 5 have the following meanings: 6 (1) "Administrative adjustment request" means an administrative 7 adjustment request filed by a partnership under section sixty-two 8 hundred twenty-seven of the internal revenue code. 9 (2) "Direct partner" means a partner that holds an interest directly 10 in an impacted partnership during the reviewed year. 11 (3) "Federal election for alternative payment" means the election 12 described in section sixty-two hundred twenty-six of the internal reven- 13 ue code, relating to alternative payment of imputed underpayment by 14 partnership. 15 (4) "Final federal adjustment" means a change to an item of gross 16 income, gain, loss, deduction, penalty, credit, or a partner's distribu- 17 tive share, of an impacted partnership determined under section sixty- 18 two hundred twenty-five of the internal revenue code that is considered 19 fixed and final under the internal revenue code. 20 (5) "Final federal determination date" means the date on which each 21 adjustment or resolution resulting from a United States internal revenue 22 service examination is assessed pursuant to section sixty-two hundred 23 three of the internal revenue code. 24 (6) "Impacted partnership" means a partnership that (i) was issued a 25 final federal adjustment; or (ii) made a federal election for alterna- 26 tive payment with the United States internal revenue service as part of 27 a federal partnership level audit; or (iii) filed an administrative 28 adjustment request with the internal revenue service. 29 (7) "Indirect partner" means a partner, member, or shareholder in a 30 partnership or other pass-through entity that itself held an interest 31 indirectly, or through another indirect partner, in an impacted partner- 32 ship during the reviewed year. 33 (8) "Reviewed year" has the meaning provided in paragraph one of 34 subsection (d) of section sixty-two hundred twenty-five of the internal 35 revenue code. 36 (9) "Tiered partner" means any partner in an impacted partnership that 37 is a partnership, S corporation, or other pass-through entity for New 38 York tax purposes. 39 (c)(1) Impacted partnerships must file any required reports and pay 40 any New York tax due, if applicable, with respect to a final federal 41 adjustment or an administrative adjustment request no later than ninety 42 days after the final federal determination date, or the date an adminis- 43 trative adjustment request was filed, in accordance with subsection (d) 44 of this section. 45 (2) Notwithstanding any election made for federal purposes under the 46 provisions of subchapter C of chapter sixty-three of the internal reven- 47 ue code, any changes or corrections made by the United States internal 48 revenue service pursuant to such a final federal adjustment or as a 49 result of an administrative adjustment request that increases New York 50 taxable income must be calculated with respect to the impacted partner- 51 ship in the reviewed year, and any additional New York tax owed as a 52 result of such a final federal adjustment or administrative adjustment 53 request must be paid by the impacted partnership as computed in accord- 54 ance with subsection (d) of this section. 55 (3) Notwithstanding any election made for federal purposes under the 56 provisions of subchapter C of chapter sixty-three of the internal reven-S. 3009 88 A. 3009 1 ue code, where changes or corrections made by the United States internal 2 revenue service pursuant to such a final federal adjustment or as a 3 result of an administrative adjustment request decrease New York taxable 4 income, the partners may request any resulting overpayment as permitted 5 under this article and articles nine-A and thirty-three of this chapter. 6 (d) Reporting and payment requirements for impacted partnerships and 7 partners subject to a final federal adjustment or administrative adjust- 8 ment request. 9 (1) Impacted partnerships must report any final federal adjustments 10 and administrative adjustment requests regardless of tax impact. Such 11 report must include the impacted partnership's direct and indirect part- 12 ner identifying information and any other information the commissioner 13 may require. 14 (2) For the partnership adjustments described in paragraph two of 15 subsection (c) of this section, the impacted partnership must: 16 (A) report the sum of the following amounts attributable to each of 17 its direct partners and indirect partners as follows: 18 (i) for partners subject to tax pursuant to articles nine-a or thir- 19 ty-three of this chapter in the reviewed year, other than tiered part- 20 ners, the partner's distributive share of gross income or gain, appor- 21 tioned to New York using a percentage using the apportionment rules 22 described in article nine-A of this chapter; 23 (ii) for a partner subject to tax pursuant to this article that is 24 treated as a nonresident pursuant to paragraph two of subsection (b) of 25 section six hundred five of this article in the reviewed year, other 26 than a tiered partner, the partner's distributive share of gross income 27 or gain allocated to New York using the allocation rules described in 28 this article; 29 (iii) for a partner subject to tax pursuant to this article that is 30 treated as a resident pursuant to paragraph one of subsection (b) of 31 section six hundred five of this article in the reviewed year, other 32 than a tiered partner, the partner's federal distributive share of gross 33 income or gain; and 34 (iv) for a partner subject to tax pursuant to article thirty of this 35 chapter that is treated as a resident pursuant to subsection (a) of 36 section thirteen hundred five of this chapter in the reviewed year, 37 other than tiered partners, the partner's federal distributive share of 38 gross income or gain. 39 (B) For purposes of computing the distributive share of gross income 40 or gain attributable to tiered partners, the partnership shall compute 41 the distributive share of each indirect partner that itself is not a 42 tiered partner, based on the rules in subparagraph (A) of paragraph two 43 of this subsection. Provided, however, if the impacted partnership lacks 44 the necessary information to compute the distributive share of: 45 (i) one or more indirect partners taxable under articles nine-A and 46 thirty-three of this chapter, such indirect partner or partners must 47 allocate one hundred percent of such taxpayer's distributive share of 48 the adjustment to the state. 49 (ii) one or more indirect partners taxable under this article, such 50 indirect partner or partners must be treated as a resident pursuant to 51 subsection (a) of section thirteen hundred five of this chapter. 52 (C) The impacted partnership shall compute tax due by computing the 53 sum of: 54 (i) the cumulative distributive share of all direct and indirect part- 55 ners as computed under clauses (i), (ii), (iii), and (iv) of subpara- 56 graph (A) of paragraph (2) of subsection (d) of this section, multipliedS. 3009 89 A. 3009 1 by the highest tax rate imposed under section six hundred one of this 2 article for the reviewed year, and 3 (ii) the cumulative distributive share of all direct and indirect 4 partners as computed under clause (iv) of subparagraph (A) of paragraph 5 two of this subsection, multiplied by the highest rate imposed under 6 section thirteen hundred four of this chapter for the reviewed year. 7 (D) The partnership shall be required to remit any additional amount 8 of tax due, plus any penalty and interest computed under this article 9 based on the due date of the originally filed return of the reviewed 10 year. 11 (3) The impacted partnership must inform each direct and indirect 12 partner of partnership adjustments described in paragraph three of 13 subsection (c) of this section in the manner required by the commission- 14 er. 15 (e) Statute of limitations for assessments of additional New York 16 state tax, interest, and penalties arising from adjustments to federal 17 taxable income. 18 (1) If the impacted partnership files a report within the period spec- 19 ified in subsection (c) of this section, the commissioner may assess an 20 impacted partnership additional tax, interest, and penalties arising 21 from final federal adjustments or administrative adjustment requests 22 pursuant to the provisions of section six hundred eighty-three of this 23 article. 24 (2) If an impacted partnership fails to file a report as required in 25 subsection (c) of this section, the commissioner may assess the impacted 26 partnership additional tax, interest, and penalties arising from final 27 federal adjustments or administrative adjustment requests pursuant to 28 the provisions of section six hundred eighty-one of this article. 29 (f) Nothing in this section shall prevent the commissioner from 30 assessing direct or indirect partners for any taxes due, using the best 31 information available, in the event that an impacted partnership fails 32 to timely report or remit any report or additional taxes due required by 33 this section for any reason. 34 § 5. Subsection (e) of section 681 of the tax law, as amended by chap- 35 ter 381 of the laws of 1975, paragraph 1 as amended by chapter 28 of the 36 laws of 1987, is amended as follows: 37 (e) Exceptions where federal changes, corrections or disallowances are 38 not reported.--- 39 (1) If the taxpayer or employer fails to comply with section six 40 hundred fifty-nine or section six hundred fifty-nine-a, instead of the 41 mode and time of assessment provided for in subsection (b) of this 42 section, the [tax commission] commissioner may assess a deficiency based 43 upon such federal change, correction or disallowance by mailing to the 44 taxpayer a notice of additional tax due specifying the amount of the 45 deficiency, and such deficiency, together with the interest, additions 46 to tax and penalties stated in such notice, shall be deemed assessed on 47 the date such notice is mailed unless within thirty days after the mail- 48 ing of such notice a report of the federal change, correction or disal- 49 lowance or an amended return, where such return was required by section 50 six hundred fifty-nine or section six hundred fifty-nine-a, is filed 51 accompanied by a statement showing wherein such federal determination 52 and such notice of additional tax due are erroneous. 53 (2) Such notice shall not be considered as a notice of deficiency for 54 the purposes of this section, subsection (f) of section six hundred 55 eighty-seven (limiting credits or refunds after petition to the [tax56commission] division of tax appeals), or subsection (b) of section sixS. 3009 90 A. 3009 1 hundred eighty-nine (authorizing the filing of a petition with the [tax2commission] division of tax appeals based on a notice of deficiency), 3 nor shall such assessment or the collection thereof be prohibited by the 4 provisions of subsection (c). 5 (3) If [a husband and wife] spouses are jointly liable for tax, a 6 notice of additional tax due may be a single joint notice, except that 7 if the [tax commission] commissioner has been notified by either spouse 8 that separate residences have been established, then, in lieu of the 9 joint notice, a duplicate original of the joint notice shall be mailed 10 to each spouse at [his or her] their last known address in or out of 11 this state. If the taxpayer is deceased or under a legal disability, a 12 notice of additional tax due may be mailed to [his] their last known 13 address in or out of this state, unless the [tax commission] commission- 14 er has received notice of the existence of a fiduciary relationship with 15 respect to the taxpayer. 16 § 6. Subsection (a) of section 682 of the tax law, as amended by 17 section 3 of part F of chapter 60 of the laws of 2004, is amended to 18 read as follows: 19 (a) Assessment date.--The amount of tax which a return shows to be 20 due, or the amount of tax which a return would have shown to be due but 21 for a mathematical or clerical error, shall be deemed to be assessed on 22 the date of filing of the return (including any amended return showing 23 an increase of tax). In the case of a return properly filed without 24 computation of tax, the tax computed by the commissioner shall be deemed 25 to be assessed on the date on which payment is due. If a notice of defi- 26 ciency has been mailed, the amount of the deficiency shall be deemed to 27 be assessed on the date specified in subsection (b) of section six 28 hundred eighty-one if no petition to the division of tax appeals is 29 filed, or if a petition is filed, then upon the date when a determi- 30 nation or decision rendered in the division of tax appeals establishing 31 the amount of the deficiency becomes final. If an amended return or 32 report filed pursuant to section six hundred fifty-nine or six hundred 33 fifty-nine-a concedes the accuracy of a federal change or correction, 34 any deficiency in tax under this article resulting therefrom shall be 35 deemed to be assessed on the date of filing such report or amended 36 return, and such assessment shall be timely notwithstanding section six 37 hundred eighty-three. If a notice of additional tax due, as prescribed 38 in subsection (e) of section six hundred eighty-one, has been mailed, 39 the amount of the deficiency shall be deemed to be assessed on the date 40 specified in such subsection unless within thirty days after the mailing 41 of such notice a report of the federal change or correction or an 42 amended return, where such return was required by section six hundred 43 fifty-nine or six hundred fifty-nine-a, is filed accompanied by a state- 44 ment showing wherein such federal determination and such notice of addi- 45 tional tax due are erroneous. Any amount paid as a tax or in respect of 46 a tax, other than amounts withheld at the source or paid as estimated 47 income tax, shall be deemed to be assessed upon the date of receipt of 48 payment, notwithstanding any other provisions. 49 § 7. Paragraphs 1, 2 and 3 of subsection (c) of section 683 of the tax 50 law, as added by chapter 1011 of 1962, paragraph 1 as amended by chapter 51 526 of the laws of 1973, subparagraph (C) of paragraph 1 and paragraph 3 52 as amended by chapter 28 of the laws of 1987, are amended as follows: 53 (1) Assessment at any time.--The tax may be assessed at any time if-- 54 (A) no return is filed, 55 (B) a false or fraudulent return is filed with intent to evade tax, orS. 3009 91 A. 3009 1 (C) the taxpayer or employer fails to comply with section six hundred 2 fifty-nine or six hundred fifty-nine-a. 3 (2) Extension by agreement.--Where, before the expiration of the time 4 prescribed in this section for the assessment of tax, both the [tax5commission] commissioner and the taxpayer have consented in writing to 6 its assessment after such time, the tax may be assessed at any time 7 prior to the expiration of the period agreed upon. The period so agreed 8 upon may be extended by subsequent agreements in writing made before the 9 expiration of the period previously agreed upon. 10 (3) Report of federal changes, corrections or disallowances.