S T A T E   O F   N E W   Y O R K
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                                  8185

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 11, 2015
                               ___________

Introduced  by  M. of A. RYAN -- read once and referred to the Committee
  on Economic Development

AN ACT to amend the  economic  development  law  and  the  tax  law,  in
  relation to a restaurant and hotel renovation incentive program

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

  Section 1. The economic development law is amended  by  adding  a  new
article 23 to read as follows:
                               ARTICLE 23
          RESTAURANT AND HOTEL RENOVATION TAX INCENTIVE PROGRAM
SECTION 450. DEFINITIONS.
        451. ADMINISTRATION.
        452. TAX INCENTIVE.
        453. APPLICATION AND APPROVAL PROCESS.
        454. CAP ON TAX CREDITS.
  SECTION 450. DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "ACTUAL  PROJECT COSTS" MEANS COSTS ATTRIBUTABLE TO A PROJECT THAT
ARE INCURRED BY A  QUALIFIED  APPLICANT  BETWEEN  THE  COMMENCEMENT  AND
COMPLETION  DATES  SPECIFIED  BY THE DEPARTMENT PURSUANT TO SECTION FOUR
HUNDRED FIFTY-THREE OF THIS ARTICLE.
  2. "APPLICANT" MEANS A PERSON, CORPORATION, OR OTHER ENTITY THAT  OWNS
AND OPERATES A HOTEL OR RESTAURANT.
  3.  "HOTEL"  MEANS A BUILDING OR PORTION OF IT WHICH IS REGULARLY USED
AND KEPT OPEN AS SUCH FOR  THE  LODGING  OF  GUESTS.  THE  TERM  "HOTEL"
INCLUDES AN APARTMENT HOTEL OR MOTEL, WHETHER OR NOT MEALS ARE SERVED.
  4.  "PROJECT" MEANS THE RENOVATION, IMPROVEMENT, REPAIR, OR UPGRADE OF
AN  EXISTING  HOTEL  OR  RESTAURANT.  THE  TERM  DOES  NOT  INCLUDE  NEW
CONSTRUCTION.
  5.  "QUALIFIED  APPLICANT"  MEANS  AN APPLICANT THAT HAS BEEN ISSUED A
CERTIFICATE BY THE DEPARTMENT UNDER SECTION FOUR HUNDRED FIFTY-THREE  OF
THIS ARTICLE.

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

                                                           LBD11061-04-5

A. 8185                             2

  6.  "RESTAURANT"  MEANS A PUBLIC FOOD SERVICE ESTABLISHMENT REGISTERED
TO COLLECT TAX AS REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FOUR OF  THE
TAX LAW.
  S 451. ADMINISTRATION. THERE IS CREATED IN THE DEPARTMENT A RESTAURANT
AND  HOTEL RENOVATION TAX INCENTIVE PROGRAM. THE DEPARTMENT SHALL DEVEL-
OP, IMPLEMENT, AND  ADMINISTER  THE  PROGRAM.  THE  DEPARTMENT  AND  THE
DEPARTMENT  OF  TAXATION  AND  FINANCE ARE AUTHORIZED TO ADOPT RULES AND
PUBLISH FORMS NECESSARY TO ADMINISTER AND ENFORCE THIS ARTICLE.
  S 452. TAX INCENTIVE. 1. AN APPLICANT MAY RECEIVE A CREDIT AGAINST THE
TAXES IMPOSED BY ARTICLE NINE-A OR TWENTY-TWO  OF  THE  TAX  LAW  IN  AN
AMOUNT  CERTIFIED  BY THE DEPARTMENT AS PROVIDED IN SECTION FOUR HUNDRED
FIFTY-THREE OF THIS ARTICLE, IF THE APPLICANT COMPLETES A  PROJECT  THAT
IS:
  (A)  A  RENOVATION,  IMPROVEMENT,  REPAIR,  OR UPGRADE OF GUEST ROOMS,
SUITES, OR COMMON AREAS OF  A  HOTEL,  INCLUDING  EXTERIOR  UPGRADES  TO
SIGNAGE, LANDSCAPING, AND FACADES, WITH AT LEAST TEN THOUSAND DOLLARS IN
EXPENDITURES  FOR  EACH GUEST ROOM OR SUITE AND TOTAL EXPENDITURES OF AT
LEAST TWO MILLION DOLLARS; OR
  (B) A RENOVATION, IMPROVEMENT, REPAIR,  OR  UPGRADE  OF  GUEST  ROOMS,
SUITES,  OR  COMMON  AREAS  OF A HOTEL WHICH CONSISTS OF TWENTY ROOMS OR
LESS, INCLUDING EXTERIOR UPGRADES TO SIGNAGE, LANDSCAPING, AND  FACADES,
WITH  AT  LEAST TWO THOUSAND DOLLARS IN EXPENDITURES FOR EACH GUEST ROOM
OR SUITE AND TOTAL EXPENDITURES OF AT LEAST FIFTY THOUSAND DOLLARS; OR
  (C) A RENOVATION, IMPROVEMENT, REPAIR, OR  UPGRADE  OF  DINING  AREAS,
RESTROOMS, KITCHENS, OR COMMON AREAS OF A RESTAURANT, INCLUDING EXTERIOR
UPGRADES  TO  SIGNAGE,  LANDSCAPING,  AND FACADES, WITH A MINIMUM OF TEN
THOUSAND DOLLARS IN EXPENDITURES FOR UPGRADES OR REPAIRS TO ONE OR  MORE
AREAS  USED  PRIMARILY FOR FOOD PREPARATION AND TOTAL EXPENDITURES OF AT
LEAST ONE HUNDRED THOUSAND DOLLARS.
  2. A QUALIFIED APPLICANT MEETING  THE  REQUIREMENTS  OF  THIS  SECTION
SHALL RECEIVE A TAX CREDIT EQUAL TO TWENTY-FIVE PERCENT OF THE QUALIFIED
APPLICANT'S  ACTUAL  PROJECT  COSTS  FOR  APPROVED PROJECTS.   FOLLOWING
APPROVAL BY THE COMMISSIONER OF AN APPLICATION  TO  PARTICIPATE  IN  THE
RENOVATION  INCENTIVE PROGRAM UNDER THIS ARTICLE, THE COMMISSIONER SHALL
ISSUE A CERTIFICATE OF TAX CREDIT TO THE APPLICANT UPON ITS  DEMONSTRAT-
ING  SUCCESSFUL  COMPLETION OF SUCH ELIGIBLE PROJECT TO THE SATISFACTION
OF THE COMMISSIONER. THE TAX CREDITS SHALL BE CLAIMED BY  THE  QUALIFIED
APPLICANT  AS  SPECIFIED IN SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED
TEN-B AND SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
  S 453. APPLICATION AND APPROVAL PROCESS.   1. AN APPLICANT  SEEKING  A
CREDIT  UNDER THIS PROGRAM SHALL SUBMIT AN APPLICATION TO THE DEPARTMENT
BEFORE COMMENCEMENT OF THE PROJECT. THE APPLICATION MUST INCLUDE:
  (A) PLANS FOR THE PROPOSED PROJECT AND ESTIMATED PROJECT COSTS; AND
  (B) A DETAILED DESCRIPTION OF THE PROPOSED  PROJECT,  INCLUDING  ESTI-
MATED COMMENCEMENT AND COMPLETION DATES.
  2.   THE  DEPARTMENT  SHALL  REVIEW  EACH  SUBMITTED  APPLICATION  FOR
COMPLETENESS AND PROVIDE  PRELIMINARY  APPROVAL  OR  DISAPPROVAL  WITHIN
SIXTY DAYS AFTER RECEIVING THE APPLICATION. THE DEPARTMENT SHALL ISSUE A
CERTIFICATE TO EACH PRELIMINARILY APPROVED APPLICANT THAT:
  (A)  DESIGNATES  THE  APPLICANT  AS  A QUALIFIED APPLICANT ELIGIBLE TO
RECEIVE A TAX CREDIT UNDER THIS ARTICLE; AND
  (B) SPECIFIES PROJECT COMMENCEMENT AND COMPLETION  DATES.  THE  PERIOD
BETWEEN  THE  COMMENCEMENT AND COMPLETION DATES SPECIFIED BY THE DEPART-
MENT MAY NOT EXCEED THIRTY-SIX MONTHS FOR A PROPOSED  PROJECT  DESCRIBED
IN  PARAGRAPH  (A)  OR  (B)  OF  SUBDIVISION ONE OF SECTION FOUR HUNDRED

