Bill Text: NY A08185 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to creating a restaurant and hotel renovation tax incentive; provides a refund of certain sales taxes paid by vendors of a renovation project.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-01-06 - referred to economic development [A08185 Detail]
Download: New_York-2015-A08185-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
8185
2015-2016 Regular Sessions
I N A S S E M B L Y
June 11, 2015
___________
Introduced by M. of A. RYAN -- 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 a restaurant and hotel renovation incentive program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The economic development law is amended by adding a new
2 article 23 to read as follows:
3 ARTICLE 23
4 RESTAURANT AND HOTEL RENOVATION TAX INCENTIVE PROGRAM
5 SECTION 450. DEFINITIONS.
6 451. ADMINISTRATION.
7 452. TAX INCENTIVE.
8 453. APPLICATION AND APPROVAL PROCESS.
9 454. CAP ON TAX CREDITS.
10 SECTION 450. DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS
11 SHALL HAVE THE FOLLOWING MEANINGS:
12 1. "ACTUAL PROJECT COSTS" MEANS COSTS ATTRIBUTABLE TO A PROJECT THAT
13 ARE INCURRED BY A QUALIFIED APPLICANT BETWEEN THE COMMENCEMENT AND
14 COMPLETION DATES SPECIFIED BY THE DEPARTMENT PURSUANT TO SECTION FOUR
15 HUNDRED FIFTY-THREE OF THIS ARTICLE.
16 2. "APPLICANT" MEANS A PERSON, CORPORATION, OR OTHER ENTITY THAT OWNS
17 AND OPERATES A HOTEL OR RESTAURANT.
18 3. "HOTEL" MEANS A BUILDING OR PORTION OF IT WHICH IS REGULARLY USED
19 AND KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS. THE TERM "HOTEL"
20 INCLUDES AN APARTMENT HOTEL OR MOTEL, WHETHER OR NOT MEALS ARE SERVED.
21 4. "PROJECT" MEANS THE RENOVATION, IMPROVEMENT, REPAIR, OR UPGRADE OF
22 AN EXISTING HOTEL OR RESTAURANT. THE TERM DOES NOT INCLUDE NEW
23 CONSTRUCTION.
24 5. "QUALIFIED APPLICANT" MEANS AN APPLICANT THAT HAS BEEN ISSUED A
25 CERTIFICATE BY THE DEPARTMENT UNDER SECTION FOUR HUNDRED FIFTY-THREE OF
26 THIS ARTICLE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11061-04-5
A. 8185 2
1 6. "RESTAURANT" MEANS A PUBLIC FOOD SERVICE ESTABLISHMENT REGISTERED
2 TO COLLECT TAX AS REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FOUR OF THE
3 TAX LAW.
4 S 451. ADMINISTRATION. THERE IS CREATED IN THE DEPARTMENT A RESTAURANT
5 AND HOTEL RENOVATION TAX INCENTIVE PROGRAM. THE DEPARTMENT SHALL DEVEL-
6 OP, IMPLEMENT, AND ADMINISTER THE PROGRAM. THE DEPARTMENT AND THE
7 DEPARTMENT OF TAXATION AND FINANCE ARE AUTHORIZED TO ADOPT RULES AND
8 PUBLISH FORMS NECESSARY TO ADMINISTER AND ENFORCE THIS ARTICLE.
9 S 452. TAX INCENTIVE. 1. AN APPLICANT MAY RECEIVE A CREDIT AGAINST THE
10 TAXES IMPOSED BY ARTICLE NINE-A OR TWENTY-TWO OF THE TAX LAW IN AN
11 AMOUNT CERTIFIED BY THE DEPARTMENT AS PROVIDED IN SECTION FOUR HUNDRED
12 FIFTY-THREE OF THIS ARTICLE, IF THE APPLICANT COMPLETES A PROJECT THAT
13 IS:
14 (A) A RENOVATION, IMPROVEMENT, REPAIR, OR UPGRADE OF GUEST ROOMS,
15 SUITES, OR COMMON AREAS OF A HOTEL, INCLUDING EXTERIOR UPGRADES TO
16 SIGNAGE, LANDSCAPING, AND FACADES, WITH AT LEAST TEN THOUSAND DOLLARS IN