--If the 11 taxpayer or employer complies with section six hundred fifty-nine or six 12 hundred fifty-nine-a, the assessment (if not deemed to have been made 13 upon the filing of the report or amended return) may be made at any time 14 within two years after such report or amended return was filed. The 15 amount of such assessment of tax shall not exceed the amount of the 16 increase in New York tax attributable to such federal change or 17 correction. The provisions of this paragraph shall not affect the time 18 within which or the amount for which an assessment may otherwise be 19 made. 20 § 8. Paragraph 2 of subsection (h) of section 685 of the tax law, as 21 amended by section 5 of part I of chapter 59 of the laws of 2014, is 22 amended as follows: 23 (2) If any partnership, S corporation, or trust required to file a 24 return or report under subsection (c) or subsection (f) of section six 25 hundred fifty-eight or under section six hundred fifty-nine or six 26 hundred fifty-nine-a of this article for any taxable year fails to file 27 such return or report at the time prescribed therefor (determined with 28 regard to any extension of time for filing), or files a return or report 29 which fails to show the information required under such subsection (c) 30 [or] of section six hundred fifty-nine of this article, or files a 31 return or report which fails to show the information required under 32 subsection (d) of section six hundred fifty-nine-a of this article, 33 unless it is shown that such failure is due to reasonable cause and not 34 due to willful neglect, there shall, upon notice and demand by the 35 commissioner and in the same manner as tax, be paid by the partnership 36 or S corporation a penalty for each month (or fraction thereof) during 37 which such failure continues (but not to exceed five months). The amount 38 of such penalty for any month is the product of fifty dollars, multi- 39 plied by the number of partners in the partnership or shareholders in 40 the S corporation during any part of the taxable year who were subject 41 to tax under this article during any part of such taxable year, except 42 that, in the case of a trust, the penalty shall be equal to one hundred 43 fifty dollars a month up to a maximum of fifteen hundred dollars per 44 taxable year. 45 § 9. Subsection (c) of section 687 of the tax law, as amended by chap- 46 ter 61 of the laws of 1989, is amended to read as follows: 47 (c) Notice of federal change or correction.--A claim for credit or 48 refund of any overpayment of tax attributable to a federal change or 49 correction required to be reported pursuant to section six hundred 50 fifty-nine or by a partner of a partnership required to report a federal 51 change or correction pursuant to section six hundred fifty-nine-a shall 52 be filed by the taxpayer within two years from the time the notice of 53 such change or correction or such amended return was required to be 54 filed with the commissioner of taxation and finance. If the report or 55 amended return required by section six hundred fifty-nine or six hundred 56 fifty-nine-a is not filed within the ninety day period therein speci-S. 3009 92 A. 3009 1 fied, no interest shall be payable on any claim for credit or refund of 2 the overpayment attributable to the federal change or correction. The 3 amount of such credit or refund shall not exceed the amount of the 4 reduction in tax attributable to such federal change, correction or 5 items amended on the taxpayer's amended federal income tax return. This 6 subsection shall not affect the time within which or the amount for 7 which a claim for credit or refund may be filed apart from this 8 subsection. 9 § 10. Subsection (g) of section 688 of the tax law, as amended by 10 chapter 61 of the laws of 1989, is amended to read as follows: 11 (g) Cross-reference.--For provision with respect to interest after 12 failure to file notice of federal change under section six hundred 13 fifty-nine or six hundred fifty-nine-a, see subsection (c) of section 14 six hundred eighty-seven. 15 § 11. Subsection (a) of section 1312 of the tax law, as amended by 16 section 9 of part Q of chapter 407 of the laws of 1999, is amended to 17 read as follows: 18 (a) Except as otherwise provided in this article, any tax imposed 19 pursuant to the authority of this article shall be administered and 20 collected by the commissioner in the same manner as the tax imposed by 21 article twenty-two of this chapter is administered and collected by the 22 commissioner. All of the provisions of article twenty-two of this chap- 23 ter relating to or applicable to payment of estimated tax, returns, 24 payment of tax, claim of right adjustment, withholding of tax from 25 wages, employer's statements and returns, employer's liability for taxes 26 required to be withheld and all other provisions of article twenty-two 27 of this chapter relating to or applicable to the administration, 28 collection, liability for and review of the tax imposed by article twen- 29 ty-two of this chapter, including sections six hundred fifty-two through 30 six hundred fifty-four, sections six hundred fifty-seven through [six31hundred fifty-nine] six hundred fifty-nine-a, sections six hundred 32 sixty-one and six hundred sixty-two, sections six hundred seventy-one 33 and six hundred seventy-two, sections six hundred seventy-four through 34 six hundred seventy-eight and sections six hundred eighty-one through 35 six hundred ninety-seven of this chapter, inclusive, shall apply to a 36 tax imposed pursuant to the authority of this article with the same 37 force and effect as if those provisions had been incorporated in full 38 into this article, and had expressly referred to the tax imposed pursu- 39 ant to the authority of this article, except where inconsistent with a 40 provision of this article. Whenever there is joint collection of state 41 and city personal income taxes, it shall be deemed that such collections 42 shall represent proportionately the applicable state and city personal 43 income taxes in determining the amount to be remitted to the city. 44 § 12. Paragraph 1 of subdivision (e) of section 1515 of the tax law, 45 as amended by chapter 770 of the laws of 1992, is amended to read as 46 follows: 47 (1) If the amount of the life insurance company taxable income (which 48 shall include, in the case of a stock life insurance company which has 49 an existing policyholders surplus account, the amount of direct and 50 indirect distributions during the taxable year to shareholders from such 51 account), taxable income of a partnership or taxable income, as the case 52 may be, or alternative minimum taxable income for any year of any 53 taxpayer as returned to the United States treasury department is changed 54 or corrected by the commissioner of internal revenue or other officer of 55 the United States or other competent authority, such taxpayer shall 56 report such change or corrected taxable income or alternative minimumS. 3009 93 A. 3009 1 taxable income within ninety days (or one hundred twenty days, in the 2 case of a taxpayer making a combined return under this article for such 3 year) after the final determination of such change or correction or as 4 required by the commissioner, and shall concede the accuracy of such 5 determination or state wherein it is erroneous. Provided, however, if 6 the taxpayer is a direct or indirect partner of a partnership required 7 to report adjustments in accordance with section six hundred 8 fifty-nine-a of this chapter, such taxpayer shall also report such 9 adjustments in accordance with section six hundred fifty-nine-a of this 10 chapter when such adjustments result in an overpayment. Any taxpayer 11 filing an amended return with such department shall also file within 12 ninety days (or one hundred twenty days, in the case of a taxpayer 13 making a combined return under this article for such year) thereafter an 14 amended return with the commissioner which shall contain such informa- 15 tion as the commissioner shall require. The allowance of a tentative 16 carryback adjustment based upon a net operating loss carryback or net 17 capital loss carryback pursuant to section sixty-four hundred eleven of 18 the internal revenue code or upon an operations loss carryback pursuant 19 to section eight hundred ten of the internal revenue code, shall be 20 treated as a final determination for purposes of this subdivision. 21 § 13. This act shall take effect immediately; provided, however, that 22 adjustments to a taxpayer's federal taxable income or tax liability with 23 a final determination date or administrative adjustment request occur- 24 ring prior to the effective date of this act must be reported within one 25 year of such effective date; provided further that no interest shall 26 accrue on adjustments accruing prior to the effective date of this act. 27 PART W 28 Section 1. Section 1310 of the tax law is amended by adding a new 29 subsection (h) to read as follows: 30 (h) Credit for certain taxpayers with incomes below certain thresh- 31 olds. (1) Notwithstanding any other provision of law to the contrary, 32 for taxable years beginning on or after January first, two thousand 33 twenty-five, a credit shall be allowed to a taxpayer against the tax 34 imposed pursuant to the authority of this article in an amount equal to 35 the tax otherwise due under this article for such taxable year, reduced 36 by all the credits permitted by this article for such taxable year, if: 37 (A) such taxpayer is entitled to a deduction for such taxable year 38 under subsection (c) of section one hundred fifty-one of the internal 39 revenue code; 40 (B) such taxpayer meets the following income thresholds for such taxa- 41 ble year: 42 (i) for city taxpayers who filed a resident income tax return as 43 married taxpayers filing jointly or a qualified surviving spouse: 44 If the number of Income no greater than: 45 dependents is: 46 1 $36,789 47 2 $46,350 48 3 $54,545 49 4 $61,071 50 5 $68,403 51 6 $75,204 52 7 or more $91,902S. 3009 94 A. 3009 1 (ii) for city taxpayers who filed a resident income tax return as a 2 single taxpayer, married taxpayer filing a separate return, or head of 3 household: 4 If the number of Income no greater than: 5 dependents is: 6 1 $31,503 7 2 $36,824 8 3 $46,512 9 4 $53,711 10 5 $59,928 11 6 $65,712 12 7 $74,565 13 8 or more $88,361 14 (iii) for any taxable year beginning on or after January first, two 15 thousand twenty-six, the commissioner shall multiply the amounts in this 16 subparagraph by one plus the cost-of-living adjustment, which shall be 17 the percentage by which the consumer price index for the preceding 18 calendar year exceeds the consumer price index for calendar year two 19 thousand twenty-four; 20 (C) such taxpayer is not allowed a credit pursuant to: 21 (i) subsection (a) of section eight hundred sixty-three of this chap- 22 ter against the tax imposed pursuant to article twenty-two of this chap- 23 ter; or 24 (ii) subsection (a) of section eight hundred seventy of this chapter 25 against the tax imposed pursuant to the authority of article thirty of 26 this chapter; and 27 (D) such taxpayer does not report disqualified income in excess of ten 28 thousand dollars in the taxable year, as defined in subsection (i) of 29 section thirty-two of the internal revenue code. 30 (2) Where the income of a taxpayer exceeds the amount indicated in 31 subparagraph (B) of paragraph one of this subsection for such taxpayer 32 by five thousand dollars or less, and such taxpayer satisfies subpara- 33 graph (A) and subparagraphs (C) and (D) of paragraph one of this 34 subsection, a credit shall be allowed in the amount determined by multi- 35 plying: (A) the tax otherwise due under this article for such taxable 36 year reduced by all the credits permitted by this article for such taxa- 37 ble year by (B) a fraction the numerator of which is five thousand 38 dollars minus the amount by which such income exceeds the amount indi- 39 cated in subparagraph (B) of paragraph one of this subsection and the 40 denominator of which is five thousand dollars. 41 (3) For purposes of this subsection: 42 (A) "Consumer price index" means the most recent consumer price index 43 for all-urban consumers published by the United States department of 44 labor. The consumer price index for any calendar year shall be the 45 average of the consumer price index as of the close of the twelve-month 46 period ending on August thirty-first of such calendar year. 47 (B) "Income" means federal adjusted gross income for the taxable year. 48 § 2. Section 11-1706 of the administrative code of the city of New 49 York is amended by adding a new subdivision (h) to read as follows: 50 (h) Credit for certain taxpayers with incomes below certain thresh- 51 olds. (1) Notwithstanding any other provision of law to the contrary, 52 for any taxable year beginning on or after January first, two thousand 53 twenty-five, a credit shall be allowed to a taxpayer against the taxesS. 3009 95 A. 3009 1 imposed pursuant to the authority of this chapter in an amount equal to 2 the tax otherwise due under this chapter for such taxable year reduced 3 by all the credits permitted by this chapter for such taxable year if: 4 (A) such taxpayer is entitled to a deduction for such taxable year 5 under subsection (c) of section one hundred fifty-one of the internal 6 revenue code; 7 (B) such taxpayer meets the following income thresholds for such taxa- 8 ble year: 9 (i) for city taxpayers who filed a resident income tax return as 10 married taxpayers filing jointly or a qualified surviving spouse: 11 If the number of dependents is: Income no greater than: 12 1 $36,789 13 2 $46,350 14 3 $54,545 15 4 $61,071 16 5 $68,403 17 6 $75,204 18 7 or more $91,902 19 (ii) for city taxpayers who filed a resident income tax return as a 20 single taxpayer, married taxpayer filing a separate return, or head of 21 household: 22 If the number of dependents is: Income no greater than: 23 1 $31,503 24 2 $36,824 25 3 $46,512 26 4 $53,711 27 5 $59,928 28 6 $65,712 29 7 $74,565 30 8 or more $88,361 31 (iii) for any taxable year beginning on or after January first, two 32 thousand twenty-six, the commissioner of the state department of taxa- 33 tion and finance shall multiply the amounts in this subparagraph by one 34 plus the cost-of-living adjustment, which shall be the percentage by 35 which the consumer price index for the preceding calendar year exceeds 36 the consumer price index for calendar year two thousand twenty-four; 37 (C) such taxpayer is not allowed a credit pursuant to: (i) subsection 38 (a) of section eight hundred sixty-three of the tax law against the 39 tax imposed pursuant to article twenty-two of such law; or (ii) subdivi- 40 sion (g) of this section against the tax imposed pursuant to this chap- 41 ter; 42 (D) such taxpayer does not report disqualified income in excess of ten 43 thousand dollars in the taxable year, as such term is defined in 44 subsection (i) of section thirty-two of the internal revenue code. 45 (2) Where the income of a taxpayer exceeds the amount indicated in 46 subparagraph (B) of paragraph one of this subdivision for such taxpayer 47 by five thousand dollars or less, and such taxpayer satisfies subpara- 48 graph (A) and subparagraphs (C) and (D) of paragraph one of this subdi- 49 vision, a credit shall be allowed in the amount determined by multiply- 50 ing: (A) the tax otherwise due under this article for such taxable year 51 reduced by all the credits permitted by this article for such taxable 52 year by (B) a fraction the numerator of which is five thousand dollarsS. 3009 96 A. 3009 1 minus the amount by which such income exceeds the amount indicated in 2 subparagraph (B) of paragraph one of this subdivision and the denomina- 3 tor of which is five thousand dollars. 4 (3) For purposes of this subdivision: 5 (A) "Consumer price index" means the most recent consumer price index 6 for all-urban consumers published by the United States department of 7 labor. The consumer price index for any calendar year shall be the 8 average of the consumer price index as of the close of the twelve-month 9 period ending on August thirty-first of such calendar year. 10 (B) "Income" means federal adjusted gross income for a taxable year. 11 § 3. This act shall take effect immediately and shall apply to taxable 12 years beginning on or after January 1, 2025. 