S T A T E O F N E W Y O R K ________________________________________________________________________ S. 4610--A A. 6721--A S E N A T E - A S S E M B L Y March 31, 2015 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend chapter 41 of the laws of 1985 relating to providing for the construction of a civic center in Albany and making appropriations relating to the construction of such facility, in relation to the repayment of such appropriation (Part A); to amend the economic devel- opment law, in relation to START-UP NY airport facilities (Part B); to amend the education law, in relation to transportation aid (Part C); to amend the administrative code of the city of New York, in relation to the taxation of business corporations (Part D); establishing a commission on legislative, judicial and executive compensation, and providing for the powers and duties of the commission and for the dissolution of the commission and repealing chapter 567 of the laws of 2010 relating to establishing a special commission on compensation, and providing for their powers and duties; and to provide periodic salary increases to state officers (Part E); to permit authorized state entities to utilize the design-build method for infrastructure projects; and providing for the repeal of such provisions upon expira- tion thereof (Part F); establishing the New York State water infras- tructure improvement act of 2015 (Part G); to amend the state finance law, in relation to the creation of a new dedicated infrastructure investment fund (Part H); and to provide for the administration of certain funds and accounts related to the 2015-16 budget, authorizing certain payments and transfers; to amend the state finance law, in relation to the rainy day reserve fund and the school tax relief fund; to amend the state finance law, in relation to payments, transfers and deposits; to amend the state finance law, in relation to the issuance of bonds and notes; to amend the New York state urban development EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12578-02-5 S. 4610--A 2 A. 6721--A corporation act, in relation to funding project costs for certain capital projects; to amend chapter 389 of the laws of 1997, relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; to amend the private housing finance law, in relation to hous- ing program bonds and notes; to amend chapter 329 of the laws of 1991, amending the state finance law and other laws relating to the estab- lishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; to amend the public authorities law, in relation to the dormitory authority; to amend chapter 61 of the laws of 2005, providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to issuance of bonds by the urban development corporation; to amend the New York state urban development corporation act, in relation to funding project costs for the Binghamton university school of pharmacy, New York power electronic manufacturing consortium and the nonprofit infrastructure capital investment program; to amend the public author- ities law, in relation to the state environmental infrastructure projects; to amend the New York state urban development corporation act, in relation to authorizing the urban development corporation to issue bonds to fund project costs for the implementation of a NY-CUNY challenge grant program; to amend chapter 81 of the laws of 2002, providing for the administration of certain funds and accounts related to the 2002-2003 budget, in relation to increasing the aggregate amount of bonds to be issued by the New York state urban development corporation; to amend the public authorities law, in relation to financing of peace bridge and transportation capital projects; to amend the public authorities law, in relation to dormitories at certain educational institutions other than state operated insti- tutions and statutory or contract colleges under the jurisdiction of the state university of New York; to amend the public authorities law, in relation to authorization for the issuance of bonds for the capital restructuring bond finance program and the health care facility trans- formation program; to amend chapter 389 of the laws of 1997, relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; to amend the New York state medical care facilities finance agency act, in relation to bonds and mental health facilities improve- ment notes; to amend the New York state urban development corporation act, in relation to the aggregate amount of and issuance of certain bonds; and to amend chapter 63 of the laws of 2005, relating to the composition and responsibilities of the New York state higher educa- tion capital matching grant board, in relation to increasing the amount of authorized matching capital grants; to amend the New York state urban development corporation act, in relation to the issuance of bonds or notes for the purpose of funding project costs associated with capital projects; to amend the public authorities law, in relation to financing of the metropolitan transportation authority transportation facilities; and providing for the repeal of certain provisions upon expiration thereof (Part I); and to amend the public health law, in relation to establishing the health care facility transformation program in Kings and Oneida counties; in relation to establishing the essential health care provider support program; in relation to the capital restructuring financing program; and in relation to establishing the community health care revolving capital fund (Part J) S. 4610--A 3 A. 6721--A THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the state fiscal plan for the 2015-2016 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through J. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. 12 PART A 13 Section 1. Section 20 of chapter 41 of the laws of 1985 relating to 14 providing for the construction of a civic center in Albany and making 15 appropriations relating to the construction of such facility, is amended 16 to read as follows: 17 S 20. The state comptroller is hereby authorized to receive from the 18 county, repayment of money disbursed from this appropriation and any 19 income or increment related thereto due to the investment thereof, and 20 to deposit the same to the credit of the capital projects fund; 21 PROVIDED, HOWEVER THAT ANY AND ALL MONEYS RECEIVED BY THE STATE COMP- 22 TROLLER FROM THE COUNTY OF ALBANY ON OR BEFORE APRIL 30, 2015, SHALL BE 23 DEEMED TO BE FULL REPAYMENT OF THE MONEY DISBURSED FROM THE APPROPRI- 24 ATION MADE IN SECTION ELEVEN OF THIS ACT AND ANY INCOME OR INCREMENT 25 RELATED THERETO DUE TO THE INVESTMENT THEREOF. 26 S 2. This act shall take effect immediately. 27 PART B 28 Section 1. Section 431 of the economic development law is amended by 29 adding a new subdivision 15 to read as follows: 30 15. "START-UP NY AIRPORT FACILITY" MEANS VACANT LAND OR SPACE OWNED BY 31 THE STATE OF NEW YORK ON THE PREMISES OF STEWART AIRPORT OR REPUBLIC 32 AIRPORT. 33 S 2. Subdivision 4 of section 435 of the economic development law, as 34 amended by section 2 of part BB of chapter 55 of the laws of 2014, is 35 amended to read as follows: 36 4. The START-UP NY approval board, by majority vote, shall designate 37 correctional facilities described in subdivision fourteen of section 38 four hundred thirty-one of this article, START-UP NY AIRPORT FACILITIES 39 DESCRIBED IN SUBDIVISION FIFTEEN OF SECTION FOUR HUNDRED THIRTY-ONE OF 40 THIS ARTICLE and up to twenty strategic state assets as tax-free NY 41 areas. Each shall be affiliated with a state university campus, city 42 university campus, community college, or private college or university 43 and such designation shall require the support of the affiliated campus, 44 college or university. Each strategic state asset AND START-UP NY 45 AIRPORT FACILITY, other than a correctional facility, may not exceed a 46 maximum of two hundred thousand square feet of vacant land or vacant 47 building space designated as a tax-free NY area. Designation of strate- 48 gic state assets [and], correctional facilities described in subdivision 49 fourteen of section four hundred thirty-one of this article, AND START- S. 4610--A 4 A. 6721--A 1 UP NY AIRPORT FACILITIES DESCRIBED IN SUBDIVISION FIFTEEN OF SECTION 2 FOUR HUNDRED THIRTY-ONE OF THIS ARTICLE as tax-free NY areas shall not 3 count against any square footage limitations in section four hundred 4 thirty-two of this article. 5 S 3. This act shall take effect immediately. 6 PART C 7 Section 1. Subdivision 4 of section 3627 of the education law, as 8 amended by section 7-b of part A of a chapter of the laws of 2015, 9 amending the education law, relating to contracts for excellence, appor- 10 tionment of school aid, total foundation aid and the gap elimination 11 adjustment restoration, the teachers of tomorrow teacher recruitment and 12 retention program and waivers from certain duties, as proposed in legis- 13 lative bill numbers S.2006-B and A.3006-B, is amended to read as 14 follows: 15 4. Notwithstanding any other provision of law to the contrary, any 16 expenditures for transportation provided pursuant to this section in the 17 two thousand thirteen--two thousand fourteen and two thousand fourteen- 18 -two thousand fifteen school year and thereafter and otherwise eligible 19 for transportation aid pursuant to subdivision seven of section thirty- 20 six hundred two of this article shall be considered approved transporta- 21 tion expenses eligible for transportation aid, provided further that for 22 the two thousand thirteen--two thousand fourteen [and two thousand four- 23 teen--two thousand fifteen] school year such aid shall be limited to 24 eight million one hundred thousand dollars and for the two thousand 25 FOURTEEN--TWO THOUSAND fifteen[--two thousand sixteen] school year and 26 thereafter such aid shall be limited to twelve million six hundred thou- 27 sand dollars. And provided further that such expenditures eligible for 28 aid under this section shall supplement not supplant local expenditures 29 for such transportation in the two thousand twelve--two thousand thir- 30 teen school year. 31 S 2. This act shall take effect on the same date and in the same 32 manner as section 7-b of part A of a chapter of the laws of 2015, amend- 33 ing the education law, relating to contracts for excellence, apportion- 34 ment of school aid, total foundation aid and the gap elimination adjust- 35 ment restoration, the teachers of tomorrow teacher recruitment and 36 retention program and waivers from certain duties, as proposed in legis- 37 lative bill numbers S.2006-B and A.3006-B, takes effect. 38 PART D 39 Section 1. Chapter 6 of title 11 of the administrative code of the 40 city of New York is amended by adding a new subchapter 3-A to read as 41 follows: 42 SUBCHAPTER 3-A 43 CORPORATE TAX OF 2015 44 SECTION 11-651 APPLICABILITY. 45 11-652 DEFINITIONS. 46 11-653 IMPOSITION OF TAX; EXEMPTIONS. 47 11-654 COMPUTATION OF TAX. 48 11-654.1 NET OPERATING LOSS. 49 11-654.2 RECEIPTS ALLOCATION. 50 11-654.3 COMBINED REPORTS. 51 11-655 REPORTS. 52 11-656 PAYMENT AND LIEN OF TAX. S. 4610--A 5 A. 6721--A 1 11-657 DECLARATION OF ESTIMATED TAX. 2 11-658 PAYMENTS ON ACCOUNT OF ESTIMATED TAX. 3 11-659 COLLECTION OF TAXES. 4 11-660 LIMITATIONS OF TIME. 5 S 11-651 APPLICABILITY. 1. NOTWITHSTANDING ANYTHING TO THE CONTRARY 6 IN THIS CHAPTER, THIS SUBCHAPTER SHALL APPLY TO CORPORATIONS FOR TAX 7 YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, EXCEPT 8 THAT IT SHALL NOT APPLY TO ANY CORPORATION THAT (A) HAS AN ELECTION IN 9 EFFECT UNDER SUBSECTION (A) OF SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE 10 INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (B) IS A QUALIFIED 11 SUBCHAPTER S SUBSIDIARY WITHIN THE MEANING OF PARAGRAPH THREE OF 12 SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL 13 REVENUE CODE OF 1986, AS AMENDED, IN ANY TAX YEAR COMMENCING ON OR AFTER 14 SUCH DATE. SUBCHAPTERS TWO AND THREE OF THIS CHAPTER SHALL NOT APPLY TO 15 CORPORATIONS TO WHICH THIS SUBCHAPTER APPLIES FOR TAX YEARS COMMENCING 16 ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, EXCEPT TO THE EXTENT 17 PROVIDED IN THIS SUBCHAPTER AND TO THE EXTENT THAT THE EFFECT OF THE 18 APPLICATION OF SUBCHAPTERS TWO AND THREE TO TAX YEARS COMMENCING PRIOR 19 TO JANUARY FIRST, TWO THOUSAND FIFTEEN CARRIES OVER TO TAX YEARS 20 COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN. 21 2. EACH REFERENCE IN THIS CODE TO SUBCHAPTERS TWO OR THREE OF THIS 22 CHAPTER, OR ANY OF THE PROVISIONS THEREOF, SHALL BE DEEMED A REFERENCE 23 ALSO TO THIS SUBCHAPTER, AND ANY OF THE APPLICABLE PROVISIONS THEREOF, 24 WHERE APPROPRIATE AND WITH ALL NECESSARY MODIFICATIONS. 25 S 11-652 DEFINITIONS. 1. (A) THE TERM "CORPORATION" INCLUDES (1) AN 26 ASSOCIATION WITHIN THE MEANING OF PARAGRAPH THREE OF SUBSECTION (A) OF 27 SECTION SEVENTY-SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE (INCLUD- 28 ING, WHEN APPLICABLE, A LIMITED LIABILITY COMPANY), (2) A JOINT-STOCK 29 COMPANY OR ASSOCIATION, (3) A PUBLICLY TRADED PARTNERSHIP TREATED AS A 30 CORPORATION FOR PURPOSES OF THE INTERNAL REVENUE CODE PURSUANT TO 31 SECTION SEVENTY-SEVEN HUNDRED FOUR THEREOF AND (4) ANY BUSINESS 32 CONDUCTED BY A TRUSTEE OR TRUSTEES WHEREIN INTEREST OR OWNERSHIP IS 33 EVIDENCED BY CERTIFICATE OR OTHER WRITTEN INSTRUMENT; 34 (B) (1) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, AN UNINCOR- 35 PORATED ORGANIZATION THAT (I) IS DESCRIBED IN SUBPARAGRAPH ONE OR THREE 36 OF PARAGRAPH (A) OF THIS SUBDIVISION, (II) WAS SUBJECT TO THE PROVISIONS 37 OF CHAPTER FIVE OF THIS TITLE FOR ITS TAXABLE YEAR BEGINNING IN NINETEEN 38 HUNDRED NINETY-FIVE, AND (III) MADE A ONE-TIME ELECTION NOT TO BE TREAT- 39 ED AS A CORPORATION AND, INSTEAD, TO CONTINUE TO BE SUBJECT TO THE 40 PROVISIONS OF CHAPTER FIVE OF THIS TITLE FOR ITS TAXABLE YEARS BEGINNING 41 IN NINETEEN HUNDRED NINETY-SIX AND THEREAFTER, SHALL CONTINUE TO BE 42 SUBJECT TO THE PROVISIONS OF CHAPTER FIVE OF THIS TITLE FOR ITS TAXABLE 43 YEARS BEGINNING IN NINETEEN HUNDRED NINETY-SIX. 44 (2) AN ELECTION UNDER THIS PARAGRAPH SHALL CONTINUE TO BE IN EFFECT 45 UNTIL REVOKED BY THE UNINCORPORATED ORGANIZATION. AN ELECTION UNDER THIS 46 PARAGRAPH SHALL BE REVOKED BY THE FILING OF A RETURN UNDER THIS SUBCHAP- 47 TER FOR THE FIRST TAXABLE YEAR WITH RESPECT TO WHICH SUCH REVOCATION IS 48 TO BE EFFECTIVE. SUCH RETURN SHALL BE FILED ON OR BEFORE THE DUE DATE 49 (DETERMINED WITH REGARD TO EXTENSIONS) FOR FILING SUCH RETURN. IN NO 50 EVENT SHALL SUCH ELECTION OR REVOCATION BE FOR A PART OF A TAXABLE YEAR. 51 (C) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A CORPORATION 52 SHALL NOT INCLUDE AN ENTITY CLASSIFIED AS A PARTNERSHIP FOR FEDERAL 53 INCOME TAX PURPOSES. 54 2. THE TERM "SUBSIDIARY" MEANS A CORPORATION OF WHICH OVER FIFTY PER 55 CENTUM OF THE NUMBER OF SHARES OF STOCK ENTITLING THE HOLDERS THEREOF TO 56 VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES IS OWNED BY THE TAXPAYER. S. 4610--A 6 A. 6721--A 1 2-A. THE TERM "TAXPAYER" MEANS ANY CORPORATION SUBJECT TO TAX UNDER 2 THIS SUBCHAPTER. 3 3. INTENTIONALLY OMITTED. 4 3-A. THE TERM "STOCK" MEANS AN INTEREST IN A CORPORATION THAT IS 5 TREATED AS EQUITY FOR FEDERAL INCOME TAX PURPOSES. 6 4. (A) THE TERM "INVESTMENT CAPITAL" MEANS INVESTMENTS IN STOCKS THAT: 7 (I) SATISFY THE DEFINITION OF A CAPITAL ASSET UNDER SECTION 1221 OF THE 8 INTERNAL REVENUE CODE AT ALL TIMES THE TAXPAYER OWNED SUCH STOCKS DURING 9 THE TAXABLE YEAR; (II) ARE HELD BY THE TAXPAYER FOR INVESTMENT FOR MORE 10 THAN ONE YEAR; (III) THE DISPOSITIONS OF WHICH ARE, OR WOULD BE, TREATED 11 BY THE TAXPAYER AS GENERATING LONG-TERM CAPITAL GAINS OR LOSSES UNDER 12 THE INTERNAL REVENUE CODE; (IV) FOR STOCKS ACQUIRED ON OR AFTER JANUARY 13 FIRST, TWO THOUSAND FIFTEEN, AT ANY TIME AFTER THE CLOSE OF THE DAY IN 14 WHICH THEY ARE ACQUIRED, HAVE NEVER BEEN HELD FOR SALE TO CUSTOMERS IN 15 THE REGULAR COURSE OF BUSINESS; AND (V) BEFORE THE CLOSE OF THE DAY ON 16 WHICH THE STOCK WAS ACQUIRED, ARE CLEARLY IDENTIFIED IN THE TAXPAYER'S 17 RECORDS AS STOCK HELD FOR INVESTMENT IN THE SAME MANNER AS REQUIRED 18 UNDER SECTION 1236(A)(1) OF THE INTERNAL REVENUE CODE FOR THE STOCK OF A 19 DEALER IN SECURITIES TO BE ELIGIBLE FOR CAPITAL GAIN TREATMENT (WHETHER 20 OR NOT THE TAXPAYER IS A DEALER OF SECURITIES SUBJECT TO SECTION 1236), 21 PROVIDED, HOWEVER, THAT FOR STOCK ACQUIRED PRIOR TO OCTOBER FIRST, TWO 22 THOUSAND FIFTEEN THAT WAS NOT SUBJECT TO SECTION 1236(A) OF THE INTERNAL 23 REVENUE CODE, SUCH IDENTIFICATION IN THE TAXPAYER'S RECORDS MUST OCCUR 24 BEFORE OCTOBER FIRST, TWO THOUSAND FIFTEEN. STOCK IN A CORPORATION THAT 25 IS CONDUCTING A UNITARY BUSINESS WITH THE TAXPAYER, STOCK IN A CORPO- 26 RATION THAT IS INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER PURSUANT 27 TO THE COMMONLY OWNED GROUP ELECTION IN SUBDIVISION THREE OF SECTION 28 11-654.3 OF THIS SUBCHAPTER, AND STOCK USED BY THE TAXPAYER SHALL NOT 29 CONSTITUTE INVESTMENT CAPITAL. FOR PURPOSES OF THIS SUBDIVISION, IF THE 30 TAXPAYER OWNS OR CONTROLS, DIRECTLY OR INDIRECTLY, LESS THAN TWENTY 31 PERCENT OF THE VOTING POWER OF THE STOCK OF A CORPORATION, THAT CORPO- 32 RATION WILL BE PRESUMED TO BE CONDUCTING A BUSINESS THAT IS NOT UNITARY 33 WITH THE BUSINESS OF THE TAXPAYER. 34 (B) THERE SHALL BE DEDUCTED FROM INVESTMENT CAPITAL ANY LIABILITIES 35 WHICH ARE DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO INVESTMENT CAPITAL. IF 36 THE AMOUNT OF THOSE LIABILITIES EXCEEDS THE AMOUNT OF INVESTMENT CAPI- 37 TAL, THE AMOUNT OF INVESTMENT CAPITAL SHALL BE ZERO. 38 (C) INVESTMENT CAPITAL SHALL NOT INCLUDE ANY SUCH INVESTMENTS THE 39 INCOME FROM WHICH IS EXCLUDED FROM ENTIRE NET INCOME PURSUANT TO THE 40 PROVISIONS OF PARAGRAPH (C-1) OF SUBDIVISION EIGHT OF THIS SECTION, AND 41 THAT INVESTMENT CAPITAL SHALL BE COMPUTED WITHOUT REGARD TO LIABILITIES 42 DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO SUCH INVESTMENTS, BUT ONLY IF AIR 43 CARRIERS ORGANIZED IN THE UNITED STATES AND OPERATING IN THE FOREIGN 44 COUNTRY OR COUNTRIES IN WHICH THE TAXPAYER HAS ITS MAJOR BASE OF OPER- 45 ATIONS AND IN WHICH IT IS ORGANIZED, RESIDENT OR HEADQUARTERED (IF NOT 46 IN THE SAME COUNTRY AS ITS MAJOR BASE OF OPERATIONS) ARE NOT SUBJECT TO 47 ANY TAX BASED ON OR MEASURED BY CAPITAL IMPOSED BY SUCH FOREIGN COUNTRY 48 OR COUNTRIES OR ANY POLITICAL SUBDIVISION THEREOF, OR IF TAXED, ARE 49 PROVIDED AN EXEMPTION, EQUIVALENT TO THAT PROVIDED FOR HEREIN, FROM ANY 50 TAX BASED ON OR MEASURED BY CAPITAL IMPOSED BY SUCH FOREIGN COUNTRY OR 51 COUNTRIES AND FROM ANY SUCH TAX IMPOSED BY ANY POLITICAL SUBDIVISION 52 THEREOF. 53 (D) IF A TAXPAYER ACQUIRES STOCK THAT IS A CAPITAL ASSET UNDER SECTION 54 1221 OF THE INTERNAL REVENUE CODE DURING THE TAXABLE YEAR AND OWNS THAT 55 STOCK ON THE LAST DAY OF THE TAXABLE YEAR, IT WILL BE PRESUMED, SOLELY 56 FOR THE PURPOSES OF DETERMINING WHETHER THAT STOCK SHOULD BE CLASSIFIED S. 4610--A 7 A. 6721--A 1 AS INVESTMENT CAPITAL AFTER IT IS ACQUIRED, THAT THE TAXPAYER HELD THAT 2 STOCK FOR MORE THAN ONE YEAR. HOWEVER, IF THE TAXPAYER DOES NOT IN FACT 3 OWN THAT STOCK AT THE TIME IT ACTUALLY FILES ITS ORIGINAL REPORT FOR THE 4 TAXABLE YEAR IN WHICH IT ACQUIRED THE STOCK, THEN THE PRESUMPTION IN THE 5 PRECEDING SENTENCE SHALL NOT APPLY AND THE ACTUAL PERIOD OF TIME DURING 6 WHICH THE TAXPAYER OWNED THE STOCK SHALL BE USED TO DETERMINE WHETHER 7 THE STOCK SHOULD BE CLASSIFIED AS INVESTMENT CAPITAL AFTER IT IS 8 ACQUIRED. IF THE TAXPAYER RELIES ON THE PRESUMPTION IN THE FIRST 9 SENTENCE OF THIS PARAGRAPH BUT DOES NOT OWN THE STOCK FOR MORE THAN ONE 10 YEAR, THE TAXPAYER MUST INCREASE ITS TOTAL BUSINESS CAPITAL IN THE IMME- 11 DIATELY SUCCEEDING TAXABLE YEAR BY THE AMOUNT INCLUDED IN INVESTMENT 12 CAPITAL FOR THAT STOCK, NET OF ANY LIABILITIES ATTRIBUTABLE TO THAT 13 STOCK COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION AND MUST 14 INCREASE ITS BUSINESS INCOME IN THE IMMEDIATELY SUCCEEDING TAXABLE YEAR 15 BY THE AMOUNT OF INCOME AND NET GAINS (BUT NOT LESS THAN ZERO) FROM THAT 16 STOCK INCLUDED IN INVESTMENT INCOME, LESS ANY INTEREST DEDUCTIONS 17 DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THAT STOCK, AS PROVIDED IN SUBDI- 18 VISION FIVE OF THIS SECTION. 19 (E) WHEN INCOME OR GAIN FROM A DEBT OBLIGATION OR OTHER SECURITY 20 CANNOT BE ALLOCATED TO THE CITY USING THE BUSINESS ALLOCATION PERCENTAGE 21 AS A RESULT OF THE UNITED STATES CONSTITUTIONAL PRINCIPLES, THE DEBT 22 OBLIGATION OR OTHER SECURITY WILL BE INCLUDED IN INVESTMENT CAPITAL. 23 5. (A)(I) THE TERM "INVESTMENT INCOME" MEANS INCOME, INCLUDING CAPI- 24 TAL GAINS IN EXCESS OF CAPITAL LOSSES, FROM INVESTMENT CAPITAL, TO THE 25 EXTENT INCLUDED IN COMPUTING ENTIRE NET INCOME, LESS, IN THE DISCRETION 26 OF THE COMMISSIONER OF FINANCE, ANY INTEREST DEDUCTIONS ALLOWABLE IN 27 COMPUTING ENTIRE NET INCOME WHICH ARE DIRECTLY OR INDIRECTLY ATTRIBUT- 28 ABLE TO INVESTMENT CAPITAL OR INVESTMENT INCOME, PROVIDED, HOWEVER, THAT 29 IN NO CASE SHALL INVESTMENT INCOME EXCEED ENTIRE NET INCOME. 30 (II) IF THE AMOUNT OF INTEREST DEDUCTIONS SUBTRACTED UNDER SUBPARA- 31 GRAPH (I) OF THIS PARAGRAPH EXCEEDS INVESTMENT INCOME, THE EXCESS OF 32 SUCH AMOUNT OVER INVESTMENT INCOME MUST BE ADDED BACK TO ENTIRE NET 33 INCOME. 34 (III) IF THE TAXPAYER'S INVESTMENT INCOME DETERMINED WITHOUT REGARD TO 35 THE INTEREST DEDUCTIONS SUBTRACTED UNDER SUBPARAGRAPH (I) OF THIS PARA- 36 GRAPH COMPRISES MORE THAN EIGHT PERCENT OF THE TAXPAYER'S ENTIRE NET 37 INCOME, INVESTMENT INCOME DETERMINED WITHOUT REGARD TO SUCH INTEREST 38 DEDUCTIONS CANNOT EXCEED EIGHT PERCENT OF THE TAXPAYER'S ENTIRE NET 39 INCOME. 40 (B) IN LIEU OF SUBTRACTING FROM INVESTMENT INCOME THE AMOUNT OF THOSE 41 INTEREST DEDUCTIONS, THE TAXPAYER MAY MAKE A REVOCABLE ELECTION TO 42 REDUCE ITS TOTAL INVESTMENT INCOME, DETERMINED AFTER APPLYING THE LIMI- 43 TATION IN SUBPARAGRAPH (III) OF PARAGRAPH (A) OF THIS SUBDIVISION, BY 44 FORTY PERCENT. IF THE TAXPAYER MAKES THIS ELECTION, THE TAXPAYER MUST 45 ALSO MAKE THE ELECTIONS PROVIDED FOR IN PARAGRAPHS (B) AND (C) OF SUBDI- 46 VISION FIVE-A OF THIS SECTION. IF THE TAXPAYER SUBSEQUENTLY REVOKES THIS 47 ELECTION, THE TAXPAYER MUST REVOKE THE ELECTIONS PROVIDED FOR IN PARA- 48 GRAPHS (B) AND (C) OF SUBDIVISION FIVE-A OF THIS SECTION. A TAXPAYER 49 THAT DOES NOT MAKE THIS ELECTION BECAUSE IT HAS NO INVESTMENT CAPITAL 50 WILL NOT BE PRECLUDED FROM MAKING THOSE OTHER ELECTIONS. 51 (C) INVESTMENT INCOME SHALL NOT INCLUDE ANY AMOUNT TREATED AS DIVI- 52 DENDS PURSUANT TO SECTION SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE. 53 5-A. (A) THE TERM "OTHER EXEMPT INCOME" MEANS THE SUM OF EXEMPT CFC 54 INCOME AND EXEMPT UNITARY CORPORATION DIVIDENDS. 55 (B) "EXEMPT CFC INCOME" MEANS THE INCOME REQUIRED TO BE INCLUDED IN 56 THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF S. 4610--A 8 A. 6721--A 1 SECTION NINE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE, RECEIVED 2 FROM A CORPORATION THAT IS CONDUCTING A UNITARY BUSINESS WITH THE 3 TAXPAYER BUT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, 4 LESS, IN THE DISCRETION OF THE COMMISSIONER OF FINANCE, ANY INTEREST 5 DEDUCTIONS DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THAT INCOME. IN LIEU 6 OF SUBTRACTING FROM ITS EXEMPT CFC INCOME THE AMOUNT OF THOSE INTEREST 7 DEDUCTIONS, THE TAXPAYER MAY MAKE A REVOCABLE ELECTION TO REDUCE ITS 8 TOTAL EXEMPT CFC INCOME BY FORTY PERCENT. IF THE TAXPAYER MAKES THIS 9 ELECTION, THE TAXPAYER MUST ALSO MAKE THE ELECTIONS PROVIDED FOR IN 10 PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION AND PARAGRAPH (C) OF 11 THIS SUBDIVISION. IF THE TAXPAYER SUBSEQUENTLY REVOKES THIS ELECTION, 12 THE TAXPAYER MUST REVOKE THE ELECTIONS PROVIDED FOR IN PARAGRAPH (B) OF 13 SUBDIVISION FIVE OF THIS SECTION AND PARAGRAPH (C) OF THIS SUBDIVISION. 14 A TAXPAYER WHICH DOES NOT MAKE THIS ELECTION BECAUSE IT HAS NO EXEMPT 15 CFC INCOME WILL NOT BE PRECLUDED FROM MAKING THOSE OTHER ELECTIONS. 16 (C) "EXEMPT UNITARY CORPORATE DIVIDENDS" MEANS THOSE DIVIDENDS FROM A 17 CORPORATION THAT IS CONDUCTING A UNITARY BUSINESS WITH THE TAXPAYER BUT 18 IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, LESS, IN THE 19 DISCRETION OF THE COMMISSIONER OF FINANCE, ANY INTEREST DEDUCTIONS 20 DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO SUCH INCOME. OTHER THAN DIVIDEND 21 INCOME RECEIVED FROM CORPORATIONS THAT ARE TAXABLE UNDER CHAPTER ELEVEN 22 OF THIS TITLE (EXCEPT FOR VENDORS OF UTILITY SERVICES THAT ARE ALSO 23 TAXABLE UNDER THIS SUBCHAPTER) OR WOULD BE TAXABLE UNDER CHAPTER ELEVEN 24 OF THIS TITLE (EXCEPT FOR VENDORS OF UTILITY SERVICES THAT ARE ALSO 25 TAXABLE UNDER THIS SUBCHAPTER) IF SUBJECT TO TAX AND CORPORATIONS THAT 26 WOULD HAVE BEEN TAXABLE AS INSURANCE CORPORATIONS UNDER FORMER PART IV, 27 TITLE R, CHAPTER FORTY-SIX OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW 28 YORK AS IN EFFECT ON JUNE THIRTIETH, NINETEEN HUNDRED SEVENTY-FOUR, IN 29 LIEU OF SUBTRACTING FROM THIS DIVIDEND INCOME THOSE INTEREST DEDUCTIONS, 30 THE TAXPAYER MAY MAKE A REVOCABLE ELECTION TO REDUCE THE TOTAL AMOUNT OF 31 THIS DIVIDEND INCOME BY FORTY PERCENT. IF THE TAXPAYER MAKES THIS 32 ELECTION, THE TAXPAYER MUST ALSO MAKE THE ELECTIONS PROVIDED FOR IN 33 PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION AND PARAGRAPH (B) OF 34 THIS SUBDIVISION. IF THE TAXPAYER SUBSEQUENTLY REVOKES THIS ELECTION, 35 THE TAXPAYER MUST REVOKE THE ELECTIONS PROVIDED FOR IN PARAGRAPH (B) OF 36 SUBDIVISION FIVE OF THIS SECTION AND PARAGRAPH (B) OF THIS SUBDIVISION. 37 A TAXPAYER THAT DOES NOT MAKE THIS ELECTION BECAUSE IT HAS NOT RECEIVED 38 ANY EXEMPT UNITARY CORPORATION DIVIDENDS OR IS PRECLUDED FROM MAKING 39 THIS ELECTION FOR DIVIDENDS RECEIVED FROM CORPORATIONS THAT ARE TAXABLE 40 UNDER CHAPTER ELEVEN OF THIS TITLE (EXCEPT FOR VENDORS OF UTILITY 41 SERVICES THAT ARE ALSO TAXABLE UNDER THIS SUBCHAPTER) OR WOULD BE TAXA- 42 BLE UNDER CHAPTER ELEVEN OF THIS TITLE IF SUBJECT TO TAX (EXCEPT FOR 43 VENDORS OF UTILITY SERVICES THAT ARE ALSO TAXABLE UNDER THIS SUBCHAPTER) 44 SHALL NOT BE PRECLUDED FROM MAKING THOSE OTHER ELECTIONS. 45 (D) IF THE TAXPAYER ATTRIBUTES INTEREST DEDUCTIONS TO OTHER EXEMPT 46 INCOME AND THE AMOUNT DEDUCTED EXCEEDS OTHER EXEMPT INCOME, THE EXCESS 47 OF THE INTEREST DEDUCTIONS OVER OTHER EXEMPT INCOME MUST BE ADDED BACK 48 TO ENTIRE NET INCOME. IN NO CASE SHALL OTHER EXEMPT INCOME EXCEED ENTIRE 49 NET INCOME. 50 (E) OTHER EXEMPT INCOME SHALL NOT INCLUDE ANY AMOUNT TREATED AS DIVI- 51 DENDS PURSUANT TO SECTION SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE. 52 6. (A) THE TERM "BUSINESS CAPITAL" MEANS ALL ASSETS, OTHER THAN 53 INVESTMENT CAPITAL AND STOCK ISSUED BY THE TAXPAYER, LESS LIABILITIES 54 NOT DEDUCTED FROM INVESTMENT CAPITAL; PROVIDED, HOWEVER, BUSINESS CAPI- 55 TAL SHALL INCLUDE ONLY THOSE ASSETS THE INCOME, LOSS OR EXPENSE OF WHICH 56 ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN PROPERLY REFLECTED IF NOT S. 4610--A 9 A. 6721--A 1 FULLY DEPRECIATED OR EXPENSED OR DEPRECIATED OR EXPENSED TO A NOMINAL 2 AMOUNT) IN THE COMPUTATION OF ENTIRE NET INCOME FOR THE TAXABLE YEAR. 3 (B) PROVIDED, FURTHER, "BUSINESS CAPITAL" SHALL NOT INCLUDE ASSETS TO 4 THE EXTENT EMPLOYED FOR THE PURPOSE OF GENERATING INCOME WHICH IS 5 EXCLUDED FROM ENTIRE NET INCOME PURSUANT TO THE PROVISIONS OF PARAGRAPH 6 (C-1) OF SUBDIVISION EIGHT OF THIS SECTION AND SHALL BE COMPUTED WITHOUT 7 REGARD TO LIABILITIES DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO SUCH 8 ASSETS, BUT ONLY IF AIR CARRIERS ORGANIZED IN THE UNITED STATES AND 9 OPERATING IN THE FOREIGN COUNTRY OR COUNTRIES IN WHICH THE TAXPAYER HAS 10 ITS MAJOR BASE OF OPERATIONS AND IN WHICH IT IS ORGANIZED, RESIDENT OR 11 HEADQUARTERED (IF NOT IN THE SAME COUNTRY AS ITS MAJOR BASE OF OPER- 12 ATIONS) ARE NOT SUBJECT TO ANY TAX BASED ON OR MEASURED BY CAPITAL 13 IMPOSED BY SUCH FOREIGN COUNTRY OR COUNTRIES OR ANY POLITICAL SUBDIVI- 14 SION THEREOF, OR IF TAXED, ARE PROVIDED AN EXEMPTION, EQUIVALENT TO THAT 15 PROVIDED FOR HEREIN, FROM ANY TAX BASED ON OR MEASURED BY CAPITAL 16 IMPOSED BY SUCH FOREIGN COUNTRY OR COUNTRIES AND FROM ANY SUCH TAX 17 IMPOSED BY ANY POLITICAL SUBDIVISION THEREOF. 18 7. THE TERM "BUSINESS INCOME" MEANS ENTIRE NET INCOME MINUS INVESTMENT 19 INCOME AND OTHER EXEMPT INCOME. IN NO EVENT SHALL THE SUM OF INVESTMENT 20 INCOME AND OTHER EXEMPT INCOME EXCEED ENTIRE NET INCOME. IF THE TAXPAYER 21 MAKES THE ELECTION PROVIDED FOR IN SUBPARAGRAPH ONE OF PARAGRAPH (A) OF 22 SUBDIVISION FIVE OF SECTION 11-654.2 OF THIS SUBCHAPTER, THEN ALL INCOME 23 FROM QUALIFIED FINANCIAL INSTRUMENTS SHALL CONSTITUTE BUSINESS INCOME. 24 8. THE TERM "ENTIRE NET INCOME" MEANS TOTAL NET INCOME FROM ALL SOURC- 25 ES, WHICH SHALL BE PRESUMABLY THE SAME AS THE ENTIRE TAXABLE INCOME, 26 WHICH, EXCEPT AS HEREAFTER PROVIDED IN THIS SUBDIVISION, 27 (I) THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED STATES TREASURY 28 DEPARTMENT, OR 29 (II) THE TAXPAYER, IN THE CASE OF A CORPORATION THAT IS EXEMPT FROM 30 FEDERAL INCOME TAX (OTHER THAN THE TAX ON UNRELATED BUSINESS TAXABLE 31 INCOME IMPOSED UNDER SECTION FIVE HUNDRED ELEVEN OF THE INTERNAL REVENUE 32 CODE) BUT WHICH IS SUBJECT TO TAX UNDER THIS SUBCHAPTER, WOULD HAVE BEEN 33 REQUIRED TO REPORT TO THE UNITED STATES TREASURY DEPARTMENT BUT FOR SUCH 34 EXEMPTION, OR 35 (III) IN THE CASE OF AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF 36 THE INTERNAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC CORPORATION" AS 37 DEFINED IN SECTION SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE, IS 38 EFFECTIVELY CONNECTED WITH THE CONDUCT OF A TRADE OR BUSINESS WITHIN THE 39 UNITED STATES AS DETERMINED UNDER SECTION EIGHT HUNDRED EIGHTY-TWO OF 40 THE INTERNAL REVENUE CODE. 41 (A) ENTIRE NET INCOME SHALL NOT INCLUDE: 42 (1) INTENTIONALLY OMITTED; 43 (2) INTENTIONALLY OMITTED; 44 (2-A) ANY AMOUNTS TREATED AS DIVIDENDS PURSUANT TO SECTION 45 SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE; 46 (3) BONA FIDE GIFTS; 47 (4) INCOME AND DEDUCTIONS WITH RESPECT TO AMOUNTS RECEIVED FROM SCHOOL 48 DISTRICTS AND FROM CORPORATIONS AND ASSOCIATIONS, ORGANIZED AND OPERATED 49 EXCLUSIVELY FOR RELIGIOUS, CHARITABLE OR EDUCATIONAL PURPOSES, NO PART 50 OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHARE- 51 HOLDER OR INDIVIDUAL, FOR THE OPERATION OF SCHOOL BUSES; 52 (5) ANY REFUND OR CREDIT OF A TAX IMPOSED UNDER THIS CHAPTER, OR 53 IMPOSED BY ARTICLE NINE, NINE-A, TWENTY-THREE, OR FORMER ARTICLE THIR- 54 TY-TWO OF THE TAX LAW, FOR WHICH TAX NO EXCLUSION OR DEDUCTION WAS 55 ALLOWED IN DETERMINING THE TAXPAYER'S ENTIRE NET INCOME UNDER THIS S. 4610--A 10 A. 6721--A 1 SUBCHAPTER, SUBCHAPTER TWO, OR SUBCHAPTER THREE OF THIS CHAPTER FOR ANY 2 PRIOR YEAR; 3 (6) INTENTIONALLY OMITTED; 4 (7) THAT PORTION OF WAGES AND SALARIES PAID OR INCURRED FOR THE TAXA- 5 BLE YEAR FOR WHICH A DEDUCTION IS NOT ALLOWED PURSUANT TO THE PROVISIONS 6 OF SECTION TWO HUNDRED EIGHTY C OF THE INTERNAL REVENUE CODE; 7 (8) EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT- 8 ING VEHICLE DESCRIBED IN SUBPARAGRAPH (D) OF PARAGRAPH EIGHT OF 9 SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN- 10 UE CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF 11 A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT, 12 FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH 13 IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED 14 EIGHTY-NINE, ANY AMOUNT WHICH IS INCLUDED IN THE TAXPAYER'S FEDERAL 15 TAXABLE INCOME SOLELY AS A RESULT OF AN ELECTION MADE PURSUANT TO THE 16 PROVISIONS OF SUCH PARAGRAPH EIGHT AS IT WAS IN EFFECT FOR AGREEMENTS 17 ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR; 18 (9) EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT- 19 ING VEHICLE DESCRIBED IN SUBPARAGRAPH (D) OF PARAGRAPH EIGHT OF 20 SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN- 21 UE CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF 22 A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT, 23 FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH 24 IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED 25 EIGHTY-NINE, ANY AMOUNT WHICH THE TAXPAYER COULD HAVE EXCLUDED FROM 26 FEDERAL TAXABLE INCOME HAD IT NOT MADE THE ELECTION PROVIDED FOR IN SUCH 27 PARAGRAPH EIGHT AS IT WAS IN EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO 28 JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR; 29 (10) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (J) OF THIS SUBDIVI- 30 SION; 31 (11) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (J) OF THIS 32 SUBDIVISION APPLIES, THE AMOUNT, IF ANY, BY WHICH THE AGGREGATE OF THE 33 AMOUNTS DESCRIBED IN SUBPARAGRAPH ELEVEN OF PARAGRAPH (B) OF THIS SUBDI- 34 VISION ATTRIBUTABLE TO SUCH PROPERTY EXCEEDS THE AGGREGATE OF THE 35 AMOUNTS DESCRIBED IN PARAGRAPH (J) OF THIS SUBDIVISION ATTRIBUTABLE TO 36 SUCH PROPERTY; 37 (12) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (K) OF THIS SUBDIVI- 38 SION; 39 (13) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (O) OF THIS SUBDIVI- 40 SION; 41 (14) THE AMOUNT COMPUTED PURSUANT TO PARAGRAPH (Q), (R) OR (S) OF THIS 42 SUBDIVISION, BUT ONLY THE AMOUNT DETERMINED PURSUANT TO ONE OF SUCH 43 PARAGRAPHS; AND 44 (15) THE AMOUNT COMPUTED PURSUANT TO PARAGRAPH (T) OF THIS SUBDIVI- 45 SION. 46 (A-1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, IN THE 47 CASE OF A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP SUBJECT TO THE TAX 48 IMPOSED BY CHAPTER ELEVEN OF THIS TITLE AS A UTILITY, AS DEFINED IN 49 SUBDIVISION SIX OF SECTION 11-1101 OF SUCH CHAPTER, ENTIRE NET INCOME 50 SHALL NOT INCLUDE THE TAXPAYER'S DISTRIBUTIVE OR PRO RATA SHARE FOR 51 FEDERAL INCOME TAX PURPOSES OF ANY ITEM OF INCOME, GAIN, LOSS OR 52 DEDUCTION OF SUCH PARTNERSHIP, OR ANY ITEM OF INCOME, GAIN, LOSS OR 53 DEDUCTION OF SUCH PARTNERSHIP THAT THE TAXPAYER IS REQUIRED TO TAKE INTO 54 ACCOUNT SEPARATELY FOR FEDERAL INCOME TAX PURPOSES. 