Bill Text: NY A04861 | 2011-2012 | General Assembly | Introduced
Bill Title: Establishes the growth in manufacturing incentive program to establish a tax incentive program providing tax credits to manufacturing firms creating new jobs in the manufacturing sector over a certain period of time; establishes a property tax credit, a wage credit and an energy credit for such manufacturers; provides this credit until January 1, 2021.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-05-15 - held for consideration in economic development [A04861 Detail]
Download: New_York-2011-A04861-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4861
2011-2012 Regular Sessions
I N A S S E M B L Y
February 8, 2011
___________
Introduced by M. of A. BUTLER -- read once and referred to the Committee
on Economic Development
AN ACT to amend the economic development law and the tax law, in
relation to establishing the growth in manufacturing incentive program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "growth in manufacturing incentive program".
3 S 2. Legislative findings and intent. The legislature finds and deter-
4 mines that historically manufacturing firms have helped to build our
5 state. Today, manufacturing jobs are an essential part of the state's
6 economy. Accordingly, the state should offer programs that foster growth
7 in this important sector of the state economy. The purpose of this
8 legislation is to establish a tax incentive program that would provide
9 tax credits to manufacturing firms that create new jobs in the manufac-
10 turing sector over a specified period of time.
11 S 3. The economic development law is amended by adding a new article
12 13-A to read as follows:
13 ARTICLE 13-A
14 GROWTH IN MANUFACTURING INCENTIVE PROGRAM
15 SECTION 255. DEFINITIONS.
16 256. GROWTH IN MANUFACTURING INCENTIVE PROGRAM.
17 257. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS.
18 258. REPORTING.
19 S 255. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
20 TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTENT SHALL INDI-
21 CATE ANOTHER OR DIFFERENT MEANING OR INTENT:
22 1. "PROGRAM" SHALL MEAN THE GROWTH IN MANUFACTURING INCENTIVE PROGRAM
23 ESTABLISHED PURSUANT TO THIS ARTICLE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08435-01-1
A. 4861 2
1 2. "MANUFACTURING FIRM" SHALL MEAN AN ENTERPRISE ENGAGED IN THE BUSI-
2 NESS OF PRODUCTION OF GOODS AND PRODUCTS FROM RAW MATERIALS.
3 3. "BENCHMARK" SHALL MEAN A SPECIFIC NUMBER OF ELIGIBLE NEW JOBS
4 CREATED IN THE STATE PURSUANT TO THE PROGRAM.
5 4. "GMI" SHALL MEAN GROWTH MANUFACTURING INCENTIVE.