13 PART X 14 Section 1. The opening paragraph of subdivision (b) of section 25-z of 15 the general city law, as amended by section 1 of part RR of chapter 56 16 of the laws of 2020, is amended to read as follows: 17 No eligible business shall be authorized to receive a credit under any 18 local law enacted pursuant to this article until the premises with 19 respect to which it is claiming the credit meet the requirements in the 20 definition of eligible premises and until it has obtained a certif- 21 ication of eligibility from the mayor of such city or an agency desig- 22 nated by such mayor, and an annual certification from such mayor or an 23 agency designated by such mayor as to the number of eligible aggregate 24 employment shares maintained by such eligible business that may qualify 25 for obtaining a tax credit for the eligible [business'] business's taxa- 26 ble year. Any written documentation submitted to such mayor or such 27 agency or agencies in order to obtain any such certification shall be 28 deemed a written instrument for purposes of section 175.00 of the penal 29 law. Such local law may provide for application fees to be determined by 30 such mayor or such agency or agencies. No such certification of eligi- 31 bility shall be issued under any local law enacted pursuant to this 32 article to an eligible business on or after July first, two thousand 33 [twenty-five] thirty unless: 34 § 2. The general city law is amended by adding a new article 2-K to 35 read as follows: 36 ARTICLE 2-K 37 RELOCATION ASSISTANCE CREDIT PER EMPLOYEE 38 Section 25-ff. Definitions. 39 25-gg. Relocation assistance credit per employee. 40 § 25-ff. Definitions. When used in this article, the following terms 41 shall have the following meanings: 42 (a) "Aggregate employment shares" means the sum of all employment 43 shares maintained by an eligible business in a taxable year. 44 (b) "Eligible aggregate employment shares" means, in the case of an 45 eligible business, the amount, if any, of aggregate employment shares 46 maintained by an eligible business in eligible premises in the taxable 47 year in which such eligible business claims a credit pursuant to a local 48 law enacted in accordance with section twenty-five-gg of this article; 49 provided, however, that: 50 (1) such amount shall not exceed the lesser of: 51 (i) the number of aggregate employment shares maintained by such 52 eligible business in eligible premises in the taxable year during which 53 such eligible business relocates;S. 3009 97 A. 3009 1 (ii) the maximum approved employment shares for such eligible busi- 2 ness; or 3 (iii) an amount equal to the product of multiplying the aggregate 4 employment shares and the linear scalar for such eligible business in 5 such tax year; and 6 (2) a full-time work week or part-time work week at eligible premises 7 prior to the date of relocation shall not be taken into account in 8 determining eligible aggregate employment shares. 9 (c) "Eligible business" means any person subject to a tax imposed 10 under a local law enacted pursuant to part two or three of section one, 11 or section two of chapter seven hundred seventy-two of the laws of nine- 12 teen hundred sixty-six that: 13 (1) has been conducting substantial business operations at one or more 14 business locations outside of New York state for the twenty-four consec- 15 utive months immediately preceding the taxable year during which such 16 eligible business relocates but has not maintained employment shares at 17 premises in New York state at any time during the period beginning Janu- 18 ary first, two thousand twenty-five and ending on the date such business 19 enters into a lease or a contract to purchase the premises that will 20 qualify as eligible premises pursuant to this article; and 21 (2) on or after July first, two thousand twenty-five relocates all or 22 part of such business operations. 23 (d) "Eligible premises" means one or more non-residential premises 24 that consist of at least twenty thousand square feet that are: 25 (1) wholly contained in real property located in a city with a popu- 26 lation of one million or more; and 27 (2) for which final certificates of occupancy were issued prior to 28 January first, two thousand. 29 (e) "Employment share" means, for each employee, partner or sole 30 proprietor of an eligible business, the sum of: (1) the number of full- 31 time work weeks worked by such employee, partner or sole proprietor 32 during the eligible business's taxable year divided by the number of 33 weeks in the taxable year; and (2) the number of part-time work weeks 34 worked by such employee, partner or sole proprietor during the eligible 35 business's taxable year divided by an amount equal to twice the number 36 of weeks in the taxable year. Employment share shall not include full- 37 time or part-time work weeks attributable to employees, partners or sole 38 proprietors acquired by an eligible business as a result of a merger 39 with, acquisition of another person, or a transaction having a compara- 40 ble effect, that occurs after June thirtieth, two thousand twenty-five, 41 and before the end of the taxable year in which a credit is claimed by 42 such eligible business pursuant to a local law enacted in accordance 43 with section twenty-five-gg of this article, or to successors, if any, 44 to those employees, partners or sole proprietors. 45 (f) "Full-time work week" means a week during which at least thirty- 46 five hours of gainful work has been performed by an employee, partner or 47 sole proprietor. 48 (g) "Hotel services" means any services that consist predominately of 49 the lodging of guests at a building or a portion thereof that is regu- 50 larly used and kept open for such services. Hotel services shall include 51 the lodging of guests at an apartment hotel, a motel, boarding house or 52 club, whether or not meals are served. 53 (h) "Linear scalar" means, for an eligible business in a taxable year 54 in which a credit is claimed pursuant to a local law enacted in accord- 55 ance with section twenty-five-gg of this article, the quotient of divid- 56 ing the total square footage of an eligible premises by the product ofS. 3009 98 A. 3009 1 multiplying two hundred fifty by such business's aggregate employment 2 shares. 3 (i) "Maximum approved employment shares" means a limitation on the 4 aggregate employment shares that an eligible business may receive in any 5 taxable year determined by the mayor pursuant to a local law enacted in 6 accordance with section twenty-five-gg of this article based on documen- 7 tation submitted by such business demonstrating such business's inten- 8 tion to relocate. The maximum approved employment shares is the number 9 of aggregate employment shares such business intends to relocate as 10 indicated by the mayor on the applicable initial certification of eligi- 11 bility. 12 (j) "Mayor" means the mayor of a city having a population of one 13 million or more, or an agency of such city as designated by such mayor. 14 (k) "Part-time work week" means a week during which at least fifteen 15 but less than thirty-five hours of gainful work has been performed by an 16 employee, partner or sole proprietor. 17 (l) "Person" includes any individual, partnership, association, joint- 18 stock company, corporation, estate or trust, limited liability company, 19 and any combination of the foregoing. 20 (m) "Program total" means the sum of maximum approved aggregate 21 employment shares included in all initial certification of eligibility 22 issued by the mayor. 23 (n) "Relocate" means, with respect to an eligible business, to trans- 24 fer a pre-existing business operation to an eligible premises, or to 25 establish a new business operation at such premises, provided that an 26 eligible business shall not be deemed to have relocated unless at least 27 one employee, partner or sole proprietor of the eligible business is 28 transferred to such premises from a pre-existing business operation 29 conducted outside the state of New York. The date of relocation shall be 30 the first day on which the individual so transferred commences work at 31 such eligible premises. The taxable year of relocation shall be the 32 taxable year in which the date of relocation occurs. For purposes of 33 this article, an eligible business may relocate only once but may add or 34 substitute other eligible premises throughout such period. 35 (o) "Retail activity" means any activity which consists predominately 36 of: 37 (1) the sale, other than through the mail or by the telephone or by 38 means of the internet, of tangible personal property to a person, for 39 any purpose unrelated to the trade or business of such person; 40 (2) the selling of a service to an individual which generally involves 41 the physical, mental or spiritual care of such individual; 42 (3) the physical care of the personal property of any person unrelated 43 to the trade or business of such person; or 44 (4) the provision of a retail banking service. 45 § 25-gg. Relocation assistance credit per employee. (a) Any city 46 having a population of one million or more is hereby authorized and 47 empowered to adopt and amend a local law allowing an eligible business 48 that relocates to receive a credit against a tax imposed under a local 49 law enacted pursuant to part two or three of section one or section two 50 of chapter seven hundred seventy-two of the laws of nineteen hundred 51 sixty-six. The amount of such credit shall be determined by multiplying 52 five thousand dollars by the number of eligible aggregate employment 53 shares maintained by the taxpayer during the taxable year with respect 54 to eligible premises to which the taxpayer has relocated, and may be 55 taken, pursuant to the provisions of section four-j of part two of 56 section one, or subdivision (l) of section one hundred one of sectionS. 3009 99 A. 3009 1 two of chapter seven hundred seventy-two of the laws of nineteen hundred 2 sixty-six, for up to eleven consecutive taxable years beginning with the 3 taxable year in which the eligible business relocates, provided that no 4 such credit shall be allowed for the relocation of any retail activity 5 or hotel services. 6 (b) No eligible business shall be authorized to receive a credit 7 against tax under any local law enacted pursuant to this article unless 8 the premises with respect to which it is claiming the credit are eligi- 9 ble premises and until it has obtained an initial certification of 10 eligibility from the mayor of such city and an annual certification from 11 such mayor as to the number of eligible aggregate employment shares 12 maintained by such eligible business that may qualify for obtaining a 13 tax credit for the eligible business's taxable year. Each initial 14 certification of eligibility shall include the maximum approved employ- 15 ment shares for the eligible business, which shall not exceed five 16 hundred employment shares. Any written documentation submitted to such 17 mayor in order to obtain any such certification shall be deemed a writ- 18 ten instrument for purposes of section 175.00 of the penal law. Such 19 local law may provide for an application fee for such certification to 20 be determined by such mayor. No initial certification of eligibility 21 shall be issued under any local law enacted pursuant to this article to 22 an eligible business on or after July first, two thousand twenty-eight 23 unless: 24 (1) prior to such date, such business has purchased, leased or entered 25 into a contract to purchase or lease eligible premises; 26 (2) prior to such date, such business submits a preliminary applica- 27 tion for an initial certification of eligibility to such mayor with 28 respect to a proposed relocation to such premises; 29 (3) such business enters into a lease or contract to purchase an 30 eligible premises between the date that such business submits such 31 preliminary application and three months thereafter; and 32 (4) such business relocates to such premises not later than thirty-six 33 months from the date of submission of such preliminary application. 34 (c) Notwithstanding any provision of law to the contrary, such mayor 35 shall not issue an initial certification of eligibility that would cause 36 the program total to exceed three thousand maximum approved employment 37 shares. Such mayor shall approve applications on a first-come, first- 38 serve basis among eligible businesses in accordance with rules promul- 39 gated pursuant to a local law authorized by subdivision (d) of this 40 section. Such mayor shall include on such mayor's website an indication 41 regarding whether the program total has reached three thousand maximum 42 approved employment shares. 43 (d) Such mayor shall be authorized to promulgate rules and regulations 44 to administer and ensure compliance with the provisions of this article, 45 including but not limited to rules and regulations to provide for alter- 46 native methods to measure employment shares in instances where an eligi- 47 ble business is not required by law to maintain weekly records of full- 48 time work weeks and part-time work weeks of employees, partners or sole 49 proprietors. 50 (e) For the duration of the benefit period, the recipient of a credit 51 pursuant to a local law enacted in accordance with this article shall 52 file an application for an annual certification each year demonstrating 53 such recipient's eligibility for such credit and the average wage and 54 benefits offered to the applicable relocated employees used in determin- 55 ing eligible aggregate employment shares. Such mayor shall have theS. 3009 100 A. 3009 1 authority to require that statements filed under this subdivision be 2 filed electronically and that such statements be certified. 3 (f) The business services agency of a city that adopts a local law 4 pursuant to this article may require in a contract with a not-for-profit 5 corporation that provides economic development services for such city 6 that such corporation will provide administrative support to such mayor 7 and assist such mayor's review of any initial certification of eligibil- 8 ity or annual certification, and provide recommendations regarding the 9 approval of any credit pursuant to a local law enacted in accordance 10 with this article. 11 § 3. Part II of section 1 of chapter 772 of the laws of 1966, relating 12 to enabling any city having a population of one million or more to raise 13 tax revenue, is amended by adding a new section 4-j to read as follows: 14 § 4-j. Relocation assistance credit per employee. (1) In addition to 15 any other credit allowed by this part other than a credit allowed by 16 section four-h of this part, a taxpayer that has obtained the certif- 17 ications in accordance with subdivision (b) of section twenty-five-gg of 18 the general city law shall be allowed a credit against the tax imposed 19 by this part. The amount of the credit shall be the amount determined 20 by multiplying five thousand dollars by the number of eligible aggregate 21 employment shares maintained by the taxpayer during the taxable year 22 with respect to eligible premises to which the taxpayer has relocated; 23 provided, however, that no credit shall be allowed for the relocation of 24 any retail activity or hotel services. For purposes of this section, the 25 terms "eligible aggregate employment shares", "eligible premises", 26 "relocate", "retail activity" and "hotel services" shall have the mean- 27 ings ascribed by section twenty-five-ff of the general city law. 28 (2) The credit allowed under this section with respect to eligible 29 aggregate employment shares maintained with respect to eligible premises 30 to which the taxpayer has relocated shall be allowed for the taxable 31 year of the relocation and for any of the ten succeeding taxable years 32 during which eligible aggregate employment shares are maintained with 33 respect to eligible premises; provided that the credit allowed for the 34 tenth succeeding taxable year shall be calculated by multiplying the 35 number of eligible aggregate employment shares maintained with respect 36 to eligible premises in the tenth succeeding taxable year by the lesser 37 of one and a fraction the numerator of which is such number of days in 38 the taxable year of relocation less the number of days the eligible 39 business maintained employment shares in eligible premises in the taxa- 40 ble year of relocation and the denominator of which is the number of 41 days in such tenth taxable year during which such eligible aggregate 42 employment shares are maintained with respect to such premises. 