There is a newer version of the New York Consolidated Laws
2006 New York Code - Imposition Of Tax.
§ 11-503 Imposition of tax. (a) General. A tax at the rate of four
percent is hereby imposed for each taxable year, beginning with taxable
years ending after January first, nineteen hundred sixty-six, on the
unincorporated business taxable income of every unincorporated business
wholly or partly carried on within the city. This tax shall be in
addition to any other taxes imposed.
(b) Credit against tax. (1) For each taxable year beginning after
nineteen hundred eighty-six but before nineteen hundred ninety-six:
(A) if the tax computed under subdivision (a) of this section is six
hundred dollars or less, a credit shall be allowed for the entire amount
of such tax;
(B) if the tax computed under subdivision (a) of this section exceeds
six hundred dollars but is less than eight hundred dollars, a credit
shall be allowed in the amount determined by multiplying such tax by a
fraction the numerator of which is eight hundred dollars minus the
amount of such tax and the denominator of which is two hundred dollars;
or
(C) if the tax computed under subdivision (a) of this section is eight
hundred dollars or more, no credit shall be allowed.
(2) For each taxable year beginning in nineteen hundred ninety-six:
(A) if the tax computed under subdivision (a) of this section is eight
hundred dollars or less, a credit shall be allowed for the entire amount
of such tax;
(B) if the tax computed under subdivision (a) of this section exceeds
eight hundred dollars but is less than one thousand dollars, a credit
shall be allowed in the amount determined by multiplying such tax by a
fraction the numerator of which is one thousand dollars minus the amount
of such tax and the denominator of which is two hundred dollars; or
(C) if the tax computed under subdivision (a) of this section is one
thousand dollars or more, no credit shall be allowed.
(3) For each taxable year beginning after nineteen hundred ninety-six:
(A) if the tax computed under subdivision (a) of this section is one
thousand eight hundred dollars or less, a credit shall be allowed for
the entire amount of such tax;
(B) if the tax computed under subdivision (a) of this section exceeds
one thousand eight hundred dollars but is less than three thousand two
hundred dollars, a credit shall be allowed in the amount determined by
multiplying such tax by a fraction the numerator of which is three
thousand two hundred dollars minus the amount of such tax and the
denominator of which is one thousand four hundred dollars; or
(C) if the tax computed under subdivision (a) of this section is three
thousand two hundred dollars or more, no credit shall be allowed.
(4) If separate partnerships, joint ventures or other unincorporated
entities have substantially the same partners or members, each of such
partners or members has substantially the same interest in each of such
partnerships, joint ventures or other unincorporated entities, and such
partnerships, joint ventures or other unincorporated entities are
engaged in substantially the same business or businesses or in
substantially related businesses, all of such partnerships, joint
ventures or other unincorporated entities shall be treated as one
unincorporated business for purposes of this subdivision. The preceding
sentence shall not be construed to limit or affect the meaning or
application of any other provision of this chapter.
(5) Notwithstanding anything to the contrary, the credit allowable
under this subdivision shall be taken prior to any other credit allowed
by this section.
(c) Credit relating to stock transfer tax. (1) In addition to any
other credit permitted under this section, a taxpayer shall be allowed a
credit, to be credited or refunded in the manner hereinafter provided in
this subdivision, against the tax imposed by this chapter after the
allowance of any other credit under this section. The amount of such
credit shall be fifty percent of the tax incurred in market making
transactions under the provisions of article twelve of the tax law on
such transactions subject to such tax occurring on and after August
first, nineteen hundred seventy-six and paid by such taxpayer (except
when such tax shall have been paid pursuant to section two hundred
seventy-nine-a of the tax law).
(2) For purposes of this subdivision:
(a) the term "taxpayer" shall mean any unincorporated business subject
to tax under this chapter registered with the United States securities
and exchange commission in accordance with subsection (b) of section
fifteen of the securities exchange act of nineteen hundred thirty-four,
as amended, and acting as a dealer in a transaction described in
subparagraph (b) of this paragraph, and
(b) the term "market making transaction" shall mean any transaction
involving a sale (including a short sale) by a dealer of shares or
certificates subject to the tax imposed by article twelve of the tax
law, provided such shares or certificates are sold:
(i) as stock in trade or inventory or as property held for sale in the
ordinary course of such dealer's trade or business (including transfers
which are part of an underwriting),
(ii) in (a) a bona fide arbitrage transaction; (b) a bona fide hedge
transaction involving a long or short position in any equity security
and a long or short position in a security entitling the holder to
acquire or sell such equity security; or (c) a risk arbitrage
transaction in connection with a merger, acquisition, tender offer,
recapitalization, reorganization, or similar transaction, or
(iii) to offset a transaction made in error.
