Relates to a restaurant renovation tax incentive

1 Co-sponsor

• Robert Ortt

Title of bill

An act to amend the economic development law and the tax law, in relation to a restaurant renovation incentive program

Purpose or general idea of bill

To establish a restaurant renovation incentive program

Summary of specific provisions

Section one amends the economic development law to add article 23 to create the restaurant renovation tax incentive program which would provide a 25% credit on the money spent on renovation, improvement, repair, or upgrade of existing structures.

Section two amends the tax law by adding a new subdivision 51 to section 210-B to add the restaurant renovation credit.

Section three amends the tax law by adding a new subsection (eee) to section 606 for the restaurant renovation credit.

Section four amends the tax law by adding a new clause (xiiii) to subparagraph (B) of paragraph 1 of subsection (i) for the restaurant renovation incentive program credit.

Section five sets forth the effective date.

Justification

This legislation would allow New York's restaurant industries to remain competitive by encouraging and incentivizing renovation of their properties. These industries provide over a million jobs for New Yorkers, while also making our state attractive for tourism and business development.

This legislation will encourage restaurants to modernize and improve their physical assets. These improvements immediately create constructions jobs and increased sales tax for the state from the purchase of construction materials.

Looking to the future, studies of the restaurant industry have shown that the physical improvements covered by this legislation will lead to increased sales. Those increases in sales will then lead to long-term employment growth, which in turn will further bolster sales activity. New York State is one of the world's top destinations. A strong restaurant sector ensures that we will keep our competitive edge for years to come.

Prior legislative history

New Bill

Fiscal implications

To be determined

Effective date

This act shall take effect January 1, 2017 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 effective date is authorized to be made and completed on or before such date.