43 (3) Except as provided in subdivision four of this section, if the 44 amount of the credit allowable under this section for any taxable year 45 exceeds the tax imposed for such year, the excess may be carried over, 46 in order, to the five immediately succeeding taxable years and, to the 47 extent not previously deductible, may be deducted from the taxpayer's 48 tax for such years. 49 (4) The credits allowed under this section, against the tax imposed by 50 this chapter for the taxable year of the relocation and for the four 51 taxable years immediately succeeding the taxable year of such relo- 52 cation, shall be deemed to be overpayments of tax by the taxpayer to be 53 credited or refunded, without interest, in accordance with the 54 provisions of section seventy-seven of this title. For such taxable 55 years, such credits or portions thereof may not be carried over to any 56 succeeding taxable year.S. 3009 101 A. 3009 1 (5) The credit allowed under this section shall be deducted prior to 2 the deduction of any other credit allowed by this part. 3 § 4. Section 101 of section 2 of chapter 772 of the laws of 1966, 4 relating to enabling any city having a population of one million or more 5 to raise tax revenue, is amended by adding a new subdivision (l) to read 6 as follows: 7 (l) Relocation assistance credit per employee. (1) In addition to any 8 other credit allowed by this part other than a credit allowed by subdi- 9 vision (j) of this section, a taxpayer that has obtained the certif- 10 ications in accordance with subdivision (b) of section twenty-five-gg of 11 the general city law shall be allowed a credit against the tax imposed 12 by this part. The amount of the credit shall be the amount determined by 13 multiplying five thousand dollars by the number of eligible aggregate 14 employment shares maintained by the taxpayer during the taxable year 15 with respect to eligible premises to which the taxpayer has relocated; 16 provided, however, that no credit shall be allowed for the relocation of 17 any retail activity or hotel services. For purposes of this subdivision, 18 the terms "eligible aggregate employment shares", "eligible premises", 19 "relocate", "retail activity" and "hotel services" shall have the mean- 20 ings ascribed by section twenty-five-ff of the general city law. 21 (2) The credit allowed under this subdivision with respect to eligible 22 aggregate employment shares maintained with respect to eligible premises 23 to which the taxpayer has relocated shall be allowed for the taxable 24 year of the relocation and for any of the ten succeeding taxable years 25 during which eligible aggregate employment shares are maintained with 26 respect to eligible premises; provided that the credit allowed for the 27 tenth succeeding taxable year shall be calculated by multiplying the 28 number of eligible aggregate employment shares maintained with respect 29 to eligible premises in the tenth succeeding taxable year by the lesser 30 of one and a fraction the numerator of which is such number of days in 31 the taxable year of relocation less the number of days the eligible 32 business maintained employment shares in eligible premises in the taxa- 33 ble year of relocation and the denominator of which is the number of 34 days in such tenth succeeding taxable year during which such eligible 35 aggregate employment shares are maintained with respect to such prem- 36 ises. 37 (3) Except as provided in paragraph four of this subdivision, if the 38 amount of the credit allowable under this subdivision for any taxable 39 year exceeds the tax imposed for such year, the excess may be carried 40 over, in order, to the five immediately succeeding taxable years and, to 41 the extent not previously deductible, may be deducted from the taxpay- 42 er's tax for such years. 43 (4) The credits allowed under this subdivision, against the tax 44 imposed by this chapter for the taxable year of the relocation and for 45 the four taxable years immediately succeeding the taxable year of such 46 relocation, shall be deemed to be overpayments of tax by the taxpayer to 47 be credited or refunded, without interest, in accordance with the 48 provisions of section seventy-seven of this title. For such taxable 49 years, such credits or portions thereof may not be carried over to any 50 succeeding taxable year. 51 (5) The credit allowable under this subdivision shall be deducted 52 after the credits allowed by subdivision (b) of this section, but prior 53 to the deduction of any other credit allowed by this section. 54 § 5. Section 11-503 of the administrative code of the city of New York 55 is amended by adding a new subdivision (r) to read as follows:S. 3009 102 A. 3009 1 (r) Relocation assistance credit per employee. (1) In addition to any 2 other credit allowed by this section other than a credit allowed by 3 subdivision (i) of this section, a taxpayer that has obtained the 4 certifications required by chapter six-E of title twenty-two of this 5 code shall be allowed a credit against the tax imposed by this chapter. 6 The amount of the credit shall be the amount determined by multiplying 7 five thousand dollars by the number of eligible aggregate employment 8 shares maintained by the taxpayer during the taxable year with respect 9 to eligible premises to which the taxpayer has relocated; provided, 10 however, that no credit shall be allowed for the relocation of any 11 retail activity or hotel services. For purposes of this subdivision, the 12 terms "eligible aggregate employment shares", "eligible premises", 13 "relocate", "retail activity" and "hotel services" shall have the mean- 14 ings ascribed by section 22-627 of this code. 15 (2) The credit allowed under this subdivision with respect to eligible 16 aggregate employment shares maintained with respect to eligible premises 17 to which the taxpayer has relocated shall be allowed for the taxable 18 year of the relocation and for any of the ten succeeding taxable years 19 during which eligible aggregate employment shares are maintained with 20 respect to eligible premises; provided that the credit allowed for the 21 tenth succeeding taxable year shall be calculated by multiplying the 22 number of eligible aggregate employment shares maintained with respect 23 to eligible premises in the tenth succeeding taxable year by the lesser 24 of one and a fraction the numerator of which is such number of days in 25 the taxable year of relocation less the number of days the taxpayer 26 maintained employment shares in eligible premises in the taxable year of 27 relocation and the denominator of which is the number of days in such 28 tenth succeeding taxable year during which such eligible aggregate 29 employment shares are maintained with respect to such premises. 30 (3) Except as provided in paragraph four of this subdivision, if the 31 amount of the credit allowable under this subdivision for any taxable 32 year exceeds the tax imposed for such year, the excess may be carried 33 over, in order, to the five immediately succeeding taxable years and, to 34 the extent not previously deductible, may be deducted from the taxpay- 35 er's tax for such years. 36 (4) The credits allowed under this subdivision, against the tax 37 imposed by this chapter for the taxable year of the relocation and for 38 the four taxable years immediately succeeding the taxable year of such 39 relocation, shall be deemed to be overpayments of tax by the taxpayer to 40 be credited or refunded, without interest, in accordance with the 41 provisions of section 11-526 of this title. For such taxable years, such 42 credits or portions thereof may not be carried over to any succeeding 43 taxable year. 44 (5) The credit allowable under this subdivision shall be deducted 45 after the credits allowed by subdivisions (b) and (j) of this section, 46 but prior to the deduction of any other credit allowed by this section. 47 § 6. Section 11-604 of the administrative code of the city of New York 48 is amended by adding a new subdivision 24 to read as follows: 49 24. Relocation assistance credit per employee. (a) In addition to any 50 other credit allowed by this section other than a credit allowed by 51 subdivision seventeen of this section, a taxpayer that has obtained the 52 certifications required by chapter six-E of title twenty-two of this 53 code shall be allowed a credit against the tax imposed by this chapter. 54 The amount of the credit shall be the amount determined by multiplying 55 five thousand dollars by the number of eligible aggregate employment 56 shares maintained by the taxpayer during the taxable year with respectS. 3009 103 A. 3009 1 to eligible premises to which the taxpayer has relocated; provided, 2 however, that no credit shall be allowed for the relocation of any 3 retail activity or hotel services. For purposes of this subdivision, the 4 terms "eligible aggregate employment shares", "eligible premises", 5 "relocate", "retail activity" and "hotel services" shall have the mean- 6 ings ascribed by section 22-627 of this code. 7 (b) The credit allowed under this subdivision with respect to eligible 8 aggregate employment shares maintained with respect to eligible premises 9 to which the taxpayer has relocated shall be allowed for the taxable 10 year of the relocation and for any of the ten succeeding taxable years 11 during which eligible aggregate employment shares are maintained with 12 respect to eligible premises; provided that the credit allowed for the 13 tenth succeeding taxable year shall be calculated by multiplying the 14 number of eligible aggregate employment shares maintained with respect 15 to eligible premises in the tenth succeeding taxable year by the lesser 16 of one and a fraction the numerator of which is such number of days in 17 the taxable year of relocation less the number of days the taxpayer 18 maintained employment shares in eligible premises in the taxable year of 19 relocation and the denominator of which is the number of days in such 20 tenth taxable year during which such eligible aggregate employment 21 shares are maintained with respect to such premises. 22 (c) Except as provided in paragraph (d) of this subdivision, if the 23 amount of the credit allowable under this subdivision for any taxable 24 year exceeds the tax imposed for such year, the excess may be carried 25 over, in order, to the five immediately succeeding taxable years and, to 26 the extent not previously deductible, may be deducted from the taxpay- 27 er's tax for such years. 28 (d) The credits allowed under this subdivision, against the tax 29 imposed by this chapter for the taxable year of the relocation and for 30 the four taxable years immediately succeeding the taxable year of such 31 relocation, shall be deemed to be overpayments of tax by the taxpayer to 32 be credited or refunded, without interest, in accordance with the 33 provisions of section 11-677 of this chapter. For such taxable years, 34 such credits or portions thereof may not be carried over to any succeed- 35 ing taxable year. 36 (e) The credit allowable under this subdivision shall be deducted 37 after the credit allowed by subdivision eighteen of this section, but 38 prior to the deduction of any other credit allowed by this section. 39 § 7. The administrative code of the city of New York is amended by 40 adding a new section 11-643.10 to read as follows: 41 § 11-643.10 Relocation assistance credit per employee. (a) In addition 42 to any other credit allowed by this part other than a credit allowed by 43 section 11-643.7 of this part, a taxpayer that has obtained the certif- 44 ications required by chapter six-E of title twenty-two of this code 45 shall be allowed a credit against the tax imposed by this part. The 46 amount of the credit shall be the amount determined by multiplying five 47 thousand dollars by the number of eligible aggregate employment shares 48 maintained by the taxpayer during the taxable year with respect to 49 eligible premises to which the taxpayer has relocated; provided, howev- 50 er, that no credit shall be allowed for the relocation of any retail 51 activity or hotel services. For purposes of this section, the terms 52 "eligible aggregate employment shares", "eligible premises", "relocate", 53 "retail activity" and "hotel services" shall have the meanings ascribed 54 by section 22-627 of this code. 55 (b) The credit allowed under this section with respect to eligible 56 aggregate employment shares maintained with respect to eligible premisesS. 3009 104 A. 3009 1 to which the taxpayer has relocated shall be allowed for the taxable 2 year of the relocation and for any of the ten succeeding taxable years 3 during which eligible aggregate employment shares are maintained with 4 respect to eligible premises; provided that the credit allowed for the 5 tenth succeeding taxable year shall be calculated by multiplying the 6 number of eligible aggregate employment shares maintained with respect 7 to eligible premises in the tenth succeeding taxable year by the lesser 8 of one and a fraction the numerator of which is such number of days in 9 the taxable year of relocation less the number of days the taxpayer 10 maintained employment shares in eligible premises in the taxable year of 11 relocation and the denominator of which is the number of days in such 12 tenth succeeding taxable year during which such eligible aggregate 13 employment shares are maintained with respect to such premises. 14 (c) Except as provided in subdivision (d) of this section, if the 15 amount of the credit allowable under this section for any taxable year 16 exceeds the tax imposed for such year, the excess may be carried over, 17 in order, to the five immediately succeeding taxable years and, to the 18 extent not previously deductible, may be deducted from the taxpayer's 19 tax for such years. 20 (d) The credits allowed under this section, against the tax imposed by 21 this chapter for the taxable year of the relocation and for the four 22 taxable years immediately succeeding the taxable year of such relo- 23 cation, shall be deemed to be overpayments of tax by the taxpayer to be 24 credited or refunded, without interest, in accordance with the 25 provisions of section 11-677 of this chapter. For such taxable years, 26 such credits or portions thereof may not be carried over to any succeed- 27 ing taxable year. 28 (e) The credit allowable under this section shall be deducted prior to 29 the deduction of any other credit allowed by this part. 30 § 8. Section 11-654 of the administrative code of the city of New York 31 is amended by adding a new subdivision 24 to read as follows: 32 24. Relocation assistance credit per employee. (a) In addition to any 33 other credit allowed by this section other than a credit allowed by 34 subdivision seventeen of this section, a taxpayer that has obtained the 35 certifications required by chapter six-E of title twenty-two of this 36 code shall be allowed a credit against the tax imposed by this subchap- 37 ter. The amount of the credit shall be the amount determined by multi- 38 plying five thousand dollars by the number of eligible aggregate employ- 39 ment shares maintained by the taxpayer during the taxable year with 40 respect to eligible premises to which the taxpayer has relocated; 41 provided, however, that no credit shall be allowed for the relocation of 42 any retail activity or hotel services. For purposes of this subdivision, 43 the terms "eligible aggregate employment shares", "eligible premises", 44 "relocate", "retail activity" and "hotel services" shall have the mean- 45 ings ascribed by section 22-627 of this code. 46 (b) The credit allowed under this subdivision with respect to eligible 47 aggregate employment shares maintained with respect to eligible premises 48 to which the taxpayer has relocated shall be allowed for the taxable 49 year of the relocation and for any of the ten succeeding taxable years 50 during which eligible aggregate employment shares are maintained with 51 respect to eligible premises; provided that the credit allowed for the 52 tenth succeeding taxable year shall be calculated by multiplying the 53 number of eligible aggregate employment shares maintained with respect 54 to eligible premises in the tenth succeeding taxable year by the lesser 55 of one and a fraction the numerator of which is such number of days in 56 the taxable year of relocation less the number of days the taxpayerS. 