Provided, however, that, except as to subclause (c) of clause (ii) of
subparagraph (b) of this paragraph, the term "market making transaction"
shall not include any sale of shares or certificates identified in such
dealer's records as a security held for investment within the meaning of
section twelve hundred thirty-six of the internal revenue code.
(3) The credit allowed under this subdivision for any taxable year
shall be deemed to be an overpayment of tax by the taxpayer to be
credited or refunded in accordance with the provisions of section 11-526
of this chapter, except as otherwise provided in subdivision (g) of
sections 11-512 and 11-514 of this chapter; provided, however, that the
provisions of this chapter notwithstanding, the amount to be refunded
pursuant to this subdivision shall not be paid prior to the first day of
the eighth month following the close of the taxable year, and the
provisions of subdivision (c) of section 11-528 of this chapter
notwithstanding, interest shall be allowed and paid on the overpayment
of the credit under this subdivision from the first day of the eleventh
month following the close of the taxable year, or three months after a
claim for the credit or refund provided for in this subdivision has been
filed, whichever is later.
(4) Provided, however, that the credit provided under this subdivision
shall be allowed only to the extent that the amount of credit allowable
with respect to market making transactions under the provisions of this
subdivision (determined without regard to the provisions of this
paragraph) exceeds fifty percent of all rebates (provided for under the
provisions of section two hundred eighty-a of article twelve of the tax
law) allowed for such taxes incurred in the same market making
transactions with respect to which the credit is determined. No credit
shall be allowed under this subdivision with respect to any tax incurred
in market making transactions occurring on or after October first,
nineteen hundred eighty-one.
(d) Credit relating to certain sales and compensating use taxes. (1)
In addition to the credits allowed by subdivisions (b) and (c) of this
section, a taxpayer shall be allowed a credit against the tax imposed by
this chapter to be credited or refunded in the manner hereinafter
provided in this section. The amount of such credit shall be the excess
of (A) the amount of sales and compensating use taxes imposed by section
eleven hundred seven of the tax law during the taxpayer's taxable year
which became legally due on or after and was paid on or after July
first, nineteen hundred seventy-seven, less any credit or refund of such
taxes, with respect to the purchase or use by the taxpayer of machinery
or equipment for use or consumption directly and predominantly in the
production of tangible personal property, gas, electricity,
refrigeration or steam for sale, by manufacturing, processing,
generating, assembling, refining, mining or extracting, or telephone
central office equipment or station apparatus or comparable telegraph
equipment for use directly and predominantly in receiving at destination
or initiating and switching telephone or telegraph communication, but
not including parts with a useful life of one year or less or tools or
supplies used in connection with such machinery, equipment or apparatus
over (B) the amount of any credit for such sales and compensating use
taxes allowed or allowable against the taxes imposed by subchapter two
of chapter eleven of this title, for any periods embraced within the
taxable year of the taxpayer under this chapter.
(2) The credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited or
refunded, without interest, in accordance with the provisions of section
11-526 of this chapter.
(3) Where the taxpayer receives a refund or credit of any tax imposed
under section eleven hundred seven of the tax law for which the taxpayer
had claimed a credit under the provisions of this section in a prior
taxable year, the amount of such tax refund or credit shall be added to
the tax imposed by this section, and such amount shall be subtracted in
computing unincorporated business taxable income for the taxable year.
(e) Credit relating to the annual increase in certain payments to a
landlord by a taxpayer relocating industrial and commercial employment
opportunities.
(1) In addition to any other credit allowed by this section, a
taxpayer shall be allowed a credit against the tax imposed by this
chapter to be credited or refunded, without interest, in the manner
hereinafter provided in this section.
(A) Where a taxpayer shall have relocated to the city from a location
outside the state, and by such relocation shall have created a minimum
of one hundred industrial or commercial employment opportunities, and
where such taxpayer shall have entered into a written lease for the
relocation premises, the terms of which lease provide for increased
additional payments to the landlord which are based solely and directly
upon any increase or addition in real estate taxes imposed on the leased
premises, the taxpayer upon approval and certification by the industrial
and commercial incentive board as hereinafter provided shall be entitled
to a credit against the tax imposed by this chapter. The amount of such
credit shall be: An amount equal to the annual increased payments
actually made by the taxpayer to the landlord which are solely and
directly attributable to an increase or addition to the real estate tax
imposed upon the leased premises. Such credit shall be allowed only to
the extent that the taxpayer has not otherwise claimed said amount as a
deduction against the tax imposed by this chapter.