55 (B) ENTIRE NET INCOME SHALL BE DETERMINED WITHOUT THE EXCLUSION, 56 DEDUCTION OR CREDIT OF: S. 4610--A 11 A. 6721--A 1 (1) IN THE CASE OF AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF 2 THE INTERNAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC CORPORATION" AS 3 DEFINED IN SECTION SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE, (I) 4 ANY PART OF ANY INCOME FROM DIVIDENDS OR INTEREST ON ANY KIND OF STOCK, 5 SECURITIES OR INDEBTEDNESS, BUT ONLY IF SUCH INCOME IS TREATED AS EFFEC- 6 TIVELY CONNECTED WITH THE CONDUCT OF A TRADE OR BUSINESS IN THE UNITED 7 STATES PURSUANT TO SECTION EIGHT HUNDRED SIXTY-FOUR OF THE INTERNAL 8 REVENUE CODE, (II) ANY INCOME EXEMPT FROM FEDERAL TAXABLE INCOME UNDER 9 ANY TREATY OBLIGATION OF THE UNITED STATES, BUT ONLY IF SUCH INCOME 10 WOULD BE TREATED AS EFFECTIVELY CONNECTED IN THE ABSENCE OF SUCH 11 EXEMPTION PROVIDED THAT SUCH TREATY OBLIGATION DOES NOT PRECLUDE THE 12 TAXATION OF SUCH INCOME BY A STATE, OR (III) ANY INCOME WHICH WOULD BE 13 TREATED AS EFFECTIVELY CONNECTED IF SUCH INCOME WERE NOT EXCLUDED FROM 14 GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION ONE HUNDRED THREE OF 15 THE INTERNAL REVENUE CODE; 16 (2) ANY PART OF ANY INCOME FROM DIVIDENDS OR INTEREST OF ANY KIND OF 17 STOCK, SECURITIES, OR INDEBTEDNESS; 18 (3) TAXES ON OR MEASURED BY PROFITS OR INCOME PAID OR ACCRUED TO THE 19 UNITED STATES, ANY OF ITS POSSESSIONS, TERRITORIES OR COMMONWEALTHS, 20 INCLUDING TAXES IN LIEU OF ANY OF THE FOREGOING TAXES OTHERWISE GENERAL- 21 LY IMPOSED BY ANY POSSESSION, TERRITORY OR COMMONWEALTH OF THE UNITED 22 STATES, OR TAXES PAID OR ACCRUED TO THE STATE UNDER ARTICLE NINE, 23 NINE-A, THIRTEEN-A OR THIRTY-TWO OF THE TAX LAW AS IN EFFECT ON DECEMBER 24 THIRTY-FIRST, TWO THOUSAND FOURTEEN; 25 (3-A) TAXES ON OR MEASURED BY PROFITS OR INCOME, OR WHICH INCLUDE 26 PROFITS OR INCOME AS A MEASURE, PAID OR ACCRUED TO ANY OTHER STATE OF 27 THE UNITED STATES, OR ANY POLITICAL SUBDIVISION THEREOF, OR TO THE 28 DISTRICT OF COLUMBIA, INCLUDING TAXES EXPRESSLY IN LIEU OF ANY OF THE 29 FOREGOING TAXES OTHERWISE GENERALLY IMPOSED BY ANY OTHER STATE OF THE 30 UNITED STATES, OR ANY POLITICAL SUBDIVISION THEREOF, OR THE DISTRICT OF 31 COLUMBIA; 32 (4) TAXES IMPOSED UNDER THIS CHAPTER; 33 (4-A) INTENTIONALLY OMITTED; 34 (4-B) THE AMOUNT ALLOWED AS AN EXCLUSION OR A DEDUCTION IMPOSED BY THE 35 TAX LAW IN DETERMINING THE ENTIRE TAXABLE INCOME FOR A RELOCATION 36 DESCRIBED IN SUBDIVISION THIRTEEN OF SECTION 11-654 OF THIS SUBCHAPTER 37 WHICH THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED STATES TREASURY 38 DEPARTMENT BUT ONLY SUCH PORTION OF SUCH EXCLUSION OR DEDUCTION WHICH IS 39 NOT IN EXCESS OF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO SUBDIVI- 40 SION THIRTEEN OF SECTION 11-654 OF THIS SUBCHAPTER; 41 (4-C) THE AMOUNT ALLOWED AS AN EXCLUSION OR A DEDUCTION IMPOSED BY THE 42 TAX LAW FOR A RELOCATION DESCRIBED IN SUBDIVISION FOURTEEN OF SECTION 43 11-654 OF THIS SUBCHAPTER IN DETERMINING THE ENTIRE TAXABLE INCOME WHICH 44 THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED STATES TREASURY DEPART- 45 MENT BUT ONLY SUCH PORTION OF SUCH EXCLUSION OR DEDUCTION WHICH IS NOT 46 IN EXCESS OF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO SUBDIVISION 47 FOURTEEN OF SECTION 11-654 OF THIS SUBCHAPTER; 48 (4-D) INTENTIONALLY OMITTED; 49 (4-E) INTENTIONALLY OMITTED; 50 (5) INTENTIONALLY OMITTED; 51 (6) ANY AMOUNT ALLOWED AS A DEDUCTION FOR THE TAXABLE YEAR UNDER 52 SECTION ONE HUNDRED SEVENTY-TWO OF THE INTERNAL REVENUE CODE, INCLUDING 53 CARRYOVERS OF DEDUCTIONS FROM PRIOR TAXABLE YEARS; 54 (7) ANY AMOUNT BY REASON OF THE GRANTING, ISSUING OR ASSUMING OF A 55 RESTRICTED STOCK OPTION, AS DEFINED IN THE INTERNAL REVENUE CODE OF 56 NINETEEN HUNDRED FIFTY-FOUR, OR BY REASON OF THE TRANSFER OF THE SHARE S. 4610--A 12 A. 6721--A 1 OF STOCK UPON THE EXERCISE OF THE OPTION, UNLESS SUCH SHARE IS DISPOSED 2 OF BY THE GRANTEE OF THE OPTION WITHIN TWO YEARS FROM THE DATE OF THE 3 GRANTING OF THE OPTION OR WITHIN SIX MONTHS AFTER THE TRANSFER OF SUCH 4 SHARE TO THE GRANTEE; 5 (8) INTENTIONALLY OMITTED; 6 (9) EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT- 7 ING VEHICLE DESCRIBED IN SUBPARAGRAPH (D) OF PARAGRAPH EIGHT OF 8 SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN- 9 UE CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF 10 A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT, 11 FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH 12 IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED 13 EIGHTY-NINE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED AS A DEDUCTION IN 14 COMPUTING ITS FEDERAL TAXABLE INCOME SOLELY AS A RESULT OF AN ELECTION 15 MADE PURSUANT TO THE PROVISIONS OF SUCH PARAGRAPH EIGHT AS IT WAS IN 16 EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN 17 HUNDRED EIGHTY-FOUR; 18 (10) EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT- 19 ING VEHICLE DESCRIBED IN SUBPARAGRAPH (D) OF PARAGRAPH EIGHT OF 20 SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN- 21 UE CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF 22 A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT, 23 FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH 24 IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED 25 EIGHTY-NINE, ANY AMOUNT WHICH THE TAXPAYER WOULD HAVE BEEN REQUIRED TO 26 INCLUDE IN THE COMPUTATION OF ITS FEDERAL TAXABLE INCOME HAD IT NOT MADE 27 THE ELECTION PERMITTED PURSUANT TO SUCH PARAGRAPH EIGHT AS IT WAS IN 28 EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN 29 HUNDRED EIGHTY-FOUR; 30 (11) IN THE CASE OF PROPERTY PLACED IN SERVICE IN TAXABLE YEARS BEGIN- 31 NING BEFORE NINETEEN HUNDRED NINETY-FOUR, FOR TAXABLE YEARS BEGINNING 32 AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-ONE, EXCEPT WITH 33 RESPECT TO PROPERTY SUBJECT TO THE PROVISIONS OF SECTION TWO HUNDRED 34 EIGHTY F OF THE INTERNAL REVENUE CODE, PROPERTY SUBJECT TO THE 35 PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE 36 CODE WHICH IS PLACED IN SERVICE IN THIS STATE IN TAXABLE YEARS BEGINNING 37 AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-FOUR AND PROPERTY 38 OF A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAM- 39 BOAT, FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, 40 WHICH IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN 41 HUNDRED EIGHTY-NINE, THE AMOUNT ALLOWABLE AS A DEDUCTION DETERMINED 42 UNDER SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE CODE; 43 (12) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (J) OF THIS 44 SUBDIVISION APPLIES, THE AMOUNT, IF ANY, BY WHICH THE AGGREGATE OF THE 45 AMOUNTS DESCRIBED IN SUCH PARAGRAPH (J) ATTRIBUTABLE TO SUCH PROPERTY 46 EXCEEDS THE AGGREGATE OF THE AMOUNTS DESCRIBED IN SUBPARAGRAPH ELEVEN OF 47 THIS PARAGRAPH ATTRIBUTABLE TO SUCH PROPERTY; 48 (13) INTENTIONALLY OMITTED; 49 (14) INTENTIONALLY OMITTED; 50 (15) INTENTIONALLY OMITTED; 51 (16) IN THE CASE OF QUALIFIED PROPERTY DESCRIBED IN PARAGRAPH TWO OF 52 SUBSECTION (K) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN- 53 UE CODE, OTHER THAN QUALIFIED RESURGENCE ZONE PROPERTY DESCRIBED IN 54 PARAGRAPH (M) OF THIS SUBDIVISION, AND OTHER THAN QUALIFIED NEW YORK 55 LIBERTY ZONE PROPERTY DESCRIBED IN PARAGRAPH TWO OF SUBSECTION (B) OF 56 SECTION FOURTEEN HUNDRED L OF THE INTERNAL REVENUE CODE (WITHOUT REGARD S. 4610--A 13 A. 6721--A 1 TO CLAUSE (I) OF SUBPARAGRAPH (C) OF SUCH PARAGRAPH), THE AMOUNT ALLOW- 2 ABLE AS A DEDUCTION UNDER SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTER- 3 NAL REVENUE CODE; 4 (17) IN THE CASE OF A TAXPAYER THAT IS NOT AN ELIGIBLE FARMER AS 5 DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE 6 AMOUNT ALLOWABLE AS A DEDUCTION UNDER SECTIONS ONE HUNDRED SEVENTY-NINE, 7 ONE HUNDRED SIXTY-SEVEN AND ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL 8 REVENUE CODE WITH RESPECT TO A SPORT UTILITY VEHICLE THAT IS NOT A 9 PASSENGER AUTOMOBILE AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (D) OF 10 SECTION TWO HUNDRED EIGHTY F OF THE INTERNAL REVENUE CODE; 11 (18) THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT TO SECTION ONE 12 HUNDRED NINETY-NINE OF THE INTERNAL REVENUE CODE; 13 (19) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI- 14 CLE TWENTY-THREE OF THE TAX LAW. 15 (C) INTENTIONALLY OMITTED. 16 (C-1)(1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, IN 17 THE CASE OF A TAXPAYER WHICH IS A FOREIGN AIR CARRIER HOLDING A FOREIGN 18 AIR CARRIER PERMIT ISSUED BY THE UNITED STATES DEPARTMENT OF TRANSPORTA- 19 TION PURSUANT TO SECTION FOUR HUNDRED TWO OF THE FEDERAL AVIATION ACT OF 20 NINETEEN HUNDRED FIFTY-EIGHT, AS AMENDED, AND WHICH IS QUALIFIED UNDER 21 SUBPARAGRAPH TWO OF THIS PARAGRAPH, ENTIRE NET INCOME SHALL NOT INCLUDE, 22 AND SHALL BE COMPUTED WITHOUT THE DEDUCTION OF, AMOUNTS DIRECTLY OR 23 INDIRECTLY ATTRIBUTABLE TO, (I) ANY INCOME DERIVED FROM THE INTERNA- 24 TIONAL OPERATION OF AIRCRAFT AS DESCRIBED IN AND SUBJECT TO THE 25 PROVISIONS OF SECTION EIGHT HUNDRED EIGHTY-THREE OF THE INTERNAL REVENUE 26 CODE, (II) INCOME WITHOUT THE UNITED STATES WHICH IS DERIVED FROM THE 27 OPERATION OF AIRCRAFT, AND (III) INCOME WITHOUT THE UNITED STATES WHICH 28 IS OF A TYPE DESCRIBED IN SUBDIVISION (A) OF SECTION EIGHT HUNDRED 29 EIGHTY-ONE OF THE INTERNAL REVENUE CODE EXCEPT THAT IT IS DERIVED FROM 30 SOURCES WITHOUT THE UNITED STATES. ENTIRE NET INCOME SHALL INCLUDE 31 INCOME DESCRIBED IN CLAUSES (I), (II) AND (III) OF THIS SUBPARAGRAPH IN 32 THE CASE OF TAXPAYERS NOT DESCRIBED IN THE PREVIOUS SENTENCE; 33 (2) A TAXPAYER IS QUALIFIED UNDER THIS SUBPARAGRAPH IF AIR CARRIERS 34 ORGANIZED IN THE UNITED STATES AND OPERATING IN THE FOREIGN COUNTRY OR 35 COUNTRIES IN WHICH THE TAXPAYER HAS ITS MAJOR BASE OF OPERATIONS AND IN 36 WHICH IT IS ORGANIZED, RESIDENT OR HEADQUARTERED (IF NOT IN THE SAME 37 COUNTRY AS ITS MAJOR BASE OF OPERATIONS) ARE NOT SUBJECT TO ANY INCOME 38 TAX OR OTHER TAX BASED ON OR MEASURED BY INCOME OR RECEIPTS IMPOSED BY 39 SUCH FOREIGN COUNTRY OR COUNTRIES OR ANY POLITICAL SUBDIVISION THEREOF, 40 OR IF SO SUBJECT TO SUCH TAX, ARE PROVIDED AN EXEMPTION FROM SUCH TAX 41 EQUIVALENT TO THAT PROVIDED FOR HEREIN. 42 (D) THE COMMISSIONER OF FINANCE MAY, WHENEVER NECESSARY IN ORDER PROP- 43 ERLY TO REFLECT THE ENTIRE NET INCOME OF ANY TAXPAYER, DETERMINE THE 44 YEAR OR PERIOD IN WHICH ANY ITEM OF INCOME OR DEDUCTION SHALL BE 45 INCLUDED, WITHOUT REGARD TO THE METHOD OF ACCOUNTING EMPLOYED BY THE 46 TAXPAYER. 47 (E) THE ENTIRE NET INCOME OF ANY BRIDGE COMMISSION CREATED BY ACT OF 48 CONGRESS TO CONSTRUCT A BRIDGE ACROSS AN INTERNATIONAL BOUNDARY MEANS 49 ITS GROSS INCOME LESS THE EXPENSE OF MAINTAINING AND OPERATING ITS PROP- 50 ERTIES, THE ANNUAL INTEREST UPON ITS BONDS AND OTHER OBLIGATIONS, AND 51 THE ANNUAL CHARGE FOR THE RETIREMENT OF SUCH BONDS OR OBLIGATIONS AT 52 MATURITY. 53 (F) INTENTIONALLY OMITTED. 54 (G) AT THE ELECTION OF THE TAXPAYER, A DEDUCTION SHALL BE ALLOWED FOR 55 EXPENDITURES PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE S. 4610--A 14 A. 6721--A 1 CONSTRUCTION, RECONSTRUCTION, ERECTION OR IMPROVEMENT OF INDUSTRIAL 2 WASTE TREATMENT FACILITIES AND AIR POLLUTION CONTROL FACILITIES. 3 (1)(I) THE TERM "INDUSTRIAL WASTE TREATMENT FACILITIES" SHALL MEAN 4 FACILITIES FOR THE TREATMENT, NEUTRALIZATION OR STABILIZATION OF INDUS- 5 TRIAL WASTE (AS THE TERM "INDUSTRIAL WASTE" IS DEFINED IN SECTION 6 17-0105 OF THE ENVIRONMENTAL CONSERVATION LAW) FROM A POINT IMMEDIATELY 7 PRECEDING THE POINT OF SUCH TREATMENT, NEUTRALIZATION OR STABILIZATION 8 TO THE POINT OF DISPOSAL, INCLUDING THE NECESSARY PUMPING AND TRANSMIT- 9 TING FACILITIES, BUT EXCLUDING SUCH FACILITIES INSTALLED FOR THE PRIMARY 10 PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN THE MANUFACTURING 11 PROCESS OR ARE MARKETABLE. 12 (II) THE TERM "AIR POLLUTION CONTROL FACILITIES" SHALL MEAN FACILITIES 13 WHICH REMOVE, REDUCE, OR RENDER LESS NOXIOUS AIR CONTAMINANTS EMITTED 14 FROM AN AIR CONTAMINATION SOURCE (AS THE TERMS "AIR CONTAMINANT" AND 15 "AIR CONTAMINATION SOURCE" ARE DEFINED IN SECTION 19-0107 OF THE ENVI- 16 RONMENTAL CONSERVATION LAW) FROM A POINT IMMEDIATELY PRECEDING THE POINT 17 OF SUCH REMOVAL, REDUCTION OR RENDERING TO THE POINT OF DISCHARGE OF 18 AIR, MEETING EMISSION STANDARDS AS ESTABLISHED BY THE AIR POLLUTION 19 CONTROL BOARD, BUT EXCLUDING SUCH FACILITIES INSTALLED FOR THE PRIMARY 20 PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN THE MANUFACTURING 21 PROCESS OR ARE MARKETABLE AND EXCLUDING THOSE FACILITIES WHICH RELY FOR 22 THEIR EFFICACY ON DILUTION, DISPERSION OR ASSIMILATION OF AIR CONTAM- 23 INANTS IN THE AMBIENT AIR AFTER EMISSION. 24 (2) HOWEVER, SUCH DEDUCTION SHALL BE ALLOWED ONLY (I) WITH RESPECT TO 25 TANGIBLE PROPERTY WHICH IS DEPRECIABLE, PURSUANT TO SECTION ONE HUNDRED 26 SIXTY-SEVEN OF THE INTERNAL REVENUE CODE, HAVING A SITUS IN THE CITY AND 27 USED IN THE TAXPAYER'S TRADE OR BUSINESS, THE CONSTRUCTION, RECON- 28 STRUCTION, ERECTION OR IMPROVEMENT OF WHICH, IN THE CASE OF INDUSTRIAL 29 WASTE TREATMENT FACILITIES, IS INITIATED ON OR AFTER JANUARY FIRST, 30 NINETEEN HUNDRED SIXTY-SIX, AND ONLY FOR EXPENDITURES PAID OR INCURRED 31 PRIOR TO JANUARY FIRST, NINETEEN HUNDRED SEVENTY-TWO, OR WHICH, IN THE 32 CASE OF AIR POLLUTION CONTROL FACILITIES, IS INITIATED ON OR AFTER JANU- 33 ARY FIRST, NINETEEN HUNDRED SIXTY-SIX, AND 34 (II) ON CONDITION THAT SUCH FACILITIES HAVE BEEN CERTIFIED BY THE 35 STATE COMMISSIONER OF ENVIRONMENTAL CONSERVATION OR THE STATE COMMIS- 36 SIONER'S DESIGNATED REPRESENTATIVE, IN THE SAME MANNER AS PROVIDED FOR 37 IN SECTION 17-0707 OR 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW, AS 38 APPLICABLE, AS COMPLYING WITH APPLICABLE PROVISIONS OF THE ENVIRONMENTAL 39 CONSERVATION LAW, THE STATE SANITARY CODE AND REGULATIONS, PERMITS OR 40 ORDERS ISSUED PURSUANT THERETO, AND 41 (III) ON CONDITION THAT ENTIRE NET INCOME FOR THE TAXABLE YEAR AND ALL 42 SUCCEEDING TAXABLE YEARS BE COMPUTED WITHOUT ANY DEDUCTIONS FOR SUCH 43 EXPENDITURES OR FOR DEPRECIATION OF THE SAME PROPERTY OTHER THAN THE 44 DEDUCTIONS ALLOWED BY THIS PARAGRAPH EXCEPT TO THE EXTENT THAT THE BASIS 45 OF THE PROPERTY MAY BE ATTRIBUTABLE TO FACTORS OTHER THAN SUCH EXPENDI- 46 TURES, OR IN CASE A DEDUCTION IS ALLOWABLE PURSUANT TO THIS PARAGRAPH 47 FOR ONLY A PART OF SUCH EXPENDITURES, ON CONDITION THAT ANY DEDUCTION 48 ALLOWED FOR FEDERAL INCOME TAX PURPOSES FOR SUCH EXPENDITURES OR FOR 49 DEPRECIATION OF THE SAME PROPERTY BE PROPORTIONATELY REDUCED IN COMPUT- 50 ING ENTIRE NET INCOME FOR THE TAXABLE YEAR AND ALL SUCCEEDING TAXABLE 51 YEARS, AND 52 (IV) WHERE THE ELECTION PROVIDED FOR IN PARAGRAPH (D) OF SUBDIVISION 53 THREE OF SECTION 11-604 OF THIS CHAPTER OR THE ELECTION PROVIDED FOR IN 54 SUBDIVISION (K) OF SECTION 11-641 OF THIS CHAPTER HAS NOT BEEN EXERCISED 55 IN RESPECT TO THE SAME PROPERTY. S. 4610--A 15 A. 6721--A 1 (3)(I) IF EXPENDITURES IN RESPECT TO AN INDUSTRIAL WASTE TREATMENT 2 FACILITY OR AN AIR POLLUTION CONTROL FACILITY HAVE BEEN DEDUCTED AS 3 PROVIDED HEREIN AND IF WITHIN TEN YEARS FROM THE END OF THE TAXABLE YEAR 4 IN WHICH SUCH DEDUCTION WAS ALLOWED SUCH PROPERTY OR ANY PART THEREOF IS 5 USED FOR THE PRIMARY PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN 6 THE MANUFACTURING PROCESS OR ARE MARKETABLE, THE TAXPAYER SHALL REPORT 7 SUCH CHANGE OF USE IN ITS REPORT FOR THE FIRST TAXABLE YEAR DURING WHICH 8 IT OCCURS, AND THE COMMISSIONER OF FINANCE MAY RECOMPUTE THE TAX FOR THE 9 YEAR OR YEARS FOR WHICH SUCH DEDUCTION WAS ALLOWED AND ANY CARRYBACK OR 10 CARRYOVER YEAR, AND MAY ASSESS ANY ADDITIONAL TAX RESULTING FROM SUCH 11 RECOMPUTATION WITHIN THE TIME FIXED BY PARAGRAPH (H) OF SUBDIVISION 12 THREE OF SECTION 11-674 OF THIS CHAPTER. 13 (II) IF A DEDUCTION IS ALLOWED AS HEREIN PROVIDED FOR EXPENDITURES 14 PAID OR INCURRED DURING ANY TAXABLE YEAR ON THE BASIS OF A TEMPORARY 15 CERTIFICATE OF COMPLIANCE ISSUED PURSUANT TO THE ENVIRONMENTAL CONSERVA- 16 TION LAW AND IF THE TAXPAYER FAILS TO OBTAIN A PERMANENT CERTIFICATE OF 17 COMPLIANCE UPON COMPLETION OF THE FACILITIES WITH RESPECT TO WHICH SUCH 18 TEMPORARY CERTIFICATE WAS ISSUED, THE TAXPAYER SHALL REPORT SUCH FAILURE 19 IN ITS REPORT FOR THE TAXABLE YEAR DURING WHICH SUCH FACILITIES ARE 20 COMPLETED, AND THE COMMISSIONER OF FINANCE MAY RECOMPUTE THE TAX FOR THE 21 YEAR OR YEARS FOR WHICH SUCH DEDUCTION WAS ALLOWED AND ANY CARRYBACK OR 22 CARRYOVER YEAR, AND MAY ASSESS ANY ADDITIONAL TAX RESULTING FROM SUCH 23 RECOMPUTATION WITHIN THE TIME FIXED BY PARAGRAPH (H) OF SUBDIVISION 24 THREE OF SECTION 11-674 OF THIS CHAPTER. 25 (4) IN ANY TAXABLE YEAR WHEN PROPERTY IS SOLD OR OTHERWISE DISPOSED 26 OF, WITH RESPECT TO WHICH A DEDUCTION HAS BEEN ALLOWED PURSUANT TO THIS 27 PARAGRAPH, SUCH DEDUCTION SHALL BE DISREGARDED IN COMPUTING GAIN OR 28 LOSS, AND THE GAIN OR LOSS ON THE SALE OR OTHER DISPOSITION OF SUCH 29 PROPERTY SHALL BE THE GAIN OR LOSS ENTERING INTO THE COMPUTATION OF 30 ENTIRE TAXABLE INCOME WHICH THE TAXPAYER IS REQUIRED TO REPORT TO THE 31 UNITED STATES TREASURY FOR SUCH TAXABLE YEAR; 32 (H) WITH RESPECT TO GAIN DERIVED FROM THE SALE OR OTHER DISPOSITION OF 33 ANY PROPERTY ACQUIRED PRIOR TO JANUARY FIRST, NINETEEN HUNDRED 34 SIXTY-SIX; WHICH HAD A FEDERAL ADJUSTED BASIS ON SUCH DATE (OR ON THE 35 DATE OF ITS SALE OR OTHER DISPOSITION PRIOR TO JANUARY FIRST, NINETEEN 36 HUNDRED SIXTY-SIX) LOWER THAN ITS FAIR MARKET VALUE ON JANUARY FIRST, 37 NINETEEN HUNDRED SIXTY-SIX OR THE DATE OF ITS SALE OR OTHER DISPOSITION 38 PRIOR THERETO, EXCEPT PROPERTY DESCRIBED IN SUBSECTIONS ONE AND FOUR OF 39 SECTION TWELVE HUNDRED TWENTY-ONE OF THE INTERNAL REVENUE CODE, THERE 40 SHALL BE DEDUCTED FROM ENTIRE NET INCOME, THE DIFFERENCE BETWEEN (1) THE 41 AMOUNT OF THE TAXPAYER'S FEDERAL TAXABLE INCOME, AND (2) THE AMOUNT OF 42 THE TAXPAYER'S FEDERAL TAXABLE INCOME (IF SMALLER THAN THE AMOUNT 43 DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH) COMPUTED AS IF THE 44 FEDERAL ADJUSTED BASIS OF EACH SUCH PROPERTY (ON THE SALE OR OTHER 45 DISPOSITION OF WHICH GAIN WAS DERIVED) ON THE DATE OF THE SALE OR OTHER 46 DISPOSITION HAD BEEN EQUAL TO EITHER (I) ITS FAIR MARKET VALUE ON JANU- 47 ARY FIRST, NINETEEN HUNDRED SIXTY-SIX OR THE DATE OF ITS SALE OR OTHER 48 DISPOSITION PRIOR TO JANUARY FIRST, NINETEEN HUNDRED SIXTY-SIX, PLUS OR 49 MINUS ALL ADJUSTMENTS TO BASIS MADE WITH RESPECT TO SUCH PROPERTY FOR 50 FEDERAL INCOME TAX PURPOSES FOR PERIODS ON AND AFTER JANUARY FIRST, 51 NINETEEN HUNDRED SIXTY-SIX OR (II) THE AMOUNT REALIZED FROM ITS SALE OR 52 DISPOSITION, WHICHEVER IS LOWER; PROVIDED, HOWEVER, THAT THE TOTAL 53 MODIFICATION PROVIDED BY THIS PARAGRAPH SHALL NOT EXCEED THE AMOUNT OF 54 THE TAXPAYER'S NET GAIN FROM THE SALE OR OTHER DISPOSITION OF ALL SUCH 55 PROPERTY. S. 4610--A 16 A. 6721--A 1 (I) IF THE PERIOD COVERED BY A REPORT UNDER THIS SUBCHAPTER IS OTHER 2 THAN THE PERIOD COVERED BY THE REPORT OF THE UNITED STATES TREASURY 3 DEPARTMENT, ENTIRE NET INCOME SHALL BE DETERMINED BY MULTIPLYING THE 4 FEDERAL TAXABLE INCOME (AS ADJUSTED PURSUANT TO THE PROVISIONS OF THIS 5 SUBCHAPTER) BY THE NUMBER OF CALENDAR MONTHS OR MAJOR PARTS THEREOF 6 COVERED BY THE REPORT UNDER THIS SUBCHAPTER AND DIVIDING BY THE NUMBER 7 OF CALENDAR MONTHS OR MAJOR PARTS THEREOF COVERED BY THE REPORT TO SUCH 8 DEPARTMENT. IF IT SHALL APPEAR THAT SUCH METHOD OF DETERMINING ENTIRE 9 NET INCOME DOES NOT PROPERLY REFLECT THE TAXPAYER'S INCOME DURING THE 10 PERIOD COVERED BY THE REPORT UNDER THIS SUBCHAPTER, THE COMMISSIONER OF 11 FINANCE SHALL BE AUTHORIZED IN HIS OR HER DISCRETION TO DETERMINE SUCH 12 ENTIRE NET INCOME SOLELY ON THE BASIS OF THE TAXPAYER'S INCOME DURING 13 THE PERIOD COVERED BY ITS REPORT UNDER THIS SUBCHAPTER. 14 (J) IN THE CASE OF PROPERTY PLACED IN SERVICE IN TAXABLE YEARS BEGIN- 15 NING BEFORE NINETEEN HUNDRED NINETY-FOUR, FOR TAXABLE YEARS BEGINNING 16 AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-ONE, EXCEPT WITH 17 RESPECT TO PROPERTY SUBJECT TO THE PROVISIONS OF SECTION TWO HUNDRED 18 EIGHTY F OF THE INTERNAL REVENUE CODE AND PROPERTY SUBJECT TO THE 19 PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE 20 CODE WHICH IS PLACED IN SERVICE IN THIS STATE IN TAXABLE YEARS BEGINNING 21 AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-FOUR, AND PROVIDED 22 A DEDUCTION HAS NOT BEEN EXCLUDED FROM ENTIRE NET INCOME PURSUANT TO 23 SUBPARAGRAPH NINE OF PARAGRAPH (B) OF THIS SUBDIVISION, A TAXPAYER SHALL 24 BE ALLOWED WITH RESPECT TO PROPERTY WHICH IS SUBJECT TO THE PROVISIONS 25 OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE CODE THE 26 DEPRECIATION DEDUCTION ALLOWABLE UNDER SECTION ONE HUNDRED SIXTY-SEVEN 27 OF THE INTERNAL REVENUE CODE AS SUCH SECTION WOULD HAVE APPLIED TO PROP- 28 ERTY PLACED IN SERVICE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED 29 EIGHTY. THIS PARAGRAPH SHALL NOT APPLY TO PROPERTY OF A TAXPAYER PRINCI- 30 PALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT, FERRY OR NAVIGA- 31 TION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH IS PLACED IN 32 SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED EIGHTY-NINE. 33 (K) IN THE CASE OF QUALIFIED PROPERTY DESCRIBED IN PARAGRAPH TWO OF 34 SUBSECTION (K) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN- 35 UE CODE, OTHER THAN QUALIFIED RESURGENCE ZONE PROPERTY DESCRIBED IN 36 PARAGRAPH (M) OF THIS SUBDIVISION, AND OTHER THAN QUALIFIED NEW YORK 37 LIBERTY ZONE PROPERTY DESCRIBED IN PARAGRAPH TWO OF SUBSECTION (B) OF 38 SECTION FOURTEEN HUNDRED L OF THE INTERNAL REVENUE CODE (WITHOUT REGARD 39 TO CLAUSE (I) OF SUBPARAGRAPH (C) OF SUCH PARAGRAPH), THE DEPRECIATION 40 DEDUCTION ALLOWABLE UNDER SECTION ONE HUNDRED SIXTY-SEVEN AS SUCH 41 SECTION WOULD HAVE APPLIED TO SUCH PROPERTY HAD IT BEEN ACQUIRED BY THE 42 TAXPAYER ON SEPTEMBER TENTH, TWO THOUSAND ONE, PROVIDED, HOWEVER, THAT 43 FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND 44 FOUR, IN THE CASE OF A PASSENGER MOTOR VEHICLE OR A SPORT UTILITY VEHI- 45 CLE SUBJECT TO THE PROVISIONS OF PARAGRAPH (O) OF THIS SUBDIVISION, THE 46 LIMITATION UNDER CLAUSE (I) OF SUBPARAGRAPH (A) OF PARAGRAPH ONE OF 47 SUBDIVISION (A) OF SECTION TWO HUNDRED EIGHTY F OF THE INTERNAL REVENUE 48 CODE APPLICABLE TO THE AMOUNT ALLOWED AS A DEDUCTION UNDER THIS PARA- 49 GRAPH SHALL BE DETERMINED AS OF THE DATE SUCH VEHICLE WAS PLACED IN 50 SERVICE AND NOT AS OF SEPTEMBER TENTH, TWO THOUSAND ONE. 51 (L) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (K) OF THIS 52 SUBDIVISION APPLIES, THE AMOUNT OF ANY GAIN OR LOSS INCLUDIBLE IN ENTIRE 53 NET INCOME SHALL BE ADJUSTED TO REFLECT THE INCLUSIONS AND EXCLUSIONS 54 FROM ENTIRE NET INCOME PURSUANT TO SUBPARAGRAPH TWELVE OF PARAGRAPH (A) 55 AND SUBPARAGRAPH SIXTEEN OF PARAGRAPH (B) OF THIS SUBDIVISION ATTRIBUT- 56 ABLE TO SUCH PROPERTY. S. 4610--A 17 A. 6721--A 1 (M) FOR PURPOSES OF THIS PARAGRAPH AND PARAGRAPH (L) OF THIS SUBDIVI- 2 SION, QUALIFIED RESURGENCE ZONE PROPERTY SHALL MEAN QUALIFIED PROPERTY 3 DESCRIBED IN PARAGRAPH TWO OF SUBSECTION (K) OF SECTION ONE HUNDRED 4 SIXTY-EIGHT OF THE INTERNAL REVENUE CODE SUBSTANTIALLY ALL OF THE USE OF 5 WHICH IS IN THE RESURGENCE ZONE, AS DEFINED BELOW, AND IS IN THE ACTIVE 6 CONDUCT OF A TRADE OR BUSINESS BY THE TAXPAYER IN SUCH ZONE, AND THE 7 ORIGINAL USE OF WHICH IN THE RESURGENCE ZONE COMMENCES WITH THE TAXPAYER 8 AFTER SEPTEMBER TENTH, TWO THOUSAND ONE. THE RESURGENCE ZONE SHALL MEAN 9 THE AREA OF NEW YORK COUNTY BOUNDED ON THE SOUTH BY A LINE RUNNING FROM 10 THE INTERSECTION OF THE HUDSON RIVER WITH THE HOLLAND TUNNEL, AND 11 RUNNING THENCE EAST TO CANAL STREET, THEN RUNNING ALONG THE CENTERLINE 12 OF CANAL STREET TO THE INTERSECTION OF THE BOWERY AND CANAL STREET, 13 RUNNING THENCE IN A SOUTHEASTERLY DIRECTION DIAGONALLY ACROSS MANHATTAN 14 BRIDGE PLAZA, TO THE MANHATTAN BRIDGE, AND THENCE ALONG THE CENTERLINE 15 OF THE MANHATTAN BRIDGE TO THE POINT WHERE THE CENTERLINE OF THE MANHAT- 16 TAN BRIDGE WOULD INTERSECT WITH THE EASTERLY BANK OF THE EAST RIVER, AND 17 BOUNDED ON THE NORTH BY A LINE RUNNING FROM THE INTERSECTION OF THE 18 HUDSON RIVER WITH THE HOLLAND TUNNEL AND RUNNING THENCE NORTH ALONG WEST 19 AVENUE TO THE INTERSECTION OF CLARKSON STREET THEN RUNNING EAST ALONG 20 THE CENTERLINE OF CLARKSON STREET TO THE INTERSECTION OF WASHINGTON 21 AVENUE, THEN RUNNING SOUTH ALONG THE CENTERLINE OF WASHINGTON AVENUE TO 22 THE INTERSECTION OF WEST HOUSTON STREET, THEN EAST ALONG THE CENTERLINE 23 OF WEST HOUSTON STREET, THEN AT THE INTERSECTION OF THE AVENUE OF THE 24 AMERICAS CONTINUING EAST ALONG THE CENTERLINE OF EAST HOUSTON STREET TO 25 THE EASTERLY BANK OF THE EAST RIVER. 26 (N) RELATED MEMBERS EXPENSE ADD BACK. (1) FOR PURPOSES OF THIS PARA- 27 GRAPH: (I) "RELATED MEMBER" MEANS A RELATED PERSON AS DEFINED IN SUBPAR- 28 AGRAPH (C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED 29 SIXTY-FIVE OF THE INTERNAL REVENUE CODE, EXCEPT THAT "FIFTY PERCENT" 30 SHALL BE SUBSTITUTED FOR "TEN PERCENT". 31 (II) "EFFECTIVE RATE OF TAX" MEANS, AS TO ANY CITY, THE MAXIMUM STATU- 32 TORY RATE OF TAX IMPOSED BY THE CITY ON OR MEASURED BY A RELATED 33 MEMBER'S NET INCOME MULTIPLIED BY THE ALLOCATION PERCENTAGE, IF ANY, 34 APPLICABLE TO THE RELATED MEMBER UNDER THE LAWS OF SAID JURISDICTION. 35 FOR PURPOSES OF THIS DEFINITION, THE EFFECTIVE RATE OF TAX AS TO ANY 36 CITY IS ZERO WHERE THE RELATED MEMBER'S NET INCOME TAX LIABILITY IN SAID 37 CITY IS REPORTED ON A COMBINED OR CONSOLIDATED RETURN INCLUDING BOTH THE 38 TAXPAYER AND THE RELATED MEMBER WHERE THE REPORTED TRANSACTIONS BETWEEN 39 THE TAXPAYER AND THE RELATED MEMBER ARE ELIMINATED OR OFFSET. ALSO, FOR 40 PURPOSES OF THIS DEFINITION, WHEN COMPUTING THE EFFECTIVE RATE OF TAX 41 FOR A CITY IN WHICH A RELATED MEMBER'S NET INCOME IS ELIMINATED OR 42 OFFSET BY A CREDIT OR SIMILAR ADJUSTMENT THAT IS DEPENDENT UPON THE 43 RELATED MEMBER EITHER MAINTAINING OR MANAGING INTANGIBLE PROPERTY OR 44 COLLECTING INTEREST INCOME IN THAT CITY, THE MAXIMUM STATUTORY RATE OF 45 TAX IMPOSED BY SAID CITY SHALL BE DECREASED TO REFLECT THE STATUTORY 46 RATE OF TAX THAT APPLIES TO THE RELATED MEMBER AS EFFECTIVELY REDUCED BY 47 SUCH CREDIT OR SIMILAR ADJUSTMENT. 48 (III) ROYALTY PAYMENTS ARE PAYMENTS DIRECTLY CONNECTED TO THE ACQUISI- 49 TION, USE, MAINTENANCE OR MANAGEMENT, OWNERSHIP, SALE, EXCHANGE, OR ANY 50 OTHER DISPOSITION OF LICENSES, TRADEMARKS, COPYRIGHTS, TRADE NAMES, 51 TRADE DRESS, SERVICE MARKS, MASK WORKS, TRADE SECRETS, PATENTS AND ANY 52 OTHER SIMILAR TYPES OF INTANGIBLE ASSETS AS DETERMINED BY THE COMMIS- 53 SIONER OF FINANCE, AND INCLUDE AMOUNTS ALLOWABLE AS INTEREST DEDUCTIONS 54 UNDER SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE TO 55 THE EXTENT SUCH AMOUNTS ARE DIRECTLY OR INDIRECTLY FOR, RELATED TO OR IN S. 4610--A 18 A. 6721--A 1 CONNECTION WITH THE ACQUISITION, USE, MAINTENANCE OR MANAGEMENT, OWNER- 2 SHIP, SALE, EXCHANGE OR DISPOSITION OF SUCH INTANGIBLE ASSETS. 3 (IV) A VALID BUSINESS PURPOSE IS ONE OR MORE BUSINESS PURPOSES, OTHER 4 THAN THE AVOIDANCE OR REDUCTION OF TAXATION, WHICH ALONE OR IN COMBINA- 5 TION CONSTITUTE THE PRIMARY MOTIVATION FOR SOME BUSINESS ACTIVITY OR 6 TRANSACTION, WHICH ACTIVITY OR TRANSACTION CHANGES IN A MEANINGFUL WAY, 7 APART FROM TAX EFFECTS, THE ECONOMIC POSITION OF THE TAXPAYER. THE 8 ECONOMIC POSITION OF THE TAXPAYER INCLUDES AN INCREASE IN THE MARKET 9 SHARE OF THE TAXPAYER, OR THE ENTRY BY THE TAXPAYER INTO NEW BUSINESS 10 MARKETS. 11 (2) ROYALTY EXPENSE ADD BACKS. (I) EXCEPT WHERE A TAXPAYER IS INCLUDED 12 IN A COMBINED REPORT PURSUANT TO SECTION 11-654.3 OF THIS SUBCHAPTER 13 WITH THE APPLICABLE RELATED MEMBER, FOR THE PURPOSE OF COMPUTING ENTIRE 14 NET INCOME OR OTHER APPLICABLE TAXABLE BASIS, A TAXPAYER MUST ADD BACK 15 ROYALTY PAYMENTS DIRECTLY OR INDIRECTLY PAID, ACCRUED, OR INCURRED IN 16 CONNECTION WITH ONE OR MORE DIRECT OR INDIRECT TRANSACTIONS WITH ONE OR 17 MORE RELATED MEMBERS DURING THE TAXABLE YEAR TO THE EXTENT DEDUCTIBLE IN 18 CALCULATING FEDERAL TAXABLE INCOME. 19 (II) EXCEPTIONS. (A) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL 20 NOT APPLY TO THE PORTION OF THE ROYALTY PAYMENT THAT THE TAXPAYER ESTAB- 21 LISHES, BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE AND IN THE FORM 22 SPECIFIED BY THE COMMISSIONER OF FINANCE, MEETS ALL OF THE FOLLOWING 23 REQUIREMENTS: (I) THE RELATED MEMBER WAS SUBJECT TO TAX IN THIS CITY OR 24 ANOTHER CITY WITHIN THE UNITED STATES OR A FOREIGN NATION OR SOME COMBI- 25 NATION THEREOF ON A TAX BASE THAT INCLUDED THE ROYALTY PAYMENT PAID, 26 ACCRUED OR INCURRED BY THE TAXPAYER; (II) THE RELATED MEMBER DURING THE 27 SAME TAXABLE YEAR DIRECTLY OR INDIRECTLY PAID, ACCRUED OR INCURRED SUCH 28 PORTION TO A PERSON THAT IS NOT A RELATED MEMBER; AND (III) THE TRANS- 29 ACTION GIVING RISE TO THE ROYALTY PAYMENT BETWEEN THE TAXPAYER AND THE 30 RELATED MEMBER WAS UNDERTAKEN FOR A VALID BUSINESS PURPOSE. 31 (B) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY IF THE 32 TAXPAYER ESTABLISHES, BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE AND 33 IN THE FORM SPECIFIED BY THE COMMISSIONER OF FINANCE, THAT: (I) THE 34 RELATED MEMBER WAS SUBJECT TO TAX ON OR MEASURED BY ITS NET INCOME IN 35 THIS CITY OR ANOTHER CITY WITHIN THE UNITED STATES, OR SOME COMBINATION 36 THEREOF; (II) THE TAX BASE FOR SAID TAX INCLUDED THE ROYALTY PAYMENT 37 PAID, ACCRUED OR INCURRED BY THE TAXPAYER; AND (III) THE AGGREGATE 38 EFFECTIVE RATE OF TAX APPLIED TO THE RELATED MEMBER IN THOSE JURISDIC- 39 TIONS IS NO LESS THAN EIGHTY PERCENT OF THE STATUTORY RATE OF TAX THAT 40 APPLIED TO THE TAXPAYER UNDER SECTION 11-604 OF THIS CHAPTER FOR THE 41 TAXABLE YEAR. 42 (C) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY IF THE 43 TAXPAYER ESTABLISHES, BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE AND 44 IN THE FORM SPECIFIED BY THE COMMISSIONER OF FINANCE, THAT: (I) THE 45 ROYALTY PAYMENT WAS PAID, ACCRUED OR INCURRED TO A RELATED MEMBER ORGAN- 46 IZED UNDER THE LAWS OF A COUNTRY OTHER THAN THE UNITED STATES; (II) THE 47 RELATED MEMBER'S INCOME FROM THE TRANSACTION WAS SUBJECT TO A COMPREHEN- 48 SIVE INCOME TAX TREATY BETWEEN SUCH COUNTRY AND THE UNITED STATES; (III) 49 THE RELATED MEMBER WAS SUBJECT TO TAX IN A FOREIGN NATION ON A TAX BASE 50 THAT INCLUDED THE ROYALTY PAYMENT PAID, ACCRUED OR INCURRED BY THE 51 TAXPAYER; (IV) THE RELATED MEMBER'S INCOME FROM THE TRANSACTION WAS 52 TAXED IN SUCH COUNTRY AT AN EFFECTIVE RATE OF TAX AT LEAST EQUAL TO THAT 53 IMPOSED BY THIS CITY; AND (V) THE ROYALTY PAYMENT WAS PAID, ACCRUED OR 54 INCURRED PURSUANT TO A TRANSACTION THAT WAS UNDERTAKEN FOR A VALID BUSI- 55 NESS PURPOSE AND USING TERMS THAT REFLECT AN ARM'S LENGTH RELATIONSHIP. S. 4610--A 19 A. 6721--A 1 (D) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY IF THE 2 TAXPAYER AND THE COMMISSIONER OF FINANCE AGREE IN WRITING TO THE APPLI- 3 CATION OR USE OF ALTERNATIVE ADJUSTMENTS OR COMPUTATIONS. THE COMMIS- 4 SIONER OF FINANCE MAY, IN HIS OR HER DISCRETION, AGREE TO THE APPLICA- 5 TION OR USE OF ALTERNATIVE ADJUSTMENTS OR COMPUTATIONS WHEN HE OR SHE 6 CONCLUDES THAT IN THE ABSENCE OF SUCH AGREEMENT THE INCOME OF THE 7 TAXPAYER WOULD NOT BE PROPERLY REFLECTED. 