S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4073

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2013
                               ___________

Introduced  by M. of A. KATZ, JOHNS, HAWLEY, FINCH -- Multi-Sponsored by
  -- M. of A. CROUCH, McLAUGHLIN  --  read  once  and  referred  to  the
  Committee on Ways and Means

AN  ACT  to  amend  the  tax  law,  in  relation to creating a sales tax
  exemption for  green  technology  companies  purchasing  manufacturing
  equipment;  and providing for the repeal of such provisions upon expi-
  ration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section 1124 to read
as follows:
  S  1124.  EXEMPTION  FROM TAX ON MANUFACTURING EQUIPMENT PURCHASES FOR
GREEN TECHNOLOGY COMPANIES. (A) QUALIFYING  GREEN  TECHNOLOGY  COMPANIES
SHALL  BE  EXEMPT  FROM  THE SALES TAXES IMPOSED UNDER THIS ARTICLE WHEN
PURCHASING NECESSARY MANUFACTURING EQUIPMENT TO BE USED IN CARRYING ON A
GREEN TECHNOLOGY TRADE OR BUSINESS IN ACCORDANCE WITH THE PROVISIONS  OF
THIS SECTION.
  (B) TO QUALIFY FOR TAX EXEMPT STATUS ELIGIBLE COMPANIES SHALL APPLY TO
THE  COMMISSIONER  WHO  SHALL  EVALUATE  THE APPLICATION PURSUANT TO THE
GUIDELINES IN THIS SECTION AND RENDER A DECISION  APPROVING  OR  DENYING
THE  APPLICATION.  APPLICATIONS  SHALL  BE  SUBMITTED  FOR EACH ELIGIBLE
PROJECT ON AN INDIVIDUAL BASIS AND SHALL STATE THE TOTAL  DOLLAR  AMOUNT
THAT WILL BE EXPENDED ON THE PURCHASE.
  (C)  THE  COMMISSIONER  SHALL  PUBLISH  NOTICE  OF THE AVAILABILITY OF
PROJECT APPLICATIONS AND DEADLINES FOR SUBMISSION  OF  PROJECT  APPLICA-
TIONS  TO THE COMMISSIONER AND SHALL EVALUATE PROJECT APPLICATIONS BASED
UPON THE FOLLOWING CRITERIA:
  1. THE EXTENT TO WHICH THE PROJECT DEVELOPS MANUFACTURING  FACILITIES,
OR  PURCHASES  EQUIPMENT  FOR  MANUFACTURING  FACILITIES, LOCATED IN NEW
YORK.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08012-01-3

              