The industrial and commercial incentive board in approving and
certifying to the qualifications of the taxpayer to receive the tax
credit provided for herein shall first determine that the applicant has
met the requirements of this section, and further, that the granting of
the tax credit to the applicant is in the "public interest." In
determining that the granting of the tax credit is in the public
interest, the board shall make affirmative findings that: the granting
of the tax credit to the applicant will not effect an undue hardship on
similar taxpayers already located within the city; the existence of this
tax incentive has been instrumental in bringing about the relocation of
the applicant to the city; and the granting of the tax credit will
foster the economic recovery and economic development of the city.
The tax credit, if approved and certified by the industrial and
commercial incentive board, must be utilized annually by the taxpayer
for the length of the term of the lease or for a period not to exceed
ten years from the date of relocation, whichever period is shorter.
(B) Definitions: When used in this section, "Employment opportunity"
means the creation of a full time position of gainful employment for an
industrial or commercial employee and the actual hiring of such employee
for the said position.
"Industrial employee" means one engaged in the manufacture or
assembling of tangible goods or the processing of raw materials.
"Commercial employee" means one engaged in the buying, selling or
otherwise providing of goods or services other than on a retail basis.
"Retail" means the selling or otherwise disposing or furnishing of
tangible goods or services directly to the ultimate user or consumer.
"Full time position" means the hiring of an industrial or commercial
employee in a position of gainful employment where the number of hours
worked by such employee is not less than thirty hours during any given
week.
"Industrial and commercial incentive board" means the board created
pursuant to subchapter two of chapter two of this title.
(2) The credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited or
refunded, without interest, in accordance with the provisions of section
11-526 of this chapter.
(f) Credit relating to certain expenses involved in the cost of
relocating industrial and commercial employment opportunities. (1) In
addition to any other credit allowed by this section, a taxpayer shall
be allowed a credit against the tax imposed by this chapter to be
credited or refunded in the manner hereinafter provided in this section.
The amount of such credit shall be:
(A) A maximum of three hundred dollars for each commercial employment
and a maximum of five hundred dollars for each industrial employment
opportunity relocated to the city from an area outside the state. Such
credit shall be allowed to a taxpayer who relocates a minimum of ten
employment opportunities. The credit shall be allowed against employment
opportunity relocation costs incurred by the taxpayer. Such credit shall
be allowed only to the extent that the taxpayer has not claimed a
deduction for allowable employment opportunity relocation costs. The
credit allowed hereunder may be taken by the taxpayer in whole or in
part in the year in which the employment opportunity is relocated by
such taxpayer or either of the two years succeeding such event;
provided, however, that no credit shall be allowed under this
subdivision to a taxpayer for industrial employment opportunities
relocated to premises (i) that are within an industrial business zone
established pursuant to section 22-626 of this code and (ii) for which a
binding contract to purchase or lease was first entered into by the
taxpayer on or after July first, two thousand five.
The commissioner of finance is empowered to promulgate rules and
regulations and to prescribe the form of application to be used.
(B) Definitions: When used in this section, "Employment Opportunity"
means the creation of a full time position of gainful employment for an
industrial or commercial employee and the actual hiring of such employee
for the said position.
"Industrial Employee" means one engaged in the manufacture or
assembling of tangible goods or the processing of raw materials.
"Commercial Employee" means one engaged in the buying, selling or
otherwise providing of goods or services other than on a retail basis.
"Retail" means the selling or otherwise disposing of tangible goods
directly to the ultimate user or consumer.
"Full Time Position" means the hiring of an industrial or commercial
employee in a position of gainful employment where the number of hours
worked by such employee is not less than thirty hours during any given
work week.
"Employment Opportunity Relocation Costs" means the costs incurred by
the taxpayer in moving furniture, files, papers and office equipment
into the city from a location outside the state; the costs incurred by
the taxpayer in the moving from a location outside the state; the costs
of installation of telephones and other communications equipment
required as a result of the relocation to the city from a location
outside the state; the cost incurred in the purchase of office furniture
and fixtures required as a result of the relocation to the city from a
location outside the state; and the cost of renovation of the premises
to be occupied as a result of the relocation provided, however, that
such renovation costs shall be allowable only to the extent that they do
not exceed seventy-five cents per square foot of the total area utilized
by the taxpayer in the occupied premises.
(2) The credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited or
refunded without interest, in accordance with the provisions of section
11-526 of this chapter.
(i) Relocation and employment assistance credit. (1) In addition to
any other credit allowed by this section, a taxpayer that has obtained
the certifications required by chapter six-B of title twenty-two of the
code shall be allowed a credit against the tax imposed by this chapter.