3009 105 A. 3009 1 maintained employment shares in eligible premises in the taxable year of 2 relocation and the denominator of which is the number of days in such 3 tenth taxable year during which such eligible aggregate employment 4 shares are maintained with respect to such premises. 5 (c) Except as provided in paragraph (d) of this subdivision, if the 6 amount of the credit allowable under this subdivision for any taxable 7 year exceeds the tax imposed for such year, the excess may be carried 8 over, in order, to the five immediately succeeding taxable years and, to 9 the extent not previously deductible, may be deducted from the taxpay- 10 er's tax for such years. 11 (d) The credits allowed under this subdivision, against the tax 12 imposed by this chapter for the taxable year of the relocation and for 13 the four taxable years immediately succeeding the taxable year of such 14 relocation, shall be deemed to be overpayments of tax by the taxpayer to 15 be credited or refunded, without interest, in accordance with the 16 provisions of section 11-677 of this chapter. For such taxable years, 17 such credits or portions thereof may not be carried over to any succeed- 18 ing taxable year. 19 (e) The credit allowable under this subdivision shall be deducted 20 after the credit allowed by subdivision eighteen of this section, but 21 prior to the deduction of any other credit allowed by this section. 22 § 9. The opening paragraph of subdivision (b) of section 22-622 of the 23 administrative code of the city of New York, as amended by section 3 of 24 part RR of chapter 56 of the laws of 2020, is amended to read as 25 follows: 26 No eligible business shall be authorized to receive a credit against 27 tax or a reduction in base rent subject to tax under the provisions of 28 this chapter, and of title eleven of the code as described in subdivi- 29 sion (a) of this section, until the premises with respect to which it is 30 claiming the credit meet the requirements in the definition of eligible 31 premises and until it has obtained a certification of eligibility from 32 the mayor or an agency designated by the mayor, and an annual certif- 33 ication from the mayor or an agency designated by the mayor as to the 34 number of eligible aggregate employment shares maintained by such eligi- 35 ble business that may qualify for obtaining a tax credit for the eligi- 36 ble [business'] business's taxable year. Any written documentation 37 submitted to the mayor or such agency or agencies in order to obtain any 38 such certification shall be deemed a written instrument for purposes of 39 section 175.00 of the penal law. Application fees for such certif- 40 ications shall be determined by the mayor or such agency or agencies. No 41 certification of eligibility shall be issued to an eligible business on 42 or after July first, two thousand [twenty-five] thirty unless: 43 § 10. Title 22 of the administrative code of the city of New York is 44 amended by adding a new chapter 6-E to read as follows: 45 CHAPTER 6-E 46 RELOCATION ASSISTANCE CREDIT PER EMPLOYEE 47 Section 22-627 Definitions. 48 22-628 Authorization to provide relocation assistance credit per 49 employee. 50 § 22-627 Definitions. When used in this chapter, the following terms 51 shall have the following meanings: 52 (a) "Aggregate employment shares" means the sum of all employment 53 shares maintained by an eligible business in a taxable year.S. 3009 106 A. 3009 1 (b) "Eligible aggregate employment shares" means, in the case of an 2 eligible business, the amount, if any, of aggregate employment shares 3 maintained by an eligible business in eligible premises in the taxable 4 year in which such eligible business claims a credit pursuant to section 5 22-628 of this chapter; provided, however, that: 6 (1) such amount shall not exceed the lesser of: 7 (i) the number of aggregate employment shares maintained by such 8 eligible business in eligible premises in the taxable year during which 9 such eligible business relocates; 10 (ii) the maximum approved employment shares for such eligible busi- 11 ness; or 12 (iii) an amount equal to the product of multiplying the aggregate 13 employment shares and the linear scalar for such eligible business in 14 such tax year; and 15 (2) a full-time work week or part-time work week at eligible premises 16 prior to the date of relocation shall not be taken into account in 17 determining eligible aggregate employment shares. 18 (c) "Eligible business" means any person subject to a tax imposed 19 under chapter five, subchapter two, three or three-A of chapter six of 20 title eleven of this code, that: 21 (1) has been conducting substantial business operations at one or more 22 business locations outside of New York state for the twenty-four consec- 23 utive months immediately preceding the taxable year during which such 24 eligible business relocates but has not maintained employment shares at 25 premises in New York state at any time during the period beginning Janu- 26 ary first, two thousand twenty-five and ending on the date such business 27 enters into a lease or a contract to purchase the premises that will 28 qualify as eligible premises pursuant to this chapter; and 29 (2) on or after July first, two thousand twenty-five relocates all or 30 part of such business operations. 31 (d) "Eligible premises" means one or more non-residential premises 32 that consist of at least twenty thousand square feet that are: 33 (1) wholly contained in real property located in the city of New York; 34 and 35 (2) for which final certificates of occupancy were issued prior to 36 January first, two thousand. 37 (e) "Employment share" means, for each employee, partner or sole 38 proprietor of an eligible business, the sum of: (1) the number of full- 39 time work weeks worked by such employee, partner or sole proprietor 40 during the eligible business's taxable year divided by the number of 41 weeks in the taxable year; and (2) the number of part-time work weeks 42 worked by such employee, partner or sole proprietor during the eligible 43 business's taxable year divided by an amount equal to twice the number 44 of weeks in the taxable year. Employment share shall not include full- 45 time or part-time work weeks attributable to employees, partners or sole 46 proprietors acquired by an eligible business as a result of a merger 47 with, acquisition of another person, or a transaction having a compara- 48 ble effect, that occurs after June thirtieth, two thousand twenty-five, 49 and before the end of the taxable year in which a credit is claimed by 50 such eligible business pursuant to this section, or to successors, if 51 any, to those employees, partners or sole proprietors. 52 (f) "Full-time work week" means a week during which at least thirty- 53 five hours of gainful work has been performed by an employee, partner or 54 sole proprietor. 55 (g) "Hotel services" means any services that consist predominately of 56 the lodging of guests at a building or a portion thereof that is regu-S. 3009 107 A. 3009 1 larly used and kept open for such services. Hotel services shall include 2 the lodging of guests at an apartment hotel, a motel, boarding house or 3 club, whether or not meals are served. 4 (h) "Linear scalar" means, for an eligible business in a taxable year, 5 the quotient of dividing: 6 (1) the total square footage of an eligible premises; by 7 (2) the product of multiplying two hundred fifty by such business's 8 aggregate employment shares. 9 (i) "Maximum approved employment shares" means a limitation on the 10 aggregate employment shares that an eligible business may receive in any 11 taxable year determined by the mayor pursuant to section 22-628 of this 12 chapter based on documentation submitted by such business demonstrating 13 such business's intention to relocate. The maximum approved employment 14 shares is the number of aggregate employment shares such business 15 intends to relocate as indicated by the mayor on the applicable initial 16 certification of eligibility. 17 (j) "Mayor" means the mayor, or an agency as designated by the mayor. 18 (k) "Part-time work week" means a week during which at least fifteen 19 but less than thirty-five hours of gainful work has been performed by an 20 employee, partner or sole proprietor. 21 (l) "Person" includes any individual, partnership, association, joint- 22 stock company, corporation, estate or trust, limited liability company, 23 and any combination of the foregoing. 24 (m) "Program total" means the sum of maximum approved aggregate 25 employment shares included in all initial certification of eligibility 26 issued by the mayor. 27 (n) "Relocate" means, with respect to an eligible business, to trans- 28 fer a pre-existing business operation to an eligible premises, or to 29 establish a new business operation at such premises, provided that an 30 eligible business shall not be deemed to have relocated unless at least 31 one employee, partner or sole proprietor of the eligible business is 32 transferred to such premises from a pre-existing business operation 33 conducted outside the state of New York. The date of relocation shall be 34 the first day on which the individual so transferred commences work at 35 such eligible premises. The taxable year of relocation shall be the 36 taxable year in which the date of relocation occurs. For purposes of 37 this chapter, an eligible business may relocate only once but may add or 38 substitute other eligible premises throughout such period. 39 (o) "Retail activity" means any activity which consists predominately 40 of: 41 (1) the sale, other than through the mail or by the telephone or by 42 means of the internet, of tangible personal property to a person, for 43 any purpose unrelated to the trade or business of such person; 44 (2) the selling of a service to an individual which generally involves 45 the physical, mental or spiritual care of such individual; 46 (3) the physical care of the personal property of any person unrelated 47 to the trade or business of such person; or 48 (4) the provision of a retail banking service. 49 § 22-628 Authorization to provide relocation assistance credit per 50 employee. (a) An eligible business that relocates shall be allowed to 51 receive a credit against a tax imposed by chapter five, subchapter two, 52 three or three-A of chapter six of title eleven of this code, as 53 described in subdivision (r) of section 11-503, subdivision twenty-four 54 of section 11-604, section 11-643.10, or subdivision twenty-four of 55 section 11-654 of this code.S. 3009 108 A. 3009 1 (b) No eligible business shall be authorized to receive a credit 2 against tax under the provisions of this chapter and of title eleven of 3 this code as described in subdivision (a) of this section, unless the 4 premises with respect to which it is claiming the credit are eligible 5 premises and until it has obtained an initial certification of eligibil- 6 ity from the mayor and an annual certification from the mayor as to the 7 number of eligible aggregate employment shares maintained by such eligi- 8 ble business that may qualify for obtaining a tax credit for the eligi- 9 ble business's taxable year. Each initial certification of eligibility 10 shall include the maximum approved employment shares for the eligible 11 business, which shall not exceed five hundred employment shares. Any 12 written documentation submitted to the mayor in order to obtain any such 13 certification shall be deemed a written instrument for purposes of 14 section 175.00 of the penal law. An application fee for such certif- 15 ication shall be determined by the mayor. No initial certification of 16 eligibility shall be issued to an eligible business on or after July 17 first, two thousand twenty-eight unless: 18 (1) prior to such date such business has purchased, leased or entered 19 into a contract to purchase or lease eligible premises; 20 (2) prior to such date such business submits a preliminary application 21 for an initial certification of eligibility to such mayor with respect 22 to a proposed relocation to such premises; 23 (3) such business enters into a lease or contract to purchase an 24 eligible premises between the date that such business submits such 25 preliminary application and three months thereafter; and 26 (4) such business relocates to such premises not later than thirty-six 27 months from the date of submission of such preliminary application. 28 (c) Notwithstanding any provision of law to the contrary, the mayor 29 shall not issue an initial certification of eligibility that would cause 30 the program total to exceed three thousand maximum approved employment 31 shares. The mayor shall approve such applications on a first-come, 32 first-serve basis among eligible businesses in accordance with rules 33 promulgated pursuant to subdivision (d) of this section. The mayor shall 34 include on the mayor's website an indication regarding whether the 35 program total has reached three thousand maximum approved employment 36 shares. 37 (d) The mayor shall be authorized to promulgate rules and regulations 38 to administer and ensure compliance with the provisions of this chapter, 39 including but not limited to rules and regulations to provide for alter- 40 native methods to measure employment shares in instances where an eligi- 41 ble business is not required by law to maintain weekly records of full- 42 time work weeks and part-time work weeks of employees, partners or sole 43 proprietors. 44 (e) For the duration of the benefit period, the recipient of a credit 45 shall file an application for an annual certification each year demon- 46 strating such recipient's eligibility for such credit and the average 47 wage and benefits offered to the applicable relocated employees used in 48 determining eligible aggregate employment shares. Such mayor shall have 49 the authority to require that statements filed under this subdivision be 50 filed electronically and that such statements be certified. 51 (f) The department of small business services may require in a 52 contract with a not-for-profit corporation that provides economic devel- 53 opment services for the city of New York that such corporation will 54 provide administrative support to the mayor and assist the mayor's 55 review of any initial certification of eligibility or annual certif-S. 3009 109 A. 3009 1 ication, and provide recommendations regarding the approval of any cred- 2 it pursuant to this chapter. 3 § 11. This act shall take effect July 1, 2025. 4 PART Y 5 Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax 6 law, as amended by section 1 of part K of chapter 59 of the laws of 7 2022, is amended to read as follows: 8 (a) General. A taxpayer shall be allowed a credit against the tax 9 imposed by this article. Such credit, to be computed as hereinafter 10 provided, shall be allowed for bioheating fuel, used for space heating 11 or hot water production for residential purposes within this state 12 purchased before January first, two thousand [twenty-six] twenty-nine. 13 Such credit shall be $0.01 per percent of biodiesel per gallon of 14 bioheating fuel, not to exceed twenty cents per gallon, purchased by 15 such taxpayer. Provided, however, that on or after January first, two 16 thousand seventeen, this credit shall not apply to bioheating fuel that 17 is less than six percent biodiesel per gallon of bioheating fuel. 18 § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as 19 amended by section 2 of part K of chapter 59 of the laws of 2022, is 20 amended to read as follows: 21 (1) A taxpayer shall be allowed a credit against the tax imposed by 22 this article. Such credit, to be computed as hereinafter provided, shall 23 be allowed for bioheating fuel, used for space heating or hot water 24 production for residential purposes within this state and purchased on 25 or after July first, two thousand six and before July first, two thou- 26 sand seven and on or after January first, two thousand eight and before 27 January first, two thousand [twenty-six] twenty-nine. Such credit shall 28 be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to 29 exceed twenty cents per gallon, purchased by such taxpayer. Provided, 30 however, that on or after January first, two thousand seventeen, this 31 credit shall not apply to bioheating fuel that is less than six percent 32 biodiesel per gallon of bioheating fuel. 33 § 3. This act shall take effect immediately. 