A. 4073                             2

  2. THE EXTENT TO WHICH THE ANTICIPATED BENEFIT TO THE STATE  FROM  THE
PROJECT  EQUALS  OR  EXCEEDS  THE PROJECTED BENEFIT TO THE PARTICIPATING
PARTY FROM THE SALES AND USE TAX EXCLUSION.
  3.  THE EXTENT TO WHICH THE PROJECT WILL CREATE NEW, PERMANENT JOBS IN
NEW YORK.
  4.  TO  THE  EXTENT  FEASIBLE, THE EXTENT TO WHICH THE PROJECT, OR THE
PRODUCT PRODUCED BY THE PROJECT, RESULTS IN A  REDUCTION  OF  GREENHOUSE
GASES,  A  REDUCTION  IN  AIR  OR WATER POLLUTION, AN INCREASE IN ENERGY
EFFICIENCY, OR  A  REDUCTION  IN  ENERGY  CONSUMPTION,  BEYOND  WHAT  IS
REQUIRED BY ANY FEDERAL OR STATE LAW OR REGULATION.
  5.  THE  EXTENT  OF  UNEMPLOYMENT  IN THE AREA IN WHICH THE PROJECT IS
PROPOSED TO BE LOCATED.
  6. ANY OTHER FACTORS THE AUTHORITY  DEEMS  APPROPRIATE  IN  ACCORDANCE
WITH THIS SECTION.
  (D) THE COMMISSIONER'S OFFICE SHALL BE PERMITTED TO EXEMPT A TOTAL NOT
TO EXCEED ONE HUNDRED MILLION DOLLARS IN SALES TAX THROUGH THIS APPLICA-
TION  PROCESS  TO INDIVIDUAL PROJECTS. APPLICATIONS MEETING THE CRITERIA
OUTLINED IN SUBDIVISION (C) OF THIS SECTION SHALL BE GIVEN PRIORITY  AND
THE  CREDIT SHALL BE EXTENDED TO AS MANY ELIGIBLE BUSINESSES AS POSSIBLE
UP TO THE ONE HUNDRED MILLION DOLLAR CEILING.
  (E) UPON APPROVAL  OF  AN  ELIGIBLE  PROJECT  THE  COMMISSIONER  SHALL
PROVIDE  ELIGIBLE GREEN TECHNOLOGY COMPANIES WITH AN APPROVAL FORM TO BE
SUPPLIED TO THE SELLER AT THE POINT OF PURCHASE.
  1. SAID FORM MUST BE GIVEN TO THE SELLER FROM THE PURCHASER  WITH  ALL
ENTRIES  COMPLETED  NO  LATER  THAN  NINETY  DAYS  AFTER DELIVERY OF THE
PURCHASED PROPERTY, OR THE SALE WILL BE DEEMED TO HAVE BEEN  TAXABLE  AT
THE TIME OF THE TRANSACTION.
  2. IF THE SELLER RECEIVES THE CERTIFICATE AFTER THE NINETY DAY PERIOD,
BOTH  THE SELLER AND THE PURCHASER ASSUME THE BURDEN OF PROVING THE SALE
WAS EXEMPT, AND ADDITIONAL SUBSTANTIATION MAY BE REQUIRED.
  (F) THE COMMISSIONER IN CONJUNCTION WITH THE  DEPARTMENT  OF  ECONOMIC
DEVELOPMENT  AND  THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION SHALL
REPORT TO THE LEGISLATURE AND THE GOVERNOR ON THE EFFECTIVENESS OF  THIS
PROGRAM,  WITHIN ONE YEAR OF THE PROGRAM'S TERMINATION DATE, BY EVALUAT-
ING FACTORS, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING:
  1. THE NUMBER OF JOBS CREATED BY THE PROGRAM IN NEW YORK.
  2. THE NUMBER OF BUSINESSES THAT HAVE REMAINED IN NEW  YORK  OR  RELO-
CATED TO NEW YORK AS A RESULT OF THIS PROGRAM.
  3.  THE AMOUNT OF STATE AND LOCAL REVENUE AND ECONOMIC ACTIVITY GENER-
ATED BY THE PROGRAM.
  4. THE AMOUNT OF REDUCTION IN GREENHOUSE GASES, AIR  POLLUTION,  WATER
POLLUTION, OR ENERGY CONSUMPTION.
  (G)  THE  COMMISSIONER  SHALL  ADOPT  ANY  REGULATIONS  NECESSARY  FOR
PURPOSES OF IMPLEMENTING THIS SECTION.
  (H) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING  TERMS  SHALL  HAVE
THE FOLLOWING MEANINGS:
  1.  "ELIGIBLE  COMPANY" SHALL MEAN A COMPANY THAT IS A RESIDENT OF NEW
YORK STATE AND ENGAGES IN A BUSINESS OR TRADE IN  THE  GREEN  TECHNOLOGY
INDUSTRY;
  2.  "ELIGIBLE  PROJECT"  SHALL  MEAN NECESSARY MANUFACTURING EQUIPMENT
PURCHASED TO BE USED IN CARRYING ON A GREEN TECHNOLOGY  TRADE  OR  BUSI-
NESS;
  3.  "GREEN TECHNOLOGY" INCLUDES BUT SHALL NOT BE LIMITED TO TECHNOLOGY
THAT PROMOTES SUSTAINABILITY BY MEETING THE NEEDS  OF  SOCIETY  IN  WAYS
THAT  CAN  CONTINUE  INDEFINITELY  INTO  THE  FUTURE WITHOUT DAMAGING OR

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DEPLETING NATURAL RESOURCES AND HAS THE SMALLEST IMPACT ON THE  ENVIRON-
MENT. SUCH TECHNOLOGY:
  (I) CREATES PRODUCTS THAT CAN BE FULLY RECLAIMED OR RE-USED.
  (II)  REDUCES  WASTE  AND POLLUTION BY CHANGING PATTERNS OF PRODUCTION
AND CONSUMPTION.
  (III) DEVELOPS ALTERNATIVES TO TECHNOLOGIES, WHETHER  FOSSIL  FUEL  OR
CHEMICAL  INTENSIVE  AGRICULTURE,  THAT HAVE BEEN DEMONSTRATED TO DAMAGE
HEALTH AND THE ENVIRONMENT.
  (IV) REDUCES GREENHOUSE GAS EMISSIONS.
  (V) REDUCES ENERGY CONSUMPTION.
  (VI) ADVANCES  TRANSPORTATION  TECHNOLOGIES  THAT  PROMOTE  EFFICIENCY
WHILE REDUCING ENERGY CONSUMPTION.
  S  2. This act shall take effect immediately and shall expire one year
after such effective date when upon such date the provisions of this act
shall be deemed repealed.