8 (O) IN THE CASE OF A TAXPAYER THAT IS NOT AN ELIGIBLE FARMER AS 9 DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE 10 DEDUCTIONS ALLOWABLE UNDER SECTIONS ONE HUNDRED SEVENTY-NINE, ONE 11 HUNDRED SIXTY-SEVEN AND ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE 12 CODE WITH RESPECT TO A SPORT UTILITY VEHICLE THAT IS NOT A PASSENGER 13 AUTOMOBILE AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (D) OF SECTION TWO 14 HUNDRED EIGHTY F OF THE INTERNAL REVENUE CODE, DETERMINED AS IF SUCH 15 SPORT UTILITY VEHICLE WERE A PASSENGER AUTOMOBILE AS DEFINED IN SUCH 16 PARAGRAPH FIVE. FOR PURPOSES OF SUBPARAGRAPH SIXTEEN OF PARAGRAPH (B) 17 AND PARAGRAPH (K) OF THIS SUBDIVISION, THE TERMS QUALIFIED RESURGENCE 18 ZONE PROPERTY AND QUALIFIED NEW YORK LIBERTY ZONE PROPERTY DESCRIBED IN 19 PARAGRAPH TWO OF SUBSECTION B OF SECTION FOURTEEN HUNDRED L OF THE 20 INTERNAL REVENUE CODE SHALL NOT INCLUDE ANY SPORT UTILITY VEHICLE THAT 21 IS NOT A PASSENGER AUTOMOBILE AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION 22 (D) OF SECTION TWO HUNDRED EIGHTY F OF THE INTERNAL REVENUE CODE. 23 (P) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (O) OF THIS 24 SUBDIVISION APPLIES, THE AMOUNT OF ANY GAIN OR LOSS INCLUDIBLE IN ENTIRE 25 NET INCOME SHALL BE ADJUSTED TO REFLECT THE INCLUSIONS AND EXCLUSIONS 26 FROM ENTIRE NET INCOME PURSUANT TO SUBPARAGRAPH THIRTEEN OF PARAGRAPH 27 (A) AND SUBPARAGRAPH SEVENTEEN OF PARAGRAPH (B) OF THIS SUBDIVISION 28 ATTRIBUTABLE TO SUCH PROPERTY. 29 (Q) SUBTRACTION MODIFICATION FOR COMMUNITY BANKS AND SMALL THRIFTS. 30 (1) A TAXPAYER THAT IS A QUALIFIED COMMUNITY BANK AS DEFINED IN SUBPARA- 31 GRAPH TWO OF THIS PARAGRAPH OR A SMALL THRIFT INSTITUTION AS DEFINED IN 32 SUBPARAGRAPH TWO-A OF THIS PARAGRAPH SHALL BE ALLOWED A DEDUCTION IN 33 COMPUTING ENTIRE NET INCOME EQUAL TO THE AMOUNT COMPUTED UNDER SUBPARA- 34 GRAPH THREE OF THIS PARAGRAPH. 35 (2) TO BE A QUALIFIED COMMUNITY BANK, A TAXPAYER MUST SATISFY THE 36 FOLLOWING CONDITIONS: 37 (I) IT IS A BANK OR TRUST COMPANY ORGANIZED UNDER OR SUBJECT TO THE 38 PROVISIONS OF ARTICLE THREE OF THE BANKING LAW OR A COMPARABLE PROVISION 39 OF THE LAWS OF ANOTHER STATE, OR A NATIONAL BANKING ASSOCIATION. 40 (II) THE AVERAGE VALUE DURING THE TAXABLE YEAR OF THE ASSETS OF THE 41 TAXPAYER, OR, IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, THE 42 ASSETS OF THE COMBINED REPORTING GROUP OF THE TAXPAYER UNDER SECTION 43 11-654.3 OF THIS SUBCHAPTER, MUST NOT EXCEED EIGHT BILLION DOLLARS. 44 (2-A) TO BE A SMALL THRIFT INSTITUTION, A TAXPAYER MUST SATISFY THE 45 FOLLOWING CONDITIONS: 46 (I) IT IS A SAVINGS BANK, A SAVINGS AND LOAN ASSOCIATION, OR OTHER 47 SAVINGS INSTITUTION CHARTERED AND SUPERVISED AS SUCH UNDER FEDERAL OR 48 STATE LAW. 49 (II) THE AVERAGE VALUE DURING THE TAXABLE YEAR OF THE ASSETS OF THE 50 TAXPAYER, OR, IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, THE 51 ASSETS OF THE COMBINED REPORTING GROUP OF THE TAXPAYER UNDER SECTION 52 11-654.3 OF THIS SUBCHAPTER, MUST NOT EXCEED EIGHT BILLION DOLLARS. 53 (3)(I) THE SUBTRACTION MODIFICATION SHALL BE COMPUTED AS FOLLOWS: 54 (A) MULTIPLY THE TAXPAYER'S NET INTEREST INCOME FROM LOANS DURING THE 55 TAXABLE YEAR BY A FRACTION, THE NUMERATOR OF WHICH IS THE GROSS INTEREST 56 INCOME DURING THE TAXABLE YEAR FROM QUALIFYING LOANS AND THE DENOMINATOR S. 4610--A 20 A. 6721--A 1 OF WHICH IS THE GROSS INTEREST INCOME DURING THE TAXABLE YEAR FROM ALL 2 LOANS. 3 (B) MULTIPLY THE AMOUNT DETERMINED IN SUBCLAUSE (A) OF THIS CLAUSE BY 4 FIFTY PERCENT. THIS PRODUCT IS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER 5 THIS PARAGRAPH. 6 (II)(A) NET INTEREST INCOME FROM LOANS SHALL MEAN GROSS INTEREST 7 INCOME FROM LOANS LESS GROSS INTEREST EXPENSE FROM LOANS. GROSS INTEREST 8 EXPENSE FROM LOANS IS DETERMINED BY MULTIPLYING GROSS INTEREST EXPENSE 9 BY A FRACTION, THE NUMERATOR OF WHICH IS THE AVERAGE TOTAL VALUE OF 10 LOANS OWNED BY THE THRIFT INSTITUTION OR COMMUNITY BANK DURING THE TAXA- 11 BLE YEAR AND THE DENOMINATOR OF WHICH IS THE AVERAGE TOTAL ASSETS OF THE 12 THRIFT INSTITUTION OR COMMUNITY BANK DURING THE TAXABLE YEAR. 13 (B) MEASUREMENT OF ASSETS. FOR PURPOSES OF THIS CLAUSE: (I) TOTAL 14 ASSETS ARE THOSE ASSETS THAT ARE PROPERLY REFLECTED ON A BALANCE SHEET, 15 COMPUTED IN THE SAME MANNER AS IS REQUIRED BY THE BANKING REGULATOR OF 16 THE TAXPAYERS INCLUDED IN THE COMBINED RETURN. 17 (II) ASSETS WILL ONLY BE INCLUDED IF THE INCOME OR EXPENSES OF WHICH 18 ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN PROPERLY REFLECTED IF NOT 19 FULLY DEPRECIATED OR EXPENSED, OR DEPRECIATED OR EXPENSED TO A NOMINAL 20 AMOUNT) IN THE COMPUTATION OF THE TAXPAYER'S ENTIRE NET INCOME FOR THE 21 TAXABLE YEAR. ASSETS WILL NOT INCLUDE DEFERRED TAX ASSETS AND INTANGIBLE 22 ASSETS IDENTIFIED AS "GOODWILL". 23 (III) TANGIBLE REAL AND PERSONAL PROPERTY, SUCH AS BUILDINGS, LAND, 24 MACHINERY, AND EQUIPMENT, SHALL BE VALUED AT COST. LEASED ASSETS WILL BE 25 VALUED AT THE ANNUAL LEASE PAYMENT MULTIPLIED BY EIGHT. INTANGIBLE PROP- 26 ERTY, SUCH AS LOANS AND INVESTMENTS, SHALL BE VALUED AT BOOK VALUE 27 EXCLUSIVE OF RESERVES. 28 (IV) AVERAGE ASSETS ARE COMPUTED USING THE ASSETS MEASURED ON THE 29 FIRST DAY OF THE TAXABLE YEAR, AND ON THE LAST DAY OF EACH SUBSEQUENT 30 QUARTER OF THE TAXABLE YEAR OR MONTH OR DAY DURING THE TAXABLE YEAR. 31 (III) A QUALIFYING LOAN IS A LOAN THAT MEETS THE CONDITIONS SPECIFIED 32 IN SUBCLAUSE (A) OF THIS CLAUSE AND SUBCLAUSE (B) OF THIS CLAUSE. 33 (A) THE LOAN IS ORIGINATED BY THE QUALIFIED COMMUNITY BANK OR SMALL 34 THRIFT INSTITUTION OR PURCHASED BY THE QUALIFIED COMMUNITY BANK OR SMALL 35 THRIFT INSTITUTION IMMEDIATELY AFTER ITS ORIGINATION IN CONNECTION WITH 36 A COMMITMENT TO PURCHASE MADE BY THE BANK OR THRIFT INSTITUTION PRIOR TO 37 THE LOAN'S ORIGINATION. 38 (B) THE LOAN IS A SMALL BUSINESS LOAN OR A RESIDENTIAL MORTGAGE LOAN, 39 THE PRINCIPAL AMOUNT OF WHICH LOAN IS FIVE MILLION DOLLARS OR LESS, AND 40 EITHER THE BORROWER IS LOCATED IN THIS CITY AS DETERMINED UNDER SECTION 41 11-654.2 OF THIS SUBCHAPTER AND THE LOAN IS NOT SECURED BY REAL PROPER- 42 TY, OR THE LOAN IS SECURED BY REAL PROPERTY LOCATED IN THE CITY. 43 (C) A LOAN THAT MEETS THE DEFINITION OF A QUALIFYING LOAN IN A PRIOR 44 TAXABLE YEAR (INCLUDING YEARS PRIOR TO THE EFFECTIVE DATE OF THIS PARA- 45 GRAPH) REMAINS A QUALIFYING LOAN IN TAXABLE YEARS DURING AND AFTER WHICH 46 SUCH LOAN IS ACQUIRED BY ANOTHER CORPORATION IN THE TAXPAYER'S COMBINED 47 REPORTING GROUP UNDER SECTION 11-654.3 OF THIS SUBCHAPTER. 48 (R) A SMALL THRIFT INSTITUTION OR A QUALIFIED COMMUNITY BANK, AS 49 DEFINED IN PARAGRAPH (Q) OF THIS SUBDIVISION, THAT MAINTAINED A CAPTIVE 50 REIT ON APRIL FIRST, TWO THOUSAND FOURTEEN SHALL UTILIZE A REIT 51 SUBTRACTION EQUAL TO ONE HUNDRED SIXTY PERCENT OF THE DIVIDENDS PAID 52 DEDUCTIONS ALLOWED TO THAT CAPTIVE REIT FOR THE TAXABLE YEAR FOR FEDERAL 53 INCOME TAX PURPOSES AND SHALL NOT BE ALLOWED TO UTILIZE THE SUBTRACTION 54 MODIFICATION FOR COMMUNITY BANKS AND SMALL THRIFTS UNDER PARAGRAPH (Q) 55 OF THIS SUBDIVISION OR THE SUBTRACTION MODIFICATION FOR QUALIFIED RESI- 56 DENTIAL LOAN PORTFOLIOS UNDER PARAGRAPH (S) OF THIS SUBDIVISION IN ANY S. 4610--A 21 A. 6721--A 1 TAX YEAR IN WHICH SUCH THRIFT INSTITUTION OR COMMUNITY BANK MAINTAINS 2 THAT CAPTIVE REIT. 3 (S) SUBTRACTION MODIFICATION FOR QUALIFIED RESIDENTIAL LOAN PORTFO- 4 LIOS. (1)(I) A TAXPAYER THAT IS EITHER A THRIFT INSTITUTION AS DEFINED 5 IN SUBPARAGRAPH THREE OF THIS PARAGRAPH OR A QUALIFIED COMMUNITY BANK AS 6 DEFINED IN SUBPARAGRAPH TWO OF PARAGRAPH (Q) OF THIS SUBDIVISION AND 7 MAINTAINS A QUALIFIED RESIDENTIAL LOAN PORTFOLIO AS DEFINED IN SUBPARA- 8 GRAPH TWO OF THIS PARAGRAPH SHALL BE ALLOWED AS A DEDUCTION IN COMPUTING 9 ENTIRE NET INCOME THE AMOUNT, IF ANY, BY WHICH (A) THIRTY-TWO PERCENT OF 10 ITS ENTIRE NET INCOME DETERMINED WITHOUT REGARD TO THIS PARAGRAPH 11 EXCEEDS (B) THE AMOUNTS DEDUCTED BY THE TAXPAYER PURSUANT TO SECTIONS 12 ONE HUNDRED SIXTY-SIX AND FIVE HUNDRED EIGHTY-FIVE OF THE INTERNAL 13 REVENUE CODE LESS ANY AMOUNTS INCLUDED IN FEDERAL TAXABLE INCOME AS A 14 RESULT OF A RECOVERY OF A LOAN. 15 (II)(A) IF THE TAXPAYER IS IN A COMBINED REPORT UNDER SECTION 11-654.3 16 OF THIS SUBCHAPTER, THIS DEDUCTION WILL BE COMPUTED ON A COMBINED BASIS. 17 IN THAT INSTANCE, THE ENTIRE NET INCOME OF THE COMBINED REPORTING GROUP 18 FOR PURPOSES OF THIS PARAGRAPH SHALL BE MULTIPLIED BY A FRACTION, THE 19 NUMERATOR OF WHICH IS THE AVERAGE TOTAL ASSETS OF ALL THE THRIFT INSTI- 20 TUTIONS AND QUALIFIED COMMUNITY BANKS INCLUDED IN THE COMBINED REPORT 21 AND THE DENOMINATOR OF WHICH IS THE AVERAGE TOTAL ASSETS OF ALL THE 22 CORPORATIONS INCLUDED IN THE COMBINED REPORT. 23 (B) MEASUREMENT OF ASSETS. FOR PURPOSES OF THIS PARAGRAPH: (I) TOTAL 24 ASSETS ARE THOSE ASSETS THAT ARE PROPERLY REFLECTED ON A BALANCE SHEET, 25 COMPUTED IN THE SAME MANNER AS IS REQUIRED BY THE BANKING REGULATOR OF 26 THE TAXPAYERS INCLUDED IN THE COMBINED RETURN. 27 (II) ASSETS WILL ONLY BE INCLUDED IF THE INCOME OR EXPENSES OF WHICH 28 ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN PROPERLY REFLECTED IF NOT 29 FULLY DEPRECIATED OR EXPENSED, OR DEPRECIATED OR EXPENSED TO A NOMINAL 30 AMOUNT) IN THE COMPUTATION OF THE COMBINED GROUP'S ENTIRE NET INCOME FOR 31 THE TAXABLE YEAR. ASSETS WILL NOT INCLUDE DEFERRED TAX ASSETS AND INTAN- 32 GIBLE ASSETS IDENTIFIED AS "GOODWILL". 33 (III) TANGIBLE REAL AND PERSONAL PROPERTY, SUCH AS BUILDINGS, LAND, 34 MACHINERY, AND EQUIPMENT SHALL BE VALUED AT COST. LEASED ASSETS WILL BE 35 VALUED AT THE ANNUAL LEASE PAYMENT MULTIPLIED BY EIGHT. INTANGIBLE PROP- 36 ERTY, SUCH AS LOANS AND INVESTMENTS, SHALL BE VALUED AT BOOK VALUE 37 EXCLUSIVE OF RESERVES. 38 (IV) INTERCORPORATE STOCKHOLDINGS AND BILLS, NOTES AND ACCOUNTS 39 RECEIVABLE, AND OTHER INTERCORPORATE INDEBTEDNESS BETWEEN THE CORPO- 40 RATIONS INCLUDED IN THE COMBINED REPORT SHALL BE ELIMINATED. 41 (V) AVERAGE ASSETS ARE COMPUTED USING THE ASSETS MEASURED ON THE FIRST 42 DAY OF THE TAXABLE YEAR, AND ON THE LAST DAY OF EACH SUBSEQUENT QUARTER 43 OF THE TAXABLE YEAR OR MONTH OR DAY DURING THE TAXABLE YEAR. 44 (2) QUALIFIED RESIDENTIAL LOAN PORTFOLIO. (I) A TAXPAYER MAINTAINS A 45 QUALIFIED RESIDENTIAL LOAN PORTFOLIO IF AT LEAST SIXTY PERCENT OF THE 46 AMOUNT OF THE TOTAL ASSETS AT THE CLOSE OF THE TAXABLE YEAR OF THE 47 THRIFT INSTITUTION OR QUALIFIED COMMUNITY BANK CONSISTS OF THE ASSETS 48 DESCRIBED IN SUBCLAUSES (A) THROUGH (L) OF THIS CLAUSE, WITH THE APPLI- 49 CATION OF THE RULE IN THE LAST UNDESIGNATED SUBCLAUSE OF THIS CLAUSE. IF 50 THE TAXPAYER IS A MEMBER OF A COMBINED GROUP, THE DETERMINATION OF 51 WHETHER THERE IS A QUALIFIED RESIDENTIAL LOAN PORTFOLIO WILL BE MADE BY 52 AGGREGATING THE ASSETS OF THE THRIFT INSTITUTIONS AND QUALIFIED COMMUNI- 53 TY BANKS THAT ARE MEMBERS OF THE COMBINED GROUP. ASSETS: (A) CASH, 54 WHICH INCLUDES CASH AND CASH EQUIVALENTS INCLUDING CASH ITEMS IN THE 55 PROCESS OF COLLECTION, DEPOSITS WITH OTHER FINANCIAL INSTITUTIONS, 56 INCLUDING CORPORATE CREDIT UNIONS, BALANCES WITH FEDERAL RESERVE BANKS S. 4610--A 22 A. 6721--A 1 AND FEDERAL HOME LOAN BANKS, FEDERAL FUNDS SOLD, AND CASH AND CASH 2 EQUIVALENTS ON HAND. CASH SHALL NOT INCLUDE ANY BALANCES SERVING AS 3 COLLATERAL FOR SECURITIES LENDING TRANSACTIONS; (B) OBLIGATIONS OF THE 4 UNITED STATES OR OF A STATE OR POLITICAL SUBDIVISION THEREOF, AND STOCK 5 OR OBLIGATIONS OF A CORPORATION WHICH IS AN INSTRUMENTALITY OR A GOVERN- 6 MENT SPONSORED ENTERPRISE OF THE UNITED STATES OR OF A STATE OR POLI- 7 TICAL SUBDIVISION THEREOF; (C) LOANS SECURED BY A DEPOSIT OR SHARE OF A 8 MEMBER; (D) LOANS SECURED BY AN INTEREST IN REAL PROPERTY WHICH IS (OR, 9 FROM THE PROCEEDS OF THE LOAN, WILL BECOME) RESIDENTIAL REAL PROPERTY OR 10 REAL PROPERTY USED PRIMARILY FOR CHURCH PURPOSES, LOANS MADE FOR THE 11 IMPROVEMENT OF RESIDENTIAL REAL PROPERTY OR REAL PROPERTY USED PRIMARILY 12 FOR CHURCH PURPOSES, PROVIDED THAT FOR PURPOSES OF THIS SUBCLAUSE, RESI- 13 DENTIAL REAL PROPERTY SHALL INCLUDE SINGLE OR MULTI-FAMILY DWELLINGS, 14 FACILITIES IN RESIDENTIAL DEVELOPMENTS DEDICATED TO PUBLIC USE OR PROP- 15 ERTY USED ON A NONPROFIT BASIS FOR RESIDENTS, AND MOBILE HOMES NOT USED 16 ON A TRANSIENT BASIS; (E) PROPERTY ACQUIRED THROUGH THE LIQUIDATION OF 17 DEFAULTED LOANS DESCRIBED IN SUBCLAUSE (D) OF THIS CLAUSE; (F) ANY REGU- 18 LAR OR RESIDUAL INTEREST IN A REMIC, AS SUCH TERM IS DEFINED IN SECTION 19 860D OF THE INTERNAL REVENUE CODE, BUT ONLY IN THE PROPORTION WHICH THE 20 ASSETS OF SUCH REMIC CONSIST OF PROPERTY DESCRIBED IN ANY OF THE PRECED- 21 ING SUBCLAUSES OF THIS CLAUSE, EXCEPT THAT IF NINETY-FIVE PERCENT OR 22 MORE OF THE ASSETS OF SUCH REMIC ARE ASSETS DESCRIBED IN SUBCLAUSES (A) 23 THROUGH (E) OF THIS CLAUSE, THE ENTIRE INTEREST IN THE REMIC SHALL QUAL- 24 IFY; (G) ANY MORTGAGE-BACKED SECURITY WHICH REPRESENTS OWNERSHIP OF A 25 FRACTIONAL UNDIVIDED INTEREST IN A TRUST, THE ASSETS OF WHICH CONSIST 26 PRIMARILY OF MORTGAGE LOANS, PROVIDED THAT THE REAL PROPERTY WHICH 27 SERVES AS SECURITY FOR THE LOANS IS (OR FROM THE PROCEEDS OF THE LOAN, 28 WILL BECOME) THE TYPE OF PROPERTY DESCRIBED IN SUBCLAUSE (D) OF THIS 29 CLAUSE AND ANY COLLATERALIZED MORTGAGE OBLIGATION, THE SECURITY FOR 30 WHICH CONSISTS PRIMARILY OF MORTGAGE LOANS THAT MAINTAIN AS SECURITY THE 31 TYPE OF PROPERTY DESCRIBED IN SUBCLAUSE (D) OF THIS CLAUSE; (H) CERTIF- 32 ICATES OF DEPOSIT IN, OR OBLIGATIONS OF, A CORPORATION ORGANIZED UNDER A 33 STATE LAW WHICH SPECIFICALLY AUTHORIZES SUCH CORPORATION TO INSURE THE 34 DEPOSITS OR SHARE ACCOUNTS OF MEMBER ASSOCIATIONS; (I) LOANS SECURED BY 35 AN INTEREST IN EDUCATIONAL, HEALTH, OR WELFARE INSTITUTIONS OR FACILI- 36 TIES, INCLUDING STRUCTURES DESIGNED OR USED PRIMARILY FOR RESIDENTIAL 37 PURPOSES FOR STUDENTS, RESIDENTS, AND PERSONS UNDERCARE, EMPLOYEES, OR 38 MEMBERS OF THE STAFF OF SUCH INSTITUTIONS OR FACILITIES; (J) LOANS MADE 39 FOR THE PAYMENT OF EXPENSES OF COLLEGE OR UNIVERSITY EDUCATION OR VOCA- 40 TIONAL TRAINING; (K) PROPERTY USED BY THE TAXPAYER IN SUPPORT OF BUSI- 41 NESS WHICH CONSISTS PRINCIPALLY OF ACQUIRING THE SAVINGS OF THE PUBLIC 42 AND INVESTING IN LOANS; AND (L) LOANS FOR WHICH THE TAXPAYER IS THE 43 CREDITOR AND WHICH ARE WHOLLY SECURED BY LOANS DESCRIBED IN SUBCLAUSE 44 (D) OF THIS CLAUSE. 45 THE VALUE OF ACCRUED INTEREST RECEIVABLE AND ANY LOSS-SHARING COMMIT- 46 MENT OR OTHER LOAN GUARANTY BY A GOVERNMENTAL AGENCY WILL BE CONSIDERED 47 PART OF THE BASIS IN THE LOANS TO WHICH THE ACCRUED INTEREST OR LOSS 48 PROTECTION APPLIES. 49 (II) AT THE ELECTION OF THE TAXPAYER, THE PERCENTAGE SPECIFIED IN 50 CLAUSE (I) OF THIS SUBPARAGRAPH SHALL BE APPLIED ON THE BASIS OF THE 51 AVERAGE ASSETS OUTSTANDING DURING THE TAXABLE YEAR, IN LIEU OF THE CLOSE 52 OF THE TAXABLE YEAR. THE TAXPAYER CAN ELECT TO COMPUTE AN AVERAGE USING 53 THE ASSETS MEASURED ON THE FIRST DAY OF THE TAXABLE YEAR AND ON THE LAST 54 DAY OF EACH SUBSEQUENT QUARTER, OR MONTH OR DAY DURING THE TAXABLE YEAR. 55 THIS ELECTION MAY BE MADE ANNUALLY. S. 4610--A 23 A. 6721--A 1 (III) FOR PURPOSES OF SUBCLAUSE (D) OF CLAUSE (I) OF THIS SUBPARA- 2 GRAPH, IF A MULTIFAMILY STRUCTURE SECURING A LOAN IS USED IN PART FOR 3 NONRESIDENTIAL USE PURPOSES, THE ENTIRE LOAN IS DEEMED A RESIDENTIAL 4 REAL PROPERTY LOAN IF THE PLANNED RESIDENTIAL USE EXCEEDS EIGHTY PERCENT 5 OF THE PROPERTY'S PLANNED USE (MEASURED, AT THE TAXPAYER'S ELECTION, BY 6 USING SQUARE FOOTAGE OR GROSS RENTAL REVENUE, AND DETERMINED AS OF THE 7 TIME THE LOAN IS MADE). 8 (IV) FOR PURPOSES OF SUBCLAUSE (D) OF CLAUSE (I) OF THIS SUBPARAGRAPH, 9 LOANS MADE TO FINANCE THE ACQUISITION OR DEVELOPMENT OF LAND SHALL BE 10 DEEMED TO BE LOANS SECURED BY AN INTEREST IN RESIDENTIAL REAL PROPERTY 11 IF THERE IS A REASONABLE ASSURANCE THAT THE PROPERTY WILL BECOME RESI- 12 DENTIAL REAL PROPERTY WITHIN A PERIOD OF THREE YEARS FROM THE DATE OF 13 ACQUISITION OF SUCH LAND; BUT THIS SENTENCE SHALL NOT APPLY FOR ANY 14 TAXABLE YEAR UNLESS, WITHIN SUCH THREE YEAR PERIOD, SUCH LAND BECOMES 15 RESIDENTIAL REAL PROPERTY. FOR PURPOSES OF DETERMINING WHETHER ANY 16 INTEREST IN A REMIC QUALIFIES UNDER SUBCLAUSE (F) OF CLAUSE (I) OF THIS 17 SUBPARAGRAPH, ANY REGULAR INTEREST IN ANOTHER REMIC HELD BY SUCH REMIC 18 SHALL BE TREATED AS A LOAN DESCRIBED IN A PRECEDING SUBCLAUSE UNDER 19 PRINCIPLES SIMILAR TO THE PRINCIPLE OF SUCH SUBCLAUSE (F), EXCEPT THAT 20 IF SUCH REMICS ARE PART OF A TIERED STRUCTURE, THEY SHALL BE TREATED AS 21 ONE REMIC FOR PURPOSES OF SUCH SUBCLAUSE (F). 22 (3) FOR PURPOSES OF THIS PARAGRAPH, A "THRIFT INSTITUTION" IS A 23 SAVINGS BANK, A SAVINGS AND LOAN ASSOCIATION, OR OTHER SAVINGS INSTITU- 24 TION CHARTERED AND SUPERVISED AS SUCH UNDER FEDERAL OR STATE LAW. 25 (T) SUBTRACTION MODIFICATION FOR QUALIFIED AFFORDABLE HOUSING AND LOW 26 INCOME COMMUNITY LOANS. 27 (1) A TAXPAYER THAT OWNS A QUALIFYING LOAN WITHIN THE MEANING OF 28 CLAUSE (III) OF SUBPARAGRAPH TWO OF THIS PARAGRAPH SHALL BE ALLOWED A 29 DEDUCTION IN COMPUTING ENTIRE NET INCOME EQUAL TO THE AMOUNT COMPUTED 30 UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH. 31 (2)(I) THE DEDUCTION ALLOWED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH 32 SHALL BE EQUAL TO: 33 (A) IF THE TOTAL AVERAGE VALUE DURING THE TAXABLE YEAR OF THE ASSETS 34 OF THE TAXPAYER, OR IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, 35 THE ASSETS OF THE COMBINED REPORTING GROUP OF THE TAXPAYER UNDER SECTION 36 11-654.3 OF THIS SUBCHAPTER, DOES NOT EXCEED ONE HUNDRED BILLION 37 DOLLARS, THE TAXPAYER'S NET INTEREST INCOME FROM QUALIFYING LOANS, OR 38 (B) IF THE TOTAL AVERAGE VALUE DURING THE TAXABLE YEAR OF THE ASSETS 39 OF THE TAXPAYER, OR IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, 40 THE ASSETS OF THE COMBINED REPORTING GROUP OF THE TAXPAYER UNDER SECTION 41 11-654.3 OF THIS SUBCHAPTER, EXCEEDS ONE HUNDRED BILLION DOLLARS BUT IS 42 LESS THAN ONE HUNDRED FIFTY BILLION DOLLARS, THE TAXPAYER'S NET INTEREST 43 INCOME FROM QUALIFYING LOANS MULTIPLIED BY A FRACTION, THE NUMERATOR OF 44 WHICH IS ONE HUNDRED FIFTY BILLION DOLLARS MINUS THE TOTAL AVERAGE VALUE 45 DURING THE TAXABLE YEAR OF THE ASSETS OF THE TAXPAYER, OR IF THE TAXPAY- 46 ER IS INCLUDED IN A COMBINED REPORT, THE ASSETS OF THE COMBINED REPORT- 47 ING GROUP OF THE TAXPAYER UNDER SECTION 11-654.3 OF THIS SUBCHAPTER, AND 48 THE DENOMINATOR OF WHICH IS FIFTY BILLION DOLLARS. 49 (II)(A) NET INTEREST INCOME FROM QUALIFYING LOANS SHALL MEAN THE 50 TAXPAYER'S NET INTEREST INCOME FROM LOANS DURING THE TAXABLE YEAR MULTI- 51 PLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE GROSS INTEREST INCOME 52 DURING THE TAXABLE YEAR FROM QUALIFYING LOANS AND THE DENOMINATOR OF 53 WHICH IS THE GROSS INTEREST INCOME FROM ALL LOANS. 54 (B) NET INTEREST INCOME FROM LOANS SHALL MEAN GROSS INTEREST INCOME 55 DURING THE TAXABLE YEAR FROM LOANS LESS GROSS INTEREST EXPENSE FROM 56 LOANS. GROSS INTEREST EXPENSE FROM LOANS IS DETERMINED BY MULTIPLYING S. 4610--A 24 A. 6721--A 1 GROSS INTEREST EXPENSE BY A FRACTION, THE NUMERATOR OF WHICH IS THE 2 AVERAGE TOTAL VALUE OF LOANS OWNED BY THE TAXPAYER DURING THE TAXABLE 3 YEAR AND THE DENOMINATOR OF WHICH IS THE AVERAGE TOTAL ASSETS OF THE 4 TAXPAYER FOR THE YEAR. 5 (C) MEASUREMENT OF ASSETS. FOR PURPOSES OF THIS PARAGRAPH: 6 (I) TOTAL ASSETS ARE THOSE ASSETS THAT ARE PROPERLY REFLECTED ON A 7 BALANCE SHEET, COMPUTED IN THE SAME MANNER AS IS REQUIRED BY THE BANKING 8 REGULATOR, IF APPLICABLE, OF THE TAXPAYERS INCLUDED IN THE COMBINED 9 RETURN. 10 (II) ASSETS WILL ONLY BE INCLUDED IF THE INCOME OR EXPENSES OF WHICH 11 ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN PROPERLY REFLECTED IF NOT 12 FULLY DEPRECIATED OR EXPENSED, OR DEPRECIATED OR EXPENSED TO A NOMINAL 13 AMOUNT) IN THE COMPUTATION OF THE TAXPAYER'S ENTIRE NET INCOME FOR THE 14 TAXABLE YEAR. ASSETS WILL NOT INCLUDE DEFERRED TAX ASSETS AND INTANGIBLE 15 ASSETS IDENTIFIED AS "GOODWILL". 16 (III) TANGIBLE REAL AND PERSONAL PROPERTY, SUCH AS BUILDINGS, LAND, 17 MACHINERY, AND EQUIPMENT, SHALL BE VALUED AT COST. LEASED ASSETS WILL BE 18 VALUED AT THE ANNUAL LEASE PAYMENT MULTIPLIED BY EIGHT. INTANGIBLE PROP- 19 ERTY, SUCH AS LOANS AND INVESTMENTS, SHALL BE VALUED AT BOOK VALUE 20 EXCLUSIVE OF RESERVES. 21 (IV) AVERAGE ASSETS ARE COMPUTED USING THE ASSETS MEASURED ON THE 22 FIRST DAY OF THE TAXABLE YEAR, AND ON THE LAST DAY OF EACH SUBSEQUENT 23 QUARTER OF THE TAXABLE YEAR OR MONTH OR DAY DURING THE TAXABLE YEAR. 24 (III) A QUALIFYING LOAN IS A LOAN THAT MEETS THE CONDITIONS SPECIFIED 25 IN SUBCLAUSE (A) THROUGH SUBCLAUSE (E) OF THIS CLAUSE. 26 (A) THE LOAN IS ORIGINATED BY THE TAXPAYER LENDER OR PURCHASED BY THE 27 TAXPAYER IMMEDIATELY AFTER ITS ORIGINATION IN CONNECTION WITH A COMMIT- 28 MENT TO PURCHASE MADE BY THE TAXPAYER PRIOR TO THE LOAN'S ORIGINATION. 29 (B) SATISFIES CONDITIONS OF ITEM (I) OR (II) OR THIS SUBCLAUSE. 30 (I) THE LOAN IS SECURED BY A HOUSING ACCOMMODATION LOCATED WITHIN THE 31 CITY, WHERE THERE ARE RENTAL UNITS IN SUCH HOUSING ACCOMMODATION THAT 32 ARE QUALIFYING UNITS, WHICH FOR PURPOSES OF THIS SUBCLAUSE, MEANS UNITS 33 SUBJECT TO RENT CONTROL, RENT STABILIZATION OR TO A REGULATORY AGREE- 34 MENT, PROVIDED THAT, EACH SUCH LOAN WILL BE CONSIDERED A QUALIFYING LOAN 35 FOR PURPOSES OF THIS PARAGRAPH ONLY IN PROPORTION TO A PERCENTAGE EQUAL 36 TO THE NUMBER OF QUALIFYING UNITS DIVIDED BY THE TOTAL NUMBER OF ALL 37 RESIDENTIAL AND COMMERCIAL UNITS LOCATED ON THE SITE OF THE REAL PROPER- 38 TY SECURING THE LOAN, AS DETERMINED AS OF THE DATE THE LOAN IS MADE. 39 (II) TO THE EXTENT NOT INCLUDED IN ITEM (I) OF THIS SUBCLAUSE, LOANS 40 SECURED BY RESIDENTIAL REAL PROPERTY LOCATED IN A LOW-INCOME COMMUNITY. 41 FOR PURPOSES OF THIS PARAGRAPH, LOW-INCOME COMMUNITY AREAS ARE CENSUS 42 TRACTS WITHIN THE CITY IN WHICH THE POVERTY RATE FOR SUCH TRACT IS AT 43 LEAST TWENTY PERCENT AND THE MEDIAN FAMILY INCOME FOR SUCH TRACT DOES 44 NOT EXCEED EIGHTY PERCENT OF METROPOLITAN AREA MEDIAN FAMILY INCOME. 45 THIS DETERMINATION WILL BE MADE BY REFERENCE TO THE POVERTY AND MEDIAN 46 FAMILY INCOME CENSUS DATA FOR APPLICATION OF SECTION 45D OF THE INTERNAL 47 REVENUE CODE OF 1986, AS IN EFFECT ON THE EFFECTIVE DATE OF THE CHAPTER 48 OF THE LAWS OF TWO THOUSAND FIFTEEN THAT ADDED THIS SUBCHAPTER. 49 (C) THE LOAN IS NOT TREATED AS A QUALIFYING LOAN IN THE COMPUTATION OF 50 A SUBTRACTION FROM ENTIRE NET INCOME PURSUANT TO PARAGRAPH (Q) OF THIS 51 SUBDIVISION. 52 (D) IF THE TAXPAYER APPLIES A SUBTRACTION PURSUANT TO PARAGRAPH (R) OF 53 THIS SUBDIVISION, THE INTEREST OR NET GAINS FROM THE LOAN ARE NOT RECOG- 54 NIZED BY A CAPTIVE REIT AS DEFINED IN SECTION 11-601 OF THIS CHAPTER. 55 (E) A LOAN THAT MEETS THE DEFINITION OF A QUALIFYING LOAN IN A PRIOR 56 TAXABLE YEAR (INCLUDING YEARS PRIOR TO THE EFFECTIVE DATE OF THIS PARA- S. 4610--A 25 A. 6721--A 1 GRAPH) REMAINS A QUALIFYING LOAN IN TAXABLE YEARS DURING AND AFTER WHICH 2 SUCH LOAN IS ACQUIRED BY ANOTHER CORPORATION IN THE TAXPAYER'S COMBINED 3 REPORTING GROUP UNDER SECTION 11-654.3 OF THIS SUBCHAPTER. 4 (IV) FOR PURPOSES OF THIS PARAGRAPH, THE FOLLOWING TERMS SHALL MEAN: 5 (A) "HOUSING ACCOMMODATIONS" SHALL MEAN A MULTIPLE DWELLING THAT 6 CONTAINS AT LEAST FIVE DWELLING UNITS TOGETHER WITH THE LAND ON WHICH 7 SUCH STRUCTURE IS SITUATED. 8 (B) "REGULATORY AGREEMENT" SHALL MEAN A WRITTEN AGREEMENT WITH OR 9 APPROVED BY ANY LOCAL, MUNICIPAL, STATE, FEDERAL OR OTHER GOVERNMENT 10 AGENCY THAT REQUIRES THE PROVISION OF HOUSING ACCOMMODATIONS FOR FAMI- 11 LIES AND PERSONS OF LOW OR MODERATE INCOME, AND BINDS THE OWNER OF SUCH 12 REAL PROPERTY AND ITS SUCCESSORS AND ASSIGNS. A REGULATORY AGREEMENT MAY 13 INCLUDE SUCH OTHER TERMS AND CONDITIONS AS THE LOCALITY, MUNICIPALITY, 14 STATE, OR FEDERAL GOVERNMENT SHALL DETERMINE. 15 (C) "RENT STABILIZATION" SHALL MEAN, COLLECTIVELY, THE RENT STABILIZA- 16 TION LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, 17 AND THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, ALL AS 18 IN EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO 19 THOUSAND FIFTEEN THAT ADDED THIS SUBCHAPTER OR AS AMENDED THEREAFTER, 20 TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING SUBSTAN- 21 TIALLY THE SAME SUBJECT MATTER. 22 9. (A) THE TERM "CALENDAR YEAR" MEANS A PERIOD OF TWELVE CALENDAR 23 MONTHS (OR ANY SHORTER PERIOD BEGINNING ON THE DATE THE TAXPAYER BECOMES 24 SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER) ENDING ON THE 25 THIRTY-FIRST DAY OF DECEMBER, PROVIDED THE TAXPAYER KEEPS ITS BOOKS ON 26 THE BASIS OF SUCH PERIOD OR ON THE BASIS OF ANY PERIOD ENDING ON ANY DAY 27 OTHER THAN THE LAST DAY OF A CALENDAR MONTH, OR PROVIDED THE TAXPAYER 28 DOES NOT KEEP BOOKS, AND INCLUDES, IN CASE THE TAXPAYER CHANGES THE 29 PERIOD ON THE BASIS OF WHICH IT KEEPS ITS BOOKS FROM A FISCAL YEAR TO A 30 CALENDAR YEAR, THE PERIOD FROM THE CLOSE OF ITS LAST OLD FISCAL YEAR UP 31 TO AND INCLUDING THE FOLLOWING DECEMBER THIRTY-FIRST. 32 (B) THE TERM "FISCAL YEAR" MEANS A PERIOD OF TWELVE CALENDAR MONTHS 33 (OR ANY SHORTER PERIOD BEGINNING ON THE DATE THE TAXPAYER BECOMES 34 SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER) ENDING ON THE LAST DAY OF 35 ANY MONTH OTHER THAN DECEMBER, PROVIDED THE TAXPAYER KEEPS ITS BOOKS ON 36 THE BASIS OF SUCH PERIOD, AND INCLUDES, IN CASE THE TAXPAYER CHANGES THE 37 PERIOD ON THE BASIS OF WHICH IT KEEPS ITS BOOKS FROM A CALENDAR YEAR TO 38 A FISCAL YEAR OR FROM ONE FISCAL YEAR TO ANOTHER FISCAL YEAR, THE PERIOD 39 FROM THE CLOSE OF ITS LAST OLD CALENDAR OR FISCAL YEAR UP TO THE DATE 40 DESIGNATED AS THE CLOSE OF ITS NEW FISCAL YEAR. 41 10. THE TERM "TANGIBLE PERSONAL PROPERTY" MEANS CORPOREAL PERSONAL 42 PROPERTY, SUCH AS MACHINERY, TOOLS, IMPLEMENTS, GOODS, WARES AND 43 MERCHANDISE, AND DOES NOT MEAN MONEY, DEPOSITS IN BANKS, SHARES OF 44 STOCK, BONDS, NOTES, CREDITS OR EVIDENCES OF AN INTEREST PROPERTY AND 45 EVIDENCES OF DEBT. 46 11. THE TERM "INTERNAL REVENUE CODE" MEANS, UNLESS OTHERWISE SPECIF- 47 ICALLY STATED IN THIS SUBCHAPTER, THE INTERNAL REVENUE CODE OF 1986, AS 48 AMENDED. 49 12. THE TERM "COMBINABLE CAPTIVE INSURANCE COMPANY" MEANS AN ENTITY 50 THAT IS TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION UNDER THE 51 INTERNAL REVENUE CODE: (A) MORE THAN FIFTY PERCENT OF THE VOTING STOCK 52 OF WHICH IS OWNED OR CONTROLLED, DIRECTLY OR INDIRECTLY, BY A SINGLE 53 ENTITY THAT IS TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION UNDER 54 THE INTERNAL REVENUE CODE AND NOT EXEMPT FROM FEDERAL INCOME TAX; 55 (B) THAT IS LICENSED AS A CAPTIVE INSURANCE COMPANY UNDER THE LAWS OF 56 THIS STATE OR ANOTHER JURISDICTION; S. 4610--A 26 A. 6721--A 1 (C) WHOSE BUSINESS INCLUDES PROVIDING, DIRECTLY AND INDIRECTLY, INSUR- 2 ANCE OR REINSURANCE COVERING THE RISKS OF ITS PARENT AND/OR MEMBERS OF 3 ITS AFFILIATED GROUP; AND 4 (D) FIFTY PERCENT OR LESS OF WHOSE GROSS RECEIPTS FOR THE TAXABLE YEAR 5 CONSIST OF PREMIUMS FROM ARRANGEMENTS THAT CONSTITUTE INSURANCE FOR 6 FEDERAL INCOME TAX PURPOSES. 7 FOR PURPOSES OF THIS SUBDIVISION, "AFFILIATED GROUP" HAS THE SAME 8 MEANING AS THAT TERM IS GIVEN IN SECTION FIFTEEN HUNDRED FOUR OF THE 9 INTERNAL REVENUE CODE, EXCEPT THAT THE TERM "COMMON PARENT CORPORATION" 10 IN THAT SECTION IS DEEMED TO MEAN ANY PERSON, AS DEFINED IN SECTION 11 SEVEN THOUSAND SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE AND REFER- 12 ENCES TO "AT LEAST EIGHTY PERCENT" IN SECTION FIFTEEN HUNDRED FOUR OF 13 THE INTERNAL REVENUE CODE ARE TO BE READ AS "FIFTY PERCENT OR MORE;" 14 SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE IS TO BE READ 15 WITHOUT REGARD TO THE EXCLUSIONS PROVIDED FOR IN SUBSECTION (B) OF THAT 16 SECTION; "PREMIUMS" HAS THE SAME MEANING AS THAT TERM IS GIVEN IN PARA- 17 GRAPH ONE OF SUBDIVISION (C) OF SECTION FIFTEEN HUNDRED TEN OF THE TAX 18 LAW, EXCEPT THAT IT INCLUDES CONSIDERATION FOR ANNUITY CONTRACTS AND 19 EXCLUDES ANY PART OF THE CONSIDERATION FOR INSURANCE, REINSURANCE OR 20 ANNUITY CONTRACTS THAT DO NOT PROVIDE BONA FIDE INSURANCE, REINSURANCE 21 OR ANNUITY BENEFITS; AND "GROSS RECEIPTS" INCLUDES THE AMOUNTS INCLUDED 22 IN GROSS RECEIPTS FOR PURPOSES OF PARAGRAPH FIFTEEN OF SUBSECTION (C) OF 23 SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, EXCEPT THAT THOSE 24 AMOUNTS ALSO INCLUDE ALL PREMIUMS AS DEFINED IN THIS SUBDIVISION. 25 13. THE TERM "PARTNERSHIP" INCLUDES A SYNDICATE, GROUP, POOL, JOINT 26 VENTURE, OR OTHER UNINCORPORATED ORGANIZATION, THROUGH OR BY MEANS OF 27 WHICH ANY BUSINESS, FINANCIAL OPERATION, OR VENTURE IS CARRIED ON, AND 28 WHICH IS NOT A CORPORATION AS DEFINED IN SUBDIVISION ONE OF THIS 29 SECTION, OR A TRUST OR ESTATE THAT IS SEPARATE FROM ITS OWNER UNDER PART 30 ONE OF SUBCHAPTER J OF CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE 31 CODE; AND THE TERM "PARTNER" INCLUDES A MEMBER IN SUCH SYNDICATE, GROUP, 32 POOL, JOINT VENTURE, OR ORGANIZATION. 33 S 11-653 IMPOSITION OF TAX; EXEMPTIONS. 1. (A) FOR THE PRIVILEGE OF 34 DOING BUSINESS, OR OF EMPLOYING CAPITAL, OR OF OWNING OR LEASING PROPER- 35 TY IN THE CITY IN A CORPORATE OR ORGANIZED CAPACITY, OR OF MAINTAINING 36 AN OFFICE IN THE CITY, FOR ALL OR ANY PART OF EACH OF ITS FISCAL OR 37 CALENDAR YEARS, EVERY DOMESTIC OR FOREIGN CORPORATION, EXCEPT CORPO- 38 RATIONS SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION, SHALL ANNUALLY 39 PAY A TAX, UPON THE BASIS OF ITS BUSINESS INCOME, OR UPON SUCH OTHER 40 BASIS AS MAY BE APPLICABLE AS HEREINAFTER PROVIDED, FOR SUCH FISCAL OR 41 CALENDAR YEAR OR PART THEREOF, ON A REPORT WHICH SHALL BE FILED, EXCEPT 42 AS HEREINAFTER PROVIDED, ON OR BEFORE THE FIFTEENTH DAY OF MARCH NEXT 43 SUCCEEDING THE CLOSE OF EACH SUCH YEAR, OR, IN THE CASE OF A TAXPAYER 44 WHICH REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN TWO AND ONE-HALF 45 MONTHS AFTER THE CLOSE OF SUCH FISCAL YEAR, AND SHALL BE PAID AS HEREIN- 46 AFTER PROVIDED. 47 (B) INTENTIONALLY OMITTED. 48 (C) A CORPORATION IS DOING BUSINESS IN THE CITY IF (1) IT HAS ISSUED 49 CREDIT CARDS TO ONE THOUSAND OR MORE CUSTOMERS WHO HAVE A MAILING 50 ADDRESS WITHIN THE CITY AS OF THE LAST DAY OF ITS TAXABLE YEAR, (2) IT 51 HAS MERCHANT CUSTOMER CONTRACTS WITH MERCHANTS AND THE TOTAL NUMBER OF 52 LOCATIONS COVERED BY THOSE CONTRACTS EQUALS ONE THOUSAND OR MORE 53 LOCATIONS IN THE CITY TO WHOM THE CORPORATION REMITTED PAYMENTS FOR 54 CREDIT CARD TRANSACTIONS DURING THE TAXABLE YEAR, OR (3) THE SUM OF THE 55 NUMBER OF CUSTOMERS DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH PLUS 56 THE NUMBER OF LOCATIONS COVERED BY ITS CONTRACTS DESCRIBED IN SUBPARA- S. 4610--A 27 A. 6721--A 1 GRAPH TWO OF THIS PARAGRAPH EQUALS ONE THOUSAND OR MORE. AS USED IN THIS 2 SUBDIVISION, THE TERM "CREDIT CARD" INCLUDES BANK, CREDIT, TRAVEL AND 3 ENTERTAINMENT CARDS. 4 (D) INTENTIONALLY OMITTED. 5 (E) INTENTIONALLY OMITTED. 6 (F) IF A PARTNERSHIP IS DOING BUSINESS, EMPLOYING CAPITAL, OWNING OR 7 LEASING PROPERTY IN THE CITY, OR MAINTAINING AN OFFICE IN THE CITY, ANY 8 CORPORATION THAT IS A PARTNER IN SUCH PARTNERSHIP SHALL BE SUBJECT TO 9 TAX UNDER THIS SUBCHAPTER AS DESCRIBED IN THE REGULATIONS OF THE COMMIS- 10 SIONER OF FINANCE. 11 2. A FOREIGN CORPORATION SHALL NOT BE DEEMED TO BE DOING BUSINESS, 12 EMPLOYING CAPITAL, OWNING OR LEASING PROPERTY, OR MAINTAINING AN OFFICE 13 IN THE CITY, FOR THE PURPOSES OF THIS SUBCHAPTER, BY REASON OF: 14 (A) THE MAINTENANCE OF CASH BALANCES WITH BANKS OR TRUST COMPANIES IN 15 THE CITY, OR 16 (B) THE OWNERSHIP OF SHARES OF STOCK OR SECURITIES KEPT IN THE CITY, 17 IF KEPT IN A SAFE DEPOSIT BOX, SAFE, VAULT OR OTHER RECEPTACLE RENTED 18 FOR THE PURPOSE, OR IF PLEDGED AS COLLATERAL SECURITY, OR IF DEPOSITED 19 WITH ONE OR MORE BANKS OR TRUST COMPANIES, OR BROKERS WHO ARE MEMBERS OF 20 A RECOGNIZED SECURITY EXCHANGE, IN SAFEKEEPING OR CUSTODY ACCOUNTS, OR 21 (C) THE TAKING OF ANY ACTION BY ANY SUCH BANK OR TRUST COMPANY OR 22 BROKER, WHICH IS INCIDENTAL TO THE RENDERING OF SAFEKEEPING OR CUSTODIAN 23 SERVICE TO SUCH CORPORATION, OR 24 (D) THE MAINTENANCE OF AN OFFICE IN THE CITY BY ONE OR MORE OFFICERS 25 OR DIRECTORS OF THE CORPORATION WHO ARE NOT EMPLOYEES OF THE CORPORATION 26 IF THE CORPORATION OTHERWISE IS NOT DOING BUSINESS IN THE CITY, AND DOES 27 NOT EMPLOY CAPITAL OR OWN OR LEASE PROPERTY IN THE CITY, OR 28 (E) THE KEEPING OF BOOKS OR RECORDS OF A CORPORATION IN THE CITY IF 29 SUCH BOOKS OR RECORDS ARE NOT KEPT BY EMPLOYEES OF SUCH CORPORATION AND 30 SUCH CORPORATION DOES NOT OTHERWISE DO BUSINESS, EMPLOY CAPITAL, OWN OR 31 LEASE PROPERTY OR MAINTAIN AN OFFICE IN THE CITY, OR 32 (F) ANY COMBINATION OF THE FOREGOING ACTIVITIES. 