N.Y. General City Law 25-Z – Authorization to provide relocation and employment assistance credits
§ 25-z. Authorization to provide relocation and employment assistance credits. (a) Any city having a population of one million or more is hereby authorized and empowered to adopt and amend a local law allowing an eligible business that relocates as defined in subdivision (j) of section twenty-five-y of this article to receive a credit against a tax imposed under a local law enacted pursuant to part two or three of section one, or section two, of chapter seven hundred seventy-two of the laws of nineteen hundred sixty-six or a gross receipts tax imposed under a local law enacted pursuant to subdivision (a) of § 1201 of the tax law. The amount of such credit shall be in an amount equal to five hundred dollars or, in the case of an eligible business that has obtained pursuant to subdivision (b) of this section a certification of eligibility dated on or after July first, nineteen hundred ninety-five, one thousand dollars or, in the case of eligible business that has obtained pursuant to subdivision (b) of this section a certification of eligibility dated on or after July first, two thousand, for a relocation to eligible premises located within a revitalization area defined in subdivision (n) of section twenty-five-y of this article, three thousand dollars, multiplied by the number of eligible aggregate employment shares, and may be taken, pursuant to the provisions of subdivision two of section four-h of part two of section one, or paragraph two of subdivision (j) of section one hundred one of section two of chapter seven hundred seventy-two of the laws of nineteen hundred sixty-six, or pursuant to the provisions of a local law enacted pursuant to subdivision (a) of § 1201 of the tax law, for up to thirteen consecutive taxable years beginning with the taxable year in which the eligible business relocates as defined in subdivision (j) of section twenty-five-y of this article; provided, however, with respect to a relocation for which no application for a certificate of eligibility is submitted prior to July first, two thousand three, to eligible premises that are not within a revitalization area, if the date of such relocation as determined pursuant to subdivision (j) of section twenty-five-y of this article is before July first, nineteen hundred ninety-five, the amount to be multiplied by the number of eligible aggregate employment shares shall be five hundred dollars, and with respect to a relocation for which no application for a certificate of eligibility is submitted prior to July first, two thousand three, to eligible premises that are within a revitalization area, if the date of such relocation as determined pursuant to subdivision (j) of such section is before July first, nineteen hundred ninety-five, the amount to be multiplied by the number of eligible aggregate employment shares shall be five hundred dollars, and if the date of such relocation as determined pursuant to subdivision (j) of such section is on or after July first, nineteen hundred ninety-five, and before July first, two thousand, one thousand dollars; provided that no such credit shall be allowed for the relocation of any retail activity or hotel services; provided, notwithstanding any other provision of law to the contrary, that no such credit shall be allowed against a gross receipts tax imposed under a local law enacted pursuant to subdivision (a) of § 1201 of the tax law for any relocation taking place prior to January first, nineteen hundred ninety-nine; and provided that in the case of an eligible business that has obtained pursuant to subdivision (b) of this section certifications of eligibility for more than one relocation as defined in subdivision (j) of section twenty-five-y of this article, the portion of the total amount of eligible aggregate employment shares to be multiplied by the dollar amount specified in this subdivision for each such certification of a relocation shall be the number of total attributed eligible aggregate employment shares determined with respect to such relocation pursuant to subdivision (o) of section twenty-five-y of this article.
Terms Used In N.Y. General City Law 25-Z
- Aggregate employment shares: means the sum of all employment shares maintained by an eligible business in a taxable year. See N.Y. General City Law 25-Y
- Contract: A legal written agreement that becomes binding when signed.
- Designated additional or replacement premises: means nonresidential premises in the eligible area that (i) are owned or leased by an eligible business that has been certified pursuant to subdivision (b) of section twenty-five-z of this article to receive the credit provided for in this article, and (ii) with regard to which such eligible business obtains the certification provided for in subdivision (e) of section twenty-five-z of this article. See N.Y. General City Law 25-Y
- Eligible aggregate employment shares: means the amount, if any, by which the number of aggregate employment shares maintained by an eligible business in an eligible area in the taxable year in which such eligible business claims a credit pursuant to a local law enacted in accordance with section twenty-five-z of this article exceeds the number of aggregate employment shares maintained by an eligible business in an eligible area in the taxable year immediately preceding the taxable year during which such eligible business first relocates as defined in subdivision (j) of this section. See N.Y. General City Law 25-Y
- Eligible business: means any person subject to a tax imposed under a local law enacted pursuant to part two or three of section one, or section two, of chapter seven hundred seventy-two of the laws of nineteen hundred sixty-six or a gross receipts tax imposed under a local law enacted pursuant to subdivision (a) of § 1201 of the tax law that: (1) has been conducting substantial business operations at one or more business locations outside an eligible area 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; and (2) on or after May twenty-seventh, nineteen hundred eighty-seven relocates as defined in subdivision (j) of this section all or part of such business operations; and (3) either (i) on or after May twenty-seventh, nineteen hundred eighty-seven first enters into a contract to purchase or lease the premises to which it relocates as defined in subdivision (j) of this section, or a parcel on which will be constructed such premises, or (ii) as of May twenty-seventh, nineteen hundred eighty-seven owns such parcel or premises and has not prior to such date made application for benefits pursuant to a local law enacted in accordance with title two-D of Article 4 of the real property tax law. See N.Y. General City Law 25-Y
- Eligible premises: means : (1) nonresidential premises which are wholly contained in real property which is certified as eligible to receive benefits pursuant to a local law enacted in accordance with title two-C or title two-D of Article 4 of the real property tax law, provided that such premises have been improved by construction or renovation, that expenditures have been made 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 an eligible area;