The amount of the credit shall be the amount determined by multiplying
five hundred dollars or, in the case of a taxpayer that has obtained
pursuant to chapter six-B of such title twenty-two a certification of
eligibility dated on or after July first, nineteen hundred ninety-five,
one thousand dollars or, in the case of an eligible business that has
obtained pursuant to chapter six-B of such title twenty-two a
certification of eligibility dated on or after July first, two thousand,
for a relocation to eligible premises located within a revitalization
area defined in subdivision (n) of section 22-621 of the code, three
thousand dollars, by the number of eligible aggregate employment shares
maintained by the taxpayer during the taxable year with respect to
particular premises to which the taxpayer has relocated; provided,
however, with respect to a relocation for which no application for a
certificate of eligibility is submitted prior to July first, two
thousand three, to eligible premises that are not within a
revitalization area, if the date of such relocation as determined
pursuant to subdivision (j) of section 22-621 of the code is before July
first, nineteen hundred ninety-five, the amount to be multiplied by the
number of eligible aggregate employment shares shall be five hundred
dollars, and with respect to a relocation for which no application for a
certificate of eligibility is submitted prior to July first, two
thousand three, to eligible premises that are within a revitalization
area, if the date of such relocation as determined pursuant to
subdivision (j) of such section is before July first, nineteen hundred
ninety-five, the amount to be multiplied by the number of eligible
aggregate employment shares shall be five hundred dollars, and if the
date of such relocation as determined pursuant to subdivision (j) of
such section is on or after July first, nineteen hundred ninety-five,
and before July first, two thousand, one thousand dollars; provided,
however, that no credit shall be allowed for the relocation of any
retail activity or hotel services; provided, further, that no credit
shall be allowed under this subdivision to any taxpayer that has elected
pursuant to subdivision (d) of section 22-622 of the code to take such
credit against a gross receipts tax imposed under chapter eleven of this
title; and provided that in the case of an eligible business that has
obtained pursuant to chapter six-B of such title twenty-two
certifications of eligibility for more than one relocation, the portion
of the total amount of eligible aggregate employment shares to be
multiplied by the dollar amount specified in this paragraph for each
such certification of a relocation shall be the number of total
attributed eligible aggregate employment shares determined with respect
to such relocation pursuant to subdivision (o) of section 22-621 of the
code. For purposes of this subdivision, the terms "eligible aggregate
employment shares," "relocate," "retail activity" and "hotel services"
shall have the meanings ascribed by section 22-621 of the code.
(2) The credit allowed under this subdivision with respect to eligible
aggregate employment shares maintained with respect to particular
premises to which the taxpayer has relocated shall be allowed for the
first taxable year during which such eligible aggregate employment
shares are maintained with respect to such premises and for any of the
twelve succeeding taxable years during which eligible aggregate
employment shares are maintained with respect to such premises; provided
that the credit allowed for the twelfth succeeding taxable year shall be
calculated by multiplying the number of eligible aggregate employment
shares maintained with respect to such premises in the twelfth
succeeding taxable year by the lesser of one and a fraction the
numerator of which is such number of days in the taxable year of
relocation less the number of days the eligible business maintained
employment shares in the eligible premises in the taxable year of
relocation and the denominator of which is the number of days in such
twelfth succeeding taxable year during which such eligible aggregate
employment shares are maintained with respect to such premises. Except
as provided in paragraph four of this subdivision, if the amount of the
credit allowable under this subdivision for any taxable year exceeds the
tax imposed for such year, the excess may be carried over, in order, to
the five immediately succeeding taxable years and, to the extent not
previously deductible, may be deducted from the taxpayer's tax for such
years.
(3) The credit allowable under this subdivision shall be deducted
after the credits allowed by subdivisions (b) and (j) of this section,
but prior to the deduction of any other credit allowed by this section.
(4) In the case of a taxpayer that has obtained a certification of
eligibility pursuant to chapter six-B of title twenty-two of the code
dated on or after July first, two thousand for a relocation to eligible
premises located within the revitalization area defined in subdivision
(n) of section 22-621 of the code, the credits allowed under this
subdivision, or in the case of a taxpayer that has relocated more than
once, the portion of such credits attributed to such certification of
eligibility pursuant to paragraph one of this subdivision, against the
tax imposed by this chapter for the taxable year of such relocation and
for the four taxable years immediately succeeding the taxable year of
such relocation, shall be deemed to be overpayments of tax by the
taxpayer to be credited or refunded, without interest, in accordance
with the provisions of section 11-526 of this chapter. For such taxable
years, such credits or portions thereof may not be carried over to any
succeeding taxable year; provided, however, that this paragraph shall
not apply to any relocation for which an application for a certification
of eligibility was not submitted prior to July first, two thousand
three, unless the date of such relocation is on or after July first, two
thousand.