33 2-A. AN ALIEN CORPORATION SHALL NOT BE DEEMED TO BE DOING BUSINESS, 34 EMPLOYING CAPITAL, OWNING OR LEASING PROPERTY, OR MAINTAINING AN OFFICE 35 IN THE CITY, FOR THE PURPOSES OF THIS SUBCHAPTER, IF ITS ACTIVITIES IN 36 THE CITY ARE LIMITED SOLELY TO: 37 (A) INVESTING OR TRADING IN STOCKS AND SECURITIES FOR ITS OWN ACCOUNT 38 WITHIN THE MEANING OF CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH (2) 39 OF SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-FOUR OF THE INTERNAL 40 REVENUE CODE, OR: 41 (B) INVESTING OR TRADING IN COMMODITIES FOR ITS OWN ACCOUNT WITHIN THE 42 MEANING OF CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH (2) OF 43 SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-FOUR OF THE INTERNAL 44 REVENUE CODE, OR 45 (C) ANY COMBINATION OF ACTIVITIES DESCRIBED IN PARAGRAPHS (A) AND (B) 46 OF THIS SUBDIVISION. 47 AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF THE INTERNAL REVENUE 48 CODE IS NOT TREATED AS A "DOMESTIC CORPORATION" AS DEFINED IN SECTION 49 SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE AND HAS NO EFFECTIVELY 50 CONNECTED INCOME FOR THE TAXABLE YEAR PURSUANT TO CLAUSE THREE OF THE 51 OPENING PARAGRAPH OF SUBDIVISION EIGHT OF SECTION 11-652 OF THIS 52 SUBCHAPTER SHALL NOT BE SUBJECT TO TAX UNDER THIS SUBCHAPTER FOR THAT 53 TAXABLE YEAR. FOR PURPOSES OF THIS SUBCHAPTER, AN ALIEN CORPORATION IS A 54 CORPORATION ORGANIZED UNDER THE LAWS OF A COUNTRY, OR ANY POLITICAL 55 SUBDIVISION THEREOF, OTHER THAN THE UNITED STATES, OR ORGANIZED UNDER S. 4610--A 28 A. 6721--A 1 THE LAWS OF A POSSESSION, TERRITORY OR COMMONWEALTH OF THE UNITED 2 STATES. 3 3. ANY RECEIVER, REFEREE, TRUSTEE, ASSIGNEE OR OTHER FIDUCIARY, OR ANY 4 OFFICER OR AGENT APPOINTED BY ANY COURT, WHO CONDUCTS THE BUSINESS OF 5 ANY CORPORATION, SHALL BE SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER 6 IN THE SAME MANNER AND TO THE SAME EXTENT AS IF THE BUSINESS WERE 7 CONDUCTED BY THE AGENTS OR OFFICERS OF SUCH CORPORATION. A DISSOLVED 8 CORPORATION WHICH CONTINUES TO CONDUCT BUSINESS SHALL ALSO BE SUBJECT TO 9 THE TAX IMPOSED BY THIS SUBCHAPTER. 10 4. (A) CORPORATIONS SUBJECT TO TAX UNDER CHAPTER ELEVEN OF THIS TITLE, 11 ANY TRUST COMPANY ORGANIZED UNDER A LAW OF THIS STATE ALL OF THE STOCK 12 OF WHICH IS OWNED BY NOT LESS THAN TWENTY SAVINGS BANKS ORGANIZED UNDER 13 A LAW OF THIS STATE, HOUSING COMPANIES ORGANIZED AND OPERATING PURSUANT 14 TO THE PROVISIONS OF ARTICLE TWO OF THE PRIVATE HOUSING FINANCE LAW, 15 HOUSING DEVELOPMENT FUND COMPANIES ORGANIZED PURSUANT TO THE PROVISIONS 16 OF ARTICLE ELEVEN OF THE PRIVATE HOUSING FINANCE LAW, CORPORATIONS 17 DESCRIBED IN SECTION THREE OF THE TAX LAW, A CORPORATION PRINCIPALLY 18 ENGAGED IN THE OPERATION OF MARINE VESSELS WHOSE ACTIVITIES IN THE CITY 19 ARE LIMITED EXCLUSIVELY TO THE USE OF PROPERTY IN INTERSTATE OR FOREIGN 20 COMMERCE, PROVIDED, HOWEVER, SUCH A CORPORATION WILL NOT BE SUBJECT TO 21 TAX UNDER THIS SUBCHAPTER SOLELY BECAUSE IT MAINTAINS AN OFFICE IN THE 22 CITY, OR EMPLOYS CAPITAL IN THE CITY, IN CONNECTION WITH SUCH USE OF 23 PROPERTY, A CORPORATION PRINCIPALLY ENGAGED IN THE CONDUCT OF A FERRY 24 BUSINESS AND OPERATING BETWEEN ANY OF THE BOROUGHS OF THE CITY UNDER A 25 LEASE GRANTED BY THE CITY AND A CORPORATION PRINCIPALLY ENGAGED IN THE 26 CONDUCT OF AN AVIATION, STEAMBOAT, FERRY OR NAVIGATION BUSINESS, OR TWO 27 OR MORE OF SUCH BUSINESSES, ALL OF THE CAPITAL STOCK OF WHICH IS OWNED 28 BY A MUNICIPAL CORPORATION OF THIS STATE, SHALL NOT BE SUBJECT TO TAX 29 UNDER THIS SUBCHAPTER; PROVIDED, HOWEVER, THAT ANY CORPORATION, OTHER 30 THAN (1) A UTILITY CORPORATION SUBJECT TO THE SUPERVISION OF THE STATE 31 DEPARTMENT OF PUBLIC SERVICE, AND (2) FOR TAXABLE YEARS BEGINNING ON OR 32 AFTER AUGUST FIRST, TWO THOUSAND TWO, A UTILITY AS DEFINED IN SUBDIVI- 33 SION SIX OF SECTION 11-1101 OF THIS TITLE, WHICH IS SUBJECT TO TAX UNDER 34 CHAPTER ELEVEN OF THIS TITLE AS A VENDOR OF UTILITY SERVICES, SHALL BE 35 SUBJECT TO TAX UNDER THIS SUBCHAPTER, BUT IN COMPUTING THE TAX IMPOSED 36 BY THIS SECTION PURSUANT TO THE PROVISIONS OF CLAUSE (I) OF SUBPARAGRAPH 37 ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS 38 SUBCHAPTER, BUSINESS INCOME ALLOCATED TO THE CITY PURSUANT TO PARAGRAPH 39 (A) OF SUBDIVISION THREE OF SUCH SECTION SHALL BE REDUCED BY THE 40 PERCENTAGE WHICH SUCH CORPORATION'S GROSS OPERATING INCOME SUBJECT TO 41 TAX UNDER CHAPTER ELEVEN OF THIS TITLE IS OF ITS GROSS OPERATING INCOME. 42 (B) THE TERM "GROSS OPERATING INCOME", WHEN USED IN PARAGRAPH (A) OF 43 THIS SUBDIVISION, MEANS RECEIPTS RECEIVED IN OR BY REASON OF ANY TRANS- 44 ACTION HAD AND CONSUMMATED IN THE CITY, INCLUDING CASH, CREDITS AND 45 PROPERTY OF ANY KIND OR NATURE (WHETHER OR NOT SUCH TRANSACTION IS MADE 46 FOR PROFIT), WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF THE COST OF 47 THE PROPERTY SOLD, THE COST OF MATERIALS USED, LABOR OR OTHER SERVICES, 48 DELIVERY COSTS OR ANY OTHER COSTS WHATSOEVER, INTEREST OR DISCOUNT PAID 49 OR ANY OTHER EXPENSES WHATSOEVER. 50 (C) IF IT SHALL APPEAR TO THE COMMISSIONER OF FINANCE THAT THE APPLI- 51 CATION OF THE PROVISO OF PARAGRAPH (A) OF THIS SUBDIVISION, DOES NOT 52 FAIRLY AND EQUITABLY REFLECT THE PORTION OF THE TAXPAYER'S BUSINESS 53 INCOME ALLOCABLE TO THE CITY WHICH IS ATTRIBUTABLE TO ITS CITY ACTIV- 54 ITIES WHICH ARE NOT TAXABLE UNDER CHAPTER ELEVEN OF THIS TITLE, THE 55 COMMISSIONER OF FINANCE MAY PRESCRIBE OTHER MEANS OR METHODS OF DETER- 56 MINING SUCH PORTION, INCLUDING THE USE OF THE BOOKS AND RECORDS OF THE S. 4610--A 29 A. 6721--A 1 TAXPAYER, IF THE COMMISSIONER OF FINANCE FINDS THAT SUCH MEANS OR METH- 2 ODS USED IN KEEPING THEM FAIRLY AND EQUITABLY REFLECT SUCH PORTION. 3 5. INTENTIONALLY OMITTED. 4 6. INTENTIONALLY OMITTED. 5 7. FOR ANY TAXABLE YEAR OF A REAL ESTATE INVESTMENT TRUST, AS DEFINED 6 IN SECTION EIGHT HUNDRED FIFTY-SIX OF THE INTERNAL REVENUE CODE, IN 7 WHICH SUCH TRUST IS SUBJECT TO FEDERAL INCOME TAXATION UNDER SECTION 8 EIGHT HUNDRED FIFTY-SEVEN OF SUCH CODE, SUCH TRUST SHALL BE SUBJECT TO A 9 TAX COMPUTED UNDER EITHER CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH 10 (E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER, OR CLAUSE 11 (IV), WHICHEVER IS GREATER. IN THE CASE OF SUCH A REAL ESTATE INVESTMENT 12 TRUST, INCLUDING A CAPTIVE REIT AS DEFINED IN SECTION 11-601 OF THIS 13 CHAPTER, THE TERM "ENTIRE NET INCOME" MEANS "REAL ESTATE INVESTMENT 14 TRUST TAXABLE INCOME" AS DEFINED IN PARAGRAPH TWO OF SUBDIVISION (B) OF 15 SECTION EIGHT HUNDRED FIFTY-SEVEN (AS MODIFIED BY SECTION EIGHT HUNDRED 16 FIFTY-EIGHT) OF THE INTERNAL REVENUE CODE PLUS THE AMOUNT TAXABLE UNDER 17 PARAGRAPH THREE OF SUBDIVISION (B) OF SECTION EIGHT HUNDRED FIFTY-SEVEN 18 OF SUCH CODE, SUBJECT TO THE MODIFICATIONS REQUIRED BY SUBDIVISION EIGHT 19 OF SECTION 11-652 OF THIS SUBCHAPTER INCLUDING THE MODIFICATIONS 20 REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF SECTION 21 11-654 OF THIS SUBCHAPTER. 22 8. FOR ANY TAXABLE YEAR OF A REGULATED INVESTMENT COMPANY, AS DEFINED 23 IN SECTION EIGHT HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE, IN 24 WHICH SUCH COMPANY IS SUBJECT TO FEDERAL INCOME TAXATION UNDER SECTION 25 EIGHT HUNDRED FIFTY-TWO OF SUCH CODE, SUCH COMPANY SHALL BE SUBJECT TO A 26 TAX COMPUTED UNDER EITHER CLAUSE ONE OR FOUR OF SUBPARAGRAPH (A) OF 27 PARAGRAPH E OF SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER, 28 WHICHEVER IS GREATER. IN THE CASE OF SUCH A REGULATED INVESTMENT COMPA- 29 NY, INCLUDING A CAPTIVE RIC AS DEFINED IN SECTION 11-601 OF THIS CHAP- 30 TER, THE TERM "ENTIRE NET INCOME" USED IN SUBDIVISION ONE OF THIS 31 SECTION MEANS "INVESTMENT COMPANY TAXABLE INCOME" AS DEFINED IN PARA- 32 GRAPH TWO OF SUBDIVISION (B) OF SECTION EIGHT HUNDRED FIFTY-TWO, AS 33 MODIFIED BY SECTION EIGHT HUNDRED FIFTY-FIVE, OF THE INTERNAL REVENUE 34 CODE PLUS THE AMOUNT TAXABLE UNDER PARAGRAPH THREE OF SUBDIVISION (B) OF 35 SECTION EIGHT HUNDRED FIFTY-TWO OF SUCH CODE SUBJECT TO THE MODIFICA- 36 TIONS REQUIRED BY SUBDIVISION EIGHT OF SECTION 11-652 OF THIS SUBCHAP- 37 TER, INCLUDING THE MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E) OF 38 SUBDIVISION THREE OF SECTION 11-654 OF THIS SUBCHAPTER. 39 9. AN ORGANIZATION DESCRIBED IN PARAGRAPH TWO OR TWENTY-FIVE OF 40 SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE 41 SHALL BE EXEMPT FROM ALL TAXES IMPOSED BY THIS SUBCHAPTER. 42 S 11-654 COMPUTATION OF TAX. 1. (A) INTENTIONALLY OMITTED. 43 (B) INTENTIONALLY OMITTED. 44 (C) INTENTIONALLY OMITTED. 45 (D) INTENTIONALLY OMITTED. 46 (E) THE TAX IMPOSED BY SUBDIVISION ONE OF SECTION 11-653 OF THIS 47 SUBCHAPTER SHALL BE, IN THE CASE OF EACH TAXPAYER: 48 (1) WHICHEVER OF THE FOLLOWING AMOUNTS IS THE GREATEST: 49 (I) AN AMOUNT COMPUTED ON ITS BUSINESS INCOME OR THE PORTION OF SUCH 50 BUSINESS INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED, 51 SUBJECT TO THE APPLICATION OF PARAGRAPHS (J) AND (K) OF THIS SUBDIVISION 52 AND ANY MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION 53 THREE OF THIS SECTION, AT THE RATE OF (1) NINE PER CENTUM FOR FINANCIAL 54 CORPORATIONS, AS DEFINED IN THIS CLAUSE, OR (2) EIGHT AND EIGHTY-FIVE 55 ONE HUNDREDTHS PER CENTUM FOR ALL OTHER CORPORATIONS. FOR PURPOSES OF 56 THIS CLAUSE, "FINANCIAL CORPORATION" MEANS A CORPORATION OR, IF THE S. 4610--A 30 A. 6721--A 1 CORPORATION IS INCLUDED IN A COMBINED GROUP, A COMBINED GROUP, THAT (A) 2 HAS TOTAL ASSETS REFLECTED ON ITS BALANCE SHEET AT THE END OF ITS TAXA- 3 BLE YEAR IN EXCESS OF ONE HUNDRED BILLION DOLLARS, COMPUTED UNDER GENER- 4 ALLY ACCEPTED ACCOUNTING PRINCIPLES AND (B)(I) ALLOCATES MORE THAN FIFTY 5 PERCENT OF THE RECEIPTS INCLUDED IN THE DENOMINATOR OF ITS RECEIPTS 6 FRACTION, DETERMINED UNDER SECTION 11-654.2 OF THIS SUBCHAPTER, PURSUANT 7 TO SUBDIVISION FIVE OF SECTION 11-654.2 OF THIS SUBCHAPTER FOR ITS TAXA- 8 BLE YEAR, OR (II) IS ITSELF OR IS INCLUDED IN A COMBINED GROUP IN WHICH 9 MORE THAN FIFTY PERCENT OF THE TOTAL ASSETS REFLECTED ON ITS BALANCE 10 SHEET AT THE END OF ITS TAXABLE YEAR ARE HELD BY ONE OR MORE CORPO- 11 RATIONS THAT ARE CLASSIFIED AS (A) REGISTERED UNDER STATE LAW AS A BANK 12 HOLDING COMPANY OR REGISTERED UNDER THE FEDERAL BANK HOLDING COMPANY ACT 13 OF 1956 (12 U.S.C. S 1841, ET SEQ., AS AMENDED), OR REGISTERED AS A 14 SAVINGS AND LOAN HOLDING COMPANY UNDER THE FEDERAL NATIONAL HOUSING ACT 15 (12 U.S.C. 1701, AS AMENDED), (B) A NATIONAL BANK ORGANIZED AND EXISTING 16 AS A NATIONAL BANK ASSOCIATION PURSUANT TO THE PROVISIONS OF THE 17 NATIONAL BANK ACT, 12 U.S.C. 21 ET. SEQ., (C) A SAVINGS ASSOCIATION OR 18 FEDERAL SAVINGS BANK AS DEFINED IN THE FEDERAL DEPOSIT INSURANCE ACT, 12 19 U.S.C. S 1813(B)(1), (D) A BANK, SAVINGS ASSOCIATION, OR THRIFT INSTITU- 20 TION INCORPORATED OR ORGANIZED UNDER THE LAWS OF ANY STATE, (E) A CORPO- 21 RATION ORGANIZED UNDER THE PROVISIONS OF 12 U.S.C. SS 611 TO 631, (F) AN 22 AGENCY OR BRANCH OR A FOREIGN DEPOSITORY AS DEFINED IN 12 U.S.C. S 3101, 23 (G) A REGISTERED SECURITIES OR COMMODITIES BROKER OR DEALER REGISTERED 24 AS SUCH BY THE SECURITIES AND EXCHANGE COMMISSION OR THE COMMODITIES 25 FUTURES TRADING COMMISSION, WHICH SHALL INCLUDE AN OTC DERIVATIVES DEAL- 26 ER AS DEFINED UNDER REGULATIONS OF THE SECURITIES AND EXCHANGE COMMIS- 27 SION AT TITLE 17, PART 240, SECTION 3B-12 OF THE CODE OF FEDERAL REGU- 28 LATIONS (17 CFR 240.3B-12), OR (H) ANY CORPORATION WHOSE VOTING STOCK IS 29 MORE THAN FIFTY PERCENT OWNED, DIRECTLY OR INDIRECTLY, BY ANY PERSON OR 30 BUSINESS ENTITY DESCRIBED IN SUBITEMS (A) THROUGH (G) OF THIS ITEM, 31 OTHER THAN AN INSURANCE COMPANY TAXABLE UNDER ARTICLE THIRTY-THREE OF 32 THE TAX LAW; OR 33 (II) AN AMOUNT COMPUTED BY MULTIPLYING ITS TOTAL BUSINESS CAPITAL, OR 34 THE PORTION THEREOF ALLOCATED WITHIN THE CITY, AS HEREINAFTER PROVIDED, 35 (A) EXCEPT AS PROVIDED IN SUBCLAUSES (B) AND (C) OF THIS CLAUSE, BY 36 FIFTEEN ONE-HUNDREDTHS PER CENTUM; 37 (B) IN THE CASE OF A COOPERATIVE HOUSING CORPORATION AS DEFINED IN THE 38 INTERNAL REVENUE CODE, BY FOUR ONE-HUNDREDTHS PER CENTUM; 39 (C) IN THE CASE OF THE PORTION OF TOTAL BUSINESS CAPITAL DIRECTLY 40 ATTRIBUTABLE TO A CORPORATION THAT IS OR WOULD BE TAXABLE UNDER CHAPTER 41 ELEVEN OF THIS TITLE (EXCEPT FOR A VENDOR OF UTILITY SERVICES THAT IS 42 TAXABLE UNDER BOTH CHAPTER ELEVEN OF THIS TITLE AND THIS SUBCHAPTER) OR 43 A CORPORATION THAT WOULD HAVE BEEN TAXABLE AS AN INSURANCE CORPORATION 44 UNDER FORMER PART IV, TITLE R, CHAPTER FORTY-SIX OF THE ADMINISTRATIVE 45 CODE OF THE CITY OF NEW YORK AS IN EFFECT ON JUNE THIRTIETH, NINETEEN 46 HUNDRED SEVENTY-FOUR, BY SEVEN AND ONE-HALF ONE-HUNDREDTHS PER CENTUM; 47 AND 48 (D) SUBTRACTING TEN THOUSAND DOLLARS FROM THE SUM OF THE AMOUNT OF TAX 49 COMPUTED PURSUANT TO SUBCLAUSES (A), (B) AND (C) OF THIS CLAUSE, 50 PROVIDED THAT IF SUCH AMOUNT OF TAX IS LESS THAN ZERO IT SHALL BE DEEMED 51 TO BE ZERO; AND 52 (E) PROVIDED THAT IN NO EVENT SHALL THE AMOUNT OF TAX COMPUTED PURSU- 53 ANT TO SUBCLAUSE (D) OF THIS CLAUSE ON THE TAXPAYER'S TOTAL BUSINESS 54 CAPITAL, OR THE PORTION THEREOF ALLOCATED WITHIN THE CITY, EXCEED TEN 55 MILLION DOLLARS, OR 56 (III) INTENTIONALLY OMITTED. S. 4610--A 31 A. 6721--A 1 (IV) IF NEW YORK CITY RECEIPTS ARE: FIXED DOLLAR MINIM 2 TAX IS: 3 NOT MORE THAN $100,000 $25 4 MORE THAN $100,000 BUT NOT OVER $250,000 $75 5 MORE THAN $250,000 BUT NOT OVER $500,000 $175 6 MORE THAN $500,000 BUT NOT OVER $1,000,000 $500 7 MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,500 8 MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,500 9 MORE THAN $25,000,000 BUT NOT OVER $50,000,000 $5,000 10 MORE THAN $50,000,000 BUT NOT OVER $100,000,000 $10,000 11 MORE THAN $100,000,000 BUT NOT OVER $250,000,000 $20,000 12 MORE THAN $250,000,000 BUT NOT OVER $500,000,000 $50,000 13 MORE THAN $500,000,000 BUT NOT OVER $1,000,000,000 $100,000 14 OVER $1,000,000,000 $200,000 15 FOR PURPOSES OF THIS CLAUSE, NEW YORK CITY RECEIPTS ARE THE RECEIPTS 16 COMPUTED IN ACCORDANCE WITH SECTION 11-654.2 OF THIS SUBCHAPTER FOR THE 17 TAXABLE YEAR. IF THE TAXABLE YEAR IS LESS THAN TWELVE MONTHS, THE AMOUNT 18 PRESCRIBED BY THIS CLAUSE SHALL BE REDUCED BY TWENTY-FIVE PERCENT IF THE 19 PERIOD FOR WHICH THE TAXPAYER IS SUBJECT TO TAX IS MORE THAN SIX MONTHS 20 BUT NOT MORE THAN NINE MONTHS AND BY FIFTY PERCENT IF THE PERIOD FOR 21 WHICH THE TAXPAYER IS SUBJECT TO TAX IS NOT MORE THAN SIX MONTHS. IF THE 22 TAXABLE YEAR IS LESS THAN TWELVE MONTHS, THE AMOUNT OF NEW YORK CITY 23 RECEIPTS FOR PURPOSES OF THIS CLAUSE IS DETERMINED BY DIVIDING THE 24 AMOUNT OF THE RECEIPTS FOR THE TAXABLE YEAR BY THE NUMBER OF MONTHS IN 25 THE TAXABLE YEAR AND MULTIPLYING THE RESULT BY TWELVE. 26 (F) INTENTIONALLY OMITTED. 27 (G) INTENTIONALLY OMITTED. 28 (H) INTENTIONALLY OMITTED. 29 (I) INTENTIONALLY OMITTED. 30 (J) (1) IF THE AMOUNT OF BUSINESS INCOME ALLOCATED WITHIN THE CITY AS 31 HEREINAFTER PROVIDED IS LESS THAN ONE MILLION DOLLARS, THE AMOUNT 32 COMPUTED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF THIS 33 SUBDIVISION SHALL BE AT THE RATE OF SIX AND FIVE-TENTHS PER CENTUM OF 34 THE AMOUNT OF BUSINESS INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER 35 PROVIDED, SUBJECT TO ANY MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E) 36 OF SUBDIVISION THREE OF THIS SECTION; 37 (2) SUBJECT TO SUBPARAGRAPH THREE OF THIS PARAGRAPH, IF THE AMOUNT OF 38 BUSINESS INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED IS ONE 39 MILLION DOLLARS OR GREATER BUT LESS THAN ONE MILLION FIVE HUNDRED THOU- 40 SAND DOLLARS, THE AMOUNT COMPUTED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF 41 PARAGRAPH (E) OF THIS SUBDIVISION SHALL BE AT THE RATE OF (I) SIX AND 42 FIVE-TENTHS PER CENTUM, PLUS (II) TWO AND THIRTY-FIVE ONE-HUNDREDTHS PER 43 CENTUM MULTIPLIED BY A FRACTION THE NUMERATOR OF WHICH IS ALLOCATED 44 BUSINESS INCOME LESS ONE MILLION DOLLARS AND THE DENOMINATOR OF WHICH IS 45 FIVE HUNDRED THOUSAND DOLLARS, OF THE AMOUNT OF BUSINESS INCOME ALLO- 46 CATED WITHIN THE CITY AS HEREINAFTER PROVIDED, SUBJECT TO ANY MODIFICA- 47 TION REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF THIS 48 SECTION; 49 (3) PROVIDED, HOWEVER, NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF 50 THE AMOUNT OF BUSINESS INCOME BEFORE ALLOCATION IS TWO MILLION DOLLARS 51 OR GREATER BUT LESS THAN THREE MILLION DOLLARS, THE RATE OF TAX PROVIDED 52 FOR IN THIS PARAGRAPH SHALL NOT BE LESS THAN (I) SIX AND FIVE-TENTHS PER 53 CENTUM, PLUS (II) TWO AND THIRTY-FIVE ONE-HUNDREDTHS PER CENTUM MULTI- 54 PLIED BY A FRACTION THE NUMERATOR OF WHICH IS BUSINESS INCOME BEFORE 55 ALLOCATION LESS TWO MILLION DOLLARS AND THE DENOMINATOR OF WHICH IS ONE 56 MILLION DOLLARS, AND PROVIDED, HOWEVER, NOTWITHSTANDING ANYTHING TO THE S. 4610--A 32 A. 6721--A 1 CONTRARY, IF THE AMOUNT OF BUSINESS INCOME BEFORE ALLOCATION IS THREE 2 MILLION DOLLARS OR GREATER, THE RATE OF TAX SHALL BE EIGHT AND 3 EIGHTY-FIVE ONE-HUNDREDTHS PERCENTUM OR, IN THE CASE OF A FINANCIAL 4 CORPORATION, AS DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH 5 (E) OF SUBDIVISION ONE OF SECTION 11-654, IF THE AMOUNT OF BUSINESS 6 INCOME BEFORE ALLOCATION IS THREE MILLION DOLLARS OR GREATER THE RATE OF 7 TAX SHALL BE NINE PER CENTUM. 8 (K)(1) FOR QUALIFIED NEW YORK MANUFACTURING CORPORATIONS AS DEFINED IN 9 SUBPARAGRAPH FOUR OF THIS PARAGRAPH, IF THE AMOUNT OF BUSINESS INCOME 10 ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED IS LESS THAN TEN 11 MILLION DOLLARS, THE AMOUNT COMPUTED IN CLAUSE (I) OF SUBPARAGRAPH ONE 12 OF PARAGRAPH (E) OF THIS SUBDIVISION SHALL BE AT THE RATE OF FOUR AND 13 FOUR HUNDRED TWENTY-FIVE ONE THOUSANDTHS PER CENTUM, OF ITS BUSINESS 14 INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED, SUBJECT TO ANY 15 MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF 16 THIS SECTION; 17 (2) SUBJECT TO SUBPARAGRAPH THREE OF THIS PARAGRAPH FOR QUALIFIED NEW 18 YORK MANUFACTURING CORPORATIONS AS DEFINED IN SUBPARAGRAPH FOUR OF THIS 19 PARAGRAPH, IF THE AMOUNT OF BUSINESS INCOME ALLOCATED WITHIN THE CITY AS 20 HEREINAFTER PROVIDED IS TEN MILLION DOLLARS OR GREATER BUT LESS THAN 21 TWENTY MILLION DOLLARS, THE AMOUNT COMPUTED IN CLAUSE (I) OF SUBPARA- 22 GRAPH ONE OF PARAGRAPH (E) OF THIS SUBDIVISION SHALL BE AT THE RATE OF 23 (I) FOUR AND FOUR HUNDRED TWENTY-FIVE ONE-THOUSANDTHS PER CENTUM, PLUS 24 (II) FOUR AND FOUR HUNDRED TWENTY-FIVE ONE-THOUSANDTHS PER CENTUM MULTI- 25 PLIED BY A FRACTION THE NUMERATOR OF WHICH IS ALLOCATED BUSINESS INCOME 26 LESS TEN MILLION DOLLARS AND THE DENOMINATOR OF WHICH IS TEN MILLION 27 DOLLARS, OF ITS BUSINESS INCOME OR THE PORTION OF SUCH BUSINESS INCOME 28 ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED, SUBJECT TO ANY 29 MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF 30 THIS SECTION; 31 (3) NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF THE AMOUNT OF BUSI- 32 NESS INCOME BEFORE ALLOCATION IS TWENTY MILLION DOLLARS OR GREATER BUT 33 LESS THAN FORTY MILLION DOLLARS, THE RATE OF TAX PROVIDED FOR IN THIS 34 PARAGRAPH SHALL NOT BE LESS THAN (I) FOUR AND FOUR HUNDRED TWENTY-FIVE 35 ONE THOUSANDTHS PERCENTUM, PLUS (II) FOUR AND FOUR HUNDRED TWENTY-FIVE 36 ONE THOUSANDTHS PERCENTUM MULTIPLIED BY A FRACTION THE NUMERATOR OF 37 WHICH IS BUSINESS INCOME BEFORE ALLOCATION LESS TWENTY MILLION DOLLARS 38 AND THE DENOMINATOR OF WHICH IS TWENTY MILLION DOLLARS, AND PROVIDED, 39 HOWEVER, NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF THE AMOUNT OF 40 BUSINESS INCOME BEFORE ALLOCATION IS FORTY MILLION DOLLARS OR GREATER, 41 THE RATE OF TAX SHALL BE EIGHT AND EIGHTY-FIVE ONE-HUNDREDTHS PER 42 CENTUM. 43 (4)(I) AS USED IN THIS SUBPARAGRAPH, THE TERM "MANUFACTURING CORPO- 44 RATION" MEANS A CORPORATION PRINCIPALLY ENGAGED IN THE MANUFACTURING AND 45 SALE THEREOF OF TANGIBLE PERSONAL PROPERTY; AND THE TERM "MANUFACTURING" 46 INCLUDES THE PROCESS (INCLUDING THE ASSEMBLY PROCESS) (A) OF WORKING RAW 47 MATERIALS INTO WARES SUITABLE FOR USE OR (B) WHICH GIVES NEW SHAPES, NEW 48 QUALITIES OR NEW COMBINATIONS TO MATTER WHICH ALREADY HAS GONE THROUGH 49 SOME ARTIFICIAL PROCESS, BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND 50 OTHER SIMILAR EQUIPMENT. MOREOVER, IN THE CASE OF A COMBINED REPORT, A 51 COMBINED GROUP SHALL BE CONSIDERED A "MANUFACTURING CORPORATION" FOR 52 PURPOSES OF THIS SUBPARAGRAPH ONLY IF THE COMBINED GROUP DURING THE 53 TAXABLE YEAR IS PRINCIPALLY ENGAGED IN THE ACTIVITIES SET FORTH IN THIS 54 PARAGRAPH, OR ANY COMBINATION THEREOF. A TAXPAYER OR, IN THE CASE OF A 55 COMBINED REPORT, A COMBINED GROUP, SHALL BE "PRINCIPALLY ENGAGED" IN 56 ACTIVITIES DESCRIBED ABOVE IF, DURING THE TAXABLE YEAR, MORE THAN FIFTY S. 4610--A 33 A. 6721--A 1 PERCENT OF THE GROSS RECEIPTS OF THE TAXPAYER OR COMBINED GROUP, RESPEC- 2 TIVELY, ARE DERIVED FROM RECEIPTS FROM THE SALE OF GOODS PRODUCED BY 3 SUCH ACTIVITIES. IN COMPUTING A COMBINED GROUP'S GROSS RECEIPTS, INTER- 4 CORPORATE RECEIPTS SHALL BE ELIMINATED. 5 (II) A "QUALIFIED NEW YORK MANUFACTURING CORPORATION" IS A MANUFACTUR- 6 ING CORPORATION THAT HAS PROPERTY IN THE STATE WHICH IS DESCRIBED IN 7 SUBPARAGRAPH FIVE OF THIS PARAGRAPH AND EITHER (A) THE ADJUSTED BASIS OF 8 SUCH PROPERTY FOR FEDERAL INCOME TAX PURPOSES AT THE CLOSE OF THE TAXA- 9 BLE YEAR IS AT LEAST ONE MILLION DOLLARS OR (B) MORE THAN FIFTY PERCEN- 10 TUM OF ITS REAL AND PERSONAL PROPERTY IS LOCATED IN THE STATE. 11 (5) FOR PURPOSES OF SUBCLAUSE (A) OF CLAUSE (II) OF SUBPARAGRAPH FOUR 12 OF THIS PARAGRAPH, PROPERTY INCLUDES TANGIBLE PERSONAL PROPERTY AND 13 OTHER TANGIBLE PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS 14 OF BUILDINGS, WHICH ARE: DEPRECIABLE PURSUANT TO SECTION ONE HUNDRED 15 SIXTY-SEVEN OF THE INTERNAL REVENUE CODE, HAVE A USEFUL LIFE OF FOUR 16 YEARS OR MORE, ARE ACQUIRED BY PURCHASE AS DEFINED IN SUBSECTION (D) OF 17 SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE, HAVE A 18 SITUS IN THE STATE AND ARE PRINCIPALLY USED BY THE TAXPAYER IN THE 19 PRODUCTION OF GOODS BY MANUFACTURING. PROPERTY USED IN THE PRODUCTION OF 20 GOODS SHALL INCLUDE MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY 21 WHICH IS PRINCIPALLY USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY, 22 EQUIPMENT OR OTHER TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION 23 OF GOODS AND SHALL INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERA- 24 TION, INCLUDING STORAGE OF MATERIAL TO BE USED IN PRODUCTION AND OF THE 25 PRODUCTS THAT ARE PRODUCED. 26 2. THE AMOUNT OF INVESTMENT CAPITAL AND BUSINESS CAPITAL SHALL BE 27 DETERMINED BY TAKING THE AVERAGE VALUE OF THE GROSS ASSETS INCLUDED 28 THEREIN (LESS LIABILITIES DEDUCTIBLE THEREFROM PURSUANT TO THE 29 PROVISIONS OF SUBDIVISIONS FOUR AND SIX OF SECTION 11-652 OF THIS 30 SUBCHAPTER), AND, IF THE PERIOD COVERED BY THE REPORT IS OTHER THAN A 31 PERIOD OF TWELVE CALENDAR MONTHS, BY MULTIPLYING SUCH VALUE BY THE 32 NUMBER OF CALENDAR MONTHS OR MAJOR PARTS THEREOF INCLUDED IN SUCH PERI- 33 OD, AND DIVIDING THE PRODUCT THUS OBTAINED BY TWELVE. FOR PURPOSES OF 34 THIS SUBDIVISION, REAL PROPERTY AND MARKETABLE SECURITIES SHALL BE 35 VALUED AT FAIR MARKET VALUE AND THE VALUE OF PERSONAL PROPERTY OTHER 36 THAN MARKETABLE SECURITIES SHALL BE THE VALUE THEREOF SHOWN ON THE BOOKS 37 AND RECORDS OF THE TAXPAYER IN ACCORDANCE WITH GENERALLY ACCEPTED 38 ACCOUNTING PRINCIPLES. 39 3. THE PORTION OF THE BUSINESS INCOME OF A TAXPAYER TO BE ALLOCATED TO 40 THE CITY SHALL BE DETERMINED AS FOLLOWS: 41 (A) MULTIPLY ITS BUSINESS INCOME BY A BUSINESS ALLOCATION PERCENTAGE 42 TO BE DETERMINED BY: 43 (1) ASCERTAINING THE PERCENTAGE WHICH THE AVERAGE VALUE OF THE TAXPAY- 44 ER'S REAL AND TANGIBLE PERSONAL PROPERTY, WHETHER OWNED OR RENTED TO IT, 45 WITHIN THE CITY DURING THE PERIOD COVERED BY ITS REPORT BEARS TO THE 46 AVERAGE VALUE OF ALL THE TAXPAYER'S REAL AND TANGIBLE PERSONAL PROPERTY, 47 WHETHER OWNED OR RENTED TO IT, WHEREVER SITUATED DURING SUCH PERIOD. FOR 48 THE PURPOSE OF THIS SUBPARAGRAPH, THE TERM "VALUE OF THE TAXPAYER'S REAL 49 AND TANGIBLE PERSONAL PROPERTY" SHALL MEAN THE ADJUSTED BASES OF SUCH 50 PROPERTIES FOR FEDERAL INCOME TAX PURPOSES (EXCEPT THAT IN THE CASE OF 51 RENTED PROPERTY SUCH VALUE SHALL MEAN THE PRODUCT OF (I) EIGHT AND (II) 52 THE GROSS RENTS PAYABLE FOR THE RENTAL OF SUCH PROPERTY DURING THE TAXA- 53 BLE YEAR); PROVIDED, HOWEVER, THAT THE TAXPAYER MAY MAKE A ONE-TIME, 54 REVOCABLE ELECTION, PURSUANT TO REGULATIONS PROMULGATED BY THE COMMIS- 55 SIONER OF FINANCE TO USE FAIR MARKET VALUE AS THE VALUE OF ALL OF ITS 56 REAL AND TANGIBLE PERSONAL PROPERTY, PROVIDED THAT SUCH ELECTION IS MADE S. 4610--A 34 A. 6721--A 1 ON OR BEFORE THE DUE DATE FOR FILING A REPORT UNDER SECTION 11-655 OF 2 THIS SUBCHAPTER FOR THE TAXPAYER'S FIRST TAXABLE YEAR COMMENCING ON OR 3 AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND PROVIDED THAT SUCH 4 ELECTION SHALL NOT APPLY TO ANY TAXABLE YEAR WITH RESPECT TO WHICH THE 5 TAXPAYER IS INCLUDED ON A COMBINED REPORT UNLESS EACH OF THE TAXPAYERS 6 INCLUDED ON SUCH REPORT HAS MADE SUCH AN ELECTION WHICH REMAINS IN 7 EFFECT FOR SUCH YEAR OR TO ANY TAXPAYER THAT WAS SUBJECT TO TAX UNDER 8 SUBCHAPTER TWO OF THIS CHAPTER AND DID NOT HAVE AN ELECTION IN EFFECT 9 UNDER SUBPARAGRAPH ONE OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION 10 11-604 OF THIS CHAPTER ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN; 11 (2) ASCERTAINING THE PERCENTAGE DETERMINED UNDER SECTION 11-654.2 OF 12 THIS SUBCHAPTER; 13 (3) ASCERTAINING THE PERCENTAGE OF THE TOTAL WAGES, SALARIES AND OTHER 14 PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED, DURING SUCH PERIOD OF 15 EMPLOYEES WITHIN THE CITY, EXCEPT GENERAL EXECUTIVE OFFICERS, TO THE 16 TOTAL WAGES, SALARIES AND OTHER PERSONAL SERVICE COMPENSATION, SIMILARLY 17 COMPUTED, DURING SUCH PERIOD OF ALL THE TAXPAYER'S EMPLOYEES WITHIN AND 18 WITHOUT THE CITY, EXCEPT GENERAL EXECUTIVE OFFICERS; AND 19 (4) ADDING TOGETHER THE PERCENTAGES SO DETERMINED AND DIVIDING THE 20 RESULT BY THE NUMBER OF PERCENTAGES. 21 (5) INTENTIONALLY OMITTED. 22 (6) INTENTIONALLY OMITTED. 23 (7) INTENTIONALLY OMITTED. 24 (8) INTENTIONALLY OMITTED. 25 (9) INTENTIONALLY OMITTED. 26 (10) NOTWITHSTANDING SUBPARAGRAPHS ONE THROUGH FOUR OF THIS PARAGRAPH, 27 THE BUSINESS ALLOCATION PERCENTAGE, TO THE EXTENT THAT IT IS COMPUTED BY 28 REFERENCE TO THE PERCENTAGES DETERMINED UNDER SUBPARAGRAPHS ONE, TWO AND 29 THREE OF THIS PARAGRAPH, SHALL BE COMPUTED IN THE MANNER SET FORTH IN 30 THIS SUBPARAGRAPH. 31 (I) INTENTIONALLY OMITTED. 32 (II) INTENTIONALLY OMITTED. 33 (III) INTENTIONALLY OMITTED. 34 (IV) INTENTIONALLY OMITTED. 35 (V) INTENTIONALLY OMITTED. 36 (VI) INTENTIONALLY OMITTED. 37 (VII) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FIFTEEN, THE BUSI- 38 NESS ALLOCATION PERCENTAGE SHALL BE DETERMINED BY ADDING TOGETHER THE 39 FOLLOWING PERCENTAGES: 40 (A) THE PRODUCT OF TEN PERCENT AND THE PERCENTAGE DETERMINED UNDER 41 SUBPARAGRAPH ONE OF THIS PARAGRAPH; 42 (B) THE PRODUCT OF EIGHTY PERCENT AND THE PERCENTAGE DETERMINED UNDER 43 SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND 44 (C) THE PRODUCT OF TEN PERCENT AND THE PERCENTAGE DETERMINED UNDER 45 SUBPARAGRAPH THREE OF THIS PARAGRAPH. 46 (VIII) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE BUSI- 47 NESS ALLOCATION PERCENTAGE SHALL BE DETERMINED BY ADDING TOGETHER THE 48 FOLLOWING PERCENTAGES: 49 (A) THE PRODUCT OF SIX AND ONE-HALF PERCENT AND THE PERCENTAGE DETER- 50 MINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH; 51 (B) THE PRODUCT OF EIGHTY-SEVEN PERCENT AND THE PERCENTAGE DETERMINED 52 UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND 53 (C) THE PRODUCT OF SIX AND ONE-HALF PERCENT AND THE PERCENTAGE DETER- 54 MINED UNDER SUBPARAGRAPH THREE OF THIS PARAGRAPH. S. 4610--A 35 A. 6721--A 1 (IX) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SEVENTEEN, THE BUSI- 2 NESS ALLOCATION PERCENTAGE SHALL BE DETERMINED BY ADDING TOGETHER THE 3 FOLLOWING PERCENTAGES: 4 (A) THE PRODUCT OF THREE AND ONE-HALF PERCENT AND THE PERCENTAGE 5 DETERMINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH; 6 (B) THE PRODUCT OF NINETY-THREE PERCENT AND THE PERCENTAGE DETERMINED 7 UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND 8 (C) THE PRODUCT OF THREE AND ONE-HALF PERCENT AND THE PERCENTAGE 9 DETERMINED UNDER SUBPARAGRAPH THREE OF THIS PARAGRAPH. 10 (X) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, THE 11 BUSINESS ALLOCATION PERCENTAGE SHALL BE THE PERCENTAGE DETERMINED UNDER 12 SUBPARAGRAPH TWO OF THIS PARAGRAPH. 13 (XI) THE COMMISSIONER OF FINANCE SHALL PROMULGATE RULES NECESSARY TO 14 IMPLEMENT THE PROVISIONS OF THIS SUBPARAGRAPH UNDER SUCH CIRCUMSTANCES 15 WHERE ANY OF THE PERCENTAGES TO BE DETERMINED UNDER SUBPARAGRAPH ONE, 16 TWO OR THREE OF THIS PARAGRAPH CANNOT BE DETERMINED BECAUSE THE TAXPAYER 17 HAS NO PROPERTY, RECEIPTS OR WAGES WITHIN OR WITHOUT THE CITY. 18 (XII) NOTWITHSTANDING THE PROVISIONS OF CLAUSES (VIII), (IX), AND (X) 19 OF THIS SUBPARAGRAPH, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 20 FIRST, TWO THOUSAND EIGHTEEN, A TAXPAYER THAT HAS FIFTY MILLION DOLLARS 21 OR LESS OF RECEIPTS ALLOCATED TO THE CITY AS DETERMINED UNDER SECTION 22 11-654.2 OF THIS SUBCHAPTER, OR, IF THE TAXPAYER IS INCLUDED IN A 23 COMBINED GROUP, A COMBINED GROUP THAT HAS FIFTY MILLION DOLLARS OR LESS 24 OF RECEIPTS ALLOCATED TO THE CITY AS DETERMINED UNDER SECTION 11-654.2 25 OF THIS SUBCHAPTER, MAY MAKE A ONE-TIME ELECTION TO DETERMINE ITS BUSI- 26 NESS ALLOCATION PERCENTAGE BY ADDING TOGETHER THE FOLLOWING PERCENTAGES: 27 (A) THE PRODUCT OF THREE AND ONE-HALF PERCENT AND THE PERCENTAGE 28 DETERMINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH; 29 (B) THE PRODUCT OF NINETY-THREE PERCENT AND THE PERCENTAGE DETERMINED 30 UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND 31 (C) THE PRODUCT OF THREE AND ONE-HALF PERCENT AND THE PERCENTAGE 32 DETERMINED UNDER SUBPARAGRAPH THREE OF THIS PARAGRAPH. 33 THE ELECTION PROVIDED FOR IN THIS CLAUSE MUST BE MADE ON AN ORIGINAL 34 OR AMENDED REPORT FILED PURSUANT TO SECTION 11-655 OF THIS SUBCHAPTER 35 FOR THE TAXPAYER'S OR, IF THE TAXPAYER IS INCLUDED IN A COMBINED GROUP, 36 THE COMBINED GROUP'S, FIRST TAXABLE YEAR COMMENCING ON OR AFTER JANUARY 37 FIRST, TWO THOUSAND EIGHTEEN AND SHALL REMAIN IN EFFECT UNTIL REVOKED BY 38 THE TAXPAYER, OR IF THE TAXPAYER IS INCLUDED IN A COMBINED GROUP, THE 39 COMBINED GROUP. AN ELECTION SHALL BE REVOKED UNDER THIS CLAUSE ON AN 40 ORIGINAL OR AMENDED REPORT FILED PURSUANT TO SECTION 11-655 OF THIS 41 SUBCHAPTER FOR THE TAXPAYER'S, OR IF THE TAXPAYER IS INCLUDED IN A 42 COMBINED GROUP, THE COMBINED GROUP'S, FIRST TAXABLE YEAR WITH RESPECT TO 43 WHICH SUCH REVOCATION IS TO BE EFFECTIVE. IF THE TAXPAYER IS A MEMBER OF 44 A COMBINED GROUP, AN ELECTION OR REVOCATION BY THE TAXPAYER UNDER THIS 45 CLAUSE SHALL APPLY TO ALL MEMBERS OF THE COMBINED GROUP. 46 (11) A FOREIGN AIR CARRIER DESCRIBED IN THE FIRST SENTENCE OF SUBPARA- 47 GRAPH ONE OF PARAGRAPH (C-1) OF SUBDIVISION EIGHT OF SECTION 11-652 OF 48 THIS SUBCHAPTER SHALL DETERMINE ITS BUSINESS ALLOCATION PERCENTAGE 49 PURSUANT TO SUBPARAGRAPHS ONE THROUGH FOUR OF THIS PARAGRAPH, AS MODI- 50 FIED BY SUBPARAGRAPH TEN OF THIS PARAGRAPH, EXCEPT THAT THE NUMERATORS 51 AND DENOMINATORS INVOLVED IN SUCH COMPUTATION SHALL EXCLUDE PROPERTY TO 52 THE EXTENT EMPLOYED IN GENERATING INCOME EXCLUDED FROM ENTIRE NET INCOME 53 FOR THE TAXABLE YEAR PURSUANT TO PARAGRAPH (C-1) OF SUBDIVISION EIGHT OF 54 SECTION 11-652 OF THIS SUBCHAPTER, EXCLUDE SUCH RECEIPTS AS ARE EXCLUDED 55 FROM ENTIRE NET INCOME FOR THE TAXABLE YEAR PURSUANT TO PARAGRAPH (C-1) 56 OF SUBDIVISION EIGHT OF SECTION 11-652 OF THIS SUBCHAPTER, AND EXCLUDE S. 4610--A 36 A. 6721--A 1 WAGES, SALARIES OR OTHER PERSONAL SERVICE COMPENSATION WHICH ARE DIRECT- 2 LY ATTRIBUTABLE TO THE GENERATION OF INCOME EXCLUDED FROM ENTIRE NET 3 INCOME FOR THE TAXABLE YEAR PURSUANT TO PARAGRAPH (C-1) OF SUBDIVISION 4 EIGHT OF SECTION 11-652 OF THIS SUBCHAPTER. 