A 3009: 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 establishing an inflation refund 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 the aggregate amount of the allocable tax credit (Part D); relates to tax credits for the rehabilitation of historic properties (Part E); establishes a 90-day waiting period for the purchase of residential real property by certain purchasers (Subpart A); provides for depreciation and interest deduction adjustments for properties owned by institutional investors in residential properties (Subpart B); requires the secretary of state to provide public notice of real property solicitation cease and desist zones (Subpart C)(Part F); 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 eligibility under the newspaper and broadcast media jobs program (Part J); relates to calculation and application of the empire state digital gaming media production credit; permits carryover of unused credits (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 (Part O); 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 extending the estate tax three-year gift addback rule (Part T); expands the credit for employment of persons with disabilities to the first five thousand dollars of first-year wages (Part U); provides for reporting of federal partnership adjustments for state personal income tax (Subpart A); provides for reporting of federal partnership adjustments for city personal income tax (Subpart B)(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); 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); extends the sales tax exemption for vending machine transactions (Part AA); extends the workers with disabilities tax credit (Part BB); extends 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; extends certain provisions relating to simulcasting, and the imposition of certain taxes (Subpart B); provides for amounts of market origin credits and fees, and the state's use of funds collected thereunder (Subpart C)(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 research to enhance the health and safety of thoroughbred race horses (Part II); extends the farm workforce retention credit (Part JJ); relates to the farm employer overtime credit (Part KK); provides technical corrections relating to amended returns under Article 28 (Part LL); relates to vendor fees paid to certain vendor tracks; provides for the repeal of such provisions upon expiration thereof (Part MM); relates to the terms of members of the franchised corporation appointed by the New York racing association, and licensing requirements of such members (Part NN); provides that the amount of mobile sports tax revenue used for problem gambling education and treatment shall be equal to six million dollars for each fiscal year through fiscal year 2026 and twelve million dollars for each fiscal year thereafter, provided that this amount may only be expended pursuant to a plan approved by the director of the budget (Part OO); extends the duration of certain brownfield redevelopment and remediation tax credits with respect to a site located within the Renaissance Commerce Park situate within the city of Lackawanna, Erie county (Part PP); relates to the commissioner's authority to deny certain relief from sales tax liability provided to certain limited partners and members of limited liability companies (Part QQ); simplifies the real property tax credit (Part RR); authorizes an occupancy tax in the city of Auburn not to exceed 5%; provides for the expiration and repeal of such provisions on December 31, 2027 (Part SS); authorizes a hotel and motel tax in the city of Buffalo, in the county of Erie (Part TT); relates to geothermal energy systems tax credits; allows excess amounts to be received as refunds for certain taxpayers (Part UU); relates to the metropolitan commuter transportation mobility tax and the rates of tax and the distribution of revenue therefrom (Part VV); divides revenues from the sales and compensating use taxes for the metropolitan commuter transportation district; directs that 85% of the certified revenues be deposited in the dedicated mass transportation fund with 85% of such amount being allocated to the New York city transit authority and its subsidiaries and 15% of such amount shall be allocated to the Long Island Rail Road Company and Metro North commuter railroad company (Part WW); relates to the aggregate principal amount of bonds, notes or other obligations for the metropolitan transit authority, the Triborough bridge and tunnel authority and the New York city transit authority (Part XX).

  
  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. LBD12574-01-5 
 S. 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 amend 
 S. 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: 52 Not over $17,150 4% of the New York taxable income 53 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 
 S. 3009 5 A. 3009 1 $17,150 2 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 3 $23,600 4 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 5 $27,900 6 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess 7 over $161,550 8 Over $323,200 but not over $18,252 plus 6.85% of excess 9 $2,155,350 over $323,200 10 Over $2,155,350 $143,754 plus 8.82% of excess 11 over $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 $25,000,000 
 S. 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: 47 Not over $12,800 4% of the New York taxable income 48 Over $12,800 but not over $512 plus 4.5% of excess over 49 $17,650 $12,800 50 Over $17,650 but not over $730 plus 5.25% of excess over 51 $20,900 $17,650 52 Over $20,900 but not over $901 plus 5.5% of excess over 53 $107,650 $20,900 54 Over $107,650 but not over $5,672 plus 6.00% of excess 
 S. 3009 7 A. 3009 1 $269,300 over $107,650 2 Over $269,300 but not over $15,371 plus 6.85% of excess 3 $1,616,450 over $269,300 4 Over $1,616,450 $107,651 plus 8.82% of excess 5 over $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 taxable 
 S. 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: 43 Not over $8,500 4% of the New York taxable income 44 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 45 $8,500 46 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 47 $11,700 48 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 49 $13,900 50 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess 51 over $80,650 52 Over $215,400 but not over $12,356 plus 6.85% of excess 53 $1,077,550 over $215,400 54 Over $1,077,550 $71,413 plus 8.82% of excess 55 over $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 excess 
 S. 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 of 
 S. 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 $2,047 
 S. 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 income 
 S. 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 table 
 S. 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 for 
 S. 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 fifty 
 S. 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 qualifying 
 S. 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 the 
 S. 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 million 
 S. 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- 43 taken within a state park, state historic site, or other land owned by 44 the state, that is under the jurisdiction of the office of parks, recre- 45 ation 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 deemed 
 S. 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- 15 taken within a state park, state historic site, or other land owned by 16 the state, that is under the jurisdiction of the office of parks, recre- 17 ation 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 of 
 S. 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- 49 taken within a state park, state historic site, or other land owned by 50 the state, that is under the jurisdiction of the office of parks, recre- 51 ation 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 United 
 S. 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, to 