6 S 256. GROWTH IN MANUFACTURING INCENTIVE PROGRAM. 1. THERE IS HEREBY
7 CREATED A GROWTH IN MANUFACTURING INCENTIVE PROGRAM WITHIN THE DEPART-
8 MENT TO PROVIDE TECHNICAL AND FINANCIAL ASSISTANCE IN THE FORM OF TAX
9 INCENTIVES TO MANUFACTURING FIRMS THAT MEET SPECIFIED BENCHMARKS IN JOB
10 CREATION AS ESTABLISHED BY THE COMMISSIONER.
11 2. THE COMMISSIONER SHALL DETERMINE ELIGIBILITY REQUIREMENTS FOR
12 PARTICIPATION IN THE PROGRAM, PROVIDED, HOWEVER, THAT SUCH REQUIREMENTS
13 INCLUDE THE FOLLOWING:
14 (A) AN APPLICANT SHALL HAVE MAINTAINED OFFICES WITHIN THE STATE FOR AT
15 LEAST FIVE YEARS PRIOR TO APPLICATION FOR PARTICIPATION IN THE PROGRAM;
16 (B) AN APPLICANT MAY NOT PARTICIPATE IN THE PROGRAM IF DESIGNATED AS A
17 CERTIFIED BUSINESS LOCATED IN AN EMPIRE ZONE CREATED PURSUANT TO ARTICLE
18 EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW;
19 (C) AN APPLICANT THAT HAS PREVIOUSLY PARTICIPATED IN THE PROGRAM MAY
20 NOT REAPPLY FOR PARTICIPATION IN THE PROGRAM UNLESS IT CAN DOCUMENT THAT
21 AT THE TIME OF ITS APPLICATION FOR PARTICIPATION, IT HAS MAINTAINED A
22 LEVEL OF EMPLOYMENT AT LEAST AS GREAT AS THE HIGHEST LEVEL DURING ITS
23 PREVIOUS PARTICIPATION IN THE PROGRAM;
24 3. APPLICATIONS FOR PARTICIPATION IN THE GROWTH IN MANUFACTURING
25 INCENTIVE PROGRAM SHALL BE IN THE FORM AND CONTAIN SUCH INFORMATION,
26 EXHIBITS AND SUPPORTING DATA AS THE COMMISSIONER MAY PRESCRIBE. NO
27 APPLICATIONS FOR PARTICIPATION SHALL BE ACCEPTED AFTER DECEMBER THIRTY-
28 FIRST, TWO THOUSAND EIGHTEEN.
29 4. THE COMMISSIONER SHALL REVIEW ALL APPLICATIONS FOR PARTICIPATION IN
30 THE PROGRAM FOR ELIGIBILITY AND SHALL REGISTER ELIGIBLE APPLICANTS. THE
31 COMMISSIONER SHALL PROVIDE EACH REGISTERED APPLICANT WITH BENCHMARKS IN
32 JOB CREATION THAT MUST BE ACHIEVED BY THE REGISTERED APPLICANT OVER THE
33 FOLLOWING FIVE YEARS. SUCH BENCHMARKS SHALL BE CONSISTENT WITH REGU-
34 LATIONS TO BE PRESCRIBED BY THE COMMISSIONER. EACH YEAR, EACH REGISTERED
35 APPLICANT SHALL SUBMIT TO THE COMMISSIONER AN ANNUAL REGISTRATION STATE-
36 MENT, TOGETHER WITH SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA AS
37 THE COMMISSIONER MAY REQUIRE. UPON SUBMISSION OF THE FIFTH ANNUAL REGIS-
38 TRATION STATEMENT, THE COMMISSIONER SHALL REVIEW THE REGISTERED APPLI-
39 CANT'S FILE FOR ELIGIBILITY FOR THE TAX INCENTIVE. IF THE REGISTERED
40 APPLICANT HAS MET EACH BENCHMARK IN JOB CREATION, THE COMMISSIONER SHALL
41 PROVIDE A CERTIFICATE FOR THE TAXABLE YEARS THAT THE APPLICANT IS ELIGI-
42 BLE FOR THE TAX CREDITS PURSUANT TO THIS ARTICLE. SUCH CERTIFICATE SHALL
43 INCLUDE A DESCRIPTION OF THE PROPERTY ELIGIBLE FOR THE BENEFIT AND THE
44 GROSS SALARY OF EMPLOYEES THAT WILL BE COVERED BY THE WAGE CREDIT. SUCH
45 CERTIFICATION SHALL BE VALID FOR A TWO-YEAR PERIOD.
46 S 257. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS. DURING
47 THE CERTIFICATION PERIOD, THE PARTICIPATING MANUFACTURING FIRM SHALL
48 RECEIVE THE FOLLOWING TAX CREDITS:
49 1. FOR THE GMI PROPERTY TAX CREDIT, THE TAX CREDIT SHALL BE COMPUTED
50 PURSUANT TO SECTION TWENTY-FOUR-A OF THE TAX LAW;
51 2. FOR THE GMI WAGE CREDIT, THE TAX CREDIT SHALL BE COMPUTED PURSUANT
52 TO SECTION TWENTY-FOUR-B OF THE TAX LAW; AND
53 3. FOR THE GMI ENERGY CREDIT, THE TAX CREDIT SHALL BE COMPUTED PURSU-
54 ANT TO SECTION TWENTY-FOUR-C OF THE TAX LAW.
55 S 258. REPORTING. THE COMMISSIONER SHALL, ON OR BEFORE SEPTEMBER
56 FIRST, TWO THOUSAND TWELVE, AND ANNUALLY THEREAFTER, SUBMIT A REPORT TO
A. 4861 3
1 THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
2 ASSEMBLY AND THE MINORITY LEADERS OF THE SENATE AND THE ASSEMBLY ON THE
3 OPERATION AND ACCOMPLISHMENTS OF THE PROGRAM PROVIDED FOR PURSUANT TO
4 THIS ARTICLE.
5 S 4. The tax law is amended by adding three new sections 24-a, 24-b
6 and 24-c to read as follows:
7 S 24-A. GMI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
8 WHICH HAS RECEIVED A GMI CERTIFICATE FOR THE TAXABLE YEAR, AND IS
9 SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL
10 BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFER-
11 ENCED IN SUBDIVISION (C) OF THIS SECTION, TO BE COMPUTED AS HEREINAFTER.
12 (B) DEFINITION. THE TERM "ELIGIBLE REAL PROPERTY TAXES" SHALL MEAN TAX
13 IMPOSED ON REAL PROPERTY WHICH HAS BEEN CERTIFIED AS GMI PROPERTY PURSU-
14 ANT TO ARTICLE THIRTEEN-A OF THE ECONOMIC DEVELOPMENT LAW. IN ADDITION,
15 THE TERM "ELIGIBLE REAL PROPERTY TAXES" INCLUDES PAYMENTS IN LIEU OF
16 TAXES MADE BY THE TAXPAYER TO THE STATE, A MUNICIPAL CORPORATION OR A
17 PUBLIC BENEFIT CORPORATION PURSUANT TO A WRITTEN AGREEMENT ENTERED INTO
18 BY THE TAXPAYER AND THE STATE, MUNICIPAL CORPORATION OR PUBLIC BENEFIT
19 CORPORATION.
20 (C) APPLICATION OF THE CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL
21 THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER
22 OF A PARTNERSHIP) OF TEN PERCENT AND THE ELIGIBLE REAL PROPERTY TAXES.
23 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 43,
24 (2) ARTICLE 22: SECTION 606: SUBSECTION (SS).