A. 8185                             3

FIFTY-TWO OF THIS ARTICLE, OR  TWELVE  MONTHS  FOR  A  PROPOSED  PROJECT
DESCRIBED IN PARAGRAPH (C) OF SUBDIVISION ONE OF SUCH SECTION.
  3. (A) EACH QUALIFIED APPLICANT SHALL, UPON COMPLETION OF ITS PROJECT,
PROVIDE  DOCUMENTATION  TO  THE  DEPARTMENT DEMONSTRATING ACTUAL PROJECT
COSTS. SUCH COSTS SHALL BE VERIFIED BY AN INDEPENDENT  CERTIFIED  PUBLIC
ACCOUNTANT LICENSED IN THIS STATE AT THE EXPENSE OF THE QUALIFIED APPLI-
CANT.
  (B)  THE  DEPARTMENT  SHALL  VERIFY THAT ACTUAL PROJECT COSTS MEET THE
EXPENDITURE REQUIREMENTS PROVIDED IN THIS ARTICLE. A QUALIFIED APPLICANT
THAT FAILS TO MEET THE EXPENDITURE REQUIREMENTS MAY NOT  RECEIVE  A  TAX
CREDIT UNDER THIS PROGRAM.
  S  454.  CAP ON TAX CREDITS. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER  FOR  ANY  TAXABLE
YEAR MAY NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 51 to read as follows:
  51. RESTAURANT AND HOTEL RENOVATION CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO ARTICLE TWENTY-THREE OF THE ECONOM-
IC DEVELOPMENT LAW SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED
IN SUCH ARTICLE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  FIXED  DOLLAR  MINIMUM  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF  THIS  ARTICLE.  PROVIDED,
HOWEVER,  THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR REDUCES THE TAX  TO  SUCH  AMOUNT  OR  IF  THE
TAXPAYER  OTHERWISE  PAYS  TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE  CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(eee) to read as follows:
  (EEE) RESTAURANT AND HOTEL RENOVATION CREDIT. (1) ALLOWANCE OF CREDIT.
A  TAXPAYER  WHO  IS  ELIGIBLE  PURSUANT  TO ARTICLE TWENTY-THREE OF THE
ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED A CREDIT  TO  BE  COMPUTED  AS
PROVIDED IN SUCH ARTICLE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS  SUBSECTION FOR ANY TAXABLE YEAR EXCESS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREIN.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:

(XLIII) RESTAURANT AND HOTEL         AMOUNT OF CREDIT
RENOVATION INCENTIVE                 UNDER SUBDIVISION
PROGRAM CREDIT UNDER                 FIFTY-ONE OF SECTION
SUBSECTION (EEE)                     TWO HUNDRED TEN-B
  S  5.  This  act  shall take effect January 1, 2016 and shall apply to
taxable years beginning on and after such date; provided, however,  that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date is authorized to be made and completed on or before such date.