 S. 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 pursuant 
 S. 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 businesses 
 S. 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 determining 
 S. 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[.]; or 
 S. 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. Expenses 
 S. 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 2023 
 S. 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 training 
 S. 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 York 
 S. 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 that 
 S. 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 per 
 S. 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 the 
 S. 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- 51 gic] 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 (establishments 8 performing the complete farm or ranch operation, such as farm owner-op- 9 erators, tenant farm operators, and sharecroppers) and agricultural 10 support (establishments that perform one or more activities associated 11 with farm operation, such as soil preparation, planting, harvesting, and 12 management, on a contract or fee basis). 13 2. "Back office operations" means a business function that may include 14 one or more of the following activities: customer service, information 15 technology and data processing, human resources, accounting and related 16 administrative functions. 17 3.] "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- 32 essing, repackaging and/or movement of finished or semi-finished goods 33 to retail locations across a multi-state area. 34 6. "Financial services data centers" or "financial services customer 35 back office operations" means operations that manage the data or 36 accounts of existing customers or provide product or service information 37 and support to customers of financial services companies, including 38 banks, other lenders, securities and commodities brokers and dealers, 39 investment banks, portfolio managers, trust offices, and insurance 40 companies. 41 7.] 3. "Impacted jobs" means jobs [existing] at a business enterprise 42 [at a location or locations within the county declared an emergency by 43 the governor on the day immediately preceding the day on which the event 44 leading 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 into 50 products suitable for use or which gives new shapes, new quality or new 51 combinations to matter which has already gone through some artificial 52 process by the use of machinery, tools, appliances, or other similar 53 equipment. "Manufacturing" does not include an operation that involves 54 only the assembly of components, provided, however, the assembly of 55 motor vehicles or other high value-added products shall be considered 56 manufacturing. 
 S. 3009 51 A. 3009 1 9.] 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 research 23 and experimental development in the physical, engineering, and life 24 sciences, including but not limited to agriculture, electronics, envi- 25 ronmental, biology, botany, biotechnology, computers, chemistry, food, 26 fisheries, forests, geology, health, mathematics, medicine, oceanogra- 27 phy, pharmacy, physics, veterinary, and other allied subjects. For the 28 purposes of this article, scientific research and development does not 29 include medical or veterinary laboratory testing facilities. 30 13. "Software development" means the creation of coded computer 31 instructions and includes new media as defined by the commissioner in 32 regulations.] 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 empire 39 state jobs retention program, a business entity shall operate in New 40 York state predominantly: 41 (a) as a financial services data center or a financial services back 42 office 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 the 48 state; or 49 (g) in a distribution center. 50 2. When determining whether an applicant is operating predominantly in 51 one of the industries listed in subdivision one of this section, the 52 commissioner will examine the nature of the business activity at the 53 location for the proposed project and will make eligibility determi- 54 nations based on such activity. 55 3.] For the purposes of this article, in order to participate in the 56 empire state jobs retention program[, a business entity operating in one 
 S. 3009 52 A. 3009 1 of the strategic industries listed in subdivision one of this section 2 (a) must be located in a county in which an emergency has been declared 3 by 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[, 8 and (c) must have had at least one hundred full-time equivalent jobs in 9 the county in which an emergency has been declared by the governor on 10 the day immediately preceding the day on which the event leading to the 11 emergency declaration by the governor occurred, and must retain or 12 exceed that number of jobs in New York state. 13 4. A not-for-profit business entity, a business entity whose primary 14 function is the provision of services including personal services, busi- 15 ness services, or the provision of utilities, a business entity engaged 16 predominantly in the retail or entertainment industry, or a company 17 engaged in the generation or distribution of electricity, the distrib- 18 ution of natural gas, or the production of steam associated with the 19 generation of electricity are not eligible to receive the tax credit 20 described 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- 36 cle, if such date is later than the date specified in paragraph (a) of 37 this 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- 34 icate of tax credit for subsequent taxable years, the participant must 35 submit to the department a performance report demonstrating that the 36 participant continues to satisfy the eligibility criteria specified in 37 section four hundred twenty-three of this article and subdivision two of 38 this 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 for 43 the next nine consecutive taxable years, provided that the participant 44 demonstrates to the department that it continues to satisfy the eligi- 45 bility criteria specified in section four hundred twenty-three of this 46 article and subdivision two of this section in each of those taxable 47 years.] 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 one 
 S. 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, a 15 business enterprise shall not be allowed to claim the credit prior to 16 tax 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 subdivision 49 five 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- 7 four] 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 be 
 S. 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 or 43 other compensation for writers, directors, composers, and performers 44 (other than background actors with no scripted lines) to the extent 45 those wages or salaries or other compensation exceed five hundred thou- 46 sand 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 per 54 producer, where only one of whom is the principal individual responsible 55 for overseeing the creative and managerial process of production of the 56 qualified film and only one of whom is the principal individual respon- 
 S. 3009 58 A. 3009 1 sible for the day-to-day operational management of production of the 2 qualified film; provided, however, that such producers are not compen- 3 sated for any other position on the qualified film by a qualified film 4 production company or a qualified independent film production company 5 for 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) [controls 10 the qualified film during production] is not publicly traded, and (iii) 11 [either is not a publicly traded entity, or no more than five percent of 12 the beneficial ownership of which is owned, directly or indirectly, by a 13 publicly 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- 49 four] 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 of 
 S. 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.