34 PART Z 35 Section 1. Subdivision 6 of section 187-b of the tax law, as amended 36 by section 1 of part P of chapter 59 of the laws of 2022, is amended to 37 read as follows: 38 6. Termination. The credit allowed by subdivision two of this section 39 shall not apply in taxable years beginning after December thirty-first, 40 two thousand [twenty-five] twenty-eight. 41 § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law, 42 as amended by section 2 of part P of chapter 59 of the laws of 2022, is 43 amended to read as follows: 44 (f) Termination. The credit allowed by paragraph (b) of this subdivi- 45 sion shall not apply in taxable years beginning after December thirty- 46 first, two thousand [twenty-five] twenty-eight. 47 § 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as 48 amended by section 3 of part P of chapter 59 of the laws of 2022, is 49 amended to read as follows: 50 (6) Termination. The credit allowed by this subsection shall not apply 51 in taxable years beginning after December thirty-first, two thousand 52 [twenty-five] twenty-eight.S. 3009 110 A. 3009 1 § 4. This act shall take effect immediately. 2 PART AA 3 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of 4 section 1115 of the tax law, as amended by section 1 of part J of chap- 5 ter 59 of the laws of 2024, is amended to read as follows: 6 (B) Until May thirty-first, two thousand [twenty-five] twenty-six, the 7 food and drink excluded from the exemption provided by clauses (i), (ii) 8 and (iii) of subparagraph (A) of this paragraph, and bottled water, 9 shall be exempt under this subparagraph: (i) when sold for one dollar 10 and fifty cents or less through any vending machine that accepts coin or 11 currency only; or (ii) when sold for two dollars or less through any 12 vending machine that accepts any form of payment other than coin or 13 currency, whether or not it also accepts coin or currency. 14 § 2. This act shall take effect immediately. 15 PART BB 16 Section 1. Subdivision (f) of section 25-b of the labor law, as added 17 by section 2 of part Q of chapter 59 of the laws of 2022, is amended to 18 read as follows: 19 (f) The tax credits provided under this program shall be applicable to 20 taxable periods beginning before January first, two thousand [twenty-21six] twenty-nine. 22 § 2. This act shall take effect immediately. 23 PART CC 24 Section 1. Paragraph (a) of subdivision 29 of section 210-B of the 25 tax law, as amended by section 1 of part H of chapter 59 of the laws of 26 2022, is amended to read as follows: 27 (a) Allowance of credit. For taxable years beginning on or after Janu- 28 ary first, two thousand fifteen and before January first, two thousand 29 [twenty-six] twenty-nine, a taxpayer shall be allowed a credit, to be 30 computed as provided in this subdivision, against the tax imposed by 31 this article, for hiring and employing, for not less than twelve contin- 32 uous and uninterrupted months (hereinafter referred to as the twelve- 33 month period) in a full-time or part-time position, a qualified veteran 34 within the state. The taxpayer may claim the credit in the year in which 35 the qualified veteran completes the twelve-month period of employment by 36 the taxpayer. If the taxpayer claims the credit allowed under this 37 subdivision, the taxpayer may not use the hiring of a qualified veteran 38 that is the basis for this credit in the basis of any other credit 39 allowed under this article. 40 § 2. Subparagraph 2 of paragraph (b) of subdivision 29 of section 41 210-B of the tax law, as amended by section 1 of part H of chapter 59 of 42 the laws of 2022, is amended to read as follows: 43 (2) who commences employment by the qualified taxpayer on or after 44 January first, two thousand fourteen, and before January first, two 45 thousand [twenty-five] twenty-eight; and 46 § 3. Paragraph 1 of subsection (a-2) of section 606 of the tax law, as 47 amended by section 2 of part H of chapter 59 of the laws of 2022, is 48 amended to read as follows: 49 (1) Allowance of credit. For taxable years beginning on or after Janu- 50 ary first, two thousand fifteen and before January first, two thousandS. 3009 111 A. 3009 1 [twenty-six] twenty-nine, a taxpayer shall be allowed a credit, to be 2 computed as provided in this subsection, against the tax imposed by this 3 article, for hiring and employing, for not less than twelve continuous 4 and uninterrupted months (hereinafter referred to as the twelve-month 5 period) in a full-time or part-time position, a qualified veteran within 6 the state. The taxpayer may claim the credit in the year in which the 7 qualified veteran completes the twelve-month period of employment by the 8 taxpayer. If the taxpayer claims the credit allowed under this 9 subsection, the taxpayer may not use the hiring of a qualified veteran 10 that is the basis for this credit in the basis of any other credit 11 allowed under this article. 12 § 4. Subparagraph (B) of paragraph 2 of subsection (a-2) of section 13 606 of the tax law, as amended by section 2 of part H of chapter 59 of 14 the laws of 2022, is amended to read as follows: 15 (B) who commences employment by the qualified taxpayer on or after 16 January first, two thousand fourteen, and before January first, two 17 thousand [twenty-five] twenty-eight; and 18 § 5. Paragraph 1 of subdivision (g-1) of section 1511 of the tax law, 19 as amended by section 3 of part H of chapter 59 of the laws of 2022, is 20 amended to read as follows: 21 (1) Allowance of credit. For taxable years beginning on or after Janu- 22 ary first, two thousand fifteen and before January first, two thousand 23 [twenty-six] twenty-nine, a taxpayer shall be allowed a credit, to be 24 computed as provided in this subdivision, against the tax imposed by 25 this article, for hiring and employing, for not less than twelve contin- 26 uous and uninterrupted months (hereinafter referred to as the twelve- 27 month period) in a full-time or part-time position, a qualified veteran 28 within the state. The taxpayer may claim the credit in the year in which 29 the qualified veteran completes the twelve-month period of employment by 30 the taxpayer. If the taxpayer claims the credit allowed under this 31 subdivision, the taxpayer may not use the hiring of a qualified veteran 32 that is the basis for this credit in the basis of any other credit 33 allowed under this article. 34 § 6. Subparagraph (B) of paragraph 2 of subdivision (g-1) of section 35 1511 of the tax law, as amended by section 3 of part H of chapter 59 of 36 the laws of 2022, is amended to read as follows: 37 (B) who commences employment by the qualified taxpayer on or after 38 January first, two thousand fourteen, and before January first, two 39 thousand [twenty-five] twenty-eight; and 40 § 7. This act shall take effect immediately. 41 PART DD 42 Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, 43 amending the tax law relating to a musical and theatrical production 44 credit, as amended by section 1 of part HH of chapter 59 of the laws of 45 2021, is amended to read as follows: 46 § 5. This act shall take effect immediately, provided that section two 47 of this act shall take effect on January 1, 2015, and shall apply to 48 taxable years beginning on or after January 1, 2015, with respect to 49 "qualified production expenditures" and "transportation expenditures" 50 paid or incurred on or after such effective date, regardless of whether 51 the production of the qualified musical or theatrical production 52 commenced before such date, provided further that this act shall expire 53 and be deemed repealed January 1, [2026] 2030. 54 § 2. This act shall take effect immediately.S. 3009 112 A. 3009 1 PART EE 2 Section 1. Section 2 of part U of chapter 59 of the laws of 2017, amend- 3 ing the tax law, relating to the financial institution data match system 4 for state tax collection purposes, as amended by section 1 of part A of 5 chapter 59 of the laws of 2020, is amended to read as follows: 6 § 2. This act shall take effect immediately and shall expire April 1, 7 [2025] 2030 when upon such date the provisions of this act shall be 8 deemed repealed. 9 § 2. This act shall take effect immediately. 10 PART FF 11 Section 1. This act enacts into law major components of legislation 12 necessary to implement certain provisions regarding simplifying the 13 pari-mutuel tax rate system. Each component is wholly contained within a 14 Subpart identified as Subparts A through B. The effective date for each 15 particular provision contained within such Subpart is set forth in the 16 last section of such Subpart. Any provision in any section contained 17 within a Subpart, including the effective date of the Subpart, which 18 makes a reference to a section "of this act", when used in connection 19 with that particular component, shall be deemed to mean and refer to the 20 corresponding section of the Subpart in which it is found. Section three 21 of this act sets forth the general effective date of this act. 22 SUBPART A 23 Section 1. The racing, pari-mutuel wagering and breeding law is 24 amended by adding a new section 136 to read as follows: 25 § 136. Pari-mutuel wagering tax. 1. Notwithstanding any law to the 26 contrary: 27 (a) the excise tax imposed on each thoroughbred racetrack conducting 28 pari-mutuel wagering on live racing shall be one and one-tenth of one 29 percent (1.1%) of all money wagered on live races at such track; 30 (b) the excise tax imposed on each harness racetrack conducting pari- 31 mutuel wagering on live racing shall be one percent (1%) of all money 32 wagered on live races at such track; and 33 (c) the excise tax imposed on each off-track betting corporation for 34 the privilege of conducting pari-mutuel wagering on live racing shall be 35 six-tenths of one percent (0.6%) of all money wagered on live races 36 through such corporation. 37 2. Beginning with state fiscal year two thousand twenty-six, the 38 aggregate amount of the pari-mutuel wagering tax paid by a harness track 39 pursuant to paragraph (b) of subdivision one of this section in a state 40 fiscal year shall not exceed the pari-mutuel wagering tax attributable 41 to live racing handle paid by such harness track in state fiscal year 42 two thousand twenty-four. 43 3. All pari-mutuel wagering taxes shall be collected and remitted in 44 the same manner as such taxes were collected and remitted prior to the 45 enactment of this section. 46 4. Breaks, as defined in sections two hundred thirty-six, two hundred 47 thirty-eight, three hundred eighteen, and four hundred eighteen of this 48 chapter are not permitted, unless required by another jurisdiction 49 pursuant to section nine hundred five of this chapter. All distributions 50 to the holders of winning tickets shall be calculated to the nearest 51 penny.S. 3009 113 A. 3009 1 5. (a) Thoroughbred racetracks and the corporation established by 2 section two hundred fifty-two of this chapter, harness racetracks and 3 the corporation established by section three hundred thirty of this 4 chapter, and regional off-track betting corporations may agree to imple- 5 ment a revenue distribution scheme that differs from the distribution 6 scheme otherwise established by law. A copy of any such agreement shall 7 be provided to the commission and shall supersede the otherwise applica- 8 ble statutory distribution scheme. 9 (b) Any agreement established pursuant to paragraph (a) of this subdi- 10 vision shall include signatures from all involved parties, set forth the 11 current statute being superseded by the agreement, and the new terms and 12 conditions of the distribution of monies. The commission shall post on 13 the commission's website the applicable superseding distribution scheme 14 within thirty days of receipt by the commission. 15 (c) This subdivision shall supersede all inconsistent provisions of 16 law. 17 § 2. Section 908 of the racing, pari-mutuel wagering and breeding law 18 is REPEALED. 19 § 3. Section 1011 of the racing, pari-mutuel wagering and breeding 20 law, as amended by chapter 243 of the laws of 2020, is amended to read 21 as follows: 22 § 1011. Certain credit to off-track betting corporations. a. [During23the period that a franchised corporation is simulcasting from a facility24operated by such franchised corporation in the second zone as defined in25section two hundred forty-seven of this chapter to a facility operated26by such franchised corporation pursuant to section one thousand seven of27this article, any off-track betting corporation operating in a county in28which such association maintains a racetrack shall receive a credit of29twenty-five percent of the state taxes due pursuant to section five30hundred twenty-seven of this chapter on wagers placed on races conducted31by such association, provided that such corporation has entered into an32agreement with the employee organization representing the employees of33such corporation in which it has agreed not to reduce its workforce as a34result of such simulcasting.35b.] During the days that a franchised corporation is simulcasting from 36 a racetrack facility operated by such franchised corporation and located 37 in the first zone to a racetrack facility operated by such franchised 38 corporation located wholly within a city of one million or more, one 39 percent of the total wagers placed at such receiving facility shall be 40 paid to such city. 41 [c.] b. During the days that a franchised corporation is simulcasting 42 from a facility located wholly within a city in the first zone to a 43 racetrack facility operated by such franchised corporation located 44 partially within a city with a population in excess of one million and 45 partially within a county, one-half percent of the total wagers placed 46 at such receiving facility shall be paid to such city and one-half 47 percent of such wagers shall be paid to such county. 48 § 4. This act shall take effect September 1, 2025. 