5 (B) INTENTIONALLY OMITTED. 6 (C) INTENTIONALLY OMITTED. 7 (D) IN ANY TAXABLE YEAR WHEN PROPERTY IS SOLD OR OTHERWISE DISPOSED 8 OF, WITH RESPECT TO WHICH A DEDUCTION HAS BEEN ALLOWED PURSUANT TO 9 SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (D) OF SUBDIVISION THREE OF SECTION 10 11-604 OF THIS CHAPTER OR SUBDIVISION (K) OF SECTION 11-641 OF THIS 11 CHAPTER IN ANY PERIOD IN WHICH THE TAXPAYER WAS SUBJECT TO TAX UNDER 12 SUBCHAPTER TWO OF THIS CHAPTER, THE GAIN OR LOSS THEREON ENTERING INTO 13 THE COMPUTATION OF FEDERAL TAXABLE INCOME SHALL BE DISREGARDED IN 14 COMPUTING ENTIRE NET INCOME, AND THERE SHALL BE ADDED TO OR SUBTRACTED 15 FROM THE PORTION OF ENTIRE NET INCOME ALLOCATED WITHIN THE CITY THE GAIN 16 OR LOSS UPON SUCH SALE OR OTHER DISPOSITION. IN COMPUTING SUCH GAIN OR 17 LOSS THE BASIS OF THE PROPERTY SOLD OR DISPOSED OF SHALL BE ADJUSTED TO 18 REFLECT THE DEDUCTION ALLOWED WITH RESPECT TO SUCH PROPERTY PURSUANT TO 19 SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (D) OF SUBDIVISION THREE OF SECTION 20 11-604 OF THIS CHAPTER. PROVIDED, HOWEVER, THAT NO LOSS SHALL BE RECOG- 21 NIZED FOR THE PURPOSES OF THIS SUBPARAGRAPH WITH RESPECT TO A SALE OR 22 OTHER DISPOSITION OF PROPERTY TO A PERSON WHOSE ACQUISITION THEREOF IS 23 NOT A PURCHASE AS DEFINED IN SUBSECTION (D) OF SECTION ONE HUNDRED 24 SEVENTY-NINE OF THE INTERNAL REVENUE CODE. 25 (E) IN ANY TAXABLE YEAR WHEN PROPERTY IS SOLD OR OTHERWISE DISPOSED 26 OF, WITH RESPECT TO WHICH A DEDUCTION HAS BEEN ALLOWED PURSUANT TO 27 SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (E) OF SUBDIVISION THREE OF SECTION 28 11-604 OF THIS CHAPTER IN ANY PERIOD THE TAXPAYER WAS SUBJECT TO TAX 29 UNDER SUBCHAPTER TWO OF THIS CHAPTER, THE GAIN OR LOSS THEREON ENTERING 30 INTO THE COMPUTATION OF FEDERAL TAXABLE INCOME SHALL BE DISREGARDED IN 31 COMPUTING ENTIRE NET INCOME, AND THERE SHALL BE ADDED TO OR SUBTRACTED 32 FROM THE PORTION OF ENTIRE NET INCOME ALLOCATED WITHIN THE CITY THE GAIN 33 OR LOSS UPON SUCH SALE OR OTHER DISPOSITION. IN COMPUTING SUCH GAIN OR 34 LOSS THE BASIS OF THE PROPERTY SOLD OR DISPOSED OF SHALL BE ADJUSTED TO 35 REFLECT THE DEDUCTION ALLOWED WITH RESPECT TO SUCH PROPERTY PURSUANT TO 36 SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (E) OF SUBDIVISION THREE OF SECTION 37 11-604 OF THIS CHAPTER. PROVIDED, HOWEVER, THAT NO LOSS SHALL BE RECOG- 38 NIZED FOR THE PURPOSES OF THIS SUBPARAGRAPH WITH RESPECT TO A SALE OR 39 OTHER DISPOSITION OF PROPERTY TO A PERSON WHOSE ACQUISITION THEREOF IS 40 NOT A PURCHASE AS DEFINED IN SUBSECTION (D) OF SECTION ONE HUNDRED 41 SEVENTY-NINE OF THE INTERNAL REVENUE CODE. 42 4. THE PORTION OF THE BUSINESS CAPITAL OF A TAXPAYER TO BE ALLOCATED 43 WITHIN THE CITY SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT THEREOF BY 44 THE BUSINESS ALLOCATION PERCENTAGE DETERMINED AS HEREINABOVE PROVIDED. 45 4-A. A CORPORATION THAT IS A PARTNER IN A PARTNERSHIP SHALL COMPUTE 46 TAX UNDER THIS SUBCHAPTER USING ANY METHOD REQUIRED OR PERMITTED IN 47 REGULATIONS OF THE COMMISSIONER OF FINANCE. 48 5. INTENTIONALLY OMITTED. 49 6. INTENTIONALLY OMITTED. 50 7. INTENTIONALLY OMITTED. 51 8. INTENTIONALLY OMITTED. 52 9. IF IT SHALL APPEAR TO THE COMMISSIONER OF FINANCE THAT ANY BUSINESS 53 ALLOCATION PERCENTAGE DETERMINED AS HEREINABOVE PROVIDED DOES NOT PROP- 54 ERLY REFLECT THE ACTIVITY, BUSINESS, INCOME OR CAPITAL OF A TAXPAYER 55 WITHIN THE CITY, THE COMMISSIONER OF FINANCE SHALL BE AUTHORIZED IN HIS 56 OR HER DISCRETION TO ADJUST IT, OR THE TAXPAYER MAY REQUEST THAT THE S. 4610--A 37 A. 6721--A 1 COMMISSIONER OF FINANCE ADJUST IT, BY (A) EXCLUDING ONE OR MORE OF THE 2 FACTORS THEREIN, (B) INCLUDING ONE OR MORE OTHER FACTORS, SUCH AS 3 EXPENSES, PURCHASES, CONTRACT VALUES (MINUS SUBCONTRACT VALUES), (C) 4 EXCLUDING ONE OR MORE ASSETS IN COMPUTING SUCH ALLOCATION PERCENTAGE, 5 PROVIDED THE INCOME THEREFROM, IS ALSO EXCLUDED IN DETERMINING ENTIRE 6 NET INCOME, OR (D) ANY OTHER SIMILAR OR DIFFERENT METHOD CALCULATED TO 7 EFFECT A FAIR AND PROPER ALLOCATION OF THE INCOME AND CAPITAL REASONABLY 8 ATTRIBUTABLE TO THE CITY. THE PARTY SEEKING THE ADJUSTMENT SHALL BEAR 9 THE BURDEN OF PROOF TO DEMONSTRATE THAT THE BUSINESS ALLOCATION PERCENT- 10 AGE DETERMINED PURSUANT TO THIS SECTION DOES NOT RESULT IN A PROPER 11 REFLECTION OF THE TAXPAYER'S INCOME OR CAPITAL WITHIN THE CITY AND THAT 12 THE PROPOSED ADJUSTMENT IS APPROPRIATE. THE COMMISSIONER OF FINANCE 13 FROM TIME TO TIME SHALL PUBLISH ALL RULINGS OF GENERAL PUBLIC INTEREST 14 WITH RESPECT TO ANY APPLICATION OF THE PROVISIONS OF THIS SUBDIVISION. 15 10. INTENTIONALLY OMITTED. 16 11. INTENTIONALLY OMITTED. 17 12. INTENTIONALLY OMITTED. 18 13. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A 19 TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS 20 SUBCHAPTER TO BE CREDITED OR REFUNDED WITHOUT INTEREST, IN THE MANNER 21 HEREINAFTER PROVIDED IN THIS SECTION. 22 (1)(I) WHERE A TAXPAYER SHALL HAVE RELOCATED TO THE CITY FROM A 23 LOCATION OUTSIDE THE STATE, AND BY SUCH RELOCATION SHALL HAVE CREATED A 24 MINIMUM OF ONE HUNDRED INDUSTRIAL OR COMMERCIAL EMPLOYMENT OPPORTU- 25 NITIES; AND WHERE SUCH TAXPAYER SHALL HAVE ENTERED INTO A WRITTEN LEASE 26 FOR THE RELOCATION PREMISES, THE TERMS OF WHICH LEASE PROVIDE FOR 27 INCREASED ADDITIONAL PAYMENTS TO THE LANDLORD WHICH ARE BASED SOLELY AND 28 DIRECTLY UPON ANY INCREASE OR ADDITION IN REAL ESTATE TAXES IMPOSED ON 29 THE LEASED PREMISES, THE TAXPAYER UPON APPROVAL AND CERTIFICATION BY THE 30 INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD AS HEREINAFTER PROVIDED SHALL 31 BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER. THE 32 AMOUNT OF SUCH CREDIT SHALL BE AN AMOUNT EQUAL TO THE ANNUAL INCREASED 33 PAYMENTS ACTUALLY MADE BY THE TAXPAYER TO THE LANDLORD WHICH ARE SOLELY 34 AND DIRECTLY ATTRIBUTABLE TO AN INCREASE OR ADDITION TO THE REAL ESTATE 35 TAX IMPOSED UPON THE LEASED PREMISES. SUCH CREDIT SHALL BE ALLOWED ONLY 36 TO THE EXTENT THAT THE TAXPAYER HAS NOT OTHERWISE CLAIMED SAID AMOUNT AS 37 A DEDUCTION AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER. 38 (II) THE INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD IN APPROVING AND 39 CERTIFYING TO THE QUALIFICATIONS OF THE TAXPAYER TO RECEIVE THE TAX 40 CREDIT PROVIDED FOR HEREIN SHALL FIRST DETERMINE THAT THE APPLICANT HAS 41 MET THE REQUIREMENTS OF THIS SECTION, AND FURTHER, THAT THE GRANTING OF 42 THE TAX CREDIT TO THE APPLICANT IS IN THE "PUBLIC INTEREST". IN DETER- 43 MINING THAT THE GRANTING OF THE TAX CREDIT IS IN THE PUBLIC INTEREST, 44 THE BOARD SHALL MAKE AFFIRMATIVE FINDINGS THAT: THE GRANTING OF THE TAX 45 CREDIT TO THE APPLICANT WILL NOT EFFECT AN UNDUE HARDSHIP ON SIMILAR 46 TAXPAYERS ALREADY LOCATED WITHIN THE CITY; THE EXISTENCE OF THIS TAX 47 INCENTIVE HAS BEEN INSTRUMENTAL IN BRINGING ABOUT THE RELOCATION OF THE 48 APPLICANT TO THE CITY; AND THE GRANTING OF THE TAX CREDIT WILL FOSTER 49 THE ECONOMIC RECOVERY AND ECONOMIC DEVELOPMENT OF THE CITY. 50 (III) THE TAX CREDIT, IF APPROVED AND CERTIFIED BY THE INDUSTRIAL AND 51 COMMERCIAL INCENTIVE BOARD, MUST BE UTILIZED ANNUALLY BY THE TAXPAYER 52 FOR THE LENGTH OF THE TERM OF THE LEASE OR FOR A PERIOD NOT TO EXCEED 53 TEN YEARS FROM THE DATE OF RELOCATION WHICHEVER PERIOD IS SHORTER. 54 (2) WHEN USED IN THIS SUBDIVISION: S. 4610--A 38 A. 6721--A 1 (I) "EMPLOYMENT OPPORTUNITY" MEANS THE CREATION OF A FULL TIME POSI- 2 TION OF GAINFUL EMPLOYMENT FOR AN INDUSTRIAL OR COMMERCIAL EMPLOYEE AND 3 THE ACTUAL HIRING OF SUCH EMPLOYEE FOR THE SAID POSITION. 4 (II) "INDUSTRIAL EMPLOYEE" MEANS ONE ENGAGED IN THE MANUFACTURE OR 5 ASSEMBLING OF TANGIBLE GOODS OR THE PROCESSING OF RAW MATERIALS. 6 (III) "COMMERCIAL EMPLOYEE" MEANS ONE ENGAGED IN THE BUYING, SELLING 7 OR OTHERWISE PROVIDING OF GOODS OR SERVICES OTHER THAN ON A RETAIL 8 BASIS. 9 (IV) "RETAIL" MEANS THE SELLING OR OTHERWISE DISPOSING OR FURNISHING 10 OF TANGIBLE GOODS OR SERVICES DIRECTLY TO THE ULTIMATE USER OR CONSUMER. 11 (V) "FULL TIME POSITION" MEANS THE HIRING OF AN INDUSTRIAL OR COMMER- 12 CIAL EMPLOYEE IN A POSITION OF GAINFUL EMPLOYMENT WHERE THE NUMBER OF 13 HOURS WORKED BY SUCH EMPLOYEES IS NOT LESS THAN THIRTY HOURS DURING ANY 14 GIVEN WORK WEEK. 15 (VI) "INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD" MEANS THE BOARD 16 CREATED PURSUANT TO PART THREE OF SUBCHAPTER TWO OF CHAPTER TWO OF THIS 17 TITLE. 18 (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR 19 SHALL BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE CRED- 20 ITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE PROVISIONS OF 21 SECTION 11-677 OF THIS CHAPTER. 22 14. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A 23 TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS 24 SUBCHAPTER TO BE CREDITED OR REFUNDED WITHOUT INTEREST, IN THE MANNER 25 HEREINAFTER PROVIDED IN THIS SECTION. THE AMOUNT OF SUCH CREDIT SHALL 26 BE: 27 (1) A MAXIMUM OF THREE HUNDRED DOLLARS FOR EACH COMMERCIAL EMPLOYMENT 28 OPPORTUNITY AND A MAXIMUM OF FIVE HUNDRED DOLLARS FOR EACH INDUSTRIAL 29 EMPLOYMENT OPPORTUNITY RELOCATED TO THE CITY FROM AN AREA OUTSIDE THE 30 STATE. SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO RELOCATES A MINI- 31 MUM OF TEN EMPLOYMENT OPPORTUNITIES. THE CREDIT SHALL BE ALLOWED AGAINST 32 EMPLOYMENT OPPORTUNITY RELOCATION COSTS INCURRED BY THE TAXPAYER. SUCH 33 CREDIT SHALL BE ALLOWED ONLY TO THE EXTENT THAT THE TAXPAYER HAS NOT 34 CLAIMED A DEDUCTION FOR ALLOWABLE EMPLOYMENT OPPORTUNITY RELOCATION 35 COSTS. THE CREDIT ALLOWED HEREUNDER MAY BE TAKEN BY THE TAXPAYER IN 36 WHOLE OR IN PART IN THE YEAR IN WHICH THE EMPLOYMENT OPPORTUNITY IS 37 RELOCATED BY SUCH TAXPAYER OR EITHER OF THE TWO YEARS SUCCEEDING SUCH 38 EVENT, PROVIDED, HOWEVER, NO CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVI- 39 SION TO A TAXPAYER FOR INDUSTRIAL EMPLOYMENT OPPORTUNITIES RELOCATED TO 40 PREMISES (I) THAT ARE WITHIN AN INDUSTRIAL BUSINESS ZONE ESTABLISHED 41 PURSUANT TO SECTION 22-626 OF THIS CODE AND (II) FOR WHICH A BINDING 42 CONTRACT TO PURCHASE OR LEASE WAS FIRST ENTERED INTO BY THE TAXPAYER ON 43 OR AFTER JULY FIRST, TWO THOUSAND FIVE. 44 THE COMMISSIONER OF FINANCE IS EMPOWERED TO PROMULGATE RULES AND REGU- 45 LATIONS AND TO PRESCRIBE THE FORM OF APPLICATION TO BE USED BY A TAXPAY- 46 ER SEEKING THE CREDIT PROVIDED HEREUNDER. 47 (2) WHEN USED IN THIS SUBDIVISION: 48 (I) "EMPLOYMENT OPPORTUNITY" MEANS THE CREATION OF A FULL TIME POSI- 49 TION OF GAINFUL EMPLOYMENT FOR AN INDUSTRIAL OR COMMERCIAL EMPLOYEE AND 50 THE ACTUAL HIRING OF SUCH EMPLOYEE FOR THE SAID POSITION. 51 (II) "INDUSTRIAL EMPLOYEE" MEANS ONE ENGAGED IN THE MANUFACTURE OR 52 ASSEMBLING OF TANGIBLE GOODS OR THE PROCESSING OF RAW MATERIALS. 53 (III) "COMMERCIAL EMPLOYEE" MEANS ONE ENGAGED IN THE BUYING, SELLING 54 OR OTHERWISE PROVIDING OF GOODS OR SERVICES OTHER THAN ON A RETAIL 55 BASIS. S. 4610--A 39 A. 6721--A 1 (IV) "RETAIL" MEANS THE SELLING OR OTHERWISE DISPOSING OF TANGIBLE 2 GOODS DIRECTLY TO THE ULTIMATE USER OR CONSUMER. 3 (V) "FULL TIME POSITION" MEANS THE HIRING OF AN INDUSTRIAL OR COMMER- 4 CIAL EMPLOYEE IN A POSITION OF GAINFUL EMPLOYMENT WHERE THE NUMBER OF 5 HOURS WORKED BY SUCH EMPLOYEE IS NOT LESS THAN THIRTY HOURS DURING ANY 6 GIVEN WORK WEEK. 7 (VI) "EMPLOYMENT OPPORTUNITY RELOCATION COSTS" MEANS THE COSTS 8 INCURRED BY THE TAXPAYER IN MOVING FURNITURE, FILES, PAPERS AND OFFICE 9 EQUIPMENT INTO THE CITY FROM A LOCATION OUTSIDE THE STATE; THE COSTS 10 INCURRED BY THE TAXPAYER IN THE MOVING AND INSTALLATION OF MACHINERY AND 11 EQUIPMENT INTO THE CITY FROM A LOCATION OUTSIDE THE STATE; THE COSTS OF 12 INSTALLATION OF TELEPHONES AND OTHER COMMUNICATIONS EQUIPMENT REQUIRED 13 AS A RESULT OF THE RELOCATION TO THE CITY FROM A LOCATION OUTSIDE THE 14 STATE; THE COST INCURRED IN THE PURCHASE OF OFFICE FURNITURE AND 15 FIXTURES REQUIRED AS A RESULT OF THE RELOCATION TO THE CITY FROM A 16 LOCATION OUTSIDE THE STATE; AND THE COST OF RENOVATION OF THE PREMISES 17 TO BE OCCUPIED AS A RESULT OF THE RELOCATION; PROVIDED, HOWEVER, THAT 18 SUCH RENOVATION COSTS SHALL BE ALLOWABLE ONLY TO THE EXTENT THAT THEY DO 19 NOT EXCEED SEVENTY-FIVE CENTS PER SQUARE FOOT OF THE TOTAL AREA UTILIZED 20 BY THE TAXPAYER IN THE OCCUPIED PREMISES. 21 (B) THE CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR SHALL 22 BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE CREDITED OR 23 REFUNDED WITHOUT INTEREST IN ACCORDANCE WITH THE PROVISIONS OF SECTION 24 11-677 OF THIS CHAPTER. 25 (C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE 26 CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR 27 BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE CREDIT SET 28 FORTH IN SUBDIVISION FOURTEEN OF SECTION 11-604 OF THIS CHAPTER FOR AN 29 ELIGIBLE EMPLOYMENT RELOCATION, A CREDIT SHALL BE ALLOWED TO THE TAXPAY- 30 ER UNDER THIS SUBDIVISION FOR ANY TAX YEAR BEGINNING ON OR AFTER JANUARY 31 FIRST, TWO THOUSAND FIFTEEN, IN THE SAME AMOUNT AND TO THE SAME EXTENT 32 THAT A CREDIT, OR THE UNUSED PORTION THEREOF, WOULD HAVE BEEN ALLOWED 33 UNDER SUBDIVISION FOURTEEN OF SECTION 11-604 OF THIS CHAPTER, AS IN 34 EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, IF SUCH SUBDIVI- 35 SION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE YEAR. 36 15. INTENTIONALLY OMITTED. 37 16. INTENTIONALLY OMITTED. 38 17. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A 39 TAXPAYER THAT HAS OBTAINED THE CERTIFICATIONS REQUIRED BY CHAPTER SIX-B 40 OF TITLE TWENTY-TWO OF THIS CODE SHALL BE ALLOWED A CREDIT AGAINST THE 41 TAX IMPOSED BY THIS SUBCHAPTER. THE AMOUNT OF THE CREDIT SHALL BE THE 42 AMOUNT DETERMINED BY MULTIPLYING FIVE HUNDRED DOLLARS OR, IN THE CASE OF 43 A TAXPAYER THAT HAS OBTAINED PURSUANT TO CHAPTER SIX-B OF SUCH TITLE 44 TWENTY-TWO A CERTIFICATION OF ELIGIBILITY DATED ON OR AFTER JULY FIRST, 45 NINETEEN HUNDRED NINETY-FIVE, ONE THOUSAND DOLLARS OR, IN THE CASE OF AN 46 ELIGIBLE BUSINESS THAT HAS OBTAINED PURSUANT TO CHAPTER SIX-B OF SUCH 47 TITLE TWENTY-TWO A CERTIFICATION OF ELIGIBILITY DATED ON OR AFTER JULY 48 FIRST, TWO THOUSAND, FOR A RELOCATION TO ELIGIBLE PREMISES LOCATED WITH- 49 IN A REVITALIZATION AREA DEFINED IN SUBDIVISION (N) OF SECTION 22-621 OF 50 THIS CODE, THREE THOUSAND DOLLARS, BY THE NUMBER OF ELIGIBLE AGGREGATE 51 EMPLOYMENT SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR 52 WITH RESPECT TO PARTICULAR PREMISES TO WHICH THE TAXPAYER HAS RELOCATED; 53 PROVIDED, HOWEVER, WITH RESPECT TO A RELOCATION FOR WHICH NO APPLICATION 54 FOR A CERTIFICATE OF ELIGIBILITY IS SUBMITTED PRIOR TO JULY FIRST, TWO 55 THOUSAND THREE, TO ELIGIBLE PREMISES THAT ARE NOT WITHIN A REVITALIZA- 56 TION AREA, IF THE DATE OF SUCH RELOCATION AS DETERMINED PURSUANT TO S. 4610--A 40 A. 6721--A 1 SUBDIVISION (J) OF SECTION 22-621 OF THIS CODE IS BEFORE JULY FIRST, 2 NINETEEN HUNDRED NINETY-FIVE, THE AMOUNT TO BE MULTIPLIED BY THE NUMBER 3 OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES SHALL BE FIVE HUNDRED DOLLARS, 4 AND WITH RESPECT TO A RELOCATION FOR WHICH NO APPLICATION FOR A CERTIF- 5 ICATE OF ELIGIBILITY IS SUBMITTED PRIOR TO JULY FIRST, TWO THOUSAND 6 THREE, TO ELIGIBLE PREMISES THAT ARE WITHIN A REVITALIZATION AREA, IF 7 THE DATE OF SUCH RELOCATION AS DETERMINED PURSUANT TO SUBDIVISION (J) OF 8 SUCH SECTION IS BEFORE JULY FIRST, NINETEEN HUNDRED NINETY-FIVE, THE 9 AMOUNT TO BE MULTIPLIED BY THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT 10 SHARES SHALL BE FIVE HUNDRED DOLLARS, AND IF THE DATE OF SUCH RELOCATION 11 AS DETERMINED PURSUANT TO SUBDIVISION (J) OF SUCH SECTION IS ON OR AFTER 12 JULY FIRST, NINETEEN HUNDRED NINETY-FIVE, AND BEFORE JULY FIRST, TWO 13 THOUSAND, ONE THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT NO CREDIT SHALL 14 BE ALLOWED FOR THE RELOCATION OF ANY RETAIL ACTIVITY OR HOTEL SERVICES; 15 PROVIDED, FURTHER, THAT NO CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVI- 16 SION TO ANY TAXPAYER THAT HAS ELECTED PURSUANT TO SUBDIVISION (D) OF 17 SECTION 22-622 OF THIS CODE TO TAKE SUCH CREDIT AGAINST A GROSS RECEIPTS 18 TAX IMPOSED BY CHAPTER ELEVEN OF THIS TITLE; AND PROVIDED THAT IN THE 19 CASE OF AN ELIGIBLE BUSINESS THAT HAS OBTAINED PURSUANT TO CHAPTER SIX-B 20 OF SUCH TITLE TWENTY-TWO CERTIFICATIONS OF ELIGIBILITY FOR MORE THAN ONE 21 RELOCATION, THE PORTION OF THE TOTAL AMOUNT OF ELIGIBLE AGGREGATE 22 EMPLOYMENT SHARES TO BE MULTIPLIED BY THE DOLLAR AMOUNT SPECIFIED IN 23 THIS SUBDIVISION FOR EACH SUCH CERTIFICATION OF A RELOCATION SHALL BE 24 THE NUMBER OF TOTAL ATTRIBUTED ELIGIBLE AGGREGATE EMPLOYMENT SHARES 25 DETERMINED WITH RESPECT TO SUCH RELOCATION PURSUANT TO SUBDIVISION (O) 26 OF SECTION 22-621 OF THIS CODE. FOR PURPOSES OF THIS SUBDIVISION, THE 27 TERMS "ELIGIBLE AGGREGATE EMPLOYMENT SHARES," "RELOCATE," "RETAIL ACTIV- 28 ITY" AND "HOTEL SERVICES" SHALL HAVE THE MEANINGS ASCRIBED BY SECTION 29 22-621 OF THIS CODE. 30 (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE 31 AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO PARTICULAR PREM- 32 ISES TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE FIRST 33 TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE 34 MAINTAINED WITH RESPECT TO SUCH PREMISES AND FOR ANY OF THE TWELVE 35 SUCCEEDING TAXABLE YEARS DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT 36 SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES; PROVIDED THAT THE 37 CREDIT ALLOWED FOR THE TWELFTH SUCCEEDING TAXABLE YEAR SHALL BE CALCU- 38 LATED BY MULTIPLYING THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES 39 MAINTAINED WITH RESPECT TO SUCH PREMISES IN THE TWELFTH SUCCEEDING TAXA- 40 BLE YEAR BY THE LESSER OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS 41 SUCH NUMBER OF DAYS IN THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF 42 DAYS THE ELIGIBLE BUSINESS MAINTAINED EMPLOYMENT SHARES IN THE ELIGIBLE 43 PREMISES IN THE TAXABLE YEAR OF RELOCATION AND THE DENOMINATOR OF WHICH 44 IS THE NUMBER OF DAYS IN SUCH TWELFTH SUCCEEDING TAXABLE YEAR DURING 45 WHICH SUCH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH 46 RESPECT TO SUCH PREMISES. EXCEPT AS PROVIDED IN PARAGRAPH (D) OF THIS 47 SUBDIVISION, IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVI- 48 SION FOR ANY TAXABLE YEAR EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE 49 EXCESS MAY BE CARRIED OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING 50 TAXABLE YEARS AND, TO THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE 51 DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEARS. 52 (C) THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL BE DEDUCTED 53 AFTER THE CREDIT ALLOWED BY SUBDIVISION EIGHTEEN OF THIS SECTION, BUT 54 PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS SECTION. 55 (D) IN THE CASE OF A TAXPAYER THAT HAS OBTAINED A CERTIFICATION OF 56 ELIGIBILITY PURSUANT TO CHAPTER SIX-B OF TITLE TWENTY-TWO OF THIS CODE S. 4610--A 41 A. 6721--A 1 DATED ON OR AFTER JULY FIRST, TWO THOUSAND FOR A RELOCATION TO ELIGIBLE 2 PREMISES LOCATED WITHIN THE REVITALIZATION AREA DEFINED IN SUBDIVISION 3 (N) OF SECTION 22-621 OF THIS CODE, THE CREDITS ALLOWED UNDER THIS 4 SUBDIVISION, OR IN THE CASE OF A TAXPAYER THAT HAS RELOCATED MORE THAN 5 ONCE, THE PORTION OF SUCH CREDITS ATTRIBUTED TO SUCH CERTIFICATION OF 6 ELIGIBILITY PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, AGAINST THE 7 TAX IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF SUCH RELOCATION AND 8 FOR THE FOUR TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF 9 SUCH RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE 10 TAXPAYER TO BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE 11 WITH THE PROVISIONS OF SECTION 11-677 OF THIS CHAPTER. FOR SUCH TAXABLE 12 YEARS, SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY 13 SUCCEEDING TAXABLE YEAR; PROVIDED, HOWEVER, THAT THIS PARAGRAPH SHALL 14 NOT APPLY TO ANY RELOCATION FOR WHICH AN APPLICATION FOR A CERTIFICATION 15 OF ELIGIBILITY WAS NOT SUBMITTED PRIOR TO JULY FIRST, TWO THOUSAND 16 THREE, UNLESS THE DATE OF SUCH RELOCATION IS ON OR AFTER JULY FIRST, TWO 17 THOUSAND. 18 (E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE 19 CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS OBTAINED, PURSUANT TO CHAP- 20 TER SIX-B OF TITLE TWENTY-TWO OF THIS CODE, A CERTIFICATION OF ELIGIBIL- 21 ITY AND HAS RECEIVED, IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, 22 TWO THOUSAND FIFTEEN, THE CREDIT SET FORTH IN SUBDIVISION SEVENTEEN OF 23 SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.7 OF THIS CHAPTER FOR 24 THE RELOCATION OF AN ELIGIBLE BUSINESS, A CREDIT SHALL BE ALLOWED UNDER 25 THIS SUBDIVISION TO THE TAXPAYER FOR ANY TAXABLE YEAR BEGINNING ON OR 26 AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO THE 27 SAME EXTENT THAT A CREDIT WOULD HAVE BEEN ALLOWED UNDER SUBDIVISION 28 SEVENTEEN OF SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.7 OF THIS 29 CHAPTER, AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, 30 IF SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE 31 YEAR. 32 17-A. INTENTIONALLY OMITTED. 33 17-B. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, AN 34 ELIGIBLE BUSINESS THAT FIRST ENTERS INTO A BINDING CONTRACT ON OR AFTER 35 JULY FIRST, TWO THOUSAND FIVE TO PURCHASE OR LEASE ELIGIBLE PREMISES TO 36 WHICH IT RELOCATES SHALL BE ALLOWED A ONE-TIME CREDIT AGAINST THE TAX 37 IMPOSED BY THIS SUBCHAPTER TO BE CREDITED OR REFUNDED IN THE MANNER 38 HEREINAFTER PROVIDED IN THIS SUBDIVISION. THE AMOUNT OF SUCH CREDIT 39 SHALL BE ONE THOUSAND DOLLARS PER FULL-TIME EMPLOYEE; PROVIDED, HOWEVER, 40 THAT THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED THE LESSER OF ACTUAL 41 RELOCATION COSTS OR ONE HUNDRED THOUSAND DOLLARS. 42 (B) WHEN USED IN THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE 43 FOLLOWING MEANINGS: 44 (1) "ELIGIBLE BUSINESS" MEANS ANY BUSINESS SUBJECT TO TAX UNDER THIS 45 SUBCHAPTER THAT (I) HAS BEEN CONDUCTING SUBSTANTIAL BUSINESS OPERATIONS 46 AND ENGAGING PRIMARILY IN INDUSTRIAL AND MANUFACTURING ACTIVITIES AT ONE 47 OR MORE LOCATIONS WITHIN THE CITY OF NEW YORK OR OUTSIDE THE STATE OF 48 NEW YORK CONTINUOUSLY DURING THE TWENTY-FOUR CONSECUTIVE FULL MONTHS 49 IMMEDIATELY PRECEDING RELOCATION, (II) HAS LEASED THE PREMISES FROM 50 WHICH IT RELOCATES CONTINUOUSLY DURING THE TWENTY-FOUR CONSECUTIVE FULL 51 MONTHS IMMEDIATELY PRECEDING RELOCATION, (III) FIRST ENTERS INTO A BIND- 52 ING CONTRACT ON OR AFTER JULY FIRST, TWO THOUSAND FIVE TO PURCHASE OR 53 LEASE ELIGIBLE PREMISES TO WHICH SUCH BUSINESS WILL RELOCATE, AND (IV) 54 WILL BE ENGAGED PRIMARILY IN INDUSTRIAL AND MANUFACTURING ACTIVITIES AT 55 SUCH ELIGIBLE PREMISES. S. 4610--A 42 A. 6721--A 1 (2) "ELIGIBLE PREMISES" MEANS PREMISES LOCATED ENTIRELY WITHIN AN 2 INDUSTRIAL BUSINESS ZONE. FOR ANY ELIGIBLE BUSINESS, AN INDUSTRIAL BUSI- 3 NESS ZONE TAX CREDIT SHALL NOT BE GRANTED WITH RESPECT TO MORE THAN ONE 4 ELIGIBLE PREMISES. 5 (3) "FULL-TIME EMPLOYEE" MEANS (I) ONE PERSON GAINFULLY EMPLOYED IN AN 6 ELIGIBLE PREMISES BY AN ELIGIBLE BUSINESS WHERE THE NUMBER OF HOURS 7 REQUIRED TO BE WORKED BY SUCH PERSON IS NOT LESS THAN THIRTY-FIVE HOURS 8 PER WEEK; OR (II) TWO PERSONS GAINFULLY EMPLOYED IN AN ELIGIBLE PREMISES 9 BY AN ELIGIBLE BUSINESS WHERE THE NUMBER OF HOURS REQUIRED TO BE WORKED 10 BY EACH SUCH PERSON IS MORE THAN FIFTEEN HOURS PER WEEK BUT LESS THAN 11 THIRTY-FIVE HOURS PER WEEK. 12 (4) "INDUSTRIAL BUSINESS ZONE" MEANS AN AREA WITHIN THE CITY OF NEW 13 YORK ESTABLISHED PURSUANT TO SECTION 22-626 OF THIS CODE. 14 (5) "INDUSTRIAL BUSINESS ZONE TAX CREDIT" MEANS A CREDIT, AS PROVIDED 15 FOR IN THIS SUBDIVISION, AGAINST A TAX IMPOSED UNDER THIS SUBCHAPTER. 16 (6) "INDUSTRIAL AND MANUFACTURING ACTIVITIES" MEANS ACTIVITIES INVOLV- 17 ING THE ASSEMBLY OF GOODS TO CREATE A DIFFERENT ARTICLE, OR THE PROCESS- 18 ING, FABRICATION, OR PACKAGING OF GOODS. INDUSTRIAL AND MANUFACTURING 19 ACTIVITIES SHALL NOT INCLUDE WASTE MANAGEMENT OR UTILITY SERVICES. 20 (7) "RELOCATION" MEANS THE PHYSICAL RELOCATION OF FURNITURE, FIXTURES, 21 EQUIPMENT, MACHINERY AND SUPPLIES DIRECTLY TO AN ELIGIBLE PREMISES, FROM 22 ONE OR MORE LOCATIONS OF AN ELIGIBLE BUSINESS, INCLUDING AT LEAST ONE 23 LOCATION AT WHICH SUCH BUSINESS CONDUCTS SUBSTANTIAL BUSINESS OPERATIONS 24 AND ENGAGES PRIMARILY IN INDUSTRIAL AND MANUFACTURING ACTIVITIES. FOR 25 PURPOSES OF THIS SUBDIVISION, THE DATE OF RELOCATION SHALL BE (I) THE 26 DATE OF THE COMPLETION OF THE RELOCATION TO THE ELIGIBLE PREMISES OR 27 (II) NINETY DAYS FROM THE COMMENCEMENT OF THE RELOCATION TO THE ELIGIBLE 28 PREMISES, WHICHEVER IS EARLIER. 29 (8) "RELOCATION COSTS" MEANS COSTS INCURRED IN THE RELOCATION OF SUCH 30 FURNITURE, FIXTURES, EQUIPMENT, MACHINERY AND SUPPLIES, INCLUDING, BUT 31 NOT LIMITED TO, THE COST OF DISMANTLING AND REASSEMBLING EQUIPMENT AND 32 THE COST OF FLOOR PREPARATION NECESSARY FOR THE REASSEMBLY OF THE EQUIP- 33 MENT. RELOCATION COSTS SHALL INCLUDE ONLY SUCH COSTS THAT ARE INCURRED 34 DURING THE NINETY-DAY PERIOD IMMEDIATELY FOLLOWING THE COMMENCEMENT OF 35 THE RELOCATION TO AN ELIGIBLE PREMISES. RELOCATION COSTS SHALL NOT 36 INCLUDE COSTS FOR STRUCTURAL OR CAPITAL IMPROVEMENTS OR ITEMS PURCHASED 37 IN CONNECTION WITH THE RELOCATION. 38 (C) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR 39 SHALL BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE CRED- 40 ITED OR REFUNDED WITHOUT INTEREST, IN ACCORDANCE WITH THE PROVISIONS OF 41 SECTION 11-677 OF THIS CHAPTER. 42 (D) THE NUMBER OF FULL-TIME EMPLOYEES FOR THE PURPOSES OF CALCULATING 43 AN INDUSTRIAL BUSINESS TAX CREDIT SHALL BE THE AVERAGE NUMBER OF 44 FULL-TIME EMPLOYEES, CALCULATED ON A WEEKLY BASIS, EMPLOYED IN THE 45 ELIGIBLE PREMISES BY THE ELIGIBLE BUSINESS IN THE FIFTY-TWO WEEK PERIOD 46 IMMEDIATELY FOLLOWING THE EARLIER OF (1) THE DATE OF THE COMPLETION OF 47 THE RELOCATION TO ELIGIBLE PREMISES OR (2) NINETY DAYS FROM THE 48 COMMENCEMENT OF THE RELOCATION TO THE ELIGIBLE PREMISES. 49 (E) THE CREDIT ALLOWED UNDER THIS SUBDIVISION MUST BE TAKEN BY THE 50 TAXPAYER IN THE TAXABLE YEAR IN WHICH SUCH TWELVE MONTH PERIOD SELECTED 51 BY THE TAXPAYER ENDS. 52 (F) FOR THE PURPOSES OF CALCULATING ENTIRE NET INCOME IN THE TAXABLE 53 YEAR THAT AN INDUSTRIAL BUSINESS TAX CREDIT IS ALLOWED, A TAXPAYER MUST 54 ADD BACK THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION, TO THE 55 EXTENT OF ANY RELOCATION COSTS DEDUCTED IN THE CURRENT TAXABLE YEAR OR A 56 PRIOR TAXABLE YEAR IN CALCULATING FEDERAL TAXABLE INCOME. S. 4610--A 43 A. 6721--A 1 (G) THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL NOT BE GRANTED FOR 2 AN ELIGIBLE BUSINESS FOR MORE THAN ONE RELOCATION. NOTWITHSTANDING THE 3 FOREGOING, AN INDUSTRIAL BUSINESS TAX CREDIT SHALL NOT BE GRANTED IF THE 4 ELIGIBLE BUSINESS RECEIVES BENEFITS PURSUANT TO CHAPTER SIX-B OR SIX-C 5 OF TITLE TWENTY-TWO OF THIS CODE, THROUGH A GRANT PROGRAM ADMINISTERED 6 BY THE BUSINESS RELOCATION ASSISTANCE CORPORATION, OR THROUGH THE NEW 7 YORK CITY PRINTERS RELOCATION FUND GRANT. 8 (H) THE COMMISSIONER OF FINANCE IS AUTHORIZED TO PROMULGATE RULES AND 9 REGULATIONS AND TO PRESCRIBE FORMS NECESSARY TO EFFECTUATE THE PURPOSES 10 OF THIS SUBDIVISION. 11 18. (A) IF A CORPORATION IS A PARTNER IN AN UNINCORPORATED BUSINESS 12 TAXABLE UNDER CHAPTER FIVE OF THIS TITLE, AND IS REQUIRED TO INCLUDE IN 13 ENTIRE NET INCOME ITS DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND 14 DEDUCTIONS OF, OR GUARANTEED PAYMENTS FROM, SUCH UNINCORPORATED BUSI- 15 NESS, SUCH CORPORATION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED 16 BY THIS SUBCHAPTER EQUAL TO THE LESSER OF THE AMOUNTS DETERMINED IN 17 SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH: 18 (1) THE AMOUNT DETERMINED IN THIS SUBPARAGRAPH IS THE PRODUCT OF (I) 19 THE SUM OF (A) THE TAX IMPOSED BY CHAPTER FIVE OF THIS TITLE ON THE 20 UNINCORPORATED BUSINESS FOR ITS TAXABLE YEAR ENDING WITHIN OR WITH THE 21 TAXABLE YEAR OF THE CORPORATION AND PAID BY THE UNINCORPORATED BUSINESS 22 AND (B) THE AMOUNT OF ANY CREDIT OR CREDITS TAKEN BY THE UNINCORPORATED 23 BUSINESS UNDER SECTION 11-503 OF THIS TITLE (EXCEPT THE CREDIT ALLOWED 24 BY SUBDIVISION (B) OF SECTION 11-503 OF THIS TITLE) FOR ITS TAXABLE YEAR 25 ENDING WITHIN OR WITH THE TAXABLE YEAR OF THE CORPORATION, TO THE EXTENT 26 THAT SUCH CREDITS DO NOT REDUCE SUCH UNINCORPORATED BUSINESS'S TAX BELOW 27 ZERO, AND (II) A FRACTION, THE NUMERATOR OF WHICH IS THE NET TOTAL OF 28 THE CORPORATION'S DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND 29 DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, THE UNINCORPORATED BUSINESS 30 FOR SUCH TAXABLE YEAR, AND THE DENOMINATOR OF WHICH IS THE SUM, FOR SUCH 31 TAXABLE YEAR, OF THE NET TOTAL DISTRIBUTIVE SHARES OF INCOME, GAIN, LOSS 32 AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS TO, ALL PARTNERS IN THE UNIN- 33 CORPORATED BUSINESS FOR WHOM OR WHICH SUCH NET TOTAL (AS SEPARATELY 34 DETERMINED FOR EACH PARTNER) IS GREATER THAN ZERO. 35 (2) THE AMOUNT DETERMINED IN THIS SUBPARAGRAPH IS THE PRODUCT OF (I) 36 THE EXCESS OF (A) THE TAX COMPUTED UNDER CLAUSE (I) OF SUBPARAGRAPH ONE 37 OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, WITHOUT ALLOWANCE 38 OF ANY CREDITS ALLOWED BY THIS SECTION, OVER (B) THE TAX SO COMPUTED, 39 DETERMINED AS IF THE CORPORATION HAD NO SUCH DISTRIBUTIVE SHARE OR GUAR- 40 ANTEED PAYMENTS WITH RESPECT TO THE UNINCORPORATED BUSINESS, AND (II) A 41 FRACTION, THE NUMERATOR OF WHICH IS FOUR AND THE DENOMINATOR OF WHICH IS 42 EIGHT AND EIGHTY-FIVE ONE HUNDREDTHS, PROVIDED HOWEVER, IN THE CASE OF A 43 TAXPAYER THAT IS SUBJECT TO PARAGRAPH (J) OR (K) OF SUBDIVISION ONE OF 44 THIS SECTION, SUCH DENOMINATOR SHALL BE THE RATE OF TAX AS DETERMINED BY 45 SUCH PARAGRAPH (J) OR (K) FOR THE TAXABLE YEAR AND, PROVIDED, HOWEVER, 46 THAT THE AMOUNTS COMPUTED IN SUBCLAUSES (A) AND (B) OF CLAUSE (I) OF 47 THIS SUBPARAGRAPH SHALL BE COMPUTED WITH THE FOLLOWING MODIFICATIONS: 48 (A) SUCH AMOUNTS SHALL BE COMPUTED WITHOUT TAKING INTO ACCOUNT ANY 49 CARRYFORWARD OR CARRYBACK BY THE PARTNER OF A NET OPERATING LOSS OR A 50 PRIOR NET OPERATION LOSS CONVERSION SUBTRACTION; 51 (B) IF, PRIOR TO TAKING INTO ACCOUNT ANY DISTRIBUTIVE SHARE OR GUARAN- 52 TEED PAYMENTS FROM ANY UNINCORPORATED BUSINESS OR ANY NET OPERATING LOSS 53 CARRYFORWARD OR CARRYBACK, THE ENTIRE NET INCOME OF THE PARTNER IS LESS 54 THAN ZERO, SUCH ENTIRE NET INCOME SHALL BE TREATED AS ZERO; AND 55 (C) IF SUCH PARTNER'S NET TOTAL DISTRIBUTIVE SHARE OF INCOME, GAIN, 56 LOSS AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, ANY UNINCORPORATED S. 4610--A 44 A. 6721--A 1 BUSINESS IS LESS THAN ZERO, SUCH NET TOTAL SHALL BE TREATED AS ZERO. THE 2 AMOUNT DETERMINED IN THIS SUBPARAGRAPH SHALL NOT BE LESS THAN ZERO. 3 (B)(1) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN PARAGRAPH (A) OF 4 THIS SUBDIVISION, IN THE CASE OF A CORPORATION THAT, BEFORE THE APPLICA- 5 TION OF THIS SUBDIVISION OR ANY OTHER CREDIT ALLOWED BY THIS SECTION, IS 6 LIABLE FOR THE TAX ON BUSINESS INCOME UNDER CLAUSE (I) OF SUBPARAGRAPH 7 ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, THE CREDIT OR 8 THE SUM OF THE CREDITS THAT MAY BE TAKEN BY SUCH CORPORATION FOR A TAXA- 9 BLE YEAR UNDER THIS SUBDIVISION WITH RESPECT TO AN UNINCORPORATED BUSI- 10 NESS OR UNINCORPORATED BUSINESSES IN WHICH IT IS A PARTNER SHALL NOT 11 EXCEED THE TAX SO COMPUTED, WITHOUT ALLOWANCE OF ANY CREDITS ALLOWED BY 12 THIS SECTION, MULTIPLIED BY A FRACTION THE NUMERATOR OF WHICH IS FOUR 13 AND THE DENOMINATOR OF WHICH IS EIGHT AND EIGHTY-FIVE ONE-HUNDREDTHS 14 PROVIDED, HOWEVER, IN THE CASE OF A TAXPAYER THAT IS SUBJECT TO PARA- 15 GRAPH (J) OR (K) OF SUBDIVISION ONE OF THIS SECTION, SUCH DENOMINATOR 16 SHALL BE THE RATE OF TAX AS DETERMINED BY SUCH PARAGRAPH (J) OR (K) FOR 17 THE TAXABLE YEAR. IF THE CREDIT ALLOWED UNDER THIS SUBDIVISION OR THE 18 SUM OF SUCH CREDITS EXCEEDS THE PRODUCT OF SUCH TAX AND SUCH FRACTION, 19 THE AMOUNT OF THE EXCESS MAY BE CARRIED FORWARD, IN ORDER, TO EACH OF 20 THE SEVEN IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO THE EXTENT NOT 21 PREVIOUSLY TAKEN, SHALL BE ALLOWED AS A CREDIT IN EACH OF SUCH YEARS. IN 22 APPLYING THE PROVISIONS OF THE PRECEDING SENTENCE, THE CREDIT DETERMINED 23 FOR THE TAXABLE YEAR UNDER PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE 24 TAKEN BEFORE TAKING ANY CREDIT CARRYFORWARD PURSUANT TO THIS PARAGRAPH 25 AND THE CREDIT CARRYFORWARD ATTRIBUTABLE TO THE EARLIEST TAXABLE YEAR 26 SHALL BE TAKEN BEFORE TAKING A CREDIT CARRYFORWARD ATTRIBUTABLE TO A 27 SUBSEQUENT TAXABLE YEAR. 28 (2) INTENTIONALLY OMITTED. 