17 EXPENDITURES FOR EACH GUEST ROOM OR SUITE AND TOTAL EXPENDITURES OF AT
18 LEAST TWO MILLION DOLLARS; OR
19 (B) A RENOVATION, IMPROVEMENT, REPAIR, OR UPGRADE OF GUEST ROOMS,
20 SUITES, OR COMMON AREAS OF A HOTEL WHICH CONSISTS OF TWENTY ROOMS OR
21 LESS, INCLUDING EXTERIOR UPGRADES TO SIGNAGE, LANDSCAPING, AND FACADES,
22 WITH AT LEAST TWO THOUSAND DOLLARS IN EXPENDITURES FOR EACH GUEST ROOM
23 OR SUITE AND TOTAL EXPENDITURES OF AT LEAST FIFTY THOUSAND DOLLARS; OR
24 (C) A RENOVATION, IMPROVEMENT, REPAIR, OR UPGRADE OF DINING AREAS,
25 RESTROOMS, KITCHENS, OR COMMON AREAS OF A RESTAURANT, INCLUDING EXTERIOR
26 UPGRADES TO SIGNAGE, LANDSCAPING, AND FACADES, WITH A MINIMUM OF TEN
27 THOUSAND DOLLARS IN EXPENDITURES FOR UPGRADES OR REPAIRS TO ONE OR MORE
28 AREAS USED PRIMARILY FOR FOOD PREPARATION AND TOTAL EXPENDITURES OF AT
29 LEAST ONE HUNDRED THOUSAND DOLLARS.
30 2. A QUALIFIED APPLICANT MEETING THE REQUIREMENTS OF THIS SECTION
31 SHALL RECEIVE A TAX CREDIT EQUAL TO TWENTY-FIVE PERCENT OF THE QUALIFIED
32 APPLICANT'S ACTUAL PROJECT COSTS FOR APPROVED PROJECTS. FOLLOWING
33 APPROVAL BY THE COMMISSIONER OF AN APPLICATION TO PARTICIPATE IN THE
34 RENOVATION INCENTIVE PROGRAM UNDER THIS ARTICLE, THE COMMISSIONER SHALL
35 ISSUE A CERTIFICATE OF TAX CREDIT TO THE APPLICANT UPON ITS DEMONSTRAT-
36 ING SUCCESSFUL COMPLETION OF SUCH ELIGIBLE PROJECT TO THE SATISFACTION
37 OF THE COMMISSIONER. THE TAX CREDITS SHALL BE CLAIMED BY THE QUALIFIED
38 APPLICANT AS SPECIFIED IN SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED
39 TEN-B AND SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
40 S 453. APPLICATION AND APPROVAL PROCESS. 1. AN APPLICANT SEEKING A
41 CREDIT UNDER THIS PROGRAM SHALL SUBMIT AN APPLICATION TO THE DEPARTMENT
42 BEFORE COMMENCEMENT OF THE PROJECT. THE APPLICATION MUST INCLUDE:
43 (A) PLANS FOR THE PROPOSED PROJECT AND ESTIMATED PROJECT COSTS; AND
44 (B) A DETAILED DESCRIPTION OF THE PROPOSED PROJECT, INCLUDING ESTI-
45 MATED COMMENCEMENT AND COMPLETION DATES.
46 2. THE DEPARTMENT SHALL REVIEW EACH SUBMITTED APPLICATION FOR
47 COMPLETENESS AND PROVIDE PRELIMINARY APPROVAL OR DISAPPROVAL WITHIN
48 SIXTY DAYS AFTER RECEIVING THE APPLICATION. THE DEPARTMENT SHALL ISSUE A
49 CERTIFICATE TO EACH PRELIMINARILY APPROVED APPLICANT THAT:
50 (A) DESIGNATES THE APPLICANT AS A QUALIFIED APPLICANT ELIGIBLE TO
51 RECEIVE A TAX CREDIT UNDER THIS ARTICLE; AND
52 (B) SPECIFIES PROJECT COMMENCEMENT AND COMPLETION DATES. THE PERIOD
53 BETWEEN THE COMMENCEMENT AND COMPLETION DATES SPECIFIED BY THE DEPART-
54 MENT MAY NOT EXCEED THIRTY-SIX MONTHS FOR A PROPOSED PROJECT DESCRIBED
55 IN PARAGRAPH (A) OR (B) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED
A. 8185 3
1 FIFTY-TWO OF THIS ARTICLE, OR TWELVE MONTHS FOR A PROPOSED PROJECT
2 DESCRIBED IN PARAGRAPH (C) OF SUBDIVISION ONE OF SUCH SECTION.
3 3. (A) EACH QUALIFIED APPLICANT SHALL, UPON COMPLETION OF ITS PROJECT,
4 PROVIDE DOCUMENTATION TO THE DEPARTMENT DEMONSTRATING ACTUAL PROJECT
5 COSTS. SUCH COSTS SHALL BE VERIFIED BY AN INDEPENDENT CERTIFIED PUBLIC