25 S 24-B. GMI WAGE CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHICH HAS
26 RECEIVED A GMI CERTIFICATE FOR THE TAXABLE YEAR, AND IS SUBJECT TO TAX
27 UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A
28 CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI-
29 VISION (C) OF THIS SECTION, TO BE COMPUTED AS HEREINAFTER.
30 (B) DEFINITION. THE TERM "ELIGIBLE WAGES" SHALL MEAN GROSS WAGES PAID
31 TO EMPLOYEES WHO HAVE BEEN CERTIFIED AS GMI EMPLOYEES PURSUANT TO ARTI-
32 CLE THIRTEEN-A OF THE ECONOMIC DEVELOPMENT LAW.
33 (C) APPLICATION OF THE CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL
34 THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER
35 OF A PARTNERSHIP) OF ONE PERCENT AND THE ELIGIBLE WAGES.
36 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 44,
37 (2) ARTICLE 22: SECTION 606: SUBSECTION (TT).
38 S 24-C. GMI ENERGY CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHICH
39 HAS RECEIVED A GMI CERTIFICATE FOR THE TAXABLE YEAR, AND IS SUBJECT TO
40 TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED
41 A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN
42 SUBDIVISION (D) OF THIS SECTION, TO BE COMPUTED AS HEREINAFTER.
43 (B) DEFINITION. THE TERM "ELIGIBLE ENERGY COSTS" SHALL MEAN THE COST
44 OF ELECTRICITY, NATURAL GAS, OR ANY OTHER ENERGY PRODUCT OR SERVICE
45 WHICH THE TAXPAYER HAS USED AS PART OF THE OPERATION OF A GMI CERTIFIED
46 FACILITY PURSUANT TO ARTICLE THIRTEEN-A OF THE ECONOMIC DEVELOPMENT LAW.
47 (C) THE LIMITATION SHALL BE THE PRODUCT OF FIFTY DOLLARS AND THE
48 NUMBER OF EMPLOYEES CERTIFIED AS GMI EMPLOYEES PURSUANT TO ARTICLE THIR-
49 TEEN-A OF THE ECONOMIC DEVELOPMENT LAW.
50 (D) APPLICATION OF THE CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL
51 THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER
52 OF A PARTNERSHIP) OF ONE HUNDRED PERCENT AND THE ELIGIBLE ENERGY COSTS.
53 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 45,
54 (2) ARTICLE 22: SECTION 606: SUBSECTION (UU).
55 S 5. Section 210 of the tax law is amended by adding three new subdi-
56 visions 43, 44 and 45 to read as follows:
A. 4861 4
1 43. GMI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
2 BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-ONE,
3 AS ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND
4 THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
5 (B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
6 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
7 HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
8 SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
9 IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
10 AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
11 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
12 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
13 44. GMI WAGE CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
14 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-ONE, AS
15 ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND
16 THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
17 (B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
18 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
19 HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
20 SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
21 IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
22 AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
23 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
24 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
25 45. GMI ENERGY CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
26 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-ONE, AS
27 ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND
28 THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
29 (B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
30 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
31 HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
32 SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
33 IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
34 AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
35 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
36 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
37 S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
38 of the tax law is amended by adding three new clauses (xxxii), (xxxiii)
39 and (xxxiv) to read as follows:
40 (XXXII) GMI PROPERTY TAX AMOUNT OF GMI PROPERTY
41 CREDIT UNDER SUBSECTION TAX CREDIT UNDER SUBDIVISION
42 (SS) FORTY-THREE OF SECTION TWO
43 HUNDRED TEN
44 (XXXIII) GMI WAGE CREDIT UNDER AMOUNT OF GMI WAGE
45 SUBSECTION (TT) CREDIT UNDER SUBDIVISION
46 FORTY-FOUR OF SECTION
47 TWO HUNDRED TEN
48 (XXXIV) GMI ENERGY CREDIT AMOUNT OF GMI ENERGY
49 UNDER SUBSECTION (UU) CREDIT UNDER SUBDIVISION
50 FORTY-FIVE OF SECTION
51 TWO HUNDRED TEN
52 S 7. Section 606 of the tax law is amended by adding three new
53 subsections (ss), (tt) and (uu) to read as follows:
A. 4861 5
1 (SS) GMI PROPERTY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
2 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWEN-
3 TY-ONE, AS ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO
4 THOUSAND THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
5 CLE.
6 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
7 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
8 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
9 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
10 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
11 SHALL BE PAID THEREON.
12 (TT) GMI WAGE CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
13 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-ONE, AS
14 ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND
15 THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
16 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
17 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
18 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
19 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
20 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
21 SHALL BE PAID THEREON.
22 (UU) GMI ENERGY CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
23 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-ONE, AS
24 ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND
25 THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
26 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
27 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
28 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
29 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
30 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
31 SHALL BE PAID THEREON.
32 S 8. This act shall take effect on the one hundred eightieth day after
33 it shall have become a law and shall apply to taxable years beginning on
34 or after January 1, 2012 and before January 1, 2021; provided, however,
35 that the addition, amendment and/or repeal of any rule or regulation
36 necessary for the implementation of this act on its effective date are
37 authorized and directed to be made on or before such date.