29 (2-A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE 30 CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR 31 BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE CREDIT SET 32 FORTH IN SUBDIVISION EIGHTEEN OF SECTION 11-604 OF THIS CHAPTER OR IN 33 SECTION 11-643.8 OF THIS CHAPTER FOR A TAX PAID UNDER CHAPTER FIVE OF 34 THIS TITLE IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOU- 35 SAND FIFTEEN, THE TAXPAYER MAY CARRY FORWARD THE UNUSED PORTION OF SUCH 36 CREDIT UNDER THIS SUBDIVISION TO ANY TAXABLE YEAR BEGINNING ON OR AFTER 37 JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO THE SAME 38 EXTENT, INCLUDING THE SAME LIMITATIONS, THAT THE CREDIT, OR THE UNUSED 39 PORTION THEREOF, WOULD HAVE BEEN ALLOWED TO BE CARRIED FORWARD UNDER 40 SUBPARAGRAPH ONE OF PARAGRAPH (B) OF SUBDIVISION EIGHTEEN OF SECTION 41 11-604 OF THIS CHAPTER OR PARAGRAPH ONE OF SUBDIVISION (B) OF SECTION 42 11-643.8 OF THIS CHAPTER, AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO 43 THOUSAND FOURTEEN, IF SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAY- 44 ER FOR SUCH TAXABLE YEAR. 45 (3) NO CREDIT ALLOWED UNDER THIS SUBDIVISION MAY BE TAKEN IN A TAXABLE 46 YEAR BY A TAXPAYER THAT, IN THE ABSENCE OF SUCH CREDIT, WOULD BE LIABLE 47 FOR THE TAX COMPUTED ON THE BASIS OF BUSINESS CAPITAL UNDER CLAUSE (II) 48 OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION 49 OR THE FIXED-DOLLAR MINIMUM TAX UNDER CLAUSE (IV) OF SUBPARAGRAPH ONE OF 50 PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION. 51 (C) FOR CORPORATIONS THAT FILE A REPORT ON A COMBINED BASIS PURSUANT 52 TO SECTION 11-654.3 OF THIS SUBCHAPTER, THE CREDIT ALLOWED BY THIS 53 SUBDIVISION SHALL BE COMPUTED AS IF THE COMBINED GROUP WERE THE PARTNER 54 IN EACH UNINCORPORATED BUSINESS FROM WHICH ANY OF THE MEMBERS OF SUCH 55 GROUP HAD A DISTRIBUTIVE SHARE OR GUARANTEED PAYMENTS, PROVIDED, HOWEV- 56 ER, IF MORE THAN ONE MEMBER OF THE COMBINED GROUP IS A PARTNER IN THE S. 4610--A 45 A. 6721--A 1 SAME UNINCORPORATED BUSINESS, FOR PURPOSES OF THE CALCULATION REQUIRED 2 IN SUBPARAGRAPH ONE OF PARAGRAPH (A) OF THIS SUBDIVISION, THE NUMERATOR 3 OF THE FRACTION DESCRIBED IN CLAUSE (II) OF SUCH SUBPARAGRAPH ONE SHALL 4 BE THE SUM OF THE NET TOTAL DISTRIBUTIVE SHARES OF INCOME, GAIN, LOSS 5 AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, THE UNINCORPORATED 6 BUSINESS OF ALL OF THE PARTNERS OF THE UNINCORPORATED BUSINESS WITHIN 7 THE COMBINED GROUP FOR WHICH SUCH NET TOTAL (AS SEPARATELY DETERMINED 8 FOR EACH PARTNER) IS GREATER THAN ZERO, AND THE DENOMINATOR OF SUCH 9 FRACTION SHALL BE THE SUM OF THE NET TOTAL DISTRIBUTIVE SHARES OF 10 INCOME, GAIN, LOSS AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, THE 11 UNINCORPORATED BUSINESS OF ALL PARTNERS IN THE UNINCORPORATED BUSINESS 12 FOR WHOM OR WHICH SUCH NET TOTAL (AS SEPARATELY DETERMINED FOR EACH 13 PARTNER) IS GREATER THAN ZERO. 14 (D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, THE CREDIT 15 ALLOWABLE UNDER THIS SUBDIVISION SHALL BE TAKEN PRIOR TO THE TAKING OF 16 ANY OTHER CREDIT ALLOWED BY THIS SECTION. NOTWITHSTANDING ANY OTHER 17 PROVISION OF THIS SUBCHAPTER, THE APPLICATION OF THIS SUBDIVISION SHALL 18 NOT CHANGE THE BASIS ON WHICH THE TAXPAYER'S TAX IS COMPUTED UNDER PARA- 19 GRAPH (E) OF SUBDIVISION ONE OF THIS SECTION. 20 19. LOWER MANHATTAN RELOCATION AND EMPLOYMENT ASSISTANCE CREDIT. (A) 21 IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A TAXPAYER THAT 22 HAS OBTAINED THE CERTIFICATIONS REQUIRED BY CHAPTER SIX-C OF TITLE TWEN- 23 TY-TWO OF THIS CODE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY 24 THIS SUBCHAPTER. THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED 25 BY MULTIPLYING THREE THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGRE- 26 GATE EMPLOYMENT SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE 27 YEAR WITH RESPECT TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELO- 28 CATED; PROVIDED, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELO- 29 CATION OF ANY RETAIL ACTIVITY OR HOTEL SERVICES; PROVIDED, FURTHER, THAT 30 NO CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION TO ANY TAXPAYER THAT 31 HAS ELECTED PURSUANT TO SUBDIVISION (D) OF SECTION 22-624 OF THIS CODE 32 TO TAKE SUCH CREDIT AGAINST A GROSS RECEIPTS TAX IMPOSED UNDER CHAPTER 33 ELEVEN OF THIS TITLE. FOR PURPOSES OF THIS SUBDIVISION, THE TERMS 34 "ELIGIBLE AGGREGATE EMPLOYMENT SHARES," "ELIGIBLE PREMISES," "RELOCATE," 35 "RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEANINGS ASCRIBED 36 BY SECTION 22-623 OF THIS CODE. 37 (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE 38 AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES 39 TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE 40 YEAR OF THE RELOCATION AND FOR ANY OF THE TWELVE SUCCEEDING TAXABLE 41 YEARS DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED 42 WITH RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED FOR 43 THE TWELFTH SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING 44 THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH 45 RESPECT TO ELIGIBLE PREMISES IN THE TWELFTH SUCCEEDING TAXABLE YEAR BY 46 THE LESSER OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS SUCH NUMBER 47 OF DAYS IN THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE 48 TAXPAYER MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE TAXA- 49 BLE YEAR OF RELOCATION AND THE DENOMINATOR OF WHICH IS THE NUMBER OF 50 DAYS IN SUCH TWELFTH TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE 51 EMPLOYMENT SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES. 52 (C) EXCEPT AS PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVISION, IF THE 53 AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE 54 YEAR EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED 55 OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO S. 4610--A 46 A. 6721--A 1 THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM THE TAXPAY- 2 ER'S TAX FOR SUCH YEARS. 3 (D) THE CREDITS ALLOWED UNDER THIS SUBDIVISION, AGAINST THE TAX 4 IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION AND FOR 5 THE FOUR TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH 6 RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO 7 BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE 8 PROVISIONS OF SECTION 11-677 OF THIS CHAPTER. FOR SUCH TAXABLE YEARS, 9 SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY SUCCEED- 10 ING TAXABLE YEAR. 11 (E) THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL BE DEDUCTED 12 AFTER THE CREDITS ALLOWED BY SUBDIVISIONS SEVENTEEN AND EIGHTEEN OF THIS 13 SECTION, BUT PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS 14 SECTION. 15 (F) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE 16 CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS OBTAINED, PURSUANT TO CHAP- 17 TER SIX-C OF TITLE TWENTY-TWO OF THIS CODE, A CERTIFICATION OF ELIGIBIL- 18 ITY AND HAS RECEIVED, IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, 19 TWO THOUSAND FIFTEEN, THE CREDIT SET FORTH IN SUBDIVISION NINETEEN OF 20 SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.9 OF THIS CHAPTER FOR 21 THE RELOCATION OF AN ELIGIBLE BUSINESS, A CREDIT SHALL BE ALLOWED UNDER 22 THIS SUBDIVISION TO THE TAXPAYER FOR ANY TAXABLE YEAR BEGINNING ON OR 23 AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO THE 24 SAME EXTENT THAT A CREDIT WOULD HAVE BEEN ALLOWED UNDER SUBDIVISION 25 NINETEEN OF SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.9 OF THIS 26 CHAPTER, AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, 27 IF SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE 28 YEAR. 29 20. INTENTIONALLY OMITTED. 30 21. BIOTECHNOLOGY CREDIT. (A) (1) A TAXPAYER THAT IS A QUALIFIED 31 EMERGING TECHNOLOGY COMPANY, ENGAGES IN BIOTECHNOLOGIES, AND MEETS THE 32 ELIGIBILITY REQUIREMENTS OF THIS SUBDIVISION, SHALL BE ALLOWED A CREDIT 33 AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER. THE AMOUNT OF CREDIT SHALL 34 BE EQUAL TO THE SUM OF THE AMOUNTS SPECIFIED IN SUBPARAGRAPHS THREE, 35 FOUR AND FIVE OF THIS PARAGRAPH, SUBJECT TO THE LIMITATIONS IN SUBPARA- 36 GRAPH SEVEN OF THIS PARAGRAPH AND PARAGRAPH (B) OF THIS SUBDIVISION. FOR 37 THE PURPOSES OF THIS SUBDIVISION, "QUALIFIED EMERGING TECHNOLOGY COMPA- 38 NY" SHALL MEAN A COMPANY LOCATED IN THE CITY: (I) WHOSE PRIMARY PRODUCTS 39 OR SERVICES ARE CLASSIFIED AS EMERGING TECHNOLOGIES AND WHOSE TOTAL 40 ANNUAL PRODUCT SALES ARE TEN MILLION DOLLARS OR LESS; OR (II) A COMPANY 41 THAT HAS RESEARCH AND DEVELOPMENT ACTIVITIES IN THE CITY AND WHOSE RATIO 42 OF RESEARCH AND DEVELOPMENT FUNDS TO NET SALES EQUALS OR EXCEEDS THE 43 AVERAGE RATIO FOR ALL SURVEYED COMPANIES CLASSIFIED AS DETERMINED BY THE 44 NATIONAL SCIENCE FOUNDATION IN THE MOST RECENT PUBLISHED RESULTS FROM 45 ITS SURVEY OF INDUSTRY RESEARCH AND DEVELOPMENT, OR ANY COMPARABLE 46 SUCCESSOR SURVEY AS DETERMINED BY THE DEPARTMENT OF FINANCE, AND WHOSE 47 TOTAL ANNUAL PRODUCT SALES ARE TEN MILLION DOLLARS OR LESS. FOR THE 48 PURPOSES OF THIS SUBDIVISION, THE DEFINITION OF RESEARCH AND DEVELOPMENT 49 FUNDS SHALL BE THE SAME AS THAT USED BY THE NATIONAL SCIENCE FOUNDATION 50 IN THE AFOREMENTIONED SURVEY. FOR THE PURPOSES OF THIS SUBDIVISION, 51 "BIOTECHNOLOGIES" SHALL MEAN THE TECHNOLOGIES INVOLVING THE SCIENTIFIC 52 MANIPULATION OF LIVING ORGANISMS, ESPECIALLY AT THE MOLECULAR AND/OR THE 53 SUB-MOLECULAR GENETIC LEVEL, TO PRODUCE PRODUCTS CONDUCIVE TO IMPROVING 54 THE LIVES AND HEALTH OF PLANTS, ANIMALS, AND HUMANS; AND THE ASSOCIATED 55 SCIENTIFIC RESEARCH, PHARMACOLOGICAL, MECHANICAL, AND COMPUTATIONAL 56 APPLICATIONS AND SERVICES CONNECTED WITH THESE IMPROVEMENTS. ACTIVITIES S. 4610--A 47 A. 6721--A 1 INCLUDED WITH SUCH APPLICATIONS AND SERVICES SHALL INCLUDE, BUT NOT BE 2 LIMITED TO, ALTERNATIVE MRNA SPLICING, DNA SEQUENCE AMPLIFICATION, ANTI- 3 GENETIC SWITCHING BIOAUGMENTATION, BIOENRICHMENT, BIOREMEDIATION, CHRO- 4 MOSOME WALKING, CYTOGENETIC ENGINEERING, DNA DIAGNOSIS, FINGERPRINTING, 5 AND SEQUENCING, ELECTROPORATION, GENE TRANSLOCATION, GENETIC MAPPING, 6 SITE-DIRECTED MUTAGENESIS, BIO-TRANSDUCTION, BIO-MECHANICAL AND BIO-E- 7 LECTRICAL ENGINEERING, AND BIO-INFORMATICS. 8 (2) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO MORE THAN ONE HUNDRED 9 FULL-TIME EMPLOYEES, OF WHICH AT LEAST SEVENTY-FIVE PERCENT ARE EMPLOYED 10 IN THE CITY, (II) HAVE A RATIO OF RESEARCH AND DEVELOPMENT FUNDS TO NET 11 SALES, AS REFERRED TO IN SECTION THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC 12 AUTHORITIES LAW, WHICH EQUALS OR EXCEEDS SIX PERCENT DURING THE CALENDAR 13 YEAR ENDING WITH OR WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS 14 CLAIMED, AND (III) HAVE GROSS REVENUES, ALONG WITH THE GROSS REVENUES OF 15 ITS "AFFILIATES" AND "RELATED MEMBERS" NOT EXCEEDING TWENTY MILLION 16 DOLLARS FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING THE CALENDAR YEAR 17 ENDING WITH OR WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED. 18 FOR THE PURPOSES OF THIS SUBDIVISION, "AFFILIATES" SHALL MEAN THOSE 19 CORPORATIONS THAT ARE MEMBERS OF THE SAME AFFILIATED GROUP (AS DEFINED 20 IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS THE 21 TAXPAYER. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "RELATED 22 MEMBERS" SHALL MEAN A PERSON, CORPORATION, OR OTHER ENTITY, INCLUDING AN 23 ENTITY THAT IS TREATED AS A PARTNERSHIP OR OTHER PASS-THROUGH VEHICLE 24 FOR PURPOSES OF FEDERAL TAXATION, WHETHER SUCH PERSON, CORPORATION OR 25 ENTITY IS A TAXPAYER OR NOT, WHERE ONE SUCH PERSON, CORPORATION OR ENTI- 26 TY, OR SET OF RELATED PERSONS, CORPORATIONS OR ENTITIES, DIRECTLY OR 27 INDIRECTLY OWNS OR CONTROLS A CONTROLLING INTEREST IN ANOTHER ENTITY. 28 SUCH ENTITY OR ENTITIES MAY INCLUDE ALL TAXPAYERS UNDER CHAPTERS FIVE, 29 ELEVEN AND SEVENTEEN OF THIS TITLE, AND THIS SUBCHAPTER AND SUBCHAPTERS 30 TWO AND THREE OF THIS CHAPTER. A CONTROLLING INTEREST SHALL MEAN, IN THE 31 CASE OF A CORPORATION, EITHER THIRTY PERCENT OR MORE OF THE TOTAL 32 COMBINED VOTING POWER OF ALL CLASSES OF STOCK OF SUCH CORPORATION, OR 33 THIRTY PERCENT OR MORE OF THE CAPITAL, PROFITS OR BENEFICIAL INTEREST IN 34 SUCH VOTING STOCK OF SUCH CORPORATION; AND IN THE CASE OF A PARTNERSHIP, 35 ASSOCIATION, TRUST OR OTHER ENTITY, THIRTY PERCENT OR MORE OF THE CAPI- 36 TAL, PROFITS OR BENEFICIAL INTEREST IN SUCH PARTNERSHIP, ASSOCIATION, 37 TRUST OR OTHER ENTITY. 38 (3) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR EIGHTEEN PER 39 CENTUM OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF 40 RESEARCH AND DEVELOPMENT PROPERTY THAT IS ACQUIRED BY THE TAXPAYER BY 41 PURCHASE AS DEFINED IN SUBSECTION (D) OF SECTION ONE HUNDRED 42 SEVENTY-NINE OF THE INTERNAL REVENUE CODE AND PLACED IN SERVICE DURING 43 THE CALENDAR YEAR THAT ENDS WITH OR WITHIN THE TAXABLE YEAR FOR WHICH 44 THE CREDIT IS CLAIMED. PROVIDED, HOWEVER, FOR THE PURPOSES OF THIS 45 PARAGRAPH ONLY, AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR SUCH 46 PERCENTAGE OF THE (I) COST OR OTHER BASIS FOR FEDERAL INCOME TAX 47 PURPOSES FOR PROPERTY USED IN THE TESTING OR INSPECTION OF MATERIALS AND 48 PRODUCTS, (II) THE COSTS OR EXPENSES ASSOCIATED WITH QUALITY CONTROL OF 49 THE RESEARCH AND DEVELOPMENT, (III) FEES FOR USE OF SOPHISTICATED TECH- 50 NOLOGY FACILITIES AND PROCESSES, AND (IV) FEES FOR THE PRODUCTION OR 51 EVENTUAL COMMERCIAL DISTRIBUTION OF MATERIALS AND PRODUCTS RESULTING 52 FROM THE ACTIVITIES OF AN ELIGIBLE TAXPAYER AS LONG AS SUCH ACTIVITIES 53 FALL UNDER ACTIVITIES RELATING TO BIOTECHNOLOGIES. THE COSTS, EXPENSES 54 AND OTHER AMOUNTS FOR WHICH A CREDIT IS ALLOWED AND CLAIMED UNDER THIS 55 PARAGRAPH SHALL NOT BE USED IN THE CALCULATION OF ANY OTHER CREDIT 56 ALLOWED UNDER THIS SUBCHAPTER. FOR THE PURPOSES OF THIS SUBDIVISION, S. 4610--A 48 A. 6721--A 1 "RESEARCH AND DEVELOPMENT PROPERTY" SHALL MEAN PROPERTY THAT IS USED FOR 2 PURPOSES OF RESEARCH AND DEVELOPMENT IN THE EXPERIMENTAL OR LABORATORY 3 SENSE. SUCH PURPOSES SHALL NOT BE DEEMED TO INCLUDE THE ORDINARY TESTING 4 OR INSPECTION OF MATERIALS OR PRODUCTS FOR QUALITY CONTROL, EFFICIENCY 5 SURVEYS, MANAGEMENT STUDIES, CONSUMER SURVEYS, ADVERTISING, PROMOTIONS, 6 OR RESEARCH IN CONNECTION WITH LITERARY, HISTORICAL OR SIMILAR PROJECTS. 7 (4) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR NINE PER CENTUM 8 OF QUALIFIED RESEARCH EXPENSES PAID OR INCURRED BY THE TAXPAYER IN THE 9 CALENDAR YEAR THAT ENDS WITH OR WITHIN THE TAXABLE YEAR FOR WHICH THE 10 CREDIT IS CLAIMED. FOR THE PURPOSES OF THIS SUBDIVISION, "QUALIFIED 11 RESEARCH EXPENSES" SHALL MEAN EXPENSES ASSOCIATED WITH IN-HOUSE RESEARCH 12 AND PROCESSES, AND COSTS ASSOCIATED WITH THE DISSEMINATION OF THE 13 RESULTS OF THE PRODUCTS THAT DIRECTLY RESULT FROM SUCH RESEARCH AND 14 DEVELOPMENT ACTIVITIES; PROVIDED, HOWEVER, THAT SUCH COSTS SHALL NOT 15 INCLUDE ADVERTISING OR PROMOTION THROUGH MEDIA. IN ADDITION, COSTS ASSO- 16 CIATED WITH THE PREPARATION OF PATENT APPLICATIONS, PATENT APPLICATION 17 FILING FEES, PATENT RESEARCH FEES, PATENT EXAMINATIONS FEES, PATENT POST 18 ALLOWANCE FEES, PATENT MAINTENANCE FEES, AND GRANT APPLICATION EXPENSES 19 AND FEES SHALL QUALIFY AS QUALIFIED RESEARCH EXPENSES. IN NO CASE SHALL 20 THE CREDIT ALLOWED UNDER THIS SUBPARAGRAPH APPLY TO EXPENSES FOR LITI- 21 GATION OR THE CHALLENGE OF ANOTHER ENTITY'S INTELLECTUAL PROPERTY 22 RIGHTS, OR FOR CONTRACT EXPENSES INVOLVING OUTSIDE PAID CONSULTANTS. 23 (5) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR QUALIFIED 24 HIGH-TECHNOLOGY TRAINING EXPENDITURES AS DESCRIBED IN THIS SUBPARAGRAPH 25 PAID OR INCURRED BY THE TAXPAYER DURING THE CALENDAR YEAR THAT ENDS WITH 26 OR WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED. 27 (I) THE AMOUNT OF CREDIT SHALL BE ONE HUNDRED PERCENT OF THE TRAINING 28 EXPENSES DESCRIBED IN CLAUSE (III) OF THIS SUBPARAGRAPH, SUBJECT TO A 29 LIMITATION OF NO MORE THAN FOUR THOUSAND DOLLARS PER EMPLOYEE PER CALEN- 30 DAR YEAR FOR SUCH TRAINING EXPENSES. 31 (II) QUALIFIED HIGH-TECHNOLOGY TRAINING SHALL INCLUDE A COURSE OR 32 COURSES TAKEN AND SATISFACTORILY COMPLETED BY AN EMPLOYEE OF THE TAXPAY- 33 ER AT AN ACCREDITED, DEGREE GRANTING POST-SECONDARY COLLEGE OR UNIVERSI- 34 TY IN THE CITY THAT (A) DIRECTLY RELATES TO BIOTECHNOLOGY ACTIVITIES, 35 AND (B) IS INTENDED TO UPGRADE, RETRAIN OR IMPROVE THE PRODUCTIVITY OR 36 THEORETICAL AWARENESS OF THE EMPLOYEE. SUCH COURSE OR COURSES MAY 37 INCLUDE, BUT ARE NOT LIMITED TO, INSTRUCTION OR RESEARCH RELATING TO 38 TECHNIQUES, META, MACRO, OR MICRO-THEORETICAL OR PRACTICAL KNOWLEDGE 39 BASES OR FRONTIERS, OR ETHICAL CONCERNS RELATED TO SUCH ACTIVITIES. SUCH 40 COURSE OR COURSES SHALL NOT INCLUDE CLASSES IN THE DISCIPLINES OF 41 MANAGEMENT, ACCOUNTING OR THE LAW OR ANY CLASS DESIGNED TO FULFILL THE 42 DISCIPLINE SPECIFIC REQUIREMENTS OF A DEGREE PROGRAM AT THE ASSOCIATE, 43 BACCALAUREATE, GRADUATE OR PROFESSIONAL LEVEL OF THESE DISCIPLINES. 44 SATISFACTORY COMPLETION OF A COURSE OR COURSES SHALL MEAN THE EARNING 45 AND GRANTING OF CREDIT OR EQUIVALENT UNIT, WITH THE ATTAINMENT OF A 46 GRADE OF "B" OR HIGHER IN A GRADUATE LEVEL COURSE OR COURSES, A GRADE OF 47 "C" OR HIGHER IN AN UNDERGRADUATE LEVEL COURSE OR COURSES, OR A SIMILAR 48 MEASURE OF COMPETENCY FOR A COURSE THAT IS NOT MEASURED ACCORDING TO A 49 STANDARD GRADE FORMULA. 50 (III) QUALIFIED HIGH-TECHNOLOGY TRAINING EXPENDITURES SHALL INCLUDE 51 EXPENSES FOR TUITION AND MANDATORY FEES, SOFTWARE REQUIRED BY THE INSTI- 52 TUTION, FEES FOR TEXTBOOKS OR OTHER LITERATURE REQUIRED BY THE INSTITU- 53 TION OFFERING THE COURSE OR COURSES, MINUS APPLICABLE SCHOLARSHIPS AND 54 TUITION OR FEE WAIVERS NOT GRANTED BY THE TAXPAYER OR ANY AFFILIATES OF 55 THE TAXPAYER, THAT ARE PAID OR REIMBURSED BY THE TAXPAYER. QUALIFIED 56 HIGH-TECHNOLOGY EXPENDITURES DO NOT INCLUDE ROOM AND BOARD, COMPUTER S. 4610--A 49 A. 6721--A 1 HARDWARE OR SOFTWARE NOT SPECIFICALLY ASSIGNED FOR SUCH COURSE OR COURS- 2 ES, LATE-CHARGES, FINES OR MEMBERSHIP DUES AND SIMILAR EXPENSES. SUCH 3 QUALIFIED EXPENDITURES SHALL NOT BE ELIGIBLE FOR THE CREDIT PROVIDED BY 4 THIS SECTION UNLESS THE EMPLOYEE FOR WHOM THE EXPENDITURES ARE DISBURSED 5 IS CONTINUOUSLY EMPLOYED BY THE TAXPAYER IN A FULL-TIME, FULL-YEAR POSI- 6 TION PRIMARILY LOCATED AT A QUALIFIED SITE DURING THE PERIOD OF SUCH 7 COURSEWORK AND LASTING THROUGH AT LEAST ONE HUNDRED EIGHTY DAYS AFTER 8 THE SATISFACTORY COMPLETION OF THE QUALIFYING COURSE-WORK. QUALIFIED 9 HIGH-TECHNOLOGY TRAINING EXPENDITURES SHALL NOT INCLUDE EXPENSES FOR 10 IN-HOUSE OR SHARED TRAINING OUTSIDE OF A CITY HIGHER EDUCATION INSTITU- 11 TION OR THE USE OF CONSULTANTS OUTSIDE OF CREDIT GRANTING COURSES, 12 WHETHER SUCH CONSULTANTS FUNCTION INSIDE OF SUCH HIGHER EDUCATION INSTI- 13 TUTION OR NOT. 14 (IV) IF A TAXPAYER RELOCATES FROM AN ACADEMIC BUSINESS INCUBATOR 15 FACILITY PARTNERED WITH AN ACCREDITED POST-SECONDARY EDUCATION INSTITU- 16 TION LOCATED WITHIN THE CITY, WHICH PROVIDES SPACE AND BUSINESS SUPPORT 17 SERVICES TO TAXPAYERS, TO ANOTHER SITE, THE CREDIT PROVIDED IN THIS 18 SUBDIVISION SHALL BE ALLOWED FOR ALL EXPENDITURES REFERENCED IN CLAUSE 19 (III) OF THIS SUBPARAGRAPH PAID OR INCURRED IN THE TWO PRECEDING CALEN- 20 DAR YEARS THAT THE TAXPAYER WAS LOCATED IN SUCH AN INCUBATOR FACILITY 21 FOR EMPLOYEES OF THE TAXPAYER WHO ALSO RELOCATE FROM SAID INCUBATOR 22 FACILITY TO SUCH CITY SITE AND ARE EMPLOYED AND PRIMARILY LOCATED BY THE 23 TAXPAYER IN THE CITY. SUCH EXPENDITURES IN THE TWO PRECEDING YEARS 24 SHALL BE ADDED TO THE AMOUNTS OTHERWISE QUALIFYING FOR THE CREDIT 25 PROVIDED BY THIS SUBDIVISION THAT WERE PAID OR INCURRED IN THE CALENDAR 26 YEAR THAT THE TAXPAYER RELOCATES FROM SUCH A FACILITY. SUCH EXPENDITURES 27 SHALL INCLUDE EXPENSES PAID FOR AN ELIGIBLE EMPLOYEE WHO IS A FULL-TIME, 28 FULL-YEAR EMPLOYEE OF SAID TAXPAYER DURING THE CALENDAR YEAR THAT THE 29 TAXPAYER RELOCATED FROM AN INCUBATOR FACILITY NOTWITHSTANDING (A) THAT 30 SUCH EMPLOYEE WAS EMPLOYED FULL OR PART-TIME AS AN OFFICER, STAFF-PERSON 31 OR PAID INTERN OF THE TAXPAYER WHEN SUCH TAXPAYER WAS LOCATED AT SUCH 32 INCUBATOR FACILITY OR (B) THAT SUCH EMPLOYEE WAS NOT CONTINUOUSLY 33 EMPLOYED WHEN SUCH TAXPAYER WAS LOCATED AT THE INCUBATOR FACILITY DURING 34 THE ONE HUNDRED EIGHTY DAY PERIOD REFERRED TO IN CLAUSE (III) OF THIS 35 SUBPARAGRAPH, PROVIDED SUCH EMPLOYEE RECEIVED WAGES OR EQUIVALENT INCOME 36 FOR AT LEAST SEVEN HUNDRED FIFTY HOURS DURING ANY TWENTY-FOUR MONTH 37 PERIOD WHEN THE TAXPAYER WAS LOCATED AT THE INCUBATOR FACILITY. SUCH 38 EXPENDITURES SHALL INCLUDE PAYMENTS MADE TO SUCH EMPLOYEE AFTER THE 39 TAXPAYER HAS RELOCATED FROM THE INCUBATOR FACILITY FOR QUALIFIED EXPEND- 40 ITURES IF SUCH PAYMENTS ARE MADE TO REIMBURSE AN EMPLOYEE FOR EXPENDI- 41 TURES PAID BY THE EMPLOYEE DURING SUCH TWO PRECEDING YEARS. THE CREDIT 42 PROVIDED UNDER THIS PARAGRAPH SHALL BE ALLOWED IN ANY TAXABLE YEAR THAT 43 THE TAXPAYER QUALIFIES AS AN ELIGIBLE TAXPAYER. 44 (V) FOR PURPOSES OF THIS SUBDIVISION THE TERM "ACADEMIC YEAR" SHALL 45 MEAN THE ANNUAL PERIOD OF SESSIONS OF A POST-SECONDARY COLLEGE OR 46 UNIVERSITY. 47 (VI) FOR THE PURPOSES OF THIS SUBDIVISION THE TERM "ACADEMIC INCUBATOR 48 FACILITY" SHALL MEAN A FACILITY PROVIDING LOW-COST SPACE, TECHNICAL 49 ASSISTANCE, SUPPORT SERVICES AND EDUCATIONAL OPPORTUNITIES, INCLUDING 50 BUT NOT LIMITED TO CENTRAL SERVICES PROVIDED BY THE MANAGER OF THE 51 FACILITY TO THE TENANTS OF THE FACILITY, TO AN ENTITY LOCATED IN THE 52 CITY. SUCH ENTITY'S PRIMARY ACTIVITY MUST BE IN BIOTECHNOLOGIES, AND 53 SUCH ENTITY MUST BE IN THE FORMATIVE STAGE OF DEVELOPMENT. THE ACADEMIC 54 INCUBATOR FACILITY AND THE ENTITY MUST ACT IN PARTNERSHIP WITH AN 55 ACCREDITED POST-SECONDARY COLLEGE OR UNIVERSITY LOCATED IN THE CITY. AN 56 ACADEMIC INCUBATOR FACILITY'S MISSION SHALL BE TO PROMOTE JOB CREATION, S. 4610--A 50 A. 6721--A 1 ENTREPRENEURSHIP, TECHNOLOGY TRANSFER, AND PROVIDE SUPPORT SERVICES TO 2 INCUBATOR TENANTS, INCLUDING, BUT NOT LIMITED TO, BUSINESS PLANNING, 3 MANAGEMENT ASSISTANCE, FINANCIAL-PACKAGING, LINKAGES TO FINANCING 4 SERVICES, AND COORDINATING WITH OTHER SOURCES OF ASSISTANCE. 5 (6) AN ELIGIBLE TAXPAYER MAY CLAIM CREDITS UNDER THIS SUBDIVISION FOR 6 THREE CONSECUTIVE YEARS. IN NO CASE SHALL THE CREDIT ALLOWED BY THIS 7 SUBDIVISION TO A TAXPAYER EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS PER 8 CALENDAR YEAR FOR ELIGIBLE EXPENDITURES MADE DURING SUCH CALENDAR YEAR. 9 (7) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR 10 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT 11 PRESCRIBED IN CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI- 12 VISION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF CREDIT 13 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO 14 SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR 15 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN 16 ACCORDANCE WITH THE PROVISIONS OF SECTION 11-677 OF THIS CHAPTER; 17 PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE PROVISIONS OF SECTION 11-679 18 OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON. 19 (8) THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL ONLY BE ALLOWED 20 FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN. 21 (B) (1) THE PERCENTAGE OF THE CREDIT ALLOWED TO A TAXPAYER UNDER THIS 22 SUBDIVISION IN ANY CALENDAR YEAR SHALL BE: 23 (I) IF THE AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL TIME BY A 24 TAXPAYER IN THE CITY DURING THE CALENDAR YEAR THAT ENDS WITH OR WITHIN 25 THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS AT LEAST ONE HUNDRED 26 FIVE PERCENT OF THE TAXPAYER'S BASE YEAR EMPLOYMENT, ONE HUNDRED 27 PERCENT, EXCEPT THAT IN NO CASE SHALL THE CREDIT ALLOWED UNDER THIS 28 CLAUSE EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS PER CALENDAR YEAR. 29 PROVIDED, HOWEVER, THE INCREASE IN BASE YEAR EMPLOYMENT SHALL NOT APPLY 30 TO A TAXPAYER ALLOWED A CREDIT UNDER THIS SUBDIVISION THAT WAS, (A) 31 LOCATED OUTSIDE OF THE CITY, (B) NOT DOING BUSINESS, OR (C) DID NOT HAVE 32 ANY EMPLOYEES, IN THE YEAR PRECEDING THE FIRST YEAR THAT THE CREDIT IS 33 CLAIMED. ANY SUCH TAXPAYER SHALL BE ELIGIBLE FOR ONE HUNDRED PERCENT OF 34 THE CREDIT FOR THE FIRST CALENDAR YEAR THAT ENDS WITH OR WITHIN THE 35 TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED, PROVIDED THAT SUCH TAXPAY- 36 ER LOCATES IN THE CITY, BEGINS DOING BUSINESS IN THE CITY OR HIRES 37 EMPLOYEES IN THE CITY DURING SUCH CALENDAR YEAR AND IS OTHERWISE ELIGI- 38 BLE FOR THE CREDIT PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION. 39 (II) IF THE AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL TIME BY A 40 TAXPAYER IN THE CITY DURING THE CALENDAR YEAR THAT ENDS WITH OR WITHIN 41 THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS LESS THAN ONE 42 HUNDRED FIVE PERCENT OF THE TAXPAYER'S BASE YEAR EMPLOYMENT, FIFTY 43 PERCENT, EXCEPT THAT IN NO CASE SHALL THE CREDIT ALLOWED UNDER THIS 44 CLAUSE EXCEED ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS PER CALENDAR 45 YEAR. IN THE CASE OF AN ENTITY LOCATED IN THE CITY RECEIVING SPACE AND 46 BUSINESS SUPPORT SERVICES BY AN ACADEMIC INCUBATOR FACILITY, IF THE 47 AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL TIME BY SUCH ENTITY IN THE 48 CITY DURING THE CALENDAR YEAR IN WHICH THE CREDIT ALLOWED UNDER THIS 49 SUBDIVISION IS CLAIMED IS LESS THAN ONE HUNDRED FIVE PERCENT OF THE 50 TAXPAYER'S BASE YEAR EMPLOYMENT, THE CREDIT SHALL BE ZERO. 51 (2) FOR THE PURPOSES OF THIS SUBDIVISION, "BASE YEAR EMPLOYMENT" MEANS 52 THE AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN 53 THE CITY IN THE YEAR PRECEDING THE FIRST CALENDAR YEAR THAT ENDS WITH OR 54 WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED. 55 (3) FOR THE PURPOSES OF THIS SUBDIVISION, AVERAGE NUMBER OF INDIVID- 56 UALS EMPLOYED FULL-TIME SHALL BE COMPUTED BY ADDING THE NUMBER OF SUCH S. 4610--A 51 A. 6721--A 1 INDIVIDUALS EMPLOYED BY THE TAXPAYER AT THE END OF EACH QUARTER DURING 2 EACH CALENDAR YEAR OR OTHER APPLICABLE PERIOD AND DIVIDING THE SUM SO 3 OBTAINED BY THE NUMBER OF SUCH QUARTERS OCCURRING WITHIN SUCH CALENDAR 4 YEAR OR OTHER APPLICABLE PERIOD. 5 (4) NOTWITHSTANDING ANYTHING CONTAINED IN THIS SECTION TO THE CONTRA- 6 RY, THE CREDIT PROVIDED BY THIS SUBDIVISION SHALL BE ALLOWED AGAINST THE 7 TAXES AUTHORIZED BY THIS CHAPTER FOR THE TAXABLE YEAR AFTER REDUCTION BY 8 ALL OTHER CREDITS PERMITTED BY THIS CHAPTER. 9 (C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE 10 CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR 11 BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE CREDIT SET 12 FORTH IN SUBDIVISION TWENTY-ONE OF SECTION 11-604 OF THIS CHAPTER FOR AN 13 ELIGIBLE ACQUISITION OF PROPERTY AND/OR EXPENSE PAID OR INCURRED, A 14 CREDIT SHALL BE ALLOWED TO THE TAXPAYER UNDER THIS SUBDIVISION FOR ANY 15 TAX YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN IN 16 THE SAME AMOUNT AND TO THE SAME EXTENT THAT A CREDIT WOULD HAVE BEEN 17 ALLOWED UNDER SUBDIVISION TWENTY-ONE OF SECTION 11-604 OF THIS CHAPTER, 18 AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, IF SUCH 19 SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE YEAR. 20 S 11-654.1 NET OPERATING LOSS. 1. IN COMPUTING THE BUSINESS INCOME 21 SUBJECT TO TAX, TAXPAYERS SHALL BE ALLOWED BOTH A PRIOR NET OPERATING 22 LOSS CONVERSION SUBTRACTION UNDER SUBDIVISION TWO OF THIS SECTION AND A 23 NET OPERATING LOSS DEDUCTION UNDER SUBDIVISION THREE OF THIS SECTION. 24 THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION COMPUTED UNDER 25 SUBDIVISION TWO OF THIS SECTION SHALL BE APPLIED AGAINST BUSINESS INCOME 26 BEFORE THE NET OPERATING LOSS DEDUCTION COMPUTED UNDER SUBDIVISION THREE 27 OF THIS SECTION. 28 2. PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION. (A) DEFINITIONS. 29 (1) "BASE YEAR" MEANS THE LAST TAXABLE YEAR BEGINNING ON OR AFTER JANU- 30 ARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND 31 FIFTEEN. 32 (2) "UNABSORBED NET OPERATING LOSS" MEANS THE UNABSORBED PORTION OF 33 NET OPERATING LOSS AS CALCULATED UNDER PARAGRAPH (F) OF SUBDIVISION 34 EIGHT OF SECTION 11-602 OF THIS CHAPTER OR SUBDIVISION (K-1) OF SECTION 35 11-641 OF THIS CHAPTER, AS SUCH SECTIONS WERE IN EFFECT ON DECEMBER 36 THIRTY-FIRST, TWO THOUSAND FOURTEEN, THAT WAS NOT DEDUCTIBLE IN PREVIOUS 37 TAXABLE YEARS AND WAS ELIGIBLE FOR CARRYOVER ON THE LAST DAY OF THE BASE 38 YEAR SUBJECT TO THE LIMITATIONS FOR DEDUCTION UNDER SUCH SECTIONS, 39 INCLUDING ANY NET OPERATING LOSS SUSTAINED BY THE TAXPAYER DURING THE 40 BASE YEAR. 41 (3) "BASE YEAR BAP" MEANS THE TAXPAYER'S BUSINESS ALLOCATION PERCENT- 42 AGE AS CALCULATED UNDER PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION 43 11-604 OF THIS CHAPTER FOR THE BASE YEAR, OR THE TAXPAYER'S ALLOCATION 44 PERCENTAGE AS CALCULATED UNDER SECTION 11-642 OF THIS CHAPTER FOR 45 PURPOSES OF CALCULATING ENTIRE NET INCOME FOR THE BASE YEAR, AS SUCH 46 SECTIONS WERE IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN. 47 (4) "BASE YEAR TAX RATE" MEANS THE TAXPAYER'S TAX RATE FOR THE BASE 48 YEAR AS APPLIED TO ENTIRE NET INCOME AND CALCULATED UNDER SUBDIVISION 49 ONE OF SECTION 11-604 OF THIS CHAPTER OR SUBDIVISION (A) OF SECTION 50 11-643.5 OF THIS CHAPTER, AS SUCH PROVISIONS WERE IN EFFECT ON DECEMBER 51 THIRTY-FIRST, TWO THOUSAND FOURTEEN. 52 (B) THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION SHALL BE 53 CALCULATED AS FOLLOWS: 54 (1) THE TAXPAYER SHALL FIRST CALCULATE THE TAX VALUE OF ITS UNABSORBED 55 NET OPERATING LOSS FOR THE BASE YEAR. THE VALUE IS EQUAL TO THE PRODUCT 56 OF (I) THE AMOUNT OF THE TAXPAYER'S UNABSORBED NET OPERATING LOSS, (II) S. 4610--A 52 A. 6721--A 1 THE TAXPAYER'S BASE YEAR BAP, AND (III) THE TAXPAYER'S BASE YEAR TAX 2 RATE. 3 (2) THE PRODUCT DETERMINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH 4 SHALL THEN BE DIVIDED BY EIGHT AND EIGHTY-FIVE ONE HUNDREDTHS PER CENTUM 5 OR, IN THE CASE OF A FINANCIAL CORPORATION, AS DEFINED IN CLAUSE (I) OF 6 SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 7 OF THIS SUBCHAPTER, THE PRODUCT DETERMINED UNDER SUBPARAGRAPH ONE OF 8 THIS PARAGRAPH SHALL THEN BE DIVIDED BY NINE PER CENTUM. THIS RESULT 9 SHALL EQUAL THE TAXPAYER'S PRIOR NET OPERATING LOSS CONVERSION 10 SUBTRACTION POOL. 11 (3) THE TAXPAYER'S PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION FOR 12 THE TAXABLE YEAR SHALL EQUAL ONE-TENTH OF ITS PRIOR NET OPERATING LOSS 13 CONVERSION SUBTRACTION POOL, PLUS ANY AMOUNT OF UNUSED PRIOR NET OPERAT- 14 ING LOSS CONVERSION SUBTRACTION FROM PRECEDING TAXABLE YEARS. 15 (4) IN LIEU OF THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION 16 DESCRIBED IN SUBPARAGRAPH THREE OF THIS PARAGRAPH, IF THE TAXPAYER SO 17 ELECTS, THE TAXPAYER'S PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION 18 FOR ITS TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND 19 FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN SHALL EQUAL, IN 20 EACH YEAR, NOT MORE THAN ONE-HALF OF ITS PRIOR NET OPERATING LOSS 21 CONVERSION SUBTRACTION POOL UNTIL THE POOL IS EXHAUSTED. IF THE POOL IS 22 NOT EXHAUSTED AT THE END OF SUCH TIME PERIOD, THE REMAINDER OF THE POOL 23 SHALL BE FORFEITED. THE TAXPAYER SHALL MAKE SUCH ELECTION, WHICH SHALL 24 BE REVOCABLE, ON ITS FIRST RETURN FOR THE TAX YEAR BEGINNING ON OR AFTER 25 JANUARY FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST, TWO THOU- 26 SAND SIXTEEN BY THE DUE DATE FOR SUCH RETURN (DETERMINED WITH REGARD TO 27 EXTENSIONS). 