49 SUBPART B 50 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 51 racing, pari-mutuel wagering and breeding law, as amended by section 1 52 of part P of chapter 59 of the laws of 2024, is amended to read as 53 follows:S. 3009 114 A. 3009 1 (a) Any racing association or corporation or regional off-track 2 betting corporation, authorized to conduct pari-mutuel wagering under 3 this chapter, desiring to display the simulcast of horse races on which 4 pari-mutuel betting shall be permitted in the manner and subject to the 5 conditions provided for in this article may apply to the commission for 6 a license so to do. Applications for licenses shall be in such form as 7 may be prescribed by the commission and shall contain such information 8 or other material or evidence as the commission may require. No license 9 shall be issued by the commission authorizing the simulcast transmission 10 of thoroughbred races from a track located in Suffolk county. The fee 11 for such licenses shall be five hundred dollars per simulcast facility 12 and for account wagering licensees that do not operate either a simul- 13 cast facility that is open to the public within the state of New York or 14 a licensed racetrack within the state, twenty thousand dollars per year 15 payable by the licensee to the commission for deposit into the general 16 fund. Except as provided in this section, the commission shall not 17 approve any application to conduct simulcasting into individual or group 18 residences, homes or other areas for the purposes of or in connection 19 with pari-mutuel wagering. The commission may approve simulcasting into 20 residences, homes or other areas to be conducted jointly by one or more 21 regional off-track betting corporations and one or more of the follow- 22 ing: a franchised corporation, thoroughbred racing corporation or a 23 harness racing corporation or association; provided (i) the simulcasting 24 consists only of those races on which pari-mutuel betting is authorized 25 by this chapter at one or more simulcast facilities for each of the 26 contracting off-track betting corporations which shall include wagers 27 made in accordance with section one thousand fifteen, one thousand 28 sixteen and one thousand seventeen of this article; provided further 29 that the contract provisions or other simulcast arrangements for such 30 simulcast facility shall be no less favorable than those in effect on 31 January first, two thousand five; (ii) that each off-track betting 32 corporation having within its geographic boundaries such residences, 33 homes or other areas technically capable of receiving the simulcast 34 signal shall be a contracting party; (iii) the distribution of revenues 35 shall be subject to contractual agreement of the parties except that 36 statutory payments to non-contracting parties, if any, may not be 37 reduced; provided, however, that nothing herein to the contrary shall 38 prevent a track from televising its races on an irregular basis primari- 39 ly for promotional or marketing purposes as found by the commission. For 40 purposes of this paragraph, the provisions of section one thousand thir- 41 teen of this article shall not apply. Any agreement authorizing an 42 in-home simulcasting experiment commencing prior to May fifteenth, nine- 43 teen hundred ninety-five, may, and all its terms, be extended [until44June thirtieth, two thousand twenty-five]; provided, however, that any 45 party to such agreement may elect to terminate such agreement upon 46 conveying written notice to all other parties of such agreement at least 47 forty-five days prior to the effective date of the termination, via 48 registered mail. Any party to an agreement receiving such notice of an 49 intent to terminate, may request the commission to mediate between the 50 parties new terms and conditions in a replacement agreement between the 51 parties as will permit continuation of an in-home experiment [until June52thirtieth, two thousand twenty-five]; and (iv) no in-home simulcasting 53 in the thoroughbred special betting district shall occur without the 54 approval of the regional thoroughbred track. 55 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 56 1007 of the racing, pari-mutuel wagering and breeding law, as amended byS. 3009 115 A. 3009 1 section 2 of part P of chapter 59 of the laws of 2024, is amended to 2 read as follows: 3 (iii) Of the sums retained by a receiving track located in Westchester 4 county on races received from a franchised corporation, for the period 5 commencing January first, two thousand eight [and continuing through6June thirtieth, two thousand twenty-five], the amount used exclusively 7 for purses to be awarded at races conducted by such receiving track 8 shall be computed as follows: of the sums so retained, two and one-half 9 percent of the total pools. Such amount shall be increased or decreased 10 in the amount of fifty percent of the difference in total commissions 11 determined by comparing the total commissions available after July twen- 12 ty-first, nineteen hundred ninety-five to the total commissions that 13 would have been available to such track prior to July twenty-first, 14 nineteen hundred ninety-five. 15 § 3. The opening paragraph of subdivision 1 of section 1014 of the 16 racing, pari-mutuel wagering and breeding law, as amended by section 3 17 of part P of chapter 59 of the laws of 2024, is amended to read as 18 follows: 19 The provisions of this section shall govern the simulcasting of races 20 conducted at thoroughbred tracks located in another state or country on 21 any day during which a franchised corporation is conducting a race meet- 22 ing in Saratoga county at Saratoga thoroughbred racetrack [until June23thirtieth, two thousand twenty-five and on any day regardless of whether24or not a franchised corporation is conducting a race meeting in Saratoga25county at Saratoga thoroughbred racetrack after June thirtieth, two26thousand twenty-five]. On any day on which a franchised corporation has 27 not scheduled a racing program but a thoroughbred racing corporation 28 located within the state is conducting racing, each off-track betting 29 corporation branch office and each simulcasting facility licensed in 30 accordance with section one thousand seven (that has entered into a 31 written agreement with such facility's representative horsemen's organ- 32 ization, as approved by the commission), one thousand eight, or one 33 thousand nine of this article shall be authorized to accept wagers and 34 display the live simulcast signal from thoroughbred tracks located in 35 another state or foreign country subject to the following provisions: 36 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 37 and breeding law, as amended by section 4 of part P of chapter 59 of the 38 laws of 2024, is amended to read as follows: 39 1. The provisions of this section shall govern the simulcasting of 40 races conducted at harness tracks located in another state or country 41 [during] beginning with the period commencing July first, nineteen 42 hundred ninety-four [through June thirtieth, two thousand twenty-five]. 43 This section shall supersede all inconsistent provisions of this chap- 44 ter. 45 § 5. The opening paragraph of subdivision 1 of section 1016 of the 46 racing, pari-mutuel wagering and breeding law, as amended by section 5 47 of part P of chapter 59 of the laws of 2024, is amended to read as 48 follows: 49 The provisions of this section shall govern the simulcasting of races 50 conducted at thoroughbred tracks located in another state or country on 51 any day during which a franchised corporation is not conducting a race 52 meeting in Saratoga county at Saratoga thoroughbred racetrack [until53June thirtieth, two thousand twenty-five]. Every off-track betting 54 corporation branch office and every simulcasting facility licensed in 55 accordance with section one thousand seven that have entered into a 56 written agreement with such facility's representative horsemen's organ-S. 3009 116 A. 3009 1 ization as approved by the commission, one thousand eight or one thou- 2 sand nine of this article shall be authorized to accept wagers and 3 display the live full-card simulcast signal of thoroughbred tracks 4 (which may include quarter horse or mixed meetings provided that all 5 such wagering on such races shall be construed to be thoroughbred races) 6 located in another state or foreign country, subject to the following 7 provisions; provided, however, no such written agreement shall be 8 required of a franchised corporation licensed in accordance with section 9 one thousand seven of this article: 10 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 11 wagering and breeding law, as amended by section 6 of part P of chapter 12 59 of the laws of 2024, is amended to read as follows: 13 Notwithstanding any other provision of this chapter, for the period 14 commencing July twenty-fifth, two thousand one [through September15eighth, two thousand twenty-four], when a franchised corporation is 16 conducting a race meeting within the state at Saratoga Race Course, 17 every off-track betting corporation branch office and every simulcasting 18 facility licensed in accordance with section one thousand seven (that 19 has entered into a written agreement with such facility's representative 20 horsemen's organization as approved by the commission), one thousand 21 eight or one thousand nine of this article shall be authorized to accept 22 wagers and display the live simulcast signal from thoroughbred tracks 23 located in another state, provided that such facility shall accept 24 wagers on races run at all in-state thoroughbred tracks which are 25 conducting racing programs subject to the following provisions; 26 provided, however, no such written agreement shall be required of a 27 franchised corporation licensed in accordance with section one thousand 28 seven of this article. 29 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 30 racing, pari-mutuel wagering and breeding law and other laws relating to 31 simulcasting, as amended by section 7 of part P of chapter 59 of the 32 laws of 2024, is amended to read as follows: 33 § 32. This act shall take effect immediately [and the pari-mutuel tax34reductions in section six of this act shall expire and be deemed35repealed on July 1, 2025]; provided, however, that nothing contained 36 herein shall be deemed to affect the application, qualification, expira- 37 tion, or repeal of any provision of law amended by any section of this 38 act, and such provisions shall be applied or qualified or shall expire 39 or be deemed repealed in the same manner, to the same extent and on the 40 same date as the case may be as otherwise provided by law; provided 41 further, however, that sections twenty-three and twenty-five of this act 42 shall remain in full force and effect only until May 1, 1997 and at such 43 time shall be deemed to be repealed. 44 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 45 racing, pari-mutuel wagering and breeding law and other laws relating to 46 simulcasting and the imposition of certain taxes, as amended by section 47 8 of part P of chapter 59 of the laws of 2024, is amended to read as 48 follows: 49 § 54. This act shall take effect immediately; provided, however, 50 sections three through twelve of this act shall take effect on January 51 1, 1991[, and section 1013 of the racing, pari-mutuel wagering and52breeding law, as added by section thirty-eight of this act, shall expire53and be deemed repealed on July 1, 2025]; and section eighteen of this 54 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 55 two of this act shall take effect as of the same date as chapter 772 of 56 the laws of 1989 took effect.S. 3009 117 A. 3009 1 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 2 pari-mutuel wagering and breeding law, as amended by section 9 of part P 3 of chapter 59 of the laws of 2024, is amended to read as follows: 4 (a) The franchised corporation authorized under this chapter to 5 conduct pari-mutuel betting at a race meeting or races run thereat shall 6 distribute all sums deposited in any pari-mutuel pool to the holders of 7 winning tickets therein, provided such tickets are presented for payment 8 before April first of the year following the year of their purchase, 9 less an amount that shall be established and retained by such franchised 10 corporation of between twelve to seventeen percent of the total deposits 11 in pools resulting from on-track regular bets, and fourteen to twenty- 12 one percent of the total deposits in pools resulting from on-track 13 multiple bets and fifteen to twenty-five percent of the total deposits 14 in pools resulting from on-track exotic bets and fifteen to thirty-six 15 percent of the total deposits in pools resulting from on-track super 16 exotic bets, plus the breaks. The retention rate to be established is 17 subject to the prior approval of the commission. 18 Such rate may not be changed more than once per calendar quarter to be 19 effective on the first day of the calendar quarter. "Exotic bets" and 20 "multiple bets" shall have the meanings set forth in section five 21 hundred nineteen of this chapter. "Super exotic bets" shall have the 22 meaning set forth in section three hundred one of this chapter. For 23 purposes of this section, a "pick six bet" shall mean a single bet or 24 wager on the outcomes of six races. The breaks are hereby defined as the 25 odd cents over any multiple of five for payoffs greater than one dollar 26 five cents but less than five dollars, over any multiple of ten for 27 payoffs greater than five dollars but less than twenty-five dollars, 28 over any multiple of twenty-five for payoffs greater than twenty-five 29 dollars but less than two hundred fifty dollars, or over any multiple of 30 fifty for payoffs over two hundred fifty dollars. Out of the amount so 31 retained there shall be paid by such franchised corporation to the 32 commissioner of taxation and finance, as a reasonable tax by the state 33 for the privilege of conducting pari-mutuel betting on the races run at 34 the race meetings held by such franchised corporation, the following 35 percentages of the total pool for regular and multiple bets five percent 36 of regular bets and four percent of multiple bets plus twenty percent of 37 the breaks; for exotic wagers seven and one-half percent plus twenty 38 percent of the breaks, and for super exotic bets seven and one-half 39 percent plus fifty percent of the breaks. 40 For the period commencing April first, two thousand one [through41December thirty-first, two thousand twenty-five], such tax on all wagers 42 shall be one and six-tenths percent, plus, in each such period, twenty 43 percent of the breaks. Payment to the New York state thoroughbred breed- 44 ing and development fund by such franchised corporation shall be one- 45 half of one percent of total daily on-track pari-mutuel pools resulting 46 from regular, multiple and exotic bets and three percent of super exotic 47 bets and for the period commencing April first, two thousand one 48 [through December thirty-first, two thousand twenty-five], such payment 49 shall be seven-tenths of one percent of regular, multiple and exotic 50 pools. 51 § 10. This act shall take effect immediately. 52 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 53 sion, section or part of this act shall be adjudged by any court of 54 competent jurisdiction to be invalid, such judgment shall not affect, 55 impair, or invalidate the remainder thereof, but shall be confined in 56 its operation to the clause, sentence, paragraph, subdivision, sectionS. 3009 118 A. 3009 1 or part thereof directly involved in the controversy in which such judg- 2 ment shall have been rendered. It is hereby declared to be the intent of 3 the legislature that this act would have been enacted even if such 4 invalid provisions had not been included herein. 5 § 3. This act shall take effect immediately provided, however, that 6 the applicable effective date of Subparts A through B of this act shall 7 be as specifically set forth in the last section of such Subparts. 8 PART GG 9 Section 1. Subdivision 1 of section 1351 of the racing, pari-mutuel 10 wagering and breeding law, as amended by chapter 174 of the laws of 11 2013, is amended to read as follows: 12 1. (a) For a gaming facility in zone two, there is hereby imposed a 13 tax on gross gaming revenues. The amount of such tax imposed shall be as 14 follows; provided, however, should a licensee have agreed within its 15 application to supplement the tax with a binding supplemental fee 16 payment exceeding the aforementioned tax rate, such tax and supplemental 17 fee shall apply for a gaming facility: 18 [(a)] (1) in region two, forty-five percent of gross gaming revenue 19 from slot machines and ten percent of gross gaming revenue from all 20 other sources. 21 [(b)] (2) in region one, thirty-nine percent of gross gaming revenue 22 from slot machines and ten percent of gross gaming revenue from all 23 other sources. 24 [(c)] (3) in region five, thirty-seven percent of gross gaming revenue 25 from slot machines and ten percent of gross gaming revenue from all 26 other sources. 