(2) nonresidential premises which are: (i) wholly contained in or situated on real property which has been leased from an industrial development agency established pursuant to Article 18-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 a city having a population of one million or more, a lease for which was approved in accordance with the applicable provisions of the charter of such city, 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 a local law enacted in accordance with title two-D of Article 4 of the real property tax law except that such property is exempt from real property taxation; provided that expenditures have been made 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 an eligible area; or
(3) in the case of a relocation, the date of which, as determined in subdivision (j) of this section, is on or after July first, two thousand three, nonresidential premises, located in an eligible area, for which a minimum expenditure has been made on or after July first, two thousand three, for improvements in excess of twenty-five dollars per square foot, provided, however, that 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 such relocation and the lease commencement date. See N.Y. General City Law 25-Y - Hotel services: means any services which consist predominantly of the lodging of guests at a building or a portion thereof which is regularly used and kept open for such services. See N.Y. General City Law 25-Y
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Particular eligible premises: means the portion of such particular premises that meets the requirements for eligible premises specified in subdivision (e) of this section. See N.Y. General City Law 25-Y
- Particular premises: means all premises occupied by an eligible business within a single building. See N.Y. General City Law 25-Y
- Retail activity: means any activity which consists predominantly 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 predominantly 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 predominantly of the provision of retail banking services. See N.Y. General City Law 25-Y
- Revitalization area: means any area of a city having a population of one million or more, provided that in the city of New York a revitalization area shall mean any district that is zoned C4, C5, C6, M1, M2 or M3 in accordance with the zoning resolution of such city in any area such city except the area lying south of the center line of 96th Street in the borough of Manhattan. See N.Y. General City Law 25-Y
- Total attributed eligible aggregate employment shares: means , for any relocation, the sum of the number of eligible aggregate employment shares apportioned to such relocation pursuant to paragraph one of this subdivision, less any excess shares determined with respect to such relocation pursuant to paragraph two of this subdivision, plus any excess shares attributed to such relocation pursuant to paragraph three of this subdivision. See N.Y. General City Law 25-Y
(b) No eligible business shall be authorized to receive a credit under any local law enacted pursuant to this article until the premises with respect to which it is claiming the credit meet the requirements in the definition of eligible premises and until it has obtained a certification of eligibility from the mayor of such city or an agency designated by such mayor, and an annual certification from such mayor or an agency designated by such mayor as to the number of eligible aggregate employment shares maintained by such eligible business that may qualify for obtaining a tax credit for the eligible business' taxable year. Any written documentation submitted to such mayor or such agency or agencies in order to obtain any such certification shall be deemed a written instrument for purposes of § 175.00 of the penal law. Such local law may provide for application fees to be determined by such mayor or such agency or agencies. No such certification of eligibility shall be issued under any local law enacted pursuant to this article to an eligible business on or after July first, two thousand twenty-five unless:
(1) prior to such date such business has purchased, leased or entered into a contract to purchase or lease particular premises or a parcel on which will be constructed such premises or already owned such premises or parcel;
(2) prior to such date improvements have been commenced on such premises or parcel, which improvements will meet the requirements of subdivision (e) of section twenty-five-y of this article relating to expenditures for improvements;
(3) prior to such date such business submits a preliminary application for a certification of eligibility to such mayor or such agency or agencies with respect to a proposed relocation to such particular premises; and
(4) such business relocates to such particular premises not later than thirty-six months or, in a case in which the expenditures made for the improvements specified in paragraph two of this subdivision are in excess of fifty million dollars within seventy-two months from the date of submission of such preliminary application.
(c) The mayor of such city or an agency or agencies designated by such mayor shall be authorized to promulgate rules and regulations to administer and assure compliance with the provisions of this article, including but not limited to rules and regulations to provide for alternative methods to measure employment shares in instances where an eligible business is not required by law to maintain weekly records of full-time work weeks and part-time work weeks of employees, partners or sole proprietors as defined in subdivision (g) of section twenty-five-y of this article.
(d) An eligible business other than a utility company subject to the supervision of the department of public service shall not be authorized to receive a credit under a local law enacted pursuant to this article against a gross receipts tax imposed under a local law enacted pursuant to subdivision (a) of § 1201 of the tax law, unless such eligible business elects to take the credit authorized by this section against the tax imposed under such local law on an application filed with respect to the first relocation of such business that qualifies or will qualify under a local law enacted pursuant to this article, with the mayor of such city or the agency designated by such mayor pursuant to subdivision (b) of this section. The election authorized by this subdivision may not be withdrawn after the issuance of such certification of eligibility. No taxpayer that has previously received a certification of eligibility to receive the credit authorized by this section against any tax imposed under a local law enacted pursuant to part two or three of section one, or section two, of chapter seven hundred seventy-two of the laws of nineteen hundred sixty-six may make the election authorized by this subdivision. No taxpayer that makes the election provided in this subdivision shall be authorized to take such credit against any tax imposed under a local law enacted pursuant to part two or three of section one, or section two, of chapter seven hundred seventy-two of the laws of nineteen hundred sixty-six.
