What's happening
This bill allows taxpayers to claim both the brownfield tax credit and certain Excelsior tax credits, with some limitations on overlapping costs.
Why it matters
Enables broader access to incentives. By allowing taxpayers to claim both the brownfield tax credit and certain Excelsior tax credits (for jobs, R&D, and real property), the bill could encourage more comprehensive redevelopment and investment in qualifying areas, potentially spurring job creation and economic growth.
Prevents double-dipping on costs. The bill explicitly prohibits taxpayers from claiming both credits for the same qualifying costs, ensuring that state resources are used efficiently and that businesses do not receive duplicate benefits for the same expenditure.
Targets brownfield redevelopment. Making it easier to stack incentives for brownfield sites could lead to faster cleanup and repurposing of contaminated properties, which can improve public health, boost local property values, and revitalize distressed areas.
Immediate applicability. By making the changes retroactive to tax years beginning January 1, 2017, the bill may provide immediate financial relief and certainty for businesses and developers who have already invested or are considering investments under the old rules.
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Who cares
Headline styles
Expand Tax Credit Eligibility
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3514
2017-2018 Regular Sessions
IN SENATE
January 24, 2017
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law and the economic development law, in relation to the excelsior investment tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (c) of section 31 of the tax law, as amended by section 47 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
(c) Election of credit. A taxpayer who or which is qualified to claim the excelsior investment tax credit component and is also qualified to claim the investment tax credit provided for under subdivision one of section two hundred ten-B or subsection (a) of section six hundred six of this chapter, may claim either the excelsior investment tax credit component or the investment tax credit, but not both with regard to a particular piece of property. In addition, a taxpayer who or which is qualified to claim the excelsior investment tax credit component and is also qualified to claim the brownfield tangible property credit component under section twenty-one of this article, [as added by chapter one of the laws of two thousand three, may claim either the excelsior investment tax credit component or such tangible property credit component, but not both with regard to a particular piece of property. The election to claim the excelsior investment tax credit component, the investment tax credit or the brownfield tangible property credit component, with regard to the same property, is irrevocable] can claim the excelsior investment tax credit component only to the extent that qualifying costs under the excelsior investment tax credit component are not qualifying costs under the brownfield tangible property credit component. Notwithstanding any law or regulation to the contrary, a taxpayer qualified to claim the brownfield tangible property credit component
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05077-01-7
S. 3514 2
under section twenty-one of this article, shall also be eligible to claim any or all of: (i) the excelsior jobs tax credit component; (ii) the excelsior research and development tax credit component; and/or (iii) the excelsior real property tax credit component.
§ 2. Subdivision 2 of section 355 of the economic development law, as amended by section 4 of part G of chapter 61 of the laws of 2011, is amended to read as follows:
2. Excelsior investment tax credit component. A participant in the excelsior jobs program shall be eligible to claim a credit on qualified investments. The credit shall be equal to two percent of the cost or other basis for federal income tax purposes of the qualified investment. A participant may not claim both the excelsior investment tax credit component and the investment tax credit set forth in subdivision twelve of section [two hundred ten]two hundred ten-B, subsection (a) of section six hundred six[, subsection (i) of section fourteen hundred fifty-six,] or subdivision (q) of section fifteen hundred eleven of the tax law for the same property in any taxable year, except that a participant may claim both the excelsior investment tax credit component and the investment tax credit for research and development property. In addition, a taxpayer who or which is qualified to claim the excelsior investment tax credit component and is also qualified to claim the brownfield tangible property credit component under section twenty-one of the tax law [may claim either the excelsior investment tax credit component or such tangible property credit component, but not both with regard to a particular piece of property. A credit may not be claimed until a business enterprise has received a certificate of tax credit, provided that qualified investments made on or after the issuance of the certificate of eligibility but before the issuance of the certificate of tax credit to the business enterprise, may be claimed in the first taxable year for which the business enterprise is allowed to claim the credit. Expenses incurred prior to the date the certificate of eligibility is issued are not eligible to be included in the calculation of the credit] can claim the excelsior investment tax credit component only to the extent that qualifying costs under the excelsior investment tax credit component are not qualifying costs under the brownfield tangible property credit component.
§ 3. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2017.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law and the economic development law, in relation to the excelsior investment tax credit
Purpose
To allow a company eligible for BCP credits to also be eligible for the Excelsior investment tax credit only to the extent that Excelsior credits provide incentives to activities excluded under the BCP, and to declare that a BCP applicant is not precluded from claiming all other credits under the Excelsior program.
Summary of provisions
Section 1: Amends section 31 of the tax law to clarify that a taxpayer can claim the BCP tangible property credit and the Excelsior investment tax credit only to the extent that the Excelsior credit provides incentives not eligible under the BCP tangible property credit.
Section 2: Provides corresponding amendments to section 355 of the Economic Development Law.
Section 3: Effective date.
Justification
Redevelopment of contaminated real estate is extremely risky and expensive. As a result, manufacturers that have chosen to redevelop brown-fields in New York face substantial costs over and above developing greenfields even accounting for all eligible BCP credits as the law existed prior to the 2015 enacted Budget.
In addition, amendments to the BCP program in 2015 have greatly restricted the types of tangible property than qualify for the tangible property credit. For example, prior to the 2015 amendments, advanced manufacturing equipment could receive up to a twenty-four percent refundable credit through the BCP. After these amendments, only costs relating to building structures and permanent fixtures can qualify for the BCP credit.
These unfortunate amendments have greatly reduced the attraction of the BCP to high technology and advanced manufacturing products firms looking to invest in New York State.
However, these types of costs for vital equipment and facilities do qualify for the Excelsior investment tax credit pursuant to section 355 of the Economic Development Law. Although the Excelsior Credit only provides a two percent refundable credit for these types of property, compared to the minimum of twelve percent under the pre-amended BCP, at least in the Excelsior program the State still recognizes the worth of attracting manufacturers and high technology companies and the corresponding extremely high costs of machinery and labs for these facilities.
Finally, the bill clarifies that eligibility for the BCP in no ways restricts eligible claims for all the other credits available under the Excelsior program.
This bill recognizes the twin goals of sustainable and environmentally beneficial development and the creation of high value investments and employment in the State.
Legislative history
2016: 5.7484 - referred from Investigations and committed to Finance
Fiscal implications
Based on types of projects currently in the BCP program, less than $1 million a year.
Effective date
Immediately and applies to taxable years beginning on or after January 1, 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.