28 (C) (1) WHERE A TAXPAYER WAS PROPERLY INCLUDED OR REQUIRED TO BE 29 INCLUDED IN A COMBINED REPORT FOR THE BASE YEAR PURSUANT TO SECTION 30 11-605 OF THIS CHAPTER OR A COMBINED RETURN FOR THE BASE YEAR PURSUANT 31 TO SECTION 11-646 OF THIS CHAPTER, AS SUCH SECTIONS WERE IN EFFECT ON 32 DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, AND THE MEMBERS OF THE 33 COMBINED GROUP FOR THE BASE YEAR ARE THE SAME AS THE MEMBERS OF THE 34 COMBINED GROUP FOR THE TAXABLE YEAR IMMEDIATELY SUCCEEDING THE BASE 35 YEAR, THE COMBINED GROUP SHALL CALCULATE ITS PRIOR NET OPERATING LOSS 36 CONVERSION SUBTRACTION POOL USING THE COMBINED GROUP'S TOTAL UNABSORBED 37 NET OPERATING LOSS, BASE YEAR BAP, AND BASE YEAR TAX RATE. 38 (2) IF A COMBINED GROUP INCLUDES ADDITIONAL MEMBERS IN THE TAXABLE 39 YEAR IMMEDIATELY SUCCEEDING THE BASE YEAR THAT WERE NOT INCLUDED IN THE 40 COMBINED GROUP DURING THE BASE YEAR, EACH BASE YEAR COMBINED GROUP AND 41 EACH TAXPAYER THAT FILED SEPARATELY FOR THE BASE YEAR BUT IS INCLUDED IN 42 THE COMBINED GROUP IN THE TAXABLE YEAR SUCCEEDING THE BASE YEAR SHALL 43 CALCULATE ITS PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION POOL, AND 44 THE SUM OF THE POOLS SHALL BE THE COMBINED PRIOR NET OPERATING LOSS 45 CONVERSION SUBTRACTION POOL OF THE COMBINED GROUP. 46 (3) IF A TAXPAYER WAS PROPERLY INCLUDED IN A COMBINED REPORT FOR THE 47 BASE YEAR AND FILES A SEPARATE REPORT FOR A SUBSEQUENT TAXABLE YEAR, 48 THEN THE AMOUNT OF REMAINING PRIOR NET OPERATING LOSS CONVERSION 49 SUBTRACTION ALLOWED TO THE TAXPAYER FILING SUCH SEPARATE REPORT SHALL BE 50 PROPORTIONATE TO THE AMOUNT THAT SUCH TAXPAYER CONTRIBUTED TO THE PRIOR 51 NET OPERATING LOSS CONVERSION SUBTRACTION POOL ON A COMBINED BASIS, AND 52 THE REMAINING PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION ALLOWED TO 53 THE REMAINING MEMBERS OF THE COMBINED GROUP SHALL BE REDUCED ACCORDING- 54 LY. 55 (4) IF A TAXPAYER FILED A SEPARATE REPORT FOR THE BASE YEAR AND IS 56 PROPERLY INCLUDED IN A COMBINED REPORT FOR A SUBSEQUENT TAXABLE YEAR, S. 4610--A 53 A. 6721--A 1 THEN THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION POOL OF THE 2 COMBINED GROUP SHALL BE INCREASED BY THE AMOUNT OF THE REMAINING PRIOR 3 NET OPERATING LOSS CONVERSION SUBTRACTION ALLOWED TO THE TAXPAYER AT THE 4 TIME THE TAXPAYER IS PROPERLY INCLUDED IN THE COMBINED GROUP. 5 (D) THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION MAY BE USED TO 6 REDUCE THE TAXPAYER'S TAX ON ALLOCATED BUSINESS INCOME TO THE HIGHER OF 7 THE TAX ON BUSINESS CAPITAL UNDER CLAUSE (II) OF SUBPARAGRAPH ONE OF 8 PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER OR 9 THE FIXED DOLLAR MINIMUM UNDER CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARA- 10 GRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER. 11 UNLESS THE TAXPAYER HAS MADE THE ELECTION PROVIDED FOR IN SUBPARAGRAPH 12 FOUR OF PARAGRAPH (B) OF THIS SUBDIVISION, ANY AMOUNT OF UNUSED PRIOR 13 NET OPERATING LOSS CONVERSION SUBTRACTION SHALL BE CARRIED FORWARD TO A 14 SUBSEQUENT TAX YEAR OR SUBSEQUENT TAX YEARS UNTIL THE PRIOR NET OPERAT- 15 ING LOSS CONVERSION SUBTRACTION POOL IS EXHAUSTED, BUT FOR NO LONGER 16 THAN TWENTY TAXABLE YEARS OR THE TAXABLE YEAR BEGINNING ON OR AFTER 17 JANUARY FIRST, TWO THOUSAND THIRTY-FIVE BUT BEFORE JANUARY FIRST, TWO 18 THOUSAND THIRTY-SIX, WHICHEVER COMES FIRST. SUCH AMOUNT CARRIED FORWARD 19 SHALL NOT BE SUBJECT TO THE ONE-TENTH LIMITATION FOR THE SUBSEQUENT TAX 20 YEAR OR YEARS UNDER SUBPARAGRAPH THREE OF PARAGRAPH (B) OF THIS SUBDIVI- 21 SION. HOWEVER, IF THE TAXPAYER ELECTS TO COMPUTE ITS PRIOR NET OPERATING 22 LOSS CONVERSION SUBTRACTION PURSUANT TO SUBPARAGRAPH FOUR OF PARAGRAPH 23 (B) OF THIS SUBDIVISION, THE TAXPAYER SHALL NOT CARRY FORWARD ANY UNUSED 24 AMOUNT OF SUCH PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION TO ANY 25 TAX YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN. 26 3. IN COMPUTING BUSINESS INCOME, A NET OPERATING LOSS DEDUCTION SHALL 27 BE ALLOWED. A NET OPERATING LOSS DEDUCTION SHALL BE THE AMOUNT OF NET 28 OPERATING LOSS OR LOSSES FROM ONE OR MORE TAXABLE YEARS THAT ARE CARRIED 29 FORWARD OR CARRIED BACK TO A PARTICULAR TAXABLE YEAR. A NET OPERATING 30 LOSS SHALL BE THE AMOUNT OF A BUSINESS LOSS INCURRED IN A PARTICULAR TAX 31 YEAR MULTIPLIED BY THE BUSINESS ALLOCATION PERCENTAGE FOR THAT YEAR AS 32 DETERMINED UNDER SUBDIVISION THREE OF SECTION 11-654 OF THIS SUBCHAPTER. 33 THE MAXIMUM NET OPERATING LOSS DEDUCTION THAT IS ALLOWED IN A TAXABLE 34 YEAR SHALL BE THE AMOUNT THAT REDUCES THE TAXPAYER'S TAX ON ALLOCATED 35 BUSINESS INCOME TO THE HIGHER OF THE TAX ON BUSINESS CAPITAL UNDER 36 CLAUSE (II) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF 37 SECTION 11-654 OF THIS SUBCHAPTER OR THE FIXED DOLLAR MINIMUM AMOUNT 38 UNDER CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION 39 ONE OF SECTION 11-654 OF THIS SUBCHAPTER. SUCH NET OPERATING LOSS 40 DEDUCTION AND NET OPERATING LOSS SHALL BE DETERMINED IN ACCORDANCE WITH 41 THE FOLLOWING: 42 (A) SUCH NET OPERATING LOSS DEDUCTION SHALL NOT BE LIMITED TO THE 43 AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY-TWO OF THE INTERNAL 44 REVENUE CODE OR THE AMOUNT THAT WOULD HAVE BEEN ALLOWED IF THE TAXPAYER 45 DID NOT HAVE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTER- 46 NAL REVENUE CODE IN EFFECT FOR THE APPLICABLE TAX YEAR. 47 (B) SUCH NET OPERATING LOSS DEDUCTION SHALL NOT INCLUDE ANY NET OPER- 48 ATING LOSS INCURRED DURING ANY TAXABLE YEAR BEGINNING PRIOR TO JANUARY 49 FIRST, TWO THOUSAND FIFTEEN, OR DURING ANY TAXABLE YEAR IN WHICH THE 50 TAXPAYER WAS NOT SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER. 51 (C) A TAXPAYER THAT FILES AS PART OF A FEDERAL CONSOLIDATED RETURN BUT 52 ON A SEPARATE BASIS FOR PURPOSES OF THIS SUBCHAPTER SHALL COMPUTE ITS 53 DEDUCTION AND LOSS AS IF IT WERE FILING ON A SEPARATE BASIS FOR FEDERAL 54 INCOME TAX PURPOSES. 55 (D) A NET OPERATING LOSS MAY BE CARRIED BACK THREE TAXABLE YEARS 56 PRECEDING THE TAXABLE YEAR OF THE LOSS EXCEPT THAT NO LOSS MAY BE S. 4610--A 54 A. 6721--A 1 CARRIED BACK TO A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOU- 2 SAND FIFTEEN. THE LOSS FIRST SHALL BE CARRIED TO THE EARLIEST OF THE 3 THREE TAXABLE YEARS PRECEDING THE TAXABLE YEAR OF THE LOSS. IF IT IS NOT 4 ENTIRELY USED IN THAT YEAR, IT SHALL BE CARRIED TO THE SECOND TAXABLE 5 YEAR PRECEDING THE TAXABLE YEAR OF THE LOSS, AND ANY REMAINING AMOUNT 6 SHALL BE CARRIED TO THE TAXABLE YEAR IMMEDIATELY PRECEDING THE TAXABLE 7 YEAR OF THE LOSS. ANY UNUSED AMOUNT OF LOSS THEN REMAINING MAY BE 8 CARRIED FORWARD FOR AS MANY AS TWENTY TAXABLE YEARS FOLLOWING THE TAXA- 9 BLE YEAR OF THE LOSS. LOSSES CARRIED FORWARD ARE CARRIED FORWARD FIRST 10 TO THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE TAXABLE YEAR OF THE LOSS, 11 THEN TO THE SECOND TAXABLE YEAR FOLLOWING THE TAXABLE YEAR OF THE LOSS, 12 AND THEN TO THE NEXT IMMEDIATELY SUBSEQUENT TAXABLE YEAR OR YEARS UNTIL 13 THE LOSS IS USED UP OR THE TWENTIETH TAXABLE YEAR FOLLOWING THE TAXABLE 14 YEAR OF THE LOSS, WHICHEVER COMES FIRST. 15 (E) SUCH NET OPERATING LOSS DEDUCTION SHALL NOT INCLUDE ANY NET OPER- 16 ATING LOSS INCURRED DURING ANY TAXABLE YEAR COMMENCING AFTER JANUARY 17 FIRST, TWO THOUSAND FIFTEEN IF THE TAXPAYER WAS SUBJECT TO TAX UNDER 18 SUBCHAPTER TWO OR THREE OF THIS CHAPTER IN THAT YEAR; PROVIDED, HOWEVER, 19 ANY YEAR COMMENCING AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN THAT THE 20 TAXPAYER WAS SUBJECT TO TAX UNDER SUBCHAPTER TWO OR THREE OF THIS CHAP- 21 TER IN THAT YEAR MUST BE TREATED AS A TAXABLE YEAR FOR PURPOSES OF 22 DETERMINING THE NUMBER OF TAXABLE YEARS TO WHICH A NET OPERATING LOSS 23 MAY BE CARRIED FORWARD. 24 (F) WHERE THERE ARE TWO OR MORE ALLOCATED NET OPERATING LOSSES, OR 25 PORTIONS THEREOF, CARRIED BACK OR CARRIED FORWARD TO BE DEDUCTED IN ONE 26 PARTICULAR TAX YEAR FROM ALLOCATED BUSINESS INCOME, THE EARLIEST ALLO- 27 CATED LOSS INCURRED MUST BE APPLIED FIRST. 28 (G) A TAXPAYER MAY ELECT TO WAIVE THE ENTIRE CARRYBACK PERIOD WITH 29 RESPECT TO A NET OPERATING LOSS. SUCH ELECTION MUST BE MADE ON THE 30 TAXPAYER'S ORIGINAL TIMELY FILED RETURN (DETERMINED WITH REGARD TO 31 EXTENSIONS) FOR THE TAXABLE YEAR OF THE NET OPERATING LOSS FOR WHICH THE 32 ELECTION IS TO BE IN EFFECT. ONCE AN ELECTION IS MADE FOR A TAXABLE 33 YEAR, IT SHALL BE IRREVOCABLE FOR THAT TAXABLE YEAR. A SEPARATE ELECTION 34 MUST BE MADE FOR EACH TAXABLE YEAR OF THE LOSS. THIS ELECTION APPLIES TO 35 ALL MEMBERS OF A COMBINED GROUP. 36 S 11-654.2 RECEIPTS ALLOCATION. 1. THE PERCENTAGE OF RECEIPTS OF THE 37 TAXPAYER TO BE ALLOCATED TO THE CITY FOR PURPOSES OF SUBPARAGRAPH TWO OF 38 PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION 11-654 OF THIS SUBCHAPTER 39 SHALL BE EQUAL TO THE RECEIPTS FRACTION DETERMINED PURSUANT TO THIS 40 SECTION. THE RECEIPTS FRACTION IS A FRACTION, DETERMINED BY INCLUDING 41 ONLY THOSE RECEIPTS, NET INCOME, NET GAINS, AND OTHER ITEMS DESCRIBED IN 42 THIS SECTION THAT ARE INCLUDED IN THE COMPUTATION OF THE TAXPAYER'S 43 BUSINESS INCOME (DETERMINED WITHOUT REGARD TO THE MODIFICATION PROVIDED 44 IN SUBPARAGRAPH FOURTEEN OF PARAGRAPH (A) OF SUBDIVISION EIGHT OF 45 SECTION 11-652 OF THIS SUBCHAPTER) FOR THE TAXABLE YEAR. THE NUMERATOR 46 OF THE RECEIPTS FRACTION SHALL BE EQUAL TO THE SUM OF ALL THE AMOUNTS 47 REQUIRED TO BE INCLUDED IN THE NUMERATOR PURSUANT TO THE PROVISIONS OF 48 THIS SECTION AND THE DENOMINATOR OF THE RECEIPTS FRACTION SHALL BE EQUAL 49 TO THE SUM OF ALL THE AMOUNTS REQUIRED TO BE INCLUDED IN THE DENOMINATOR 50 PURSUANT TO THE PROVISIONS OF THIS SECTION. 51 2. (A) RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY WHERE SHIP- 52 MENTS ARE MADE TO POINTS WITHIN THE CITY OR THE DESTINATION OF THE PROP- 53 ERTY IS A POINT WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF 54 THE RECEIPTS FRACTION. RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY 55 WHERE SHIPMENTS ARE MADE TO POINTS WITHIN AND WITHOUT THE CITY OR THE S. 4610--A 55 A. 6721--A 1 DESTINATION IS WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE 2 DENOMINATOR OF THE RECEIPTS FRACTION. 3 (B) RECEIPTS FROM SALES OF ELECTRICITY DELIVERED TO POINTS WITHIN THE 4 CITY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. 5 RECEIPTS FROM SALES OF ELECTRICITY DELIVERED TO POINTS WITHIN AND WITH- 6 OUT THE CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC- 7 TION. 8 (C) RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY AND ELECTRICITY 9 THAT ARE TRADED AS COMMODITIES AS THE TERM "COMMODITY" IS DEFINED IN 10 SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE, SHALL BE 11 INCLUDED IN THE RECEIPTS FRACTION IN ACCORDANCE WITH CLAUSE (I) OF 12 SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SUBDIVISION FIVE OF THIS SECTION. 13 (D) NET GAINS (NOT LESS THAN ZERO) FROM THE SALES OF REAL PROPERTY 14 LOCATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF THE 15 RECEIPTS FRACTION. NET GAINS (NOT LESS THAN ZERO) FROM THE SALES OF REAL 16 PROPERTY LOCATED WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE 17 DENOMINATOR OF THE RECEIPTS FRACTION. 18 3. (A) RECEIPTS FROM RENTALS OF REAL AND TANGIBLE PERSONAL PROPERTY 19 LOCATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF THE 20 RECEIPTS FRACTION. RECEIPTS FROM RENTALS OF REAL AND TANGIBLE PERSONAL 21 PROPERTY LOCATED WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE 22 DENOMINATOR OF THE RECEIPTS FRACTION. 23 (B) RECEIPTS OF ROYALTIES FROM THE USE OF PATENTS, COPYRIGHTS, TRADE- 24 MARKS, AND SIMILAR INTANGIBLE PERSONAL PROPERTY WITHIN THE CITY SHALL BE 25 INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS OF ROYAL- 26 TIES FROM THE USE OF PATENTS, COPYRIGHTS, TRADEMARKS, AND SIMILAR INTAN- 27 GIBLE PERSONAL PROPERTY WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN 28 THE DENOMINATOR OF THE RECEIPTS FRACTION. A PATENT, COPYRIGHT, TRADE- 29 MARK, OR SIMILAR INTANGIBLE PERSONAL PROPERTY IS USED WITHIN THE CITY TO 30 THE EXTENT THAT THE ACTIVITIES THEREUNDER ARE CARRIED ON WITHIN THE 31 CITY. 32 (C) RECEIPTS FROM THE SALES OF RIGHTS FOR CLOSED-CIRCUIT AND CABLE 33 TELEVISION TRANSMISSIONS OF AN EVENT (OTHER THAN EVENTS OCCURRING ON A 34 REGULARLY SCHEDULED BASIS) TAKING PLACE WITHIN THE CITY AS A RESULT OF 35 THE RENDITION OF SERVICES BY EMPLOYEES OF THE CORPORATION, AS ATHLETES, 36 ENTERTAINERS OR PERFORMING ARTISTS, SHALL BE INCLUDED IN THE NUMERATOR 37 OF THE RECEIPTS FRACTION TO THE EXTENT THAT SUCH RECEIPTS ARE ATTRIBUT- 38 ABLE TO SUCH TRANSMISSIONS RECEIVED OR EXHIBITED WITHIN THE CITY. 39 RECEIPTS FROM ALL SALES OF RIGHTS FOR CLOSED-CIRCUIT AND CABLE TELE- 40 VISION TRANSMISSIONS OF AN EVENT (OTHER THAN EVENTS OCCURRING ON A REGU- 41 LARLY SCHEDULED BASIS) SHALL BE INCLUDED IN THE DENOMINATOR OF THE 42 RECEIPTS FRACTION. 43 4. (A) FOR PURPOSES OF DETERMINING THE RECEIPTS FRACTION UNDER THIS 44 SECTION, THE TERM "DIGITAL PRODUCT" MEANS ANY PROPERTY OR SERVICE, OR 45 COMBINATION THEREOF, OF WHATEVER NATURE DELIVERED TO THE PURCHASER 46 THROUGH THE USE OF WIRE, CABLE, FIBER-OPTIC, LASER, MICROWAVE, RADIO 47 WAVE, SATELLITE OR SIMILAR SUCCESSOR MEDIA, OR ANY COMBINATION THEREOF. 48 DIGITAL PRODUCT INCLUDES, BUT IS NOT LIMITED TO, AN AUDIO WORK, AUDI- 49 OVISUAL WORK, VISUAL WORK, BOOK OR LITERARY WORK, GRAPHIC WORK, GAME, 50 INFORMATION OR ENTERTAINMENT SERVICE, STORAGE OF DIGITAL PRODUCTS AND 51 COMPUTER SOFTWARE BY WHATEVER MEANS DELIVERED. THE TERM "DELIVERED TO" 52 INCLUDES FURNISHED OR PROVIDED TO OR ACCESSED BY. A DIGITAL PRODUCT 53 SHALL NOT INCLUDE LEGAL, MEDICAL, ACCOUNTING, ARCHITECTURAL, RESEARCH, 54 ANALYTICAL, ENGINEERING OR CONSULTING SERVICES PROVIDED BY THE TAXPAYER. 55 (B) RECEIPTS FROM THE SALE OF, LICENSE TO USE, OR GRANTING OF REMOTE 56 ACCESS TO DIGITAL PRODUCTS WITHIN THE CITY, DETERMINED ACCORDING TO THE S. 4610--A 56 A. 6721--A 1 HIERARCHY OF METHODS SET FORTH IN SUBPARAGRAPHS ONE THROUGH FOUR OF 2 PARAGRAPH (C) OF THIS SUBDIVISION, SHALL BE INCLUDED IN THE NUMERATOR OF 3 THE RECEIPTS FRACTION. RECEIPTS FROM THE SALE OF, LICENSE TO USE, OR 4 GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS WITHIN AND WITHOUT THE 5 CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. THE 6 TAXPAYER MUST EXERCISE DUE DILIGENCE UNDER EACH METHOD DESCRIBED IN 7 PARAGRAPH (C) OF THIS SUBDIVISION BEFORE REJECTING IT AND PROCEEDING TO 8 THE NEXT METHOD IN THE HIERARCHY, AND MUST BASE ITS DETERMINATION ON 9 INFORMATION KNOWN TO THE TAXPAYER OR INFORMATION THAT WOULD BE KNOWN TO 10 THE TAXPAYER UPON REASONABLE INQUIRY. IF THE RECEIPT FOR A DIGITAL PROD- 11 UCT IS COMPRISED OF A COMBINATION OF PROPERTY AND SERVICES, IT CANNOT BE 12 DIVIDED INTO SEPARATE COMPONENTS AND SHALL BE CONSIDERED TO BE ONE 13 RECEIPT REGARDLESS OF WHETHER IT IS SEPARATELY STATED FOR BILLING 14 PURPOSES. THE ENTIRE RECEIPT MUST BE ALLOCATED BY THIS HIERARCHY. 15 (C) THE HIERARCHY OF SOURCING METHODS IS AS FOLLOWS: (1) THE CUSTOM- 16 ER'S PRIMARY USE LOCATION OF THE DIGITAL PRODUCT; (2) THE LOCATION WHERE 17 THE DIGITAL PRODUCT IS RECEIVED BY THE CUSTOMER, OR IS RECEIVED BY A 18 PERSON DESIGNATED FOR RECEIPT BY THE CUSTOMER; (3) THE RECEIPTS FRACTION 19 DETERMINED PURSUANT TO THIS SUBDIVISION FOR THE PRECEDING TAXABLE YEAR 20 FOR SUCH DIGITAL PRODUCT; OR (4) THE RECEIPTS FRACTION IN THE CURRENT 21 TAXABLE YEAR FOR THOSE DIGITAL PRODUCTS THAT CAN BE SOURCED USING THE 22 HIERARCHY OF SOURCING METHODS IN SUBPARAGRAPHS ONE AND TWO OF THIS PARA- 23 GRAPH. 24 5. (A) A FINANCIAL INSTRUMENT IS A "NONQUALIFIED FINANCIAL INSTRU- 25 MENT" IF IT IS NOT A QUALIFIED FINANCIAL INSTRUMENT. A QUALIFIED FINAN- 26 CIAL INSTRUMENT MEANS A FINANCIAL INSTRUMENT THAT IS OF A TYPE DESCRIBED 27 IN ANY OF CLAUSE (I), (II), (III), (IV), (VII), (VIII) OR (IX) OF 28 SUBPARAGRAPH TWO OF THIS PARAGRAPH AND THAT HAS BEEN MARKED TO MARKET IN 29 THE TAXABLE YEAR BY THE TAXPAYER UNDER SECTION 475 OR SECTION 1256 OF 30 THE INTERNAL REVENUE CODE. FURTHER, IF THE TAXPAYER HAS IN THE TAXABLE 31 YEAR MARKED TO MARKET A FINANCIAL INSTRUMENT OF THE TYPE DESCRIBED IN 32 ANY OF CLAUSE (I), (II), (III), (IV), (VII), (VIII) OR (IX) OF SUBPARA- 33 GRAPH TWO OF THIS PARAGRAPH, THEN ANY FINANCIAL INSTRUMENT WITHIN THAT 34 TYPE DESCRIBED IN THE ABOVE SPECIFIED CLAUSE OR CLAUSES THAT HAS NOT 35 BEEN MARKED TO MARKET BY THE TAXPAYER UNDER SECTION 475 OR SECTION 1256 36 OF THE INTERNAL REVENUE CODE IS A QUALIFIED FINANCIAL INSTRUMENT IN THE 37 TAXABLE YEAR. NOTWITHSTANDING THE TWO PRECEDING SENTENCES, (I) A LOAN 38 SECURED BY REAL PROPERTY SHALL NOT BE A QUALIFIED FINANCIAL INSTRUMENT, 39 (II) IF THE ONLY LOANS THAT ARE MARKED TO MARKET BY THE TAXPAYER UNDER 40 SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE ARE LOANS 41 SECURED BY REAL PROPERTY, THEN NO LOANS SHALL BE QUALIFIED FINANCIAL 42 INSTRUMENTS, AND (III) STOCK THAT IS INVESTMENT CAPITAL AS DEFINED IN 43 PARAGRAPH (A) OF SUBDIVISION 4 OF SECTION 11-652 OF THIS SUBCHAPTER 44 SHALL NOT BE A QUALIFIED FINANCIAL INSTRUMENT. IF A CORPORATION IS 45 INCLUDED IN A COMBINED REPORT, THE DEFINITION OF QUALIFIED FINANCIAL 46 INSTRUMENT SHALL BE DETERMINED ON A COMBINED BASIS. 47 (1) IN DETERMINING THE INCLUSION OF RECEIPTS AND NET GAINS FROM QUALI- 48 FIED FINANCIAL INSTRUMENTS IN THE RECEIPTS FRACTION, TAXPAYERS MAY ELECT 49 TO USE THE FIXED PERCENTAGE METHOD DESCRIBED IN THIS SUBPARAGRAPH FOR 50 QUALIFIED FINANCIAL INSTRUMENTS. THE ELECTION IS IRREVOCABLE, APPLIES TO 51 ALL QUALIFIED FINANCIAL INSTRUMENTS, AND MUST BE MADE ON AN ANNUAL BASIS 52 ON THE TAXPAYER'S ORIGINAL, TIMELY FILED RETURN (DETERMINED WITH REGARD 53 TO EXTENSIONS). IF THE TAXPAYER ELECTS THE FIXED PERCENTAGE METHOD, 54 THEN ALL INCOME, GAIN OR LOSS, INCLUDING MARKED TO MARKET NET GAINS AS 55 DEFINED IN CLAUSE (X) OF SUBPARAGRAPH TWO OF THIS PARAGRAPH, FROM QUALI- 56 FIED FINANCIAL INSTRUMENTS CONSTITUTE BUSINESS INCOME, GAIN OR LOSS. IF S. 4610--A 57 A. 6721--A 1 THE TAXPAYER DOES NOT ELECT TO USE THE FIXED PERCENTAGE METHOD, THEN 2 RECEIPTS AND NET GAINS ARE INCLUDED IN THE RECEIPTS FRACTION IN ACCORD- 3 ANCE WITH THE CUSTOMER SOURCING METHOD DESCRIBED IN SUBPARAGRAPH TWO OF 4 THIS PARAGRAPH. UNDER THE FIXED PERCENTAGE METHOD, EIGHT PERCENT OF ALL 5 NET INCOME (NOT LESS THAN ZERO) FROM QUALIFIED FINANCIAL INSTRUMENTS 6 SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. ALL NET 7 INCOME (NOT LESS THAN ZERO) FROM QUALIFIED FINANCIAL INSTRUMENTS SHALL 8 BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. 9 (2) RECEIPTS AND NET GAINS FROM QUALIFIED FINANCIAL INSTRUMENTS, IN 10 CASES WHERE THE TAXPAYER DID NOT ELECT TO USE THE FIXED PERCENTAGE METH- 11 OD DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH, AND FROM NONQUALI- 12 FIED FINANCIAL INSTRUMENTS SHALL BE INCLUDED IN THE RECEIPTS FRACTION IN 13 ACCORDANCE WITH THIS SUBPARAGRAPH. FOR PURPOSES OF THIS PARAGRAPH, AN 14 INDIVIDUAL IS DEEMED TO BE LOCATED WITHIN THE CITY IF HIS OR HER BILLING 15 ADDRESS IS WITHIN THE CITY. A BUSINESS ENTITY IS DEEMED TO BE LOCATED 16 WITHIN THE CITY IF ITS COMMERCIAL DOMICILE IS LOCATED WITHIN THE CITY. 17 (I)(A) RECEIPTS CONSTITUTING INTEREST FROM LOANS SECURED BY REAL PROP- 18 ERTY LOCATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF THE 19 RECEIPTS FRACTION. RECEIPTS CONSTITUTING INTEREST FROM LOANS SECURED BY 20 REAL PROPERTY LOCATED WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN 21 THE DENOMINATOR OF THE RECEIPTS FRACTION. 22 (B) RECEIPTS CONSTITUTING INTEREST FROM LOANS NOT SECURED BY REAL 23 PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IF 24 THE BORROWER IS LOCATED WITHIN THE CITY. RECEIPTS CONSTITUTING INTEREST 25 FROM LOANS NOT SECURED BY REAL PROPERTY, WHETHER THE BORROWER IS LOCATED 26 WITHIN OR WITHOUT THE CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE 27 RECEIPTS FRACTION. 28 (C) NET GAINS (NOT LESS THAN ZERO) FROM SALES OF LOANS SECURED BY REAL 29 PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS 30 PROVIDED IN THIS SUBCLAUSE. THE AMOUNT OF NET GAINS FROM THE SALES OF 31 LOANS SECURED BY REAL PROPERTY INCLUDED IN THE NUMERATOR OF THE RECEIPTS 32 FRACTION SHALL BE DETERMINED BY MULTIPLYING THE NET GAINS BY A FRACTION, 33 THE NUMERATOR OF WHICH SHALL BE THE AMOUNT OF GROSS PROCEEDS FROM SALES 34 OF LOANS SECURED BY REAL PROPERTY LOCATED WITHIN THE CITY AND THE DENOM- 35 INATOR OF WHICH SHALL BE THE GROSS PROCEEDS FROM SALES OF LOANS SECURED 36 BY REAL PROPERTY LOCATED WITHIN AND WITHOUT THE CITY. GROSS PROCEEDS 37 SHALL BE DETERMINED AFTER THE DEDUCTION OF ANY COST INCURRED TO ACQUIRE 38 THE LOANS BUT SHALL NOT BE LESS THAN ZERO. NET GAINS (NOT LESS THAN 39 ZERO) FROM SALES OF LOANS SECURED BY REAL PROPERTY LOCATED WITHIN AND 40 WITHOUT THE CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS 41 FRACTION. 42 (D) NET GAINS (NOT LESS THAN ZERO) FROM SALES OF LOANS NOT SECURED BY 43 REAL PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC- 44 TION AS PROVIDED IN THIS SUBCLAUSE. THE AMOUNT OF NET GAINS FROM THE 45 SALES OF LOANS NOT SECURED BY REAL PROPERTY INCLUDED IN THE NUMERATOR OF 46 THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLYING THE NET GAINS 47 BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE AMOUNT OF GROSS 48 PROCEEDS FROM SALES OF LOANS NOT SECURED BY REAL PROPERTY TO PURCHASERS 49 LOCATED WITHIN THE CITY AND THE DENOMINATOR OF WHICH SHALL BE THE AMOUNT 50 OF GROSS PROCEEDS FROM SALES OF LOANS NOT SECURED BY REAL PROPERTY TO 51 PURCHASERS LOCATED WITHIN AND WITHOUT THE CITY. GROSS PROCEEDS SHALL BE 52 DETERMINED AFTER THE DEDUCTION OF ANY COST INCURRED TO ACQUIRE THE LOANS 53 BUT SHALL NOT BE LESS THAN ZERO. NET GAINS (NOT LESS THAN ZERO) FROM 54 SALES OF LOANS NOT SECURED BY REAL PROPERTY SHALL BE INCLUDED IN THE 55 DENOMINATOR OF THE RECEIPTS FRACTION. S. 4610--A 58 A. 6721--A 1 (E) FOR PURPOSES OF THIS SUBDIVISION, A LOAN IS SECURED BY REAL PROP- 2 ERTY IF FIFTY PERCENT OR MORE OF THE VALUE OF THE COLLATERAL USED TO 3 SECURE THE LOAN, WHEN VALUED AT FAIR MARKET VALUE AS OF THE TIME THE 4 LOAN WAS ENTERED INTO, CONSISTS OF REAL PROPERTY. 5 (II) FEDERAL, STATE, AND MUNICIPAL DEBT. RECEIPTS CONSTITUTING INTER- 6 EST AND NET GAINS FROM SALES OF DEBT INSTRUMENTS ISSUED BY THE UNITED 7 STATES, ANY STATE, OR POLITICAL SUBDIVISION OF A STATE SHALL NOT BE 8 INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUT- 9 ING INTEREST AND NET GAINS (NOT LESS THAN ZERO) FROM SALES OF DEBT 10 INSTRUMENTS ISSUED BY THE UNITED STATES AND THE STATE OF NEW YORK OR ITS 11 POLITICAL SUBDIVISIONS, INCLUDING THE CITY, SHALL BE INCLUDED IN THE 12 DENOMINATOR OF THE RECEIPTS FRACTION. FIFTY PERCENT OF THE RECEIPTS 13 CONSTITUTING INTEREST AND NET GAINS (NOT LESS THAN ZERO) FROM SALES OF 14 DEBT INSTRUMENTS ISSUED BY OTHER STATES OR THEIR POLITICAL SUBDIVISIONS 15 SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. 16 (III) ASSET BACKED SECURITIES AND OTHER GOVERNMENT AGENCY DEBT. EIGHT 17 PERCENT OF THE INTEREST INCOME FROM ASSET BACKED SECURITIES OR OTHER 18 SECURITIES ISSUED BY GOVERNMENT AGENCIES, INCLUDING BUT NOT LIMITED TO 19 SECURITIES ISSUED BY THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 20 (GNMA), THE FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA), THE FEDERAL 21 HOME LOAN MORTGAGE CORPORATION (FHLMC), OR THE SMALL BUSINESS ADMINIS- 22 TRATION, OR EIGHT PERCENT OF THE INTEREST INCOME FROM ASSET BACKED SECU- 23 RITIES ISSUED BY OTHER ENTITIES SHALL BE INCLUDED IN THE NUMERATOR OF 24 THE RECEIPTS FRACTION. EIGHT PERCENT OF THE NET GAINS (NOT LESS THAN 25 ZERO) FROM (A) SALES OF ASSET BACKED SECURITIES OR OTHER SECURITIES 26 ISSUED BY GOVERNMENT AGENCIES, INCLUDING BUT NOT LIMITED TO SECURITIES 27 ISSUED BY GNMA, FNMA, FHLMC, OR THE SMALL BUSINESS ADMINISTRATION, OR 28 (B) SALES OF OTHER ASSET BACKED SECURITIES THAT ARE SOLD THROUGH A 29 REGISTERED SECURITIES BROKER OR DEALER OR THROUGH A LICENSED EXCHANGE, 30 SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. THE AMOUNT 31 OF NET GAINS (NOT LESS THAN ZERO) FROM SALES OF OTHER ASSET BACKED SECU- 32 RITIES NOT REFERENCED IN SUBCLAUSE (A) OR (B) OF THIS CLAUSE INCLUDED IN 33 THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLY- 34 ING SUCH NET GAINS BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE 35 AMOUNT OF GROSS PROCEEDS FROM SUCH SALES TO PURCHASERS LOCATED IN THE 36 CITY AND THE DENOMINATOR OF WHICH SHALL BE THE AMOUNT OF GROSS PROCEEDS 37 FROM SUCH SALES TO PURCHASERS LOCATED WITHIN AND WITHOUT THE CITY. 38 RECEIPTS CONSTITUTING INTEREST INCOME FROM ASSET BACKED SECURITIES AND 39 OTHER SECURITIES REFERENCED IN THIS CLAUSE AND NET GAINS (NOT LESS THAN 40 ZERO) FROM SALES OF ASSET BACKED SECURITIES AND OTHER SECURITIES REFER- 41 ENCED IN THIS CLAUSE SHALL BE INCLUDED IN THE DENOMINATOR OF THE 42 RECEIPTS FRACTION. GROSS PROCEEDS SHALL BE DETERMINED AFTER THE 43 DEDUCTION OF ANY COST TO ACQUIRE THE SECURITIES BUT SHALL NOT BE LESS 44 THAN ZERO. 45 (IV) RECEIPTS CONSTITUTING INTEREST FROM CORPORATE BONDS SHALL BE 46 INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IF THE COMMERCIAL 47 DOMICILE OF THE ISSUING CORPORATION IS WITHIN THE CITY. EIGHT PERCENT OF 48 THE NET GAINS (NOT LESS THAN ZERO) FROM SALES OF CORPORATE BONDS SOLD 49 THROUGH A REGISTERED SECURITIES BROKER OR DEALER OR THROUGH A LICENSED 50 EXCHANGE SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. 51 THE AMOUNT OF NET GAINS (NOT LESS THAN ZERO) FROM OTHER SALES OF CORPO- 52 RATE BONDS INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE 53 DETERMINED BY MULTIPLYING SUCH NET GAINS BY A FRACTION, THE NUMERATOR OF 54 WHICH IS THE AMOUNT OF GROSS PROCEEDS FROM SUCH SALES TO PURCHASERS 55 LOCATED WITHIN THE CITY AND THE DENOMINATOR OF WHICH IS THE AMOUNT OF 56 GROSS PROCEEDS FROM SALES TO PURCHASERS LOCATED WITHIN AND WITHOUT THE S. 4610--A 59 A. 6721--A 1 CITY. RECEIPTS CONSTITUTING INTEREST FROM CORPORATE BONDS, WHETHER THE 2 ISSUING CORPORATION'S COMMERCIAL DOMICILE IS WITHIN OR WITHOUT THE CITY, 3 AND NET GAINS (NOT LESS THAN ZERO) FROM SALES OF CORPORATE BONDS TO 4 PURCHASERS WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE DENOMI- 5 NATOR OF THE RECEIPTS FRACTION. GROSS PROCEEDS SHALL BE DETERMINED AFTER 6 THE DEDUCTION OF ANY COST TO ACQUIRE THE BONDS BUT SHALL NOT BE LESS 7 THAN ZERO. 8 (V) EIGHT PERCENT OF NET INTEREST INCOME (NOT LESS THAN ZERO) FROM 9 REVERSE REPURCHASE AGREEMENTS AND SECURITIES BORROWING AGREEMENTS SHALL 10 BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. NET INTEREST 11 INCOME (NOT LESS THAN ZERO) FROM REVERSE REPURCHASE AGREEMENTS AND SECU- 12 RITIES BORROWING AGREEMENTS SHALL BE INCLUDED IN THE DENOMINATOR OF THE 13 RECEIPTS FRACTION. NET INTEREST INCOME FROM REVERSE REPURCHASE AGREE- 14 MENTS AND SECURITIES BORROWING AGREEMENTS SHALL BE DETERMINED FOR 15 PURPOSES OF THIS SUBDIVISION AFTER THE DEDUCTION OF THE INTEREST EXPENSE 16 FROM THE TAXPAYER'S REPURCHASE AGREEMENTS AND SECURITIES LENDING AGREE- 17 MENTS BUT SHALL NOT BE LESS THAN ZERO. FOR THIS CALCULATION, THE AMOUNT 18 OF SUCH INTEREST EXPENSE SHALL BE THE INTEREST EXPENSE ASSOCIATED WITH 19 THE SUM OF THE VALUE OF THE TAXPAYER'S REPURCHASE AGREEMENTS WHERE IT IS 20 THE SELLER/BORROWER PLUS THE VALUE OF THE TAXPAYER'S SECURITIES LENDING 21 AGREEMENTS WHERE IT IS THE SECURITIES LENDER, PROVIDED SUCH SUM IS 22 LIMITED TO THE SUM OF THE VALUE OF THE TAXPAYER'S REVERSE REPURCHASE 23 AGREEMENTS WHERE IT IS THE PURCHASER/LENDER PLUS THE VALUE OF THE 24 TAXPAYER'S SECURITIES LENDING AGREEMENTS WHERE IT IS THE SECURITIES 25 BORROWER. 26 (VI) EIGHT PERCENT OF THE NET INTEREST (NOT LESS THAN ZERO) FROM 27 FEDERAL FUNDS SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC- 28 TION. THE NET INTEREST (NOT LESS THAN ZERO) FROM FEDERAL FUNDS SHALL BE 29 INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. NET INTEREST FROM 30 FEDERAL FUNDS SHALL BE DETERMINED AFTER DEDUCTION OF INTEREST EXPENSE 31 FROM FEDERAL FUNDS. 32 (VII) DIVIDENDS FROM STOCK, NET GAINS (NOT LESS THAN ZERO) FROM SALES 33 OF STOCK AND NET GAINS (NOT LESS THAN ZERO) FROM SALES OF PARTNERSHIP 34 INTERESTS SHALL NOT BE INCLUDED IN EITHER THE NUMERATOR OR DENOMINATOR 35 OF THE RECEIPTS FRACTION UNLESS THE COMMISSIONER OF FINANCE DETERMINES 36 PURSUANT TO SUBDIVISION ELEVEN OF THIS SECTION THAT INCLUSION OF SUCH 37 DIVIDENDS AND NET GAINS (NOT LESS THAN ZERO) IS NECESSARY TO PROPERLY 38 REFLECT THE BUSINESS INCOME OR CAPITAL OF THE TAXPAYER. 39 (VIII)(A) RECEIPTS CONSTITUTING INTEREST FROM OTHER FINANCIAL INSTRU- 40 MENTS SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IF THE 41 PAYOR IS LOCATED WITHIN THE CITY. RECEIPTS CONSTITUTING INTEREST FROM 42 OTHER FINANCIAL INSTRUMENTS, WHETHER THE PAYOR IS WITHIN OR WITHOUT THE 43 CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. 44 (B) NET GAINS (NOT LESS THAN ZERO) FROM SALES OF OTHER FINANCIAL 45 INSTRUMENTS AND OTHER INCOME (NOT LESS THAN ZERO) FROM OTHER FINANCIAL 46 INSTRUMENTS WHERE THE PURCHASER OR PAYOR IS LOCATED WITHIN THE CITY 47 SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION, PROVIDED 48 THAT, IF THE PURCHASER OR PAYOR IS A REGISTERED SECURITIES BROKER OR 49 DEALER OR THE TRANSACTION IS MADE THROUGH A LICENSED EXCHANGE, THEN 50 EIGHT PERCENT OF THE NET GAINS (NOT LESS THAN ZERO) OR OTHER INCOME (NOT 51 LESS THAN ZERO) SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC- 52 TION. NET GAINS (NOT LESS THAN ZERO) FROM SALES OF OTHER FINANCIAL 53 INSTRUMENTS AND OTHER INCOME (NOT LESS THAN ZERO) FROM OTHER FINANCIAL 54 INSTRUMENTS SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC- 55 TION. S. 4610--A 60 A. 6721--A 1 (IX) NET INCOME (NOT LESS THAN ZERO) FROM SALES OF PHYSICAL COMMOD- 2 ITIES SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS 3 PROVIDED IN THIS CLAUSE. THE AMOUNT OF NET INCOME FROM SALES OF PHYS- 4 ICAL COMMODITIES INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION 5 SHALL BE DETERMINED BY MULTIPLYING THE NET INCOME FROM SALES OF PHYSICAL 6 COMMODITIES BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE AMOUNT OF 7 RECEIPTS FROM SALES OF PHYSICAL COMMODITIES ACTUALLY DELIVERED TO POINTS 8 WITHIN THE CITY OR, IF THERE IS NO ACTUAL DELIVERY OF THE PHYSICAL 9 COMMODITY, SOLD TO PURCHASERS LOCATED WITHIN THE CITY, AND THE DENOMINA- 10 TOR OF WHICH SHALL BE THE AMOUNT OF RECEIPTS FROM SALES OF PHYSICAL 11 COMMODITIES ACTUALLY DELIVERED TO POINTS WITHIN AND WITHOUT THE CITY OR, 12 IF THERE IS NO ACTUAL DELIVERY OF THE PHYSICAL COMMODITY, SOLD TO 13 PURCHASERS LOCATED WITHIN AND WITHOUT THE CITY. NET INCOME (NOT LESS 14 THAN ZERO) FROM SALES OF PHYSICAL COMMODITIES SHALL BE INCLUDED IN THE 15 DENOMINATOR OF THE RECEIPTS FRACTION. NET INCOME (NOT LESS THAN ZERO) 16 FROM SALES OF PHYSICAL COMMODITIES SHALL BE DETERMINED AFTER THE 17 DEDUCTION OF THE COST TO ACQUIRE OR PRODUCE THE PHYSICAL COMMODITIES. 18 (X)(A) FOR PURPOSES OF THIS SUBDIVISION, "MARKED TO MARKET" MEANS THAT 19 A FINANCIAL INSTRUMENT IS, UNDER SECTION FOUR HUNDRED SEVENTY-FIVE OR 20 SECTION TWELVE HUNDRED FIFTY-SIX OF THE INTERNAL REVENUE CODE, TREATED 21 BY THE TAXPAYER AS SOLD FOR ITS FAIR MARKET VALUE ON THE LAST BUSINESS 22 DAY OF THE TAXPAYER'S TAXABLE YEAR. "MARKED TO MARKET GAIN OR LOSS" 23 MEANS THE GAIN OR LOSS RECOGNIZED BY THE TAXPAYER UNDER SECTION FOUR 24 HUNDRED SEVENTY-FIVE OR SECTION TWELVE HUNDRED FIFTY-SIX OF THE INTERNAL 25 REVENUE CODE BECAUSE THE FINANCIAL INSTRUMENT IS TREATED AS SOLD FOR ITS 26 FAIR MARKET VALUE ON THE LAST BUSINESS DAY OF THE TAXPAYER'S TAXABLE 27 YEAR. 28 (B) THE AMOUNT OF MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM 29 EACH TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET INCLUDED IN 30 THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLY- 31 ING THE MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM SUCH TYPE 32 OF FINANCIAL INSTRUMENT BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE 33 THE NUMERATOR OF THE RECEIPTS FRACTION FOR NET GAINS FROM THAT TYPE OF 34 FINANCIAL INSTRUMENT DETERMINED UNDER THE APPLICABLE CLAUSE OF THIS 35 SUBPARAGRAPH AND THE DENOMINATOR OF WHICH SHALL BE THE DENOMINATOR OF 36 THE RECEIPTS FRACTION FOR NET GAINS FROM THAT TYPE OF FINANCIAL INSTRU- 37 MENT DETERMINED UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH. MARKED 38 TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM FINANCIAL INSTRUMENTS FOR 39 WHICH THE NUMERATOR OF THE RECEIPTS FRACTION FOR NET GAINS IS DETERMINED 40 UNDER THE IMMEDIATELY PRECEDING SENTENCE SHALL BE INCLUDED IN THE DENOM- 41 INATOR OF THE RECEIPTS FRACTION. 