6 ACCOUNTANT LICENSED IN THIS STATE AT THE EXPENSE OF THE QUALIFIED APPLI-
7 CANT.
8 (B) THE DEPARTMENT SHALL VERIFY THAT ACTUAL PROJECT COSTS MEET THE
9 EXPENDITURE REQUIREMENTS PROVIDED IN THIS ARTICLE. A QUALIFIED APPLICANT
10 THAT FAILS TO MEET THE EXPENDITURE REQUIREMENTS MAY NOT RECEIVE A TAX
11 CREDIT UNDER THIS PROGRAM.
12 S 454. CAP ON TAX CREDITS. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
13 CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER FOR ANY TAXABLE
14 YEAR MAY NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS.
15 S 2. Section 210-B of the tax law is amended by adding a new subdivi-
16 sion 51 to read as follows:
17 51. RESTAURANT AND HOTEL RENOVATION CREDIT. (A) ALLOWANCE OF CREDIT. A
18 TAXPAYER WHO IS ELIGIBLE PURSUANT TO ARTICLE TWENTY-THREE OF THE ECONOM-
19 IC DEVELOPMENT LAW SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED
20 IN SUCH ARTICLE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
21 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
22 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
23 THAN THE FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (D) OF
24 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED,
25 HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVI-
26 SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE
27 TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
28 THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
29 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
30 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
31 SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
32 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
33 S 3. Section 606 of the tax law is amended by adding a new subsection
34 (eee) to read as follows:
35 (EEE) RESTAURANT AND HOTEL RENOVATION CREDIT. (1) ALLOWANCE OF CREDIT.
36 A TAXPAYER WHO IS ELIGIBLE PURSUANT TO ARTICLE TWENTY-THREE OF THE
37 ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS
38 PROVIDED IN SUCH ARTICLE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
39 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
40 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCESS THE TAXPAYER'S TAX FOR SUCH
41 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
42 ED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
43 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREIN.
44 S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
45 of the tax law is amended by adding a new clause (xliii) to read as
46 follows:
47 (XLIII) RESTAURANT AND HOTEL AMOUNT OF CREDIT
48 RENOVATION INCENTIVE UNDER SUBDIVISION
49 PROGRAM CREDIT UNDER FIFTY-ONE OF SECTION
50 SUBSECTION (EEE) TWO HUNDRED TEN-B
51 S 5. This act shall take effect January 1, 2016 and shall apply to
52 taxable years beginning on and after such date; provided, however, that
53 effective immediately, the addition, amendment and/or repeal of any rule
54 or regulation necessary for the implementation of this act on its effec-
55 tive date is authorized to be made and completed on or before such date.
