Bill S4768-2013

Relates to extending the relocation and employment assistance program and the Lower Manhattan relocation and employment assistance program

Relates to extending the relocation and employment assistance program and the Lower Manhattan relocation and employment assistance program.

Details

Actions

  • Jan 8, 2014: REFERRED TO CITIES
  • Jun 21, 2013: COMMITTED TO RULES
  • May 23, 2013: ADVANCED TO THIRD READING
  • May 22, 2013: 2ND REPORT CAL.
  • May 21, 2013: 1ST REPORT CAL.698
  • Apr 23, 2013: REFERRED TO CITIES

Votes

VOTE: COMMITTEE VOTE: - Cities - May 21, 2013
Ayes (6): Lanza, Ball, DeFrancisco, Grisanti, Avella, Breslin

Memo

BILL NUMBER:S4768

TITLE OF BILL: An act to amend the general city law and the administrative code of the city of New York, in relation to extending the relocation and employment assistance program and the Lower Manhattan relocation and employment assistance program

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend subdivision (b) of section 25-z of the General City Law to extend the generally applicable deadline for obtaining a certification of eligibility from the current date of July 1, 2013 to July 1, 2018.

Section 2 of the bill would amend subdivision (b) of section 25-ee of the General City Law to extend the generally applicable deadline for obtaining certification of eligibility under the Lower Manhattan relocation and employment assistance program from the current date of July 1, 2013 to July 1, 2018.

Sections 3 and 4 of the bill would make corresponding amendments to the Administrative Code of the City of New York.

Section 5 of the bill would make the bill effective July 1, 2013, with the provision that if the bill is enacted after that date, its provisions would be retroactive to that date.

REASONS FOR SUPPORT: The Relocation and Employment Assistance Program (REAP) was enacted initially to encourage businesses to relocate from outside the City and from below 96th Street in Manhattan to other areas of the City. The program provides business income tax credits to businesses filing the New York City General Corporation Tax, Unincorporated Business Tax, Bank Tax or Utility Tax. REAP credits are available for twelve years. In order to be eligible for the program, firms must meet conditions related to their operations prior to relocation and improvements to the premises to which they are relocating.

The Lower Manhattan Relocation and Employment Assistance Program was intended to provide benefits similar to REAP for businesses that relocate at least one employee from outside the City to a specified area in lower Manhattan. The 2004 addition of lower Manhattan to the program was an enhancement that has successfully assisted in the rebuilding and revitalization of lower Manhattan after September 11, 2001.

REAP has been an important economic development tool used to encourage businesses to relocate to less prosperous areas of New York City to increase local employment.

FISCAL IMPACT: To be determined

EFFECTIVE DATE : July 1, 2013


Text

STATE OF NEW YORK ________________________________________________________________________ 4768 2013-2014 Regular Sessions IN SENATE April 23, 2013 ___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Cities AN ACT to amend the general city law and the administrative code of the city of New York, in relation to extending the relocation and employ- ment assistance program and the Lower Manhattan relocation and employ- ment assistance program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (b) of section 25-z of the general city law, as amended by chapter 131 of the laws of 2008, is amended to read as follows: (b) No eligible business shall be authorized to receive a credit under any local law enacted pursuant to this article until the premises with respect to which it is claiming the credit meet the requirements in the definition of eligible premises and until it has obtained a certif- ication of eligibility from the mayor of such city or an agency desig- nated by such mayor, and an annual certification from such mayor or an agency designated by such mayor as to the number of eligible aggregate employment shares maintained by such eligible business that may qualify for obtaining a tax credit for the eligible business' taxable year. Any written documentation submitted to such mayor or such agency or agencies in order to obtain any such certification shall be deemed a written instrument for purposes of section 175.00 of the penal law. Such local law may provide for application fees to be determined by such mayor or such agency or agencies. No such certification of eligibility shall be issued under any local law enacted pursuant to this article to an eligi- ble business on or after July first, two thousand [thirteen] EIGHTEEN unless: (1) prior to such date such business has purchased, leased or entered into a contract to purchase or lease particular premises or a parcel on
which will be constructed such premises or already owned such premises or parcel; (2) prior to such date improvements have been commenced on such prem- ises or parcel, which improvements will meet the requirements of subdi- vision (e) of section twenty-five-y of this article relating to expendi- tures for improvements; (3) prior to such date such business submits a preliminary application for a certification of eligibility to such mayor or such agency or agen- cies with respect to a proposed relocation to such particular premises; and (4) such business relocates to such particular premises not later than thirty-six months or, in a case in which the expenditures made for the improvements specified in paragraph two of this subdivision are in excess of fifty million dollars within seventy-two months from the date of submission of such preliminary application. S 2. Subdivision (b) of section 25-ee of the general city law, as amended by chapter 131 of the laws of 2008, is amended to read as follows: (b) No eligible business or special eligible business shall be author- ized to receive a credit against tax under any local law enacted pursu- ant to this article until the premises with respect to which it is claiming the credit meet the requirements in the definition of eligible premises and until it has obtained a certification of eligibility from the mayor of such city or any agency designated by such mayor, and an annual certification from such mayor or an agency designated by such mayor as to the number of eligible aggregate employment shares main- tained by such eligible business or such special eligible business that may qualify for obtaining a tax credit for the eligible business' taxa- ble year. No special eligible business shall be authorized to receive a credit against tax under the provisions of this article unless the number of relocated employee base shares calculated pursuant to subdivi- sion (o) of section twenty-five-dd of this article is equal to or great- er than the lesser of twenty-five percent of the number of New York city base shares calculated pursuant to subdivision (p) of such section and two hundred fifty employment shares. Any written documentation submitted to such mayor or such agency or agencies in order to obtain any such certification shall be deemed a written instrument for purposes of section 175.00 of the penal law. Such local law may provide for applica- tion fees to be determined by such mayor or such agency or agencies. No certification of eligibility shall be issued under any local law enacted pursuant to this article to an eligible business on or after July first, two thousand [thirteen] EIGHTEEN unless: (1) prior to such date such business has purchased, leased or entered into a contract to purchase or lease premises in the eligible Lower Manhattan area or a parcel on which will be constructed such premises; (2) prior to such date improvements have been commenced on such prem- ises or parcel, which improvements will meet the requirements of subdi- vision (e) of section twenty-five-dd of this article relating to expend- itures for improvements; (3) prior to such date such business submits a preliminary application for a certification of eligibility to such mayor or such agency or agen- cies with respect to a proposed relocation to such premises; and (4) such business relocates to such premises as provided in subdivi- sion (j) of section twenty-five-dd of this article not later than thir- ty-six months or, in a case in which the expenditures made for the improvements specified in paragraph two of this subdivision are in
excess of fifty million dollars within seventy-two months from the date of submission of such preliminary application. S 3. Subdivision (b) of section 22-622 of the administrative code of the city of New York, as amended by chapter 131 of the laws of 2008, is amended to read as follows: (b) No eligible business shall be authorized to receive a credit against tax or a reduction in base rent subject to tax under the provisions of this chapter, and of title eleven of the code as described in subdivision (a) of this section, until the premises with respect to which it is claiming the credit meet the requirements in the definition of eligible premises and until it has obtained a certification of eligi- bility from the mayor or an agency designated by the mayor, and an annu- al certification from the mayor or an agency designated by the mayor as to the number of eligible aggregate employment shares maintained by such eligible business that may qualify for obtaining a tax credit for the eligible business' taxable year. Any written documentation submitted to the mayor or such agency or agencies in order to obtain any such certif- ication shall be deemed a written instrument for purposes of section 175.00 of the penal law. Application fees for such certifications shall be determined by the mayor or such agency or agencies. No certification of eligibility shall be issued to an eligible business on or after July first, two thousand [thirteen] EIGHTEEN unless: (1) prior to such date such business has purchased, leased or entered into a contract to purchase or lease particular premises or a parcel on which will be constructed such premises or already owned such premises or parcel; (2) prior to such date improvements have been commenced on such prem- ises or parcel which improvements will meet the requirements of subdivi- sion (e) of section 22-621 of this chapter relating to expenditures for improvements; (3) prior to such date such business submits a preliminary application for a certification of eligibility to such mayor or such agency or agen- cies with respect to a proposed relocation to such particular premises; and (4) such business relocates to such particular premises not later than thirty-six months or, in a case in which the expenditures made for improvements specified in paragraph two of this subdivision are in excess of fifty million dollars within seventy-two months from the date of submission of such preliminary application. S 4. Subdivision (b) of section 22-624 of the administrative code of the city of New York, as amended by chapter 131 of the laws of 2008, is amended to read as follows: (b) No eligible business or special eligible business shall be author- ized to receive a credit against tax under the provisions of this chap- ter, and of title eleven of the code as described in subdivision (a) of this section, until the premises with respect to which it is claiming the credit meet the requirements in the definition of eligible premises and until it has obtained a certification of eligibility from the mayor or an agency designated by the mayor, and an annual certification from the mayor or an agency designated by the mayor as to the number of eligible aggregate employment shares maintained by such eligible busi- ness or special eligible business that may qualify for obtaining a tax credit for the eligible business' taxable year. No special eligible business shall be authorized to receive a credit against tax under the provisions of this chapter and of title eleven of the code unless the number of relocated employee base shares calculated pursuant to subdivi-
sion (o) of section 22-623 of this chapter is equal to or greater than the lesser of twenty-five percent of the number of New York city base shares calculated pursuant to subdivision (p) of such section 22-623, and two hundred fifty employment shares. Any written documentation submitted to the mayor or such agency or agencies in order to obtain any such certification shall be deemed a written instrument for purposes of section 175.00 of the penal law. Application fees for such certif- ications shall be determined by the mayor or such agency or agencies. No certification of eligibility shall be issued to an eligible business on or after July first, two thousand [thirteen] EIGHTEEN unless: (1) prior to such date such business has purchased, leased or entered into a contract to purchase or lease premises in the eligible Lower Manhattan area or a parcel on which will be constructed such premises; (2) prior to such date improvements have been commenced on such prem- ises or parcel, which improvements will meet the requirements of subdi- vision (e) of section 22-623 of this chapter relating to expenditures for improvements; (3) prior to such date such business submits a preliminary application for a certification of eligibility to such mayor or such agency or agen- cies with respect to a proposed relocation to such premises; and (4) such business relocates to such premises not later than thirty-six months or, in a case in which the expenditures made for the improvements specified in paragraph two of this subdivision are in excess of fifty million dollars within seventy-two months from the date of submission of such preliminary application. S 5. This act shall take effect July 1, 2013, provided, however, if this act shall become a law after such date, it shall take effect imme- diately and shall be deemed to have been in full force and effect on and after July 1, 2013.

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