(j) (1) If a partner in an unincorporated business is taxable under
this chapter and is required to include in unincorporated business
taxable income his, her or its distributive share of income, gain, loss
and deductions of, or guaranteed payments from, such unincorporated
business, such partner shall be allowed a credit against the tax imposed
by this chapter equal to the lesser of the amounts determined in
subparagraphs (A) and (B) of this paragraph:
(A) The amount determined in this subparagraph is the product of (i)
the sum of (I) the tax imposed by this chapter on the unincorporated
business for its taxable year ending within or with the taxable year of
the partner and paid by the unincorporated business and (II) the amount
of any credit or credits taken by the unincorporated business under this
section (except the credit allowed by subdivision (b) of this section)
for its taxable year ending within or with the taxable year of the
partner, to the extent that such credits do not reduce such
unincorporated business's tax below zero, and (ii) a fraction, the
numerator of which is the net total of the partner's distributive share
of income, gain, loss and deductions of, and guaranteed payments from,
the unincorporated business for such taxable year, and the denominator
of which is the sum, for such taxable year, of the net total
distributive shares of income, gain, loss and deductions of, and
guaranteed payments to, all partners in the unincorporated business for
whom or which such net total (as separately determined for each partner)
is greater than zero.
(B) The amount determined in this subparagraph is the difference
between (i) the tax computed pursuant to this chapter on the
unincorporated business taxable income of the partner, without allowance
of any credits allowed by this section, and (ii) the tax so computed,
determined as if the partner had no such distributive share or
guaranteed payments with respect to the unincorporated business,
provided, however, that the amounts computed in clauses (i) and (ii) of
this subparagraph shall be computed with the following modifications:
(I) such amounts shall be computed without taking into account any
carryforward or carryback by the partner of a net operating loss;
(II) if, prior to taking into account any distributive share or
guaranteed payments from any unincorporated business or any net
operating loss carryforward or carryback, the unincorporated business
taxable income of the partner is less than zero, such unincorporated
business taxable income shall be treated as zero; and
(III) if such partner's net total distributive share of income, gain,
loss and deductions of, and guaranteed payments from, any unincorporated
business is less than zero, such net total shall be treated as zero. The
amount determined in this subparagraph shall not be less than zero.
(2) (A) Notwithstanding anything to the contrary in paragraph one of
this subdivision, the credit or the sum of the credits that may be taken
by a partner for a taxable year under this subdivision with respect to
an unincorporated business or unincorporated businesses in which he, she
or it is a partner shall not exceed the tax imposed on the
unincorporated business taxable income of such partner under this
chapter for such taxable year reduced by the credit allowed under
subdivision (b) of this section. If the credit allowed under paragraph
one of this subdivision or the sum of such credits exceeds such tax as
so reduced, the amount of the excess may be carried forward, in order,
to each of the seven immediately succeeding taxable years and, to the
extent not previously taken, shall be allowed as a credit in each of
such years. In applying the provisions of the preceding sentence, the
credit determined for the taxable year under paragraph one of this
subdivision shall be taken before taking any credit carryforward
pursuant to this paragraph and the credit carryforward attributable to
the earliest taxable year shall be taken before taking a credit
carryforward attributable to a subsequent taxable year.
(B) Notwithstanding anything to the contrary in subparagraph (A) of
this paragraph, in the case of a partner which is a partnership, no
credit carryforward to any taxable year shall be allowed unless one or
more of the partners therein during such taxable year were persons
having a proportionate interest or interests, amounting to at least
eighty percent of all such interests, in the unincorporated business
gross income and unincorporated business deductions of the partnership
which was allowed the credit for which a carryforward is claimed. In
such event, the carryforward allowable on account of such credit shall
not exceed the percentage of the amount otherwise allowable, determined
by dividing (i) the sum of the proportionate interests in the
unincorporated business gross income and unincorporated business
deductions of the partnership, for the year to which the credit is
carried forward, attributable to such partners, by (ii) the sum of such
proportionate interests owned by all partners for such taxable year. The
amount by which the carryforward otherwise allowable exceeds the amount
allowable pursuant to the preceding sentence shall not be a carryforward
to any other taxable year.
(3) The credit allowed under this subdivision shall not be allowed to
a partner in an unincorporated business with respect to any tax paid by
the unincorporated business under this chapter for any taxable year
beginning before July first, nineteen hundred ninety-four.
(4) Notwithstanding anything to the contrary, the credit allowable
under this subdivision shall be taken after the credit allowed by
subdivision (b) of this section is taken, but before any other credit
allowed by this section is taken.
