2006 New York Code - Definitions.

 
    §  22-623  Definitions.  When used in this chapter the following terms
  shall have the following meanings:
    (a) "Eligible business" means any person  subject  to  a  tax  imposed
  under  chapter  five,  or  subchapter  two  or  three of chapter six, or
  chapter eleven, of title eleven of the code, that:
    (1) has been conducting substantial business operations at one or more
  business locations outside the city of  New  York  for  the  twenty-four
  consecutive  months  immediately preceding the taxable year during which
  such eligible business relocates as defined in subdivision (j)  of  this
  section but has not maintained employment shares at premises in the city
  of  New  York at any time during the period beginning January first, two
  thousand two and ending on the date it enters into a lease or a contract
  to purchase the premises that will qualify as eligible premises pursuant
  to this chapter; and
    (2) on or after July first, two thousand three relocates as defined in
  subdivision (j) of this section all or part of such business operations.
    (b)  "Person"  includes  any  individual,  partnership,   association,
  joint-stock  company,  corporation,  estate  or trust, limited liability
  company, and any combination of the foregoing.
    (c) "Retail activity" means any activity which consists  predominately
  of  the  sale,  other  than  through the mail, or by the telephone or by
  means of the internet, of tangible personal property to any person,  for
  any  purpose unrelated to the trade or business of such person, or which
  consists predominately of the selling of services to  individuals  which
  generally  involve  the  physical,  mental and/or spiritual care of such
  individuals, or the physical care of the personal property of any person
  unrelated to the trade or business of such  person,  or  which  consists
  predominately of the provision of retail banking services.
    (d) "Hotel services" means any services which consist predominately of
  the  lodging  of  guests  at  a  building  or a portion thereof which is
  regularly used  and  kept  open  for  such  services.  The  term  "hotel
  services"  shall  include the lodging of guests at an apartment hotel, a
  motel, boarding house or club, whether or not meals are served.
    (e) "Eligible premises" means: (1) Non-residential premises which  are
  wholly  contained  in  real  property  which is certified as eligible to
  receive benefits pursuant to part three or part four of  subchapter  two
  of  chapter two of title eleven of the code, provided that such premises
  have been improved by construction or renovation, that expenditures have
  been made after June thirtieth, two thousand three, or in the case of  a
  relocation  by  a  special  eligible business, after June thirtieth, two
  thousand five, for improvements to such real property in excess of fifty
  per centum or,  in  the  case  of  industrial  property,  in  excess  of
  twenty-five  per  centum,  of  the value at which such real property was
  assessed for tax purposes for the tax year in  which  such  improvements
  commenced  and such expenditures have been made within thirty-six months
  or, in the case of expenditures  for  such  improvements  to  such  real
  property  in  excess  of fifty million dollars within seventy-two months
  from such commencement, and, provided further, that such  real  property
  is  located  in the eligible Lower Manhattan area, and provided further,
  that in the case of a special eligible business, a lease or  a  contract
  to  purchase such premises is first entered into by the special eligible
  business after June thirtieth, two thousand five;
    (2) non-residential premises which are: (i)  wholly  contained  in  or
  situated  on  real property which has been leased from the New York city
  industrial development agency established pursuant to article eighteen-A
  of  the  general  municipal  law,  provided  that  such  premises   were
  constructed or renovated subsequent to the approval of such construction
  or renovation by such agency, or (ii) wholly contained in or situated on


  real  property  owned  by  the  city,  a lease for which was approved in
  accordance with the applicable provisions of the charter, provided  that
  such premises were constructed or renovated subsequent to such approval,
  or (iii) wholly contained in or situated on real property which has been
  leased  from  the port authority of the state of New York and New Jersey
  or the New York state urban development  corporation,  or  a  subsidiary
  thereof,  provided  that  such  premises  were  constructed or renovated
  subsequent to the execution of such lease, or (iv) wholly  contained  in
  property  which  would  be eligible to receive benefits pursuant to part
  four of subchapter two of chapter two of title eleven of the code except
  that such property is exempt from real property taxation; provided  that
  expenditures have been made after June thirtieth, two thousand three, or
  in  the  case of a relocation by a special eligible business, after June
  thirtieth, two thousand five, for improvements to such real property  in
