Enacts the New York state green economic development zones act

Summary of provisions

Section 1 of this bill states the name of the act.

Section 2 amends section 499-aa of the real property tax law by adding paragraph (b-1) which includes "green zones" in the abatement zone in New York City.

Section 3 amends paragraphs (b),(c)and (d) of subdivision 10 of section 499-aa of the real property tax law. Paragraphs (b), (c) and (d) add the green zone provisions in regard to abatement zones.

Section 4 adds two new subdivisions, 14-b and 14-c to section 499-aa of the real property tax law. 14-b defines "green business" as a business that has its primary source of revenue of services in the following areas: (i) green house gas emission for. reduction technologies; (ii) the assembly of essential components for a clean-fueled vehicle; or (iii) energy efficiency technologies. Section 14-b proceeds to define what each provision of services means. 14-c of the subdivision determines which area of the borough of Staten Island will be considered a "green zone" based on the New York City department of city planning zoning maps.

Section 5 amends paragraph (b) of subdivision 28 of section 499-aa of the real property tax law in regards to adding a green business in a green zone to (as defined by subdivision 14-b) to what is considered an eligible building or eligible premise.

Section 6 adds subdivisions 1-c to 499-bb to the real property tax law. 1-c deals with the effective date and the benefits of a green business in a green zone. If a green business is located in a green zone and has a lease on or after July 1st, 2010 for no less than 3 years, shall receive an abatement of real property taxes for each year of the benefit period equal to the product obtained by multiplying the tenant's percentage share by the number of square feet in the eligible building.

Section 7 defines "eligible business" and addresses the time when a green business can relocate into a green zone. This section determines

that on or after July 1st 2010, a green business can enter into a contract to purchase of lease premises in a green zone.

Section 8 amends section 25-y of the general city law adding two new subdivision, (a-1) and (a-2). A-1 defines "green business" as any person that conducts eligible green activities and is subject to a tax imposed under a local law. A-2 defines "green zone" and lists the areas of Staten Island that are considered to be green zones.

Section 9 amends section 25-y of the general city law by adding para- graph 4 in regards to non-residential premises located entirely in real property located partially or entirely in a green zone.

Section 10 amends subdivision (f) of the general city regarding "eligi- ble area", adding a provision that states when a green business relo- cates after July 1st, 2010, an eligible area shall include a green zone.

Section 11 deals with subdivision 25-y of the general business law concerning "revitalization area" adding "green zones" to the definition after July 1st, 2010.

Section 12 amends subdivision (a) section 25-s of the general city law adding paragraph 1-a. 1-a is a provision that states that-a green busi- ness t

Section 13, 14, & 15 amends section 25-s of the general city law.

Section 16 amends the real property tax law by adding a new section 485-n.

Section 17 amends the tax law by adding a new subdivision 11.

Section 18 amends section 210 of the tax law by adding two new subdivi- sions 12-H and 12-I

Section 19 amends the tax law by adding a new subdivision 41

Section 20 adds a new clause (xxxi) to the tax law

Section 21 amends section 606 of the tax law by adding a new subsection (qq)

Section 22 amends section 1456 of the tax law by adding new subsection (u)

Section 23 amends section 1511 of the tax law by adding subdivision (y)

Justification

The green zone acts as a "go to place" for the entrepre- neur to put his/her green technology into production. The green zone is a designated area of Staten Island aimed at attracting companies that produce 'Green' goods and service. The zone will attract green technolo-

gy companies, venture capitalists, strategic planners and marketers that recognize the economic development potential in Staten Island.

A Green Enterprise Trade Zone is not unlike a Foreign Trade Zone. The concept of a Foreign Trade Zone has been part of our economic scheme since the 1930's. It exempted from tax, merchandise entering and leaving the Foreign Trade Zone, promotes trade and economic development.

This legislation proposes to establish a Green enterprise Zone to encourage and develop the green technologies necessary to slow the outflow of our U.S. dollars to purchase foreign oil, to protect our environment by encouraging the adoption of green business strategies and the production of green technology thus creating an area where the investment community can focus on green product development, as well as, an area where green products can be manufactured. This zone will estab- lish a location where companies focusing on green economic development can come together to individually and jointly spur development of a more green state.

Most importantly, the Green Zone Act will be a tax exemption on business profits for a fixed period of time. The tax exemption on business profits would stimulate green economic development and accelerate the developing clean tech industries that locate within the zone, allowing lower cost for green products sold in New York City and State, the larg- est market in the United States. Tax exemption worked for the Foreign Trade Zones, it will work for Green Zones,

Prior legislative history

New Bill,

Fiscal implications for state

To be determined,

Effective date

This act shall take effect immediately.