Enacts the New York state green economic development zones act

Summary of specific provisions

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

Section 2 of this bill establishes the types of green businesses that are covered under the act and establishes the Green Zone location within Staten Island. It also grants the commissioner of economic development the authority to establish rules and regulations.

Section 3 amends Section 210 of the tax law to allow for a thirty percent credit of any business or investment capital spent by a qualifying business within the Green Zone.

Sections 4 and 5 amend Section 616 of the tax law to allow for a thirty percent credit of any business or investment capital spent by a qualifying business within the Green Zone.

Section 6 amends Section 1456 of the tax law to allow for a thirty percent credit of any business or investment capital spent by a qualifying business within the Green Zone.

Section 7 amends Section 1511 of the tax law to allow for a thirty percent credit of any business or investment capital spent by a qualifying business within the Green Zone.

Section 8 states that the law shall take effect immediately.

Justification

The NYC Regional Council designated the Staten Island Green Zone as one of eight priority projects for the City of New York in its January 2012 report to the Governor. In addition, the Regional Council also designated the West Shore of Staten Island, which is home to the proposed Green Zone, as an "Opportunity Zone" meaning special attention from Staten funding agencies should be given to this region, including funding through the Excelsior Tax Credit program. The Federal Economic Development Administration recently awarded the Staten Island Economic Development Corporation $120,000 grant to study the proposed Green Zone.

The Green Zone is a geographically designated area of Staten Island aimed at attracting companies that produce Green goods and services, or who utilize Green technology. The Green Zone attracts companies who work within the sphere of smart growth and environmentally friendly development and research. The Green Zone acts as a "go to place" for

the entrepreneur who is prepared to put their technology into production and the market. Staten Island has a rich history of manufacturing and industrial production and a strong base for skilled labor. Advances in Green technology allow for increased and diversified employment and production on Staten Island. Businesses that take measurable steps in increasing energy and material efficiency will be the standard-bearers for increased Green initiatives throughout the region. The Green Zone and the initiatives of Green Zone companies will educate local companies and residents about the Green economy. This education and availability of resources will allow for efficiency retrofits, professional support and guidance for companies seeking financial incentives for Green investment, promote Green Collar job retraining options, improve alternative energy development, and attract Green businesses that create sustainable employment opportunities for Islanders.

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 establish 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 provide a tax credit for the businesses that invest within it, providing an incentive to relocate within the zone and create the synergies of locating in a common area.

Prior legislative history

2012: A.2219-E - Held for consideration in Ways and Means; S.5491-F died in Finance; 2010: A.10662-Died in Assembly Economic Development.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.