  excess  of  fifty  per centum or, in the case of industrial property, in
  excess of twenty-five per centum,  of  the  value  at  which  such  real
  property  was  assessed  for tax purposes for the tax year in which such
  improvements commenced and  such  expenditures  have  been  made  within
  thirty-six  months or, in the case of expenditures for such improvements
  to such  real  property  in  excess  of  fifty  million  dollars  within
  seventy-two  months  from  the  date  of such commencement, and provided
  further that such  real  property  is  located  in  the  eligible  Lower
  Manhattan  area,  and  provided  further,  that in the case of a special
  eligible business, a lease or a contract to purchase  such  premises  is
  first   entered  into  by  the  special  eligible  business  after  June
  thirtieth, two thousand five; or
    (3) in the case of  an  eligible  business,  non-residential  premises
  which are located in the eligible Lower Manhattan area for which a lease
  or a contract to purchase is first entered into by the eligible business
  on  or  after  July  first,  two  thousand three and for which a minimum
  expenditure has been made after such date for improvements in excess  of
  twenty-five  dollars  per  square  foot,  or  in  the  case of a special
  eligible business, non-residential premises  that  are  located  in  the
  eligible  Lower  Manhattan  area  for  which  a  lease  or a contract to
  purchase is first entered into  by  the  eligible  business  after  June
  thirtieth,  two  thousand  five  and for which a minimum expenditure has
  been made after June thirtieth, two thousand five, for  improvements  in
  excess  of twenty-five dollars per square foot, provided, however, that,
  in either case, if such premises are leased, such  lease  shall  have  a
  term  that does not expire until at least three years after the later of
  the date of relocation and the lease commencement date.
    Notwithstanding the provisions of  paragraphs  one  and  two  of  this
  subdivision,  if,  subsequent to the date of certification, the property
  in which such premises are contained ceases to meet the requirements  of
  paragraph   one   or  two  of  this  subdivision,  such  premises  shall
  nonetheless  remain  eligible  premises,  provided  that  the   eligible
  business or special eligible business continues to occupy such premises;
  provided  however  that  if,  after  such  property  ceases  to meet the
  requirements of paragraph one or two, an eligible  business  or  special
  eligible   business   first  leases  or  purchases  additional  premises
  contained in such  property,  such  additional  premises  shall  not  be
  considered  eligible  premises  unless  they  meet  the  requirements of
  paragraph three of this subdivision.
    (f) "Eligible Lower Manhattan area" means the area in the city of  New
  York  in the borough of Manhattan lying south of a line running from the
  intersection of the Hudson River with the Holland  Tunnel,  and  running
  thence  north  along West Street to the intersection of Clarkson Street,
  then running east  along  the  centerline  of  Clarkson  Street  to  the


  intersection   of  Washington  Street,  then  running  south  along  the
  centerline of Washington Street to  the  intersection  of  West  Houston
  Street,  then  east along the centerline of West Houston Street, then at
  the intersection of the Avenue of the Americas continuing east along the
  centerline  of  East  Houston  Street  to  the easterly bank of the East
  River.
    (g) "Employment share" means,  for  each  employee,  partner  or  sole
  proprietor of an eligible business or special eligible business, the sum
  of:  (1)  the  number  of  full-time work weeks worked by such employee,
  partner or sole proprietor during  the  eligible  business'  or  special
  eligible  business'  taxable  year divided by the number of weeks in the
  taxable year, and (2) the number of part-time work weeks worked by  such
  employee,  partner  or  sole proprietor during the eligible business' or
  special eligible business' taxable year divided by an  amount  equal  to
  twice  the  number  of  weeks  in the taxable year. For purposes of this
  subdivision, "full-time work week" shall mean a  week  during  which  at
  least  thirty-five  hours  of  gainful  work  has been performed by such
  employee, partner or sole proprietor and  "part-time  work  week"  shall
  mean  a  week  during  which  at least fifteen but less than thirty-five
  hours of gainful work has been performed by such  employee,  partner  or
  sole  proprietor.  For purposes of this section, employment shares shall
  not be based upon work weeks attributable to employees, partners or sole
  proprietors  acquired  by  an  eligible  business  or  special  eligible
  business as a result of a merger with, acquisition of another person, or
  a  transaction  having  a  comparable  effect,  that  occurs  after June
  thirtieth, two thousand five, and before the end of the taxable year  in
  which  a  credit  is  claimed by such eligible business pursuant to this
  section, or to successors, if any, to those employees, partners or  sole
  proprietors.
    (h)  "Aggregate  employment  shares"  means  the sum of all employment
  shares maintained by an eligible business or special  eligible  business
  in a taxable year.
    (i)  (1)  "Eligible aggregate employment shares" means, in the case of
  an eligible business, the amount, if any, of aggregate employment shares
  maintained by an eligible business in eligible premises in the  eligible
  Lower Manhattan area in the taxable year in which such eligible business
  claims  a  credit  pursuant to section 22-624 of this chapter. Provided,
  however, that such amount shall  not  exceed  the  lesser  of:  (i)  the
  highest  number  of  aggregate  employment  shares  maintained  by  such
  eligible business in eligible premises in the taxable year during  which
  such  eligible  business  relocates  or  in  any of the five immediately
  succeeding taxable years; or (ii) the greater of one  hundred  aggregate
  employment  shares  and  twice the number of aggregate employment shares
  maintained by such eligible business outside the city of New York in the
  taxable year immediately preceding the taxable year  during  which  such
  eligible   business   relocates.   In   determining  eligible  aggregate
  employment shares, work weeks at premises prior to the later of the date
  of relocation and the  date  such  premises  meet  the  requirements  of
  subdivision (e) of this section shall not be taken into account.
    (2)  In  the  case of a special eligible business, "eligible aggregate
  employment shares" means: the  amount  of  aggregate  employment  shares
  determined  in  subparagraph  (i)  of this paragraph, provided, however,
  such amount shall not exceed the lowest of  the  amounts  determined  in
  subparagraphs (ii), (iii), (iv) and (v) of this paragraph.
    (i)  the  amount  determined  in  this  subparagraph  is the number of
  aggregate employment shares maintained by a special eligible business in
  eligible premises in the eligible Lower Manhattan area  in  the  taxable
  year in which such special eligible business claims a credit pursuant to


  section  22-624  of this chapter less the number of aggregate employment
  shares maintained by such business in such premises in the taxable  year
  prior to the year of relocation.
    (ii) the amount determined in this subparagraph is the amount, if any,
  by  which  the  number  of  aggregate  employment shares maintained by a
  special eligible business in the taxable year in the city  of  New  York
  exceeds the number of New York city base shares.
    (iii)  the  amount  determined  in this subparagraph is the amount, if
  any, by which number of aggregate  employment  shares  maintained  by  a
  special  eligible  business  in  the  taxable year in the eligible Lower
  Manhattan area exceeds the number of Lower Manhattan base shares.
    (iv) the amount determined in this subparagraph is the greater of  one
  hundred  and  twice the number of aggregate employment shares maintained
  by the special eligible business outside the city of  New  York  in  the
  year prior to the year of relocation.
    (v) the amount determined in this subparagraph is:
    (A)  for  the  year  of relocation, the number of full-time work weeks
  worked by relocated employees in eligible premises  after  the  date  of
  relocation divided by the number of weeks in such taxable year, plus the
  number of part-time work weeks worked by such employees in such premises
  after  the  date  of relocation, divided by twice the number of weeks in
  the taxable year of relocation;
    (B) for taxable years after the taxable year of relocation, the lesser
  of:
    (I) the number of relocated employee base shares plus the  product  of
  (a)  the  excess,  if  any, of the number of aggregate employment shares
  determined in subparagraph (i) of this  paragraph  over  the  number  of
  relocated  employee  base  shares  and  (b) a fraction, the numerator of
  which  is  the  number  of  relocated  employee  base  shares  and   the
  denominator  of  which  is the sum of relocated employee base shares and
  New York city base shares; and
    (II) the  highest  number  of  eligible  aggregate  employment  shares
  maintained  by the special eligible business in eligible premises during
  the year of relocation  and  the  five  immediately  succeeding  taxable
  years.
    (j)  In the case of an eligible business, "relocate" means to transfer
  pre-existing business operations to one or more premises  which  are  or
  will become eligible premises in accordance with subdivision (e) of this
  section,  or  to  establish  new  business  operations at such premises,
  provided that an eligible business shall not be deemed to have relocated
  unless at least one employee, partner or sole proprietor of the eligible
  business is transferred to  such  premises  from  pre-existing  business
  operations  conducted  outside  the  city  of  New  York.  The  date  of
  relocation shall be the later  of:  (1)  the  first  day  on  which  the
  individual  so  transferred  commences work at premises that are or will
  become eligible premises, and (2) the date of completion  of  sufficient
  improvements  to  the  eligible  premises  at  which such individual has
  commenced work, to meet the requirements  of  subdivision  (e)  of  this
  section  relating  to expenditures for improvements. The taxable year of
  relocation shall be the taxable year in which  the  date  of  relocation
  occurs.  For purposes of this chapter, an eligible business may relocate
  only once but may add or substitute other eligible  premises  throughout
  the  period during which it is authorized pursuant to subdivision (a) of
  section 22-624 of this chapter to receive the  credit  allowed  by  such
  section.
    (k)  "Tax year" and "taxable year" mean, for purposes of this chapter,
  in the case of taxpayers authorized to receive  the  credit  allowed  by


  section 22-624 of this chapter against the tax imposed by chapter eleven
  of title eleven of the code, calendar year.
    (l)  "Special  eligible  business"  means  any person subject to a tax
  imposed under chapter five, or subchapter two or three of  chapter  six,
  or  chapter  eleven,  of  title  eleven  of the code, that: (1) has been
  conducting substantial business  operations  at  one  or  more  business
  locations  outside  the city of New York for the twenty-four consecutive
  months immediately preceding the taxable year during which such eligible
  business  relocates  as  defined  in  subdivision  (m);  (2)  maintained
  employment  shares  at  premises in Manhattan in the city of New York at
  some time during the period beginning January first, two  thousand  two,
  and  ending on the date it enters into a lease or a contract to purchase
  the premises that will qualify as eligible  premises  pursuant  to  this
  section,  and  (3)  on  or  after  June  thirtieth,  two  thousand five,
  relocates as defined in subdivision (m) of this section all or  part  of
  such business operations.
    (m)  In  the  case  of a special eligible business "relocate" means to
  transfer pre-existing business operations and employees from one or more
  qualifying business locations outside the city of New  York  to  one  or
  more  premises  which are or will become eligible premises in accordance
  with subdivision (e) of this section. The date of  relocation  shall  be
  the  later  of:  (1)  the  first  day  on  which the first individual so
  transferred commences work at premises that are or will become  eligible
  premises,  and  (2) the date of completion of sufficient improvements to
  the eligible premises at which such individual  has  commenced  work  to
  meet  the  requirements  of  subdivision (e) of this section relating to
  expenditures for improvements. The taxable year of relocation  shall  be
  the taxable year in which the date of relocation occurs. For purposes of
  this chapter, a special eligible business may relocate only once but may
  add  additional  eligible premises throughout the period during which it
  is authorized pursuant to subdivision (a)  of  section  22-624  of  this
  chapter to receive the credit allowed by such section.
    (n)  "Relocated  Employee"  means  an  employee  of a special eligible
  business who (1) has worked at a qualifying  business  location  of  the
  eligible business outside of the city of New York continuously full-time
  or  part-time for the ten work weeks prior to the date of relocation and
  continuously from the date of relocation until the date of  transfer  to
  eligible  premises;  (2)  is  transferred  to eligible premises; and (3)
  continues to work for the eligible business at the eligible premises for
  at least ten full work weeks after the date of transfer.
    (o) "Relocated employee base shares" means  the  number  of  full-time
  work weeks worked by relocated employees in eligible premises during the
  twelve  calendar  months  after  the month of relocation, divided by the
  number of weeks in such twelve months, plus the number of part time work
  weeks worked by such employees in such premises  divided  by  twice  the
  number of weeks in such months.
    (p)  "New  York  city  base  shares"  means  the  number  of aggregate
  employment shares maintained by the special  eligible  business  in  the
  city of New York in the year prior to the year of relocation.
    (q)  "Lower  Manhattan  base  shares"  means  the  number of aggregate
  employment shares maintained by the special  eligible  business  in  the
  eligible  Lower  Manhattan  area  in  the  year  prior  to  the  year of
  relocation.
    (r) "Qualifying business location" means  a  business  location  of  a
  special  eligible business located outside the city of New York at which
  such business has been conducting substantial  business  operations  for
  the twenty-four months immediately preceding the year of relocation.