S T A T E O F N E W Y O R K
________________________________________________________________________
3069
2017-2018 Regular Sessions
I N A S S E M B L Y
January 26, 2017
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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.
LBD08090-01-7
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6. "RESTAURANT" MEANS A PUBLIC FOOD SERVICE ESTABLISHMENT REGISTERED
TO COLLECT TAX AS REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FOUR OF THE
TAX LAW.
§ 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.
§ 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-TWO OF SECTION TWO HUNDRED
TEN-B AND SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
§ 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
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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.
§ 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.
§ 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 52 to read as follows:
52. 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.
§ 3. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
(CCC) 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 EXCEEDS 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.
§ 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-TWO OF SECTION
SUBSECTION (CCC) TWO HUNDRED TEN-B
§ 5. This act shall take effect January 1, 2018 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-
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tive date are authorized to be made and completed on or before such
date.