(5) The commissioner of finance of the city of New York shall convene
a working group, consisting of representatives of the department of
finance of the city of New York and representatives of affected
industries, and other persons the commissioner deems appropriate, to
study the treatment under the unincorporated business tax of income from
investment and real estate activities and the impact of the credit
permitted by this subdivision, including but not limited to cases where
interests in a taxpayer are held by another taxpayer subject to tax on
unincorporated business taxable income and the first taxpayer is
entitled to claim a deduction for a net operating loss carryover and the
second is not entitled to a corresponding deduction with the result, in
certain cases, that the net income allocated to the second taxpayer may
be subject to an effective rate of tax in excess of the rate imposed by
this chapter. In addition, the working group shall also study the tax
treatment of parking garages which are open or available to the general
public and which also provide available space to tenants. In conducting
such study, such working group shall take into account such factors as
economic development, tax administration and other goals of tax policy
and shall consider alternatives that would reduce disincentives for
investing in corporations and other entities engaged in business in the
city of New York, such as exempting income from investment activities
from the tax on unincorporated business taxable income. The commissioner
shall prepare a report based on the deliberations of the working group
on or before April fifteenth, nineteen hundred ninety-five.
(k) Credit relating to certain sales and compensating use taxes on
certain services. (1) In addition to any other credit allowed by this
section, a taxpayer shall be allowed a credit against the tax imposed by
this chapter to be credited or refunded in the manner hereinafter
provided in this subdivision. The amount of such credit shall be equal
to the amount of sales and compensating use taxes imposed by section
eleven hundred seven of the tax law during the taxpayer's taxable year
(and the amount of any interest imposed in connection therewith) which
was paid after January first, nineteen hundred ninety-five, less any
credit or refund of such taxes (or such interest), with respect to the
purchase or use by the taxpayer of the services described in subdivision
(b) of section eleven hundred five-b of the tax law.
(2) The credit allowed under this subdivision for any taxable year
shall be deemed to be an overpayment of tax by the taxpayer to be
credited or refunded, without interest, in accordance with the
provisions of section 11-526 of this chapter.
(3) Where the taxpayer receives a refund or credit of any tax imposed
under section eleven hundred seven of the tax law (or of any interest
imposed in connection therewith) for which the taxpayer had claimed a
credit under this subdivision in a prior taxable year, the amount of
such tax (or such interest) refund or credit shall be added to the tax
imposed by this chapter, and such amount shall be subtracted in
computing unincorporated business taxable income for the taxable year.
(l) Lower Manhattan relocation and employment assistance credit. (1)
In addition to any other credit allowed by this section, a taxpayer that
has obtained the certifications required by chapter six-C of title
twenty-two of the code shall be allowed a credit against the tax imposed
by this chapter. The amount of the credit shall be the amount determined
by multiplying three thousand dollars by the number of eligible
aggregate employment shares maintained by the taxpayer during the
taxable year with respect to eligible premises to which the taxpayer has
relocated; provided, however, that no credit shall be allowed for the
relocation of any retail activity or hotel services; provided, further,
that no credit shall be allowed under this subdivision to any taxpayer
that has elected pursuant to subdivision (d) of section 22-624 of the
code to take such credit against a gross receipts tax imposed under
chapter eleven of this title. For purposes of this subdivision, the
terms "eligible aggregate employment shares", "eligible premises",
"relocate", "retail activity" and "hotel services" shall have the
meanings ascribed by section 22-623 of the code.
(2) The credit allowed under this subdivision with respect to eligible
aggregate employment shares maintained with respect to eligible premises
to which the taxpayer has relocated shall be allowed for the taxable
year of the relocation and for any of the twelve succeeding taxable
years during which eligible aggregate employment shares are maintained
with respect to eligible premises; provided that the credit allowed for
the twelfth succeeding taxable year shall be calculated by multiplying
the number of eligible aggregate employment shares maintained with
respect to eligible premises in the twelfth succeeding taxable year by
the lesser of one and a fraction the numerator of which is such number
of days in the taxable year of relocation less the number of days the
taxpayer maintained employment shares in eligible premises in the
taxable year of relocation and the denominator of which is the number of
days in such twelfth succeeding taxable year during which such eligible
aggregate employment shares are maintained with respect to such
premises.
(3) Except as provided in paragraph four of this subdivision, if the
amount of the credit allowable under this subdivision for any taxable
year exceeds the tax imposed for such year, the excess may be carried
over, in order, to the five immediately succeeding taxable years and, to
the extent not previously deductible, may be deducted from the
taxpayer's tax for such years.
(4) The credits allowed under this subdivision, against the tax
imposed by this chapter for the taxable year of the relocation and for
the four taxable years immediately succeeding the taxable year of such
relocation, shall be deemed to be overpayments of tax by the taxpayer to
be credited or refunded, without interest, in accordance with the
provisions of section 11-526 of this chapter. For such taxable years,
such credits or portions thereof may not be carried over to any
succeeding taxable year.
(5) The credit allowable under this subdivision shall be deducted
after the credits allowed by subdivisions (b), (i) and (j) of this
section, but prior to the deduction of any other credit allowed by this
section.
* (m) Film production credit. (1) allowance of credit. A taxpayer
which is a qualified film production company as defined in this
subdivision and which is subject to tax under this chapter, shall be
allowed a credit against the unincorporated business income tax imposed
pursuant to this chapter, in accordance with the provisions in paragraph
(5) of this subdivision, to be computed as hereinafter provided.
(2) The amount of the credit shall be the product of five percent and
the qualified production costs paid or incurred in the production of a
qualified film, provided that the qualified production costs (excluding
post production costs) paid or incurred which are attributable to the
use of tangible property or the performance of services at a qualified
film production facility in the production of such qualified film equal
or exceed seventy-five percent of the production costs (excluding post
production costs) paid or incurred which are attributable to the use of
tangible property or the performance of services at any film production
facility within and without the city of New York in the production of
such qualified film. However, if the qualified production costs
(excluding post production costs) which are attributable to the use of
tangible property or the performance of services at a qualified film
production facility in the production of such qualified film are less
than three million dollars, then the portion of the qualified
productions costs attributable to the use of tangible property or the
performance of services in the production of such qualified film outside
of a qualified film production facility shall be allowed only if the
shooting days spent in the city of New York outside of a film production
facility in the production of such qualified film equal or exceed
seventy-five percent of the total shooting days spent within and without
the city of New York outside of a film production facility in the
production of such qualified film. The credit shall be allowed for the
taxable year in which the production of such qualified film is
completed.
(3) No qualified production costs used by a taxpayer either as the
basis for the allowance of the credit provided for under this
subdivision or used in the calculation of the credit provided for under
this subdivision shall be used by such taxpayer to claim any other
credit allowed pursuant to this title.
(4) Definitions. As used in this subdivision, the following terms
shall have the following meanings:
(A) "Qualified production costs" means production costs only to the
extent such costs are attributable to the use of tangible property or
the performance of services within the city of New York directly and
predominantly in the production (including pre-production and post
production) of a qualified film.
(B) "Production costs" means any costs for tangible property used and
services performed directly and predominantly in the production
(including pre-production and post production) of a qualified film.
"Production costs" shall not include (i) costs for a story, script or
scenario to be used for a qualified film and (ii) wages or salaries or
other compensation for writers, directors, including music directors,
producers and performers (other than background actors with no scripted
lines). "Production costs" generally include technical and crew
production costs, such as expenditures for film production facilities,
or any part thereof, props, makeup, wardrobe, film processing, camera,
sound recording, set construction, lighting, shooting, editing and
meals.
(C) "Qualified film" means a feature-length film, television film,
television pilot and/or each episode of a television series, regardless
of the medium by means of which the film, pilot or episode is created or
conveyed. "Qualified film" shall not include (i) a documentary film,
news or current affairs program, interview or talk program, "how-to"
(i.e., instructional) film or program, film or program consisting
primarily of stock footage, sporting event or sporting program, game
show, award ceremony, film or program intended primarily for industrial,
corporate or institutional end-users, fundraising film or program,
daytime drama (i.e., daytime "soap opera"), commercials, music videos or
"reality" program, or (ii) a production for which records are required
under section 2257 of title 18, United States code, to be maintained
with respect to any performer in such production (reporting of books,
films, etc. with respect to sexually explicit conduct).
(D) "Film production facility" shall mean a building and/or complex of
buildings and their improvements and associated back-lot facilities in
which films are or are intended to be regularly produced and which
contain at least one sound stage.
(E) "Qualified film production facility" shall mean a film production
facility in the city of New York, which contains at least one sound
stage having a minimum of seven thousand square feet of contiguous
production space.
(F) "Qualified film production company" is an unincorporated business
which is principally engaged in the production of a qualified film and
controls the qualified film during production.
(5) Application of credit. (A) If the amount of the credit allowable
under this subdivision for any taxable year exceeds the taxpayer's tax
for such year, fifty percent of the excess shall be treated as an
overpayment of tax to be credited or refunded as provided in section
11-526 of this chapter, provided, however, that notwithstanding the
provisions of section 11-528 of this chapter, no interest shall be paid
thereon. The balance of such credit not credited or refunded in such
taxable year may be carried over to the immediately succeeding taxable
year and may be deducted from the taxpayer's tax for such year. The
excess, if any, of the amount of the credit over the tax for such
succeeding year shall be treated as an overpayment of tax to be credited
or refunded in accordance with the provisions of section 11-526 of this
chapter, provided, however, that notwithstanding the provisions of
section 11-528 of this chapter, no interest shall be paid thereon.