42 (C) IF THE TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET IS 43 NOT OTHERWISE SOURCED BY THE TAXPAYER UNDER THIS SUBPARAGRAPH, OR IF THE 44 TAXPAYER HAS A NET LOSS FROM THE SALES OF THAT TYPE OF FINANCIAL INSTRU- 45 MENT UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH, THE AMOUNT OF 46 MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM THAT TYPE OF FINAN- 47 CIAL INSTRUMENT INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL 48 BE DETERMINED BY MULTIPLYING THE MARKED TO MARKET NET GAINS (BUT NOT 49 LESS THAN ZERO) FROM THAT TYPE OF FINANCIAL INSTRUMENT BY A FRACTION, 50 THE NUMERATOR OF WHICH SHALL BE THE SUM OF THE AMOUNT OF RECEIPTS 51 INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION UNDER CLAUSES (I) 52 THROUGH (IX) OF THIS SUBPARAGRAPH AND SUBCLAUSE (B) OF THIS CLAUSE, AND 53 THE DENOMINATOR OF WHICH SHALL BE THE SUM OF THE AMOUNT OF RECEIPTS 54 INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION UNDER CLAUSES (I) 55 THROUGH (IX) OF THIS SUBPARAGRAPH AND SUBCLAUSE (B) OF THIS CLAUSE. 56 MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FOR WHICH THE AMOUNT TO S. 4610--A 61 A. 6721--A 1 BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IS DETERMINED 2 UNDER THE IMMEDIATELY PRECEDING SENTENCE SHALL BE INCLUDED IN THE DENOM- 3 INATOR OF THE RECEIPTS FRACTION. 4 (B) RECEIPTS OF A REGISTERED SECURITIES BROKER OR DEALER FROM SECURI- 5 TIES OR COMMODITIES BROKER OR DEALER ACTIVITIES DESCRIBED IN THIS PARA- 6 GRAPH SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY AS DESCRIBED IN 7 SUBPARAGRAPHS ONE THROUGH EIGHT OF THIS PARAGRAPH. RECEIPTS FROM SUCH 8 ACTIVITIES GENERATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR 9 OF THE RECEIPTS FRACTION. RECEIPTS FROM SUCH ACTIVITIES GENERATED WITHIN 10 AND WITHOUT THE CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE 11 RECEIPTS FRACTION. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "SECURI- 12 TIES" SHALL HAVE THE SAME MEANING AS IN PARAGRAPH TWO OF SUBSECTION (C) 13 OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE AND 14 THE TERM "COMMODITIES" SHALL HAVE THE SAME MEANING AS IN PARAGRAPH TWO 15 OF SUBSECTION (E) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL 16 REVENUE CODE. 17 (1) RECEIPTS CONSTITUTING BROKERAGE COMMISSIONS DERIVED FROM THE 18 EXECUTION OF SECURITIES OR COMMODITIES PURCHASE OR SALES ORDERS FOR THE 19 ACCOUNTS OF CUSTOMERS SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY IF 20 THE MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF THE CUSTOMER WHO 21 IS RESPONSIBLE FOR PAYING SUCH COMMISSIONS IS WITHIN THE CITY. 22 (2) RECEIPTS CONSTITUTING MARGIN INTEREST EARNED ON BEHALF OF BROKER- 23 AGE ACCOUNTS SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY IF THE 24 MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF THE CUSTOMER WHO IS 25 RESPONSIBLE FOR PAYING SUCH MARGIN INTEREST IS WITHIN THE CITY. 26 (3) (I) RECEIPTS CONSTITUTING FEES EARNED BY THE TAXPAYER FOR ADVISORY 27 SERVICES TO A CUSTOMER IN CONNECTION WITH THE UNDERWRITING OF SECURITIES 28 FOR SUCH CUSTOMER (SUCH CUSTOMER BEING THE ENTITY THAT IS CONTEMPLATING 29 ISSUING OR IS ISSUING SECURITIES) OR FEES EARNED BY THE TAXPAYER FOR 30 MANAGING AN UNDERWRITING SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY 31 IF THE MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF SUCH CUSTOMER 32 WHO IS RESPONSIBLE FOR PAYING SUCH FEES IS WITHIN THE CITY. 33 (II) RECEIPTS CONSTITUTING THE PRIMARY SPREAD OF SELLING CONCESSION 34 FROM UNDERWRITTEN SECURITIES SHALL BE DEEMED TO BE GENERATED WITHIN THE 35 CITY IF THE CUSTOMER IS LOCATED WITHIN THE CITY. 36 (III) THE TERM "PRIMARY SPREAD" MEANS THE DIFFERENCE BETWEEN THE PRICE 37 PAID BY THE TAXPAYER TO THE ISSUER OF THE SECURITIES BEING MARKETED AND 38 THE PRICE RECEIVED FROM THE SUBSEQUENT SALE OF THE UNDERWRITTEN SECURI- 39 TIES AT THE INITIAL PUBLIC OFFERING PRICE, LESS ANY SELLING CONCESSION 40 AND ANY FEES PAID TO THE TAXPAYER FOR ADVISORY SERVICES OR ANY MANAGER'S 41 FEES, IF SUCH FEES ARE NOT PAID BY THE CUSTOMER TO THE TAXPAYER SEPA- 42 RATELY. THE TERM "PUBLIC OFFERING PRICE" MEANS THE PRICE AGREED UPON BY 43 THE TAXPAYER AND THE ISSUER AT WHICH THE SECURITIES ARE TO BE OFFERED TO 44 THE PUBLIC. THE TERM "SELLING CONCESSION" MEANS THE AMOUNT PAID TO THE 45 TAXPAYER FOR PARTICIPATING IN THE UNDERWRITING OF A SECURITY WHERE THE 46 TAXPAYER IS NOT THE LEAD UNDERWRITER. 47 (4) RECEIPTS CONSTITUTING ACCOUNT MAINTENANCE FEES SHALL BE DEEMED TO 48 BE GENERATED WITHIN THE CITY IF THE MAILING ADDRESS IN THE RECORDS OF 49 THE TAXPAYER OF THE CUSTOMER WHO IS RESPONSIBLE FOR PAYING SUCH ACCOUNT 50 MAINTENANCE FEES IS WITHIN THE CITY. 51 (5) RECEIPTS CONSTITUTING FEES FOR MANAGEMENT OR ADVISORY SERVICES, 52 INCLUDING FEES FOR ADVISORY SERVICES IN RELATION TO MERGER OR ACQUISI- 53 TION ACTIVITIES, BUT EXCLUDING FEES PAID FOR SERVICES DESCRIBED IN PARA- 54 GRAPH (D) OF THIS SUBDIVISION, SHALL BE DEEMED TO BE GENERATED WITHIN 55 THE CITY IF THE MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF THE 56 CUSTOMER WHO IS RESPONSIBLE FOR PAYING SUCH FEES IS WITHIN THE CITY. S. 4610--A 62 A. 6721--A 1 (6) RECEIPTS CONSTITUTING INTEREST EARNED BY THE TAXPAYER ON LOANS AND 2 ADVANCES MADE BY THE TAXPAYER TO A CORPORATION AFFILIATED WITH THE 3 TAXPAYER BUT WITH WHICH THE TAXPAYER IS NOT PERMITTED OR REQUIRED TO 4 FILE A COMBINED REPORT PURSUANT TO SECTION 11-654.3 OF THIS SUBCHAPTER 5 SHALL BE DEEMED TO ARISE FROM SERVICES PERFORMED AT THE PRINCIPAL PLACE 6 OF BUSINESS OF SUCH AFFILIATED CORPORATION. 7 (7) IF THE TAXPAYER RECEIVES ANY OF THE RECEIPTS ENUMERATED IN SUBPAR- 8 AGRAPHS ONE THROUGH FOUR OF THIS PARAGRAPH AS A RESULT OF A SECURITIES 9 CORRESPONDENT RELATIONSHIP SUCH TAXPAYER HAS WITH ANOTHER BROKER OR 10 DEALER WITH THE TAXPAYER ACTING IN THIS RELATIONSHIP AS THE CLEARING 11 FIRM, SUCH RECEIPTS SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY TO 12 THE EXTENT SET FORTH IN EACH OF SUCH SUBPARAGRAPHS. THE AMOUNT OF SUCH 13 RECEIPTS SHALL EXCLUDE THE AMOUNT THE TAXPAYER IS REQUIRED TO PAY TO THE 14 CORRESPONDENT FIRM FOR SUCH CORRESPONDENT RELATIONSHIP. IF THE TAXPAYER 15 RECEIVES ANY OF THE RECEIPTS ENUMERATED IN SUBPARAGRAPHS ONE THROUGH 16 FOUR OF THIS PARAGRAPH AS A RESULT OF A SECURITIES CORRESPONDENT 17 RELATIONSHIP SUCH TAXPAYER HAS WITH ANOTHER BROKER OR DEALER WITH THE 18 TAXPAYER ACTING IN THIS RELATIONSHIP AS THE INTRODUCING FIRM, SUCH 19 RECEIPTS SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY TO THE EXTENT 20 SET FORTH IN EACH OF SUCH SUBPARAGRAPHS. 21 (8) IF, FOR THE PURPOSES OF SUBPARAGRAPH ONE, SUBPARAGRAPH TWO, CLAUSE 22 (I) OF SUBPARAGRAPH THREE, SUBPARAGRAPH FOUR, OR SUBPARAGRAPH FIVE OF 23 THIS PARAGRAPH, THE TAXPAYER IS UNABLE FROM ITS RECORDS TO DETERMINE THE 24 MAILING ADDRESS OF THE CUSTOMER, EIGHT PERCENT OF THE RECEIPTS SHALL BE 25 INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. 26 (C) RECEIPTS RELATING TO THE BANK, CREDIT, TRAVEL, AND ENTERTAINMENT 27 CARD ACTIVITIES DESCRIBED IN THIS PARAGRAPH SHALL BE DEEMED TO BE GENER- 28 ATED WITHIN THE CITY AS DESCRIBED IN SUBPARAGRAPHS ONE THROUGH FOUR OF 29 THIS PARAGRAPH. RECEIPTS FROM SUCH ACTIVITIES GENERATED WITHIN THE CITY 30 SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS 31 FROM SUCH ACTIVITIES GENERATED WITHIN AND WITHOUT THE CITY SHALL BE 32 INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. 33 (1) RECEIPTS CONSTITUTING INTEREST, AND FEES AND PENALTIES IN THE 34 NATURE OF INTEREST, FROM BANK, CREDIT, TRAVEL AND ENTERTAINMENT CARD 35 RECEIVABLES SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY IF THE MAIL- 36 ING ADDRESS OF THE CARD HOLDER IN THE RECORDS OF THE TAXPAYER IS WITHIN 37 THE CITY; 38 (2) RECEIPTS FROM SERVICE CHARGES AND FEES FROM SUCH CARDS SHALL BE 39 DEEMED TO BE GENERATED WITHIN THE CITY IF THE MAILING ADDRESS OF THE 40 CARD HOLDER IN THE RECORDS OF THE TAXPAYER IS WITHIN THE CITY; 41 (3) RECEIPTS FROM MERCHANT DISCOUNTS SHALL BE DEEMED TO BE GENERATED 42 WITHIN THE CITY IF THE MERCHANT IS LOCATED WITHIN THE CITY. IN THE CASE 43 OF A MERCHANT WITH LOCATIONS BOTH WITHIN AND WITHOUT THE CITY, ONLY 44 RECEIPTS FROM MERCHANT DISCOUNTS ATTRIBUTABLE TO SALES MADE FROM 45 LOCATIONS WITHIN THE CITY ARE ALLOCATED TO THE CITY. IT SHALL BE 46 PRESUMED THAT THE LOCATION OF THE MERCHANT IS THE ADDRESS OF THE 47 MERCHANT SHOWN ON THE INVOICE SUBMITTED BY THE MERCHANT TO THE TAXPAYER; 48 AND 49 (4) RECEIPTS FROM CREDIT CARD AUTHORIZATION PROCESSING, AND CLEARING 50 AND SETTLEMENT PROCESSING RECEIVED BY A CREDIT CARD PROCESSOR SHALL BE 51 DEEMED TO BE GENERATED WITHIN THE CITY IF THE LOCATION WHERE THE CREDIT 52 CARD PROCESSOR'S CUSTOMER ACCESSES THE CREDIT CARD PROCESSOR'S NETWORK 53 IS LOCATED WITHIN THE CITY. THE AMOUNT OF ALL OTHER RECEIPTS RECEIVED BY 54 A CREDIT CARD PROCESSOR NOT SPECIFICALLY ADDRESSED IN SUBDIVISIONS ONE 55 THROUGH NINE OR SUBDIVISION TWELVE OF THIS SECTION DEEMED TO BE GENER- 56 ATED WITHIN THE CITY SHALL BE DETERMINED BY MULTIPLYING THE TOTAL AMOUNT S. 4610--A 63 A. 6721--A 1 OF SUCH OTHER RECEIPTS BY THE AVERAGE OF (I) EIGHT PERCENT AND (II) THE 2 PERCENT OF NEW YORK CITY ACCESS POINTS. THE PERCENT OF NEW YORK CITY 3 ACCESS POINTS SHALL BE THE NUMBER OF LOCATIONS IN NEW YORK CITY FROM 4 WHICH THE CREDIT CARD PROCESSOR'S CUSTOMERS ACCESS THE CREDIT CARD 5 PROCESSOR'S NETWORK DIVIDED BY THE TOTAL NUMBER OF LOCATIONS IN THE 6 UNITED STATES WHERE THE CREDIT CARD PROCESSOR'S CUSTOMERS ACCESS THE 7 CREDIT CARD PROCESSOR'S NETWORK. 8 (D) RECEIPTS RECEIVED FROM AN INVESTMENT COMPANY ARISING FROM THE SALE 9 OF MANAGEMENT, ADMINISTRATION OR DISTRIBUTION SERVICES TO SUCH INVEST- 10 MENT COMPANY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC- 11 TION. THE PORTION OF SUCH RECEIPTS INCLUDED IN THE NUMERATOR OF THE 12 RECEIPTS FRACTION (SUCH PORTION REFERRED TO HEREIN AS THE NEW YORK CITY 13 PORTION) SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH. 14 (1) THE NEW YORK CITY PORTION SHALL BE THE PRODUCT OF THE TOTAL OF 15 SUCH RECEIPTS FROM THE SALE OF SUCH SERVICES AND A FRACTION. THE NUMERA- 16 TOR OF THAT FRACTION SHALL BE THE SUM OF THE MONTHLY PERCENTAGES (AS 17 DEFINED HEREINAFTER) DETERMINED FOR EACH MONTH OF THE INVESTMENT COMPA- 18 NY'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES WHICH TAXABLE YEAR 19 ENDS WITHIN THE TAXABLE YEAR OF THE TAXPAYER (BUT EXCLUDING ANY MONTH 20 DURING WHICH THE INVESTMENT COMPANY HAD NO OUTSTANDING SHARES). THE 21 MONTHLY PERCENTAGE FOR EACH SUCH MONTH SHALL BE DETERMINED BY DIVIDING 22 THE NUMBER OF SHARES IN THE INVESTMENT COMPANY THAT ARE OWNED ON THE 23 LAST DAY OF THE MONTH BY SHAREHOLDERS THAT ARE LOCATED IN THE CITY BY 24 THE TOTAL NUMBER OF SHARES IN THE INVESTMENT COMPANY OUTSTANDING ON THAT 25 DATE. THE DENOMINATOR OF THE FRACTION SHALL BE THE NUMBER OF SUCH MONTH- 26 LY PERCENTAGES. 27 (2)(I) FOR PURPOSES OF THIS PARAGRAPH, AN INDIVIDUAL, ESTATE OR TRUST 28 SHALL BE DEEMED TO BE LOCATED WITHIN THE CITY IF HIS, HER OR ITS MAILING 29 ADDRESS IN THE RECORDS OF THE INVESTMENT COMPANY IS LOCATED WITHIN THE 30 CITY. A BUSINESS ENTITY IS DEEMED TO BE LOCATED WITHIN THE CITY IF ITS 31 COMMERCIAL DOMICILE IS LOCATED WITHIN THE CITY. 32 (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "INVESTMENT COMPANY" 33 MEANS A REGULATED INVESTMENT COMPANY, AS DEFINED IN SECTION EIGHT 34 HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE, AND A PARTNERSHIP TO 35 WHICH SUBSECTION (A) OF SECTION SEVEN THOUSAND SEVEN HUNDRED FOUR OF THE 36 INTERNAL REVENUE CODE APPLIES (BY VIRTUE OF PARAGRAPH THREE OF 37 SUBSECTION (C) OF SECTION SEVEN THOUSAND SEVEN HUNDRED FOUR OF SUCH 38 CODE) AND THAT MEETS THE REQUIREMENTS OF SUBSECTION (B) OF SECTION EIGHT 39 HUNDRED FIFTY-ONE OF SUCH CODE. THE PRECEDING SENTENCE SHALL BE APPLIED 40 TO THE TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES OF THE BUSINESS 41 ENTITY THAT IS ASSERTED TO CONSTITUTE AN INVESTMENT COMPANY THAT ENDS 42 WITHIN THE TAXABLE YEAR OF THE TAXPAYER. 43 (III) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "RECEIPTS RECEIVED FROM 44 AN INVESTMENT COMPANY" INCLUDES AMOUNTS RECEIVED DIRECTLY FROM AN 45 INVESTMENT COMPANY AS WELL AS AMOUNTS RECEIVED FROM THE SHAREHOLDERS IN 46 SUCH INVESTMENT COMPANY, IN THEIR CAPACITY AS SUCH. 47 (IV) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "MANAGEMENT SERVICES" 48 MEANS THE RENDERING OF INVESTMENT ADVICE TO AN INVESTMENT COMPANY, 49 MAKING DETERMINATIONS AS TO WHEN SALES AND PURCHASES OF SECURITIES ARE 50 TO BE MADE ON BEHALF OF AN INVESTMENT COMPANY, OR THE SELLING OR 51 PURCHASING OF SECURITIES CONSTITUTING ASSETS OF AN INVESTMENT COMPANY, 52 AND RELATED ACTIVITIES, BUT ONLY WHERE SUCH ACTIVITY OR ACTIVITIES ARE 53 PERFORMED PURSUANT TO A CONTRACT WITH THE INVESTMENT COMPANY ENTERED 54 INTO PURSUANT TO SUBSECTION (A) OF SECTION FIFTEEN OF THE FEDERAL 55 INVESTMENT COMPANY ACT OF NINETEEN HUNDRED FORTY, AS AMENDED. S. 4610--A 64 A. 6721--A 1 (V) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "DISTRIBUTION SERVICES" 2 MEANS THE SERVICES OF ADVERTISING, SERVICING INVESTOR ACCOUNTS (INCLUD- 3 ING REDEMPTIONS), MARKETING SHARES OR SELLING SHARES OF AN INVESTMENT 4 COMPANY, BUT, IN THE CASE OF ADVERTISING, SERVICING INVESTOR ACCOUNTS 5 (INCLUDING REDEMPTIONS) OR MARKETING SHARES, ONLY WHERE SUCH SERVICE IS 6 PERFORMED BY A PERSON WHO IS (OR WAS, IN THE CASE OF A CLOSED END COMPA- 7 NY) ALSO ENGAGED IN THE SERVICE OF SELLING SUCH SHARES. IN THE CASE OF 8 AN OPEN END COMPANY, SUCH SERVICE OF SELLING SHARES MUST BE PERFORMED 9 PURSUANT TO A CONTRACT ENTERED INTO PURSUANT TO SUBSECTION (B) OF 10 SECTION FIFTEEN OF THE FEDERAL INVESTMENT COMPANY ACT OF NINETEEN 11 HUNDRED FORTY, AS AMENDED. 12 (VI) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "ADMINISTRATION 13 SERVICES" INCLUDES CLERICAL, ACCOUNTING, BOOKKEEPING, DATA PROCESSING, 14 INTERNAL AUDITING, LEGAL AND TAX SERVICES PERFORMED FOR AN INVESTMENT 15 COMPANY BUT ONLY IF THE PROVIDER OF SUCH SERVICE OR SERVICES DURING THE 16 TAXABLE YEAR IN WHICH SUCH SERVICE OR SERVICES ARE SOLD ALSO SELLS 17 MANAGEMENT OR DISTRIBUTION SERVICES, AS DEFINED HEREINABOVE, TO SUCH 18 INVESTMENT COMPANY. 19 (E) FOR PURPOSES OF THIS SUBDIVISION, A TAXPAYER SHALL USE THE FOLLOW- 20 ING HIERARCHY TO DETERMINE THE COMMERCIAL DOMICILE OF A BUSINESS ENTITY, 21 BASED ON THE INFORMATION KNOWN TO THE TAXPAYER OR INFORMATION THAT WOULD 22 BE KNOWN UPON REASONABLE INQUIRY: (1) THE SEAT OF MANAGEMENT AND CONTROL 23 OF THE BUSINESS ENTITY; AND (2) THE BILLING ADDRESS OF THE BUSINESS 24 ENTITY IN THE TAXPAYER'S RECORDS. THE TAXPAYER MUST EXERCISE DUE DILI- 25 GENCE BEFORE REJECTING THE FIRST METHOD IN THIS HIERARCHY AND PROCEEDING 26 TO THE NEXT METHOD. 27 (F) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "REGISTERED SECURITIES 28 BROKER OR DEALER" MEANS A BROKER OR DEALER REGISTERED AS SUCH BY THE 29 SECURITIES AND EXCHANGE COMMISSION OR A BROKER OR DEALER REGISTERED AS 30 SUCH BY THE COMMODITIES FUTURES TRADING COMMISSION, AND SHALL INCLUDE AN 31 OTC DERIVATIVES DEALER AS DEFINED UNDER REGULATIONS OF THE SECURITIES 32 AND EXCHANGE COMMISSION AT TITLE 17, PART 240, SECTION 3B-12 OF THE CODE 33 OF FEDERAL REGULATIONS (17 CFR 240.3B-12). 34 6. RECEIPTS FROM THE CONDUCT OF A RAILROAD BUSINESS (INCLUDING SURFACE 35 RAILROAD, WHETHER OR NOT OPERATED BY STEAM, SUBWAY RAILROAD, ELEVATED 36 RAILROAD, PALACE CAR OR SLEEPING CAR BUSINESS) OR A TRUCKING BUSINESS 37 SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS FOLLOWS. 38 THE AMOUNT OF RECEIPTS FROM THE CONDUCT OF A RAILROAD BUSINESS OR A 39 TRUCKING BUSINESS INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION 40 SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT OF RECEIPTS FROM SUCH 41 BUSINESS BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE MILES IN 42 SUCH BUSINESS WITHIN THE CITY DURING THE PERIOD COVERED BY THE TAXPAY- 43 ER'S REPORT AND THE DENOMINATOR OF WHICH SHALL BE THE MILES IN SUCH 44 BUSINESS WITHIN AND WITHOUT THE CITY DURING SUCH PERIOD. RECEIPTS FROM 45 THE CONDUCT OF THE RAILROAD BUSINESS OR A TRUCKING BUSINESS SHALL BE 46 INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. 47 7. (A) RECEIPTS OF A TAXPAYER ACTING AS PRINCIPAL FROM THE ACTIVITY OF 48 AIR FREIGHT FORWARDING AND LIKE INDIRECT AIR CARRIER RECEIPTS ARISING 49 FROM SUCH ACTIVITY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS 50 FRACTION AS FOLLOWS: ONE HUNDRED PERCENT OF SUCH RECEIPTS IF BOTH THE 51 PICKUP AND DELIVERY ASSOCIATED WITH SUCH RECEIPTS ARE MADE WITHIN THE 52 CITY AND FIFTY PERCENT OF SUCH RECEIPTS IF EITHER THE PICKUP OR DELIVERY 53 ASSOCIATED WITH SUCH RECEIPTS IS MADE WITHIN THIS CITY. SUCH RECEIPTS, 54 WHETHER THE PICKUP OR DELIVERY ASSOCIATED WITH THE RECEIPTS IS WITHIN OR 55 WITHOUT THE CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS 56 FRACTION. S. 4610--A 65 A. 6721--A 1 (B)(1)(I) THE PORTION OF RECEIPTS OF A TAXPAYER FROM AVIATION SERVICES 2 (OTHER THAN SERVICES DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, BUT 3 INCLUDING THE RECEIPTS OF A QUALIFIED AIR FREIGHT FORWARDER) TO BE 4 INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED 5 BY MULTIPLYING ITS RECEIPTS FROM SUCH AVIATION SERVICES BY A PERCENTAGE 6 WHICH IS EQUAL TO THE ARITHMETIC AVERAGE OF THE FOLLOWING THREE PERCENT- 7 AGES: 8 (A) THE PERCENTAGE DETERMINED BY DIVIDING THE AIRCRAFT ARRIVALS AND 9 DEPARTURES WITHIN THE CITY BY THE TAXPAYER DURING THE PERIOD COVERED BY 10 ITS REPORT BY THE TOTAL AIRCRAFT ARRIVALS AND DEPARTURES WITHIN AND 11 WITHOUT THE CITY DURING SUCH PERIOD; PROVIDED, HOWEVER, ARRIVALS AND 12 DEPARTURES SOLELY FOR MAINTENANCE OR REPAIR, REFUELING (WHERE NO DEBAR- 13 KATION OR EMBARKATION OF TRAFFIC OCCURS), ARRIVALS AND DEPARTURES OF 14 FERRY AND PERSONNEL TRAINING FLIGHTS OR ARRIVALS AND DEPARTURES IN THE 15 EVENT OF EMERGENCY SITUATIONS SHALL NOT BE INCLUDED IN COMPUTING SUCH 16 ARRIVAL AND DEPARTURE PERCENTAGE; PROVIDED, FURTHER, THE COMMISSIONER OF 17 FINANCE MAY ALSO EXEMPT FROM SUCH PERCENTAGE AIRCRAFT ARRIVALS AND 18 DEPARTURES OF ALL NON-REVENUE FLIGHTS INCLUDING FLIGHTS INVOLVING THE 19 TRANSPORTATION OF OFFICERS OR EMPLOYEES RECEIVING AIR TRANSPORTATION TO 20 PERFORM MAINTENANCE OR REPAIR SERVICES OR WHERE SUCH OFFICERS OR EMPLOY- 21 EES ARE TRANSPORTED IN CONJUNCTION WITH AN EMERGENCY SITUATION OR THE 22 INVESTIGATION OF AN AIR DISASTER (OTHER THAN ON A SCHEDULED FLIGHT); 23 PROVIDED, HOWEVER, THAT ARRIVALS AND DEPARTURES OF FLIGHTS TRANSPORTING 24 OFFICERS AND EMPLOYEES RECEIVING AIR TRANSPORTATION FOR PURPOSES OTHER 25 THAN SPECIFIED ABOVE (WITHOUT REGARD TO REMUNERATION) SHALL BE INCLUDED 26 IN COMPUTING SUCH ARRIVAL AND DEPARTURE PERCENTAGE; 27 (B) THE PERCENTAGE DETERMINED BY DIVIDING THE REVENUE TONS HANDLED BY 28 THE TAXPAYER AT AIRPORTS WITHIN THE CITY DURING SUCH PERIOD BY THE TOTAL 29 REVENUE TONS HANDLED BY IT AT AIRPORTS WITHIN AND WITHOUT THE CITY 30 DURING SUCH PERIOD; AND 31 (C) THE PERCENTAGE DETERMINED BY DIVIDING THE TAXPAYER'S ORIGINATING 32 REVENUE WITHIN THE CITY FOR SUCH PERIOD BY ITS TOTAL ORIGINATING REVENUE 33 WITHIN AND WITHOUT THE CITY FOR SUCH PERIOD. 34 (II) AS USED HEREIN THE TERM "AIRCRAFT ARRIVALS AND DEPARTURES" MEANS 35 THE NUMBER OF LANDINGS AND TAKEOFFS OF THE AIRCRAFT OF THE TAXPAYER AND 36 THE NUMBER OF AIR PICKUPS AND DELIVERIES BY THE AIRCRAFT OF SUCH TAXPAY- 37 ER; THE TERM "ORIGINATING REVENUE" MEANS REVENUE TO THE TAXPAYER FROM 38 THE TRANSPORTATION OF REVENUE PASSENGERS AND REVENUE PROPERTY FIRST 39 RECEIVED BY THE TAXPAYER EITHER AS ORIGINATING OR CONNECTING TRAFFIC AT 40 AIRPORTS; AND THE TERM "REVENUE TONS HANDLED BY THE TAXPAYER AT 41 AIRPORTS" MEANS THE WEIGHT IN TONS OF REVENUE PASSENGERS (AT TWO HUNDRED 42 POUNDS PER PASSENGER) AND REVENUE CARGO FIRST RECEIVED EITHER AS ORIGI- 43 NATING OR CONNECTING TRAFFIC OR FINALLY DISCHARGED BY THE TAXPAYER AT 44 AIRPORTS. 45 (2) ALL SUCH RECEIPTS OF A TAXPAYER FROM AVIATION SERVICES DESCRIBED 46 IN THIS PARAGRAPH SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS 47 FRACTION. 48 (3) A CORPORATION IS A QUALIFIED AIR FREIGHT FORWARDER WITH RESPECT TO 49 ANOTHER CORPORATION: 50 (I) IF IT OWNS OR CONTROLS EITHER DIRECTLY OR INDIRECTLY ALL OF THE 51 CAPITAL STOCK OF SUCH OTHER CORPORATION, OR IF ALL OF ITS CAPITAL STOCK 52 IS OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY SUCH OTHER 53 CORPORATION, OR IF ALL OF THE CAPITAL STOCK OF BOTH CORPORATIONS IS 54 OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY THE SAME INTERESTS; 55 (II) IF IT IS PRINCIPALLY ENGAGED IN THE BUSINESS OF AIR FREIGHT 56 FORWARDING; AND S. 4610--A 66 A. 6721--A 1 (III) IF ITS AIR FREIGHT FORWARDING BUSINESS IS CARRIED ON PRINCIPALLY 2 WITH THE AIRLINE OR AIRLINES OPERATED BY SUCH OTHER CORPORATION. 3 8. (A) THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING IN NEWSPAPERS 4 OR PERIODICALS INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL 5 BE DETERMINED BY MULTIPLYING THE TOTAL OF SUCH RECEIPTS BY A FRACTION, 6 THE NUMERATOR OF WHICH SHALL BE THE NUMBER OF NEWSPAPERS AND PERIODICALS 7 DELIVERED TO POINTS WITHIN THE CITY AND THE DENOMINATOR OF WHICH SHALL 8 BE THE NUMBER OF NEWSPAPERS AND PERIODICALS DELIVERED TO POINTS WITHIN 9 AND WITHOUT THE CITY. THE TOTAL OF SUCH RECEIPTS FROM SALES OF ADVERTIS- 10 ING IN NEWSPAPERS OR PERIODICALS SHALL BE INCLUDED IN THE DENOMINATOR OF 11 THE RECEIPTS FRACTION. 12 (B) THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING ON TELEVISION OR 13 RADIO INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETER- 14 MINED BY MULTIPLYING THE TOTAL OF SUCH RECEIPTS BY A FRACTION, THE 15 NUMERATOR OF WHICH SHALL BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN 16 THE CITY AND THE DENOMINATOR OF WHICH SHALL BE THE NUMBER OF VIEWERS OR 17 LISTENERS WITHIN AND WITHOUT THE CITY. THE TOTAL OF SUCH RECEIPTS FROM 18 SALES OF ADVERTISING ON TELEVISION OR RADIO SHALL BE INCLUDED IN THE 19 DENOMINATOR OF THE RECEIPTS FRACTION. 20 (C) THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING NOT DESCRIBED IN 21 PARAGRAPH (A) OR (B) OF THIS SUBDIVISION THAT IS FURNISHED, PROVIDED OR 22 DELIVERED TO, OR ACCESSED BY THE VIEWER OR LISTENER THROUGH THE USE OF 23 WIRE, CABLE, FIBER-OPTIC, LASER, MICROWAVE, RADIO WAVE, SATELLITE OR 24 SIMILAR SUCCESSOR MEDIA OR ANY COMBINATION THEREOF, INCLUDED IN THE 25 NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLYING 26 THE TOTAL OF SUCH RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH SHALL 27 BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN THE CITY AND THE DENOMINA- 28 TOR OF WHICH SHALL BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN AND 29 WITHOUT THE CITY. THE TOTAL OF SUCH RECEIPTS FROM SALES OF ADVERTISING 30 DESCRIBED IN THIS PARAGRAPH SHALL BE INCLUDED IN THE DENOMINATOR OF THE 31 RECEIPTS FRACTION. 32 9. RECEIPTS FROM THE TRANSPORTATION OR TRANSMISSION OF GAS THROUGH 33 PIPES SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS 34 FOLLOWS. THE AMOUNT OF RECEIPTS FROM THE TRANSPORTATION OR TRANSMISSION 35 OF GAS THROUGH PIPES INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION 36 SHALL BE DETERMINED BY MULTIPLYING THE TOTAL AMOUNT OF SUCH RECEIPTS BY 37 A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAXPAYER'S TRANSPORTA- 38 TION UNITS WITHIN THE CITY AND THE DENOMINATOR OF WHICH SHALL BE THE 39 TAXPAYER'S TRANSPORTATION UNITS WITHIN AND WITHOUT THE CITY. A TRANSPOR- 40 TATION UNIT IS THE TRANSPORTATION OF ONE CUBIC FOOT OF GAS OVER A 41 DISTANCE OF ONE MILE. THE TOTAL AMOUNT OF RECEIPTS FROM THE TRANSPORTA- 42 TION OR TRANSMISSION OF GAS THROUGH PIPES SHALL BE INCLUDED IN THE 43 DENOMINATOR OF THE RECEIPTS FRACTION. 44 10. (A) RECEIPTS FROM SERVICES NOT ADDRESSED IN SUBDIVISIONS ONE 45 THROUGH NINE OR SUBDIVISION TWELVE OF THIS SECTION AND OTHER BUSINESS 46 RECEIPTS NOT ADDRESSED IN SUCH SUBDIVISIONS SHALL BE INCLUDED IN THE 47 NUMERATOR OF THE RECEIPTS FRACTION IF THE LOCATION OF THE CUSTOMER IS 48 WITHIN THE CITY. SUCH RECEIPTS FROM CUSTOMERS WITHIN AND WITHOUT THE 49 CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. 50 WHETHER THE RECEIPTS ARE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC- 51 TION SHALL BE DETERMINED ACCORDING TO THE HIERARCHY OF METHODS SET FORTH 52 IN PARAGRAPH (B) OF THIS SUBDIVISION. THE TAXPAYER MUST EXERCISE DUE 53 DILIGENCE UNDER EACH METHOD DESCRIBED IN SUCH PARAGRAPH BEFORE REJECTING 54 IT AND PROCEEDING TO THE NEXT METHOD IN THE HIERARCHY, AND MUST BASE ITS 55 DETERMINATION ON INFORMATION KNOWN TO THE TAXPAYER OR INFORMATION THAT 56 WOULD BE KNOWN TO THE TAXPAYER UPON REASONABLE INQUIRY. S. 4610--A 67 A. 6721--A 1 (B) THE HIERARCHY OF METHODS IS AS FOLLOWS: (1) THE BENEFIT IS 2 RECEIVED IN THE CITY; (2) DELIVERY DESTINATION; (3) THE RECEIPTS FRAC- 3 TION FOR SUCH RECEIPTS WITHIN THE CITY DETERMINED PURSUANT TO THIS 4 SUBDIVISION FOR THE PRECEDING TAXABLE YEAR; OR (4) THE RECEIPTS FRACTION 5 IN THE CURRENT TAXABLE YEAR DETERMINED PURSUANT TO THIS SUBDIVISION FOR 6 THOSE RECEIPTS THAT CAN BE SOURCED USING THE HIERARCHY OF SOURCING METH- 7 ODS IN SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH. 8 11. IF IT SHALL APPEAR THAT THE RECEIPTS FRACTION DETERMINED PURSUANT 9 TO THIS SECTION DOES NOT RESULT IN A PROPER REFLECTION OF THE TAXPAYER'S 10 BUSINESS INCOME OR CAPITAL WITHIN THE CITY, THE COMMISSIONER OF FINANCE 11 IS AUTHORIZED IN HIS OR HER DISCRETION TO ADJUST IT, OR THE TAXPAYER MAY 12 REQUEST THAT THE COMMISSIONER OF FINANCE ADJUST IT, BY (A) EXCLUDING ONE 13 OR MORE ITEMS IN SUCH DETERMINATION, (B) INCLUDING ONE OR MORE OTHER 14 ITEMS IN SUCH DETERMINATION, OR (C) ANY OTHER SIMILAR OR DIFFERENT METH- 15 OD CALCULATED TO EFFECT A FAIR AND PROPER ALLOCATION OF THE BUSINESS 16 INCOME AND CAPITAL REASONABLY ATTRIBUTED TO THE CITY. THE PARTY SEEKING 17 THE ADJUSTMENT SHALL BEAR THE BURDEN OF PROOF TO DEMONSTRATE THAT THE 18 RECEIPTS FRACTION DETERMINED PURSUANT TO THIS SECTION DOES NOT RESULT IN 19 A PROPER REFLECTION OF THE TAXPAYER'S BUSINESS INCOME OR CAPITAL WITHIN 20 THE CITY AND THAT THE PROPOSED ADJUSTMENT IS APPROPRIATE. 21 12. RECEIPTS FROM THE OPERATION OF VESSELS SHALL BE INCLUDED IN THE 22 NUMERATOR OF THE RECEIPTS FRACTION AS FOLLOWS. THE AMOUNT OF RECEIPTS 23 FROM THE OPERATION OF VESSELS INCLUDED IN THE NUMERATOR OF THE RECEIPTS 24 FRACTION SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT OF SUCH RECEIPTS 25 BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE AGGREGATE NUMBER OF 26 WORKING DAYS OF THE VESSELS OWNED OR LEASED BY THE TAXPAYER IN TERRITO- 27 RIAL WATERS OF THE CITY DURING THE PERIOD COVERED BY THE TAXPAYER'S 28 REPORT AND THE DENOMINATOR OF WHICH SHALL BE THE AGGREGATE NUMBER OF 29 WORKING DAYS OF ALL VESSELS OWNED OR LEASED BY THE TAXPAYER DURING SUCH 30 PERIOD. RECEIPTS FROM THE OPERATION OF VESSELS SHALL BE INCLUDED IN THE 31 DENOMINATOR OF THE RECEIPTS FRACTION. 32 S 11-654.3 COMBINED REPORTS. 1. (A) THE TAX ON A COMBINED REPORT SHALL 33 BE THE HIGHEST OF (1) THE COMBINED BUSINESS INCOME MULTIPLIED BY THE TAX 34 RATE SPECIFIED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF 35 SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER; (2) THE COMBINED 36 CAPITAL MULTIPLIED BY THE TAX RATE SPECIFIED IN CLAUSE (II) OF SUBPARA- 37 GRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS 38 SUBCHAPTER, BUT NOT EXCEEDING THE LIMITATION PROVIDED FOR IN SUCH CLAUSE 39 (II); OR (3) THE FIXED DOLLAR MINIMUM THAT IS ATTRIBUTABLE TO THE DESIG- 40 NATED AGENT OF THE COMBINED GROUP. IN ADDITION, THE TAX ON A COMBINED 41 REPORT SHALL INCLUDE THE FIXED DOLLAR MINIMUM TAX SPECIFIED IN CLAUSE 42 (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 43 11-654 OF THIS SUBCHAPTER FOR EACH MEMBER OF THE COMBINED GROUP, OTHER 44 THAN THE DESIGNATED AGENT, THAT IS A TAXPAYER. 45 (B) THE COMBINED BUSINESS INCOME BASE IS THE AMOUNT OF THE COMBINED 46 BUSINESS INCOME OF THE COMBINED GROUP THAT IS ALLOCATED TO THE CITY, 47 REDUCED BY ANY PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION AND ANY 48 NET OPERATING LOSS DEDUCTION FOR THE COMBINED GROUP. THE COMBINED CAPI- 49 TAL BASE IS THE AMOUNT OF THE COMBINED CAPITAL OF THE COMBINED GROUP 50 THAT IS ALLOCATED TO THE CITY. 51 2. (A) EXCEPT AS PROVIDED IN PARAGRAPH (C) OF THIS SUBDIVISION, ANY 52 TAXPAYER (1) WHICH OWNS OR CONTROLS EITHER DIRECTLY OR INDIRECTLY MORE 53 THAN FIFTY PERCENT OF THE VOTING POWER OF THE CAPITAL STOCK OF ONE OR 54 MORE OTHER CORPORATIONS, OR (2) MORE THAN FIFTY PERCENT OF THE VOTING 55 POWER OF THE CAPITAL STOCK OF WHICH IS OWNED OR CONTROLLED EITHER 56 DIRECTLY OR INDIRECTLY BY ONE OR MORE OTHER CORPORATIONS, OR (3) MORE S. 4610--A 68 A. 6721--A 1 THAN FIFTY PERCENT OF THE VOTING POWER OF THE CAPITAL STOCK OF WHICH AND 2 THE CAPITAL STOCK OF ONE OR MORE OTHER CORPORATIONS, IS OWNED OR 3 CONTROLLED, DIRECTLY OR INDIRECTLY, BY THE SAME INTERESTS, AND (4) THAT 4 IS ENGAGED IN A UNITARY BUSINESS WITH THOSE CORPORATIONS (HEREINAFTER 5 REFERRED TO AS "RELATED CORPORATIONS"), SHALL MAKE A COMBINED REPORT 6 WITH THOSE OTHER CORPORATIONS. 7 (B) A CORPORATION REQUIRED TO MAKE A COMBINED REPORT WITHIN THE MEAN- 8 ING OF THIS SECTION SHALL ALSO INCLUDE (1) A CAPTIVE REIT AND A CAPTIVE 9 RIC; (2) A COMBINABLE CAPTIVE INSURANCE COMPANY; AND (3) AN ALIEN CORPO- 10 RATION THAT SATISFIES THE CONDITIONS IN PARAGRAPH (A) OF THIS SUBDIVI- 11 SION IF (I) UNDER ANY PROVISION OF THE INTERNAL REVENUE CODE, THAT 12 CORPORATION IS TREATED AS A "DOMESTIC CORPORATION" AS DEFINED IN SECTION 13 SEVEN THOUSAND SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE, OR (II) 14 IT HAS EFFECTIVELY CONNECTED INCOME FOR THE TAXABLE YEAR PURSUANT TO 15 CLAUSE (III) OF THE OPENING PARAGRAPH OF SUBDIVISION EIGHT OF SECTION 16 11-652 OF THIS SUBCHAPTER. 17 (C) A CORPORATION REQUIRED OR PERMITTED TO MAKE A COMBINED REPORT 18 UNDER THIS SECTION DOES NOT INCLUDE (1) A CORPORATION THAT IS TAXABLE 19 UNDER A TAX IMPOSED BY SUBCHAPTER TWO OR THREE OF THIS CHAPTER OR CHAP- 20 TER ELEVEN OF THIS TITLE (EXCEPT FOR A VENDOR OF UTILITY SERVICES THAT 21 IS TAXABLE UNDER BOTH CHAPTER ELEVEN OF THIS TITLE AND THIS SUBCHAPTER), 22 OR WOULD BE TAXABLE UNDER A TAX IMPOSED BY SUBCHAPTER TWO OR THREE OF 23 THIS CHAPTER OR CHAPTER ELEVEN OF THIS TITLE (EXCEPT FOR A VENDOR OF 24 UTILITY SERVICES THAT IS TAXABLE UNDER BOTH CHAPTER ELEVEN OF THIS TITLE 25 AND THIS SUBCHAPTER), OR WOULD HAVE BEEN TAXABLE AS AN INSURANCE CORPO- 26 RATION UNDER THE FORMER PART IV, TITLE R, CHAPTER FORTY-SIX OF THE 27 ADMINISTRATIVE CODE AS IN EFFECT ON JUNE THIRTIETH, NINETEEN HUNDRED 28 SEVENTY-FOUR; (2) A REIT THAT IS NOT A CAPTIVE REIT, AND A RIC THAT IS 29 NOT A CAPTIVE RIC; OR (3) AN ALIEN CORPORATION THAT UNDER ANY PROVISION 30 OF THE INTERNAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC CORPORATION" 31 AS DEFINED IN SECTION SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE AND 32 HAS NO EFFECTIVELY CONNECTED INCOME FOR THE TAXABLE YEAR PURSUANT TO 33 CLAUSE (III) OF THE OPENING PARAGRAPH OF SUBDIVISION EIGHT OF SECTION 34 11-652 OF THIS SUBCHAPTER. IF A CORPORATION IS SUBJECT TO TAX UNDER 35 THIS SUBCHAPTER SOLELY AS A RESULT OF ITS OWNERSHIP OF A LIMITED PARTNER 36 INTEREST IN A LIMITED PARTNERSHIP THAT IS DOING BUSINESS, EMPLOYING 37 CAPITAL, OWNING OR LEASING PROPERTY, OR MAINTAINING AN OFFICE IN THIS 38 CITY, AND NONE OF THE CORPORATION'S RELATED CORPORATIONS ARE SUBJECT TO 39 TAX UNDER THIS SUBCHAPTER, SUCH CORPORATION SHALL NOT BE REQUIRED OR 40 PERMITTED TO FILE A COMBINED REPORT UNDER THIS SECTION WITH SUCH RELATED 41 CORPORATIONS. 42 (D) A COMBINED REPORT SHALL BE FILED BY THE DESIGNATED AGENT OF THE 43 COMBINED GROUP AS DETERMINED UNDER SUBDIVISION SEVEN OF THIS SECTION. 44 3. (A) SUBJECT TO THE PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION TWO 45 OF THIS SECTION, A TAXPAYER MAY ELECT TO TREAT AS ITS COMBINED GROUP ALL 46 CORPORATIONS THAT MEET THE OWNERSHIP REQUIREMENTS DESCRIBED IN PARAGRAPH 47 (A) OF SUBDIVISION TWO OF THIS SECTION (SUCH CORPORATIONS COLLECTIVELY 48 REFERRED TO IN THIS SUBDIVISION AS THE "COMMONLY OWNED GROUP"). IF THAT 49 ELECTION IS MADE, THE COMMONLY OWNED GROUP SHALL CALCULATE THE COMBINED 50 BUSINESS INCOME, COMBINED BUSINESS CAPITAL, AND FIXED DOLLAR MINIMUM 51 AMOUNT OF ALL MEMBERS OF THE GROUP IN ACCORDANCE WITH PARAGRAPH FOUR OF 52 THIS SUBDIVISION, WHETHER OR NOT THAT BUSINESS INCOME OR BUSINESS CAPI- 53 TAL IS FROM A SINGLE UNITARY BUSINESS. 54 (B) THE ELECTION UNDER THIS SUBDIVISION SHALL BE MADE ON AN ORIGINAL, 55 TIMELY FILED RETURN (DETERMINED WITH REGARD TO EXTENSIONS) OF THE 56 COMBINED GROUP. ANY CORPORATION ENTERING A COMMONLY OWNED GROUP SUBSE- S. 4610--A 69 A. 6721--A 1 QUENT TO THE YEAR OF ELECTION SHALL BE INCLUDED IN THE COMBINED GROUP 2 AND IS CONSIDERED TO HAVE WAIVED ANY OBJECTION TO ITS INCLUSION IN THE 3 COMBINED GROUP. 4 (C) THE ELECTION SHALL BE IRREVOCABLE, AND BINDING FOR AND APPLICABLE 5 TO THE TAXABLE YEAR FOR WHICH IT IS MADE AND FOR THