Relates to extending the date of the application and approval process for the economic transformation and facility redevelopment program.
Ayes (58): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Excused (3): Espaillat, Hassell-Thomps, Smith
TITLE OF BILL: An act to amend the economic development law, in relation to extending the date of the application and approval process for the economic transformation and facility redevelopment program
PURPOSE: To honor the State's commitment to help local communities affected by the 2011 closure of correctional facilities and juvenile justice facilities by allowing a meaningful opportunity to utilize the tax credit program which offers incentives for job creation and local investment.
SUMMARY OF PROVISIONS: Amends Section 402(1) of the Economic Development Law to extend the deadline by which a business entity must apply for tax credits for locations within an Economic Transformation Area for a recently closed correctional facility or juvenile justice facility. The current deadline of January 1, 2015 would be extended to January 1, 2018.
JUSTIFICATION: In 2011, several correctional facilities and juvenile justice facilities throughout the state were closed. As part of the 2011 State Budget, the Governor and Legislature agreed to measures to try to ameliorate the impact of the closures and promote economic development in these vulnerable communities.
Part V of Chapter 61 of the Laws of 2011 added Article 18 to the Economic Development Law, entitled the Economic Transformation and Facility Redevelopment Program. This legislation offered tax benefits for the redevelopment of the closed facilities and the economic transformation of the surrounding communities.
However, the 2011 law set a deadline by which new businesses which locate within a designated economic transformation area must apply for participation in the tax credit program. The deadline is the later of three years after the facility's closure or January 1, 2015.
Unfortunately, given economic conditions and delays in converting facilities, it is taking longer than anticipated in some communities to begin the redevelopment process. For example, one county is planning to convert a closed juvenile justice facility into a technology park and business incubator. However, it took until January 2014 before the property was legally transferred from the State to the county. Only then could the county begin to undertake the necessary infrastructure work to convert the site into a business park. Because of these delays, the tax credit program will be on the verge of expiring by the time the community is ready to start marketing the site.
These communities were promised assistance to help them recover from the loss of state facilities and needed local jobs. It is important to provide these communities with a realistic and meaningful opportunity to actually utilize these programs. This bill would extend the period of time in which eligible businesses may apply for tax credits.
FISCAL IMPLICATIONS: This bill simply extends the availability of the tax credit program, and does not change any of the other parameters of the program. The State has spent far less than anticipated over the
past few years because of the delays and under-utilization of the program.
EFFECTIVE DATE: Immediately
STATE OF NEW YORK ________________________________________________________________________ 7329 IN SENATE May 13, 2014 ___________Introduced by Sen. FARLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Devel- opment and Small Business AN ACT to amend the economic development law, in relation to extending the date of the application and approval process for the economic transformation and facility redevelopment program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 402 of the economic development law, as added by section 2 of part V of chapter 61 of the laws of 2011, is amended to read as follows: 1. A business entity must submit a completed application as prescribed by the commissioner by the later of (a) the date that is three years after the date of the closure of the closed facility located in the economic transformation area in which the business entity would operate or (b) January first, two thousand
[fifteen]EIGHTEEN. S 2. This act shall take effect immediately; provided, however, that the amendments to section 402 of article 18 of the economic development law made by section one of this act shall not affect the repeal of such article and shall be deemed to be repealed therewith.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15045-01-4