(e) Notwithstanding any other provisions of this article, an eligible business that has obtained pursuant to subdivision (b) of this section a certification of eligibility for a relocation to particular eligible premises may apply to the mayor of such city or an agency designated by such mayor to have premises in a building, other than the building in which such particular eligible premises are located, certified as designated additional or replacement premises as defined in subdivision (q) of section twenty-five-y of this article. After the certification provided for in this subdivision has been obtained, any aggregate employment shares maintained by the eligible business in such premises shall be treated as if such employment shares were maintained in the particular eligible premises to which the eligible business relocated. No such certification shall be issued after the end of the period provided for in subdivision (a) of this section during which the credit may be taken with regard to the relocation to such particular eligible premises, and the issuance of such certification shall not extend such period. Provided however, (i) no premises shall be certified as designated additional or replacement premises if the eligible business maintained employment shares in such premises prior to the application for certification provided for in this subdivision, (ii) no premises shall be certified as designated additional or replacement premises unless such premises meet the requirements for eligible premises in subdivision (e) of section twenty-five-y of this article, and (iii) if the particular premises to which the eligible business relocated are in a revitalization zone, no premises shall be certified as designated additional or replacement premises with regard to such relocation unless such designated additional or replacement premises are located in a revitalization zone.
(f)(1)(i) Notwithstanding the provisions of subdivision (i) of section twenty-five-y of this article, in the case of an eligible business meeting the criteria in subparagraphs (ii) and (iii) of this paragraph, the mayor or his or her designee, in his or her discretion, may for any taxable year in which such business is eligible to receive the credit provided for in this section, determine the number of eligible aggregate employment shares as provided in paragraph two of this subdivision, and such number shall be deemed to be the number of eligible aggregate employment shares determined pursuant to such subdivision (i) of section twenty-five-y for the purpose of attributing shares pursuant to subdivision (o) of section twenty-five-y of this article to relocations as defined in subdivision (j) of such section twenty-five-y occurring after July first, two thousand three:
(ii) in the case of a relocation before July first, two thousand five, in the taxable year prior to its first relocation after July first, two thousand three (such prior year being hereafter referred to as the "base year"), such eligible business maintained more than one hundred aggregate employment shares in the eligible Lower Manhattan area as defined in subdivision (f) of section twenty-five-dd of this chapter, provided that in the case of a relocation after June thirtieth, two thousand five, in the taxable year prior to its first relocation after such date (such prior year being hereafter referred to as the "base year"), such eligible business maintained one or more aggregate employment shares in such eligible Lower Manhattan area, and
(iii) in the case of a relocation before July first, two thousand five, in the taxable year subsequent to the base year for which the determination of eligible aggregate employment shares is being made, the number of aggregate employment shares in the eligible Lower Manhattan area maintained by the eligible business is less than the number of aggregate employment shares it maintained in such area in the base year reduced by one hundred, provided that in the case of a relocation after June thirtieth, two thousand five, in the taxable year subsequent to the base year for which the determination of eligible aggregate employment shares is being made, the number of aggregate employment shares in the eligible Lower Manhattan area maintained by the eligible business is less than the number of aggregate employment shares it maintained in such area in the base year.
(2) The number of eligible aggregate employment shares determined under this paragraph shall be the number of eligible aggregate employment shares determined pursuant to subdivision (i) of section twenty-five-y of this article without regard to paragraphs one and three of such subdivision (i), less the reduction amount provided for in paragraph three of this subdivision.
(3) For any taxable year, the reduction amount shall be the excess of (i) the number of aggregate employment shares maintained by the eligible business in the eligible Lower Manhattan area in the base year, over (ii) the number of aggregate employment shares maintained by the eligible business in the eligible Lower Manhattan area in the taxable year.
(4) Notwithstanding anything herein to the contrary, the number of eligible aggregate employment shares may be determined pursuant to paragraph two of this subdivision only if the number of such shares determined pursuant to such paragraph two is less than the number of such shares determined pursuant to subdivision (i) of section twenty-five-y of this article.
(5) The mayor, or his or her designee, shall exercise the discretion provided for in paragraph one of this subdivision if he or she determines it to be in the best interests of the city, taking into account whether the credit provided for in this section caused the reduction in the number of jobs maintained by the eligible business in the eligible Lower Manhattan area.
(g) For the duration of the benefit period, a recipient of a credit under any local law enacted pursuant to this article shall file annually, along with the aforementioned original and annual certificates of eligibility, the average wage and benefits offered to the applicable relocated employees used in determining eligible aggregate employment shares, pursuant to subdivision (i) of section twenty-five-y of this article. The department shall have the authority to require that statements filed under this subdivision be certified.