(B) Notwithstanding anything contained in this section to the
contrary, the credit provided by this subdivision shall be allowed
against the taxes authorized by this chapter for the taxable year after
reduction by all other credits permitted by this chapter.
* NB Expires August 20, 2008
(n) Industrial business zone tax credit. (1) For taxable years
beginning on or after January first, two thousand six, in addition to
any other credit allowed by this section, an eligible business that
first enters into a binding contract on or after July first, two
thousand five to purchase or lease eligible premises to which it
relocates shall be allowed a one-time credit against the tax imposed by
this chapter to be credited or refunded in the manner hereinafter
provided in this subdivision. The amount of such credit shall be one
thousand dollars per full-time employee; provided, however, that the
amount of such credit shall not exceed the lesser of actual relocation
costs or one hundred thousand dollars.
(2) When used in this subdivision, the following terms shall have the
following meanings:
"Eligible business" means any business subject to tax under this
chapter that (A) has been conducting substantial business operations and
engaging primarily in industrial and manufacturing activities at one or
more locations within the city of New York or outside the state of New
York continuously during the twenty-four consecutive full months
immediately preceding relocation, (B) has leased the premises from which
it relocates continuously during the twenty-four consecutive full months
immediately preceding relocation, (C) first enters into a binding
contract on or after July first, two thousand five to purchase or lease
eligible premises to which such business will relocate, and (D) will be
engaged primarily in industrial and manufacturing activities at such
eligible premises.
"Eligible premises" means premises located entirely within an
industrial business zone. For any eligible business, an industrial
business zone tax credit shall not be granted with respect to more than
one eligible premises.
"Full-time employee" means (A) one person gainfully employed in an
eligible premises by an eligible business where the number of hours
required to be worked by such person is not less than thirty-five hours
per week; or (B) two persons gainfully employed in an eligible premises
by an eligible business where the number of hours required to be worked
by each such person is more than fifteen hours per week but less than
thirty-five hours per week.
"Industrial business zone" means an area within the city of New York
established pursuant to section 22-626 of this code.
"Industrial business zone tax credit" means a credit, as provided for
in this subdivision, against a tax imposed under this chapter.
"Industrial and manufacturing activities" means activities involving
the assembly of goods to create a different article, or the processing,
fabrication, or packaging of goods. Industrial and manufacturing
activities shall not include waste management or utility services.
"Relocation" means the physical relocation of furniture, fixtures,
equipment, machinery and supplies directly to an eligible premises, from
one or more locations of an eligible business, including at least one
location at which such business conducts substantial business operations
and engages primarily in industrial and manufacturing activities. For
purposes of this subdivision, the date of relocation shall be (A) the
date of the completion of the relocation to the eligible premises or (B)
ninety days from the commencement of the relocation to the eligible
premises, whichever is earlier.
"Relocation costs" means costs incurred in the relocation of such
furniture, fixtures, equipment, machinery and supplies, including, but
not limited to, the cost of dismantling and reassembling equipment and
the cost of floor preparation necessary for the reassembly of the
equipment. Relocation costs shall include only such costs that are
incurred during the ninety-day period immediately following the
commencement of the relocation to an eligible premises. Relocation costs
shall not include any costs for structural or capital improvements or
items purchased in connection with the relocation.
(3) The credit allowed under this subdivision for any taxable year
shall be deemed to be an overpayment of tax by the taxpayer to be
credited or refunded without interest, in accordance with the provisions
of section 11-526 of this chapter.
(4) The number of full-time employees for the purposes of calculating
an industrial business zone tax credit shall be the average number of
full-time employees, calculated on a weekly basis, employed in the
eligible premises by the eligible business in the fifty-two week period
immediately following relocation.
(5) The credit allowed under this subdivision must be taken by the
taxpayer in the taxable year in which such fifty-two week period ends.
(6) For the purposes of calculating entire net income in the taxable
year that an industrial business zone tax credit is allowed, a taxpayer
must add back the amount of the credit allowed under this subdivision,
to the extent of any relocation costs deducted in the current taxable
year or a prior taxable year in calculating federal taxable income.
(7) The credit allowed under this subdivision shall not be granted for
an eligible business for more than one relocation. Notwithstanding the
foregoing, an industrial business zone tax credit allowed under this
subdivision shall not be granted if the eligible business receives
benefits pursuant to chapter six-B or six-C of title twenty-two of this
code, through a grant program administered by the business relocation
assistance corporation, or through the New York city printers relocation
fund grant.
(8) The commissioner of finance is authorized to promulgate rules and
regulations and to prescribe forms necessary to effectuate the purposes
of this subdivision.
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