27 (b) (1) Notwithstanding the tax rates on gross gaming revenue from 28 slot machines provided in paragraph (a) of this subdivision, for the 29 period of April first, two thousand twenty-six through June thirtieth, 30 two thousand twenty-eight, each gaming facility in zone two shall 31 continue to be subject to the same tax rate on gross gaming revenue from 32 slot machines as was imposed in the preceding fiscal year. 33 (2) As a condition of the lower slot machine tax rate, the licensed 34 gaming facility must be current on all statutory obligations to the 35 state or have entered into and be in compliance with a repayment agree- 36 ment with the state. If the commission, in its sole discretion, deter- 37 mines that a gaming facility has not adhered to this condition for any 38 such time period, the gaming facility shall forfeit this lower slot 39 machine tax rate for such time period. 40 (3) Each gaming facility shall provide an annual fiscal report to the 41 governor, the speaker of the assembly, the temporary president of the 42 senate, director of the division of budget and the commission detailing 43 actual use of the funds resulting from the lower slot machine tax rate. 44 Such report shall include, but not be limited to, any impact on employ- 45 ment levels since receiving the lower slot machine tax rate, an account- 46 ing of the use of such funds, any other measures implemented to improve 47 the financial stability of the gaming facility and any other information 48 as deemed necessary by the commission. Such report shall be due no later 49 than January first of each year and shall be posted on the commission 50 website. 51 § 2. Section 2 of part OOO of chapter 59 of the laws of 2021 amending 52 the racing, pari-mutuel wagering and breeding law relating to the tax 53 on gaming revenues, is amended to read as follows:S. 3009 119 A. 3009 1 § 2. This act shall take effect immediately and shall expire and be 2 deemed repealed [five years after such date] April 1, 2026. 3 § 3. This act shall take effect immediately; provided however, that 4 section one of this act shall take effect on the same date as the rever- 5 sion of subdivision 1 of section 1351 of the racing, pari-mutuel wager- 6 ing and breeding law as provided in section 2 of part OOO of chapter 59 7 of the laws of 2021, as amended; provided further, that section one of 8 this act shall expire and be deemed repealed July 1, 2028. 9 PART HH 10 Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel 11 wagering and breeding law, as amended by section 1 of part O of chapter 12 59 of the laws of 2024, is amended to read as follows: 13 2. a. Notwithstanding any other provision of law or regulation to the 14 contrary, from April nineteenth, two thousand twenty-one to March thir- 15 ty-first, two thousand twenty-two, twenty-three percent of the funds, 16 not to exceed two and one-half million dollars, in the Catskill off- 17 track betting corporation's capital acquisition fund and twenty-three 18 percent of the funds, not to exceed four hundred forty thousand dollars, 19 in the Capital off-track betting corporation's capital acquisition fund 20 established pursuant to this section shall also be available to such 21 off-track betting corporation for the purposes of statutory obligations, 22 payroll, and expenditures necessary to accept authorized wagers. 23 b. Notwithstanding any other provision of law or regulation to the 24 contrary, from April first, two thousand twenty-two to March thirty- 25 first, two thousand twenty-three, twenty-three percent of the funds, not 26 to exceed two and one-half million dollars, in the Catskill off-track 27 betting corporation's capital acquisition fund established pursuant to 28 this section, and twenty-three percent of the funds, not to exceed four 29 hundred forty thousand dollars, in the Capital off-track betting corpo- 30 ration's capital acquisition fund established pursuant to this section, 31 shall be available to such off-track betting corporations for the 32 purposes of statutory obligations, payroll, and expenditures necessary 33 to accept authorized wagers. 34 c. Notwithstanding any other provision of law or regulation to the 35 contrary, from April first, two thousand twenty-three to March thirty- 36 first, two thousand twenty-four, twenty-three percent of the funds, not 37 to exceed two and one-half million dollars, in the Catskill off-track 38 betting corporation's capital acquisition fund established pursuant to 39 this section, and one million dollars in the Capital off-track betting 40 corporation's capital acquisition fund established pursuant to this 41 section, shall be available to such off-track betting corporation for 42 the purposes of expenditures necessary to accept authorized wagers; past 43 due statutory obligations to New York licensed or franchised racing 44 corporations or associations; past due contractual obligations due to 45 other racing associations or organizations for the costs of acquiring a 46 simulcast signal; past due statutory payment obligations due to the New 47 York state thoroughbred breeding and development fund corporation, agri- 48 culture and New York state horse breeding development fund, and the 49 Harry M. Zweig memorial fund for equine research; and past due obli- 50 gations due the state. 51 d. Notwithstanding any other provision of law or regulation to the 52 contrary, from April first, two thousand twenty-four to March thirty- 53 first, two thousand twenty-five, twenty-three percent of the funds, not 54 to exceed two and one-half million dollars, in the Catskill off-trackS. 3009 120 A. 3009 1 betting corporation's capital acquisition fund established pursuant to 2 this section, and one million dollars in the Capital off-track betting 3 corporation's capital acquisition fund established pursuant to this 4 section, shall be available to such off-track betting corporation for 5 the purposes of expenditures necessary to accept authorized wagers; past 6 due statutory obligations to New York licensed or franchised racing 7 corporations or associations; past due contractual obligations due to 8 other racing associations or organizations for the costs of acquiring a 9 simulcast signal; past due statutory payment obligations due to the New 10 York state thoroughbred breeding and development fund corporation, agri- 11 culture and New York state horse breeding development fund, and the 12 Harry M. Zweig memorial fund for equine research; and past due obli- 13 gations due the state. 14 e. Notwithstanding any other provision of law or regulation to the 15 contrary, from April first, two thousand twenty-five to March thirty- 16 first, two thousand twenty-six, one million dollars in the Capital off- 17 track betting corporation's capital acquisition fund established pursu- 18 ant to this section shall be available to such off-track betting 19 corporation for the purposes of expenditures necessary to accept author- 20 ized wagers; past due statutory obligations to New York licensed or 21 franchised racing corporations or associations; past due contractual 22 obligations due to other racing associations or organizations for the 23 cost of acquiring a simulcast signal; past due statutory payment obli- 24 gations due to the New York state thoroughbred breeding and development 25 fund corporation, agriculture and New York state horse breeding develop- 26 ment fund, and the Harry M. Zweig memorial fund for equine research; and 27 past due obligations due the state. 28 f. Prior to a corporation being able to utilize the funds authorized 29 by paragraph c [or], d or e of this subdivision, the corporation must 30 attest that the surcharge monies from section five hundred thirty-two of 31 this chapter are being held separate and apart from any amounts other- 32 wise authorized to be retained from pari-mutuel pools and all surcharge 33 monies have been and will continue to be paid to the localities as 34 prescribed in law. Once this condition is satisfied, the corporation 35 must submit an expenditure plan to the gaming commission for review. 36 Such plan shall include the corporation's outstanding liabilities, 37 projected revenue for the upcoming year, a detailed explanation of how 38 the funds will be used, and any other information necessary to detail 39 such plan as determined by the commission. Upon review, the commission 40 shall make a determination as to whether the requirements of this para- 41 graph have been satisfied and notify the corporation of expenditure plan 42 approval. In the event the commission determines the requirements of 43 this paragraph have not been satisfied, the commission shall notify the 44 corporation of all deficiencies necessary for approval. As a condition 45 of such expenditure plan approval, the corporation shall provide a 46 report to the commission no later than the last day of the calendar year 47 for which the funds are requested, which shall include an accounting of 48 the use of such funds. At such time, the commission may cause an inde- 49 pendent audit to be conducted of the corporation's books to ensure that 50 all moneys were spent as indicated in such approved plan. The audit 51 shall be paid for from money in the fund established by this section. If 52 the audit determines that a corporation used the money authorized under 53 this section for a purpose other than one listed in their expenditure 54 plan, then the corporation shall reimburse the capital acquisition fund 55 for the unauthorized amount. 56 § 2. This act shall take effect immediately.S. 3009 121 A. 3009 1 PART II 2 Section 1. Subdivision 6 of section 1012-a of the racing, pari-mutuel 3 wagering and breeding law, as amended by chapter 243 of the laws of 4 2020, is amended and a new subdivision 7 is added to read as follows: 5 6. multi-jurisdictional account wagering providers shall pay a market 6 origin fee equal to five percent on each wager accepted from New York 7 residents. Multi-jurisdictional account wagering providers shall make 8 the required payments to the market origin account on or before the 9 fifth business day of each month and such required payments shall cover 10 payments due for the period of the preceding calendar month; provided, 11 however, that such payments required to be made on April fifteenth shall 12 be accompanied by a report under oath, showing the total of all such 13 payments, together with such other information as the commission may 14 require. A penalty of five percent and interest at the rate of one 15 percent per month from the date the report is required to be filed to 16 the date the payment shall be payable in case any payments required by 17 this subdivision are not paid when due. If the commission determines 18 that any moneys received under this subdivision were paid in error, the 19 commission may cause the same to be refunded without interest out of any 20 moneys collected thereunder, provided an application therefor is filed 21 with the commission within one year from the time the erroneous payment 22 was made. The commission shall pay into the racing regulation account, 23 under the joint custody of the comptroller and the commission, the total 24 amount of the fee collected pursuant to this section[.]; and 25 7. the multi-jurisdictional account wagering provider shall, at the 26 same time and in addition to the fee established in subdivision six of 27 this section, pay an additional fee equal to one percent on each wager 28 accepted from New York residents. Such payments shall be subject to the 29 same penalties and interest payments as the market origin fee. Moneys 30 collected pursuant to this subdivision shall be paid by the multi-juris- 31 dictional account wagering provider to the commission for deposit into 32 the general fund of the state treasury. 33 § 2. Section 703 of the racing, pari-mutuel wagering and breeding law 34 is amended by adding a new subdivision 1-a to read as follows: 35 1-a. In addition to the moneys specified in subdivision one of this 36 section, up to an amount equivalent to all moneys collected pursuant to 37 subdivision seven of section one thousand twelve-a of this chapter shall 38 be appropriated or transferred to the fund from the general fund of the 39 state treasury to be used for the purposes contained in the agreement 40 established pursuant to subdivision seven of section seven hundred four 41 of this article, provided that such amount shall not exceed what is 42 necessary to cover all expenses as contained in such agreement. 43 § 3. Section 704 of the racing, pari-mutuel wagering and breeding law 44 is amended by adding a new subdivision 7 to read as follows: 45 7. (a) The moneys appropriated or transferred to the fund from the 46 general fund of the state treasury pursuant to subdivision one-a of 47 section seven hundred three of this article shall be expended for a 48 three-year research proposal conducted pursuant to an agreement between 49 the dean of the Cornell University College of Veterinary Medicine and 50 the executive director of the commission. Such agreement shall, at a 51 minimum, require the following: 52 (i) proposed research to identify the incident of fetlock fractures 53 and pre-fracture pathology in thoroughbred racehorses, with and without 54 lameness;S. 3009 122 A. 3009 1 (ii) proposed research to determine the sensitivity and specificity of 2 standing computed tomography, positron emission tomography, and magnetic 3 resonance imaging of thoroughbred racehorses compared to that of digital 4 radiographs; 5 (iii) use of photo-counting computed tomography and high field magnet- 6 ic resonance imaging to further define early bone pathology in thorough- 7 bred racehorses that suffer fatal fractures of the fetlock joint, to 8 further characterize blood biomarker findings in healthy and clinically 9 lame horses in a large population of thoroughbred racehorses; and 10 (iv) attempted refinement of a risk factor index for fatal musculosk- 11 eletal injury for thoroughbred racing based on epidemiological findings, 12 preliminary scanning technology, clinical examination, and advance imag- 13 ing. 14 (b) The moneys appropriated or transferred to the fund from the gener- 15 al fund of the state treasury pursuant to subdivision one-a of section 16 seven hundred three of this article may be used to purchase equipment 17 and fund staffing needs necessary to carry out the research tasks speci- 18 fied in paragraph (a) of this subdivision. 19 (c) Any residual unexpended funds collected pursuant to subdivision 20 seven of section one thousand twelve-a of this chapter shall remain in 21 the general fund of the state treasury. 22 § 4. Section 208 of the racing, pari-mutuel wagering and breeding law 23 is amended by adding a new subdivision 10 to read as follows: 24 10. It is incumbent upon the franchised corporation to ensure the 25 health and safety of its equine participants. To accomplish that goal, 26 the franchised corporation shall, by September first, two thousand twen- 27 ty-five, remit a one-time payment of two million dollars to the Harry M. 28 Zweig memorial fund, established under section seven hundred one of this 29 chapter, to be used for the conduct of research as specified in subdivi- 30 sion seven of section seven hundred four of this chapter. 31 § 5. This act shall take effect immediately, and shall apply to wagers 32 from New York residents accepted on and after September 1, 2025 through 33 August 31, 2028; provided, however that the provisions of this act shall 34 expire and be deemed repealed on September 1, 2028. 35 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 36 sion, section or part of this act shall be adjudged by any court of 37 competent jurisdiction to be invalid, such judgment shall not affect, 38 impair, or invalidate the remainder thereof, but shall be confined in 39 its operation to the clause, sentence, paragraph, subdivision, section 40 or part thereof directly involved in the controversy in which such judg- 41 ment shall have been rendered. It is hereby declared to be the intent of 42 the legislature that this act would have been enacted even if such 43 invalid provisions had not been included herein. 44 § 3. This act shall take effect immediately provided, however, that 45 the applicable effective date of Parts A through II of this act shall be 46 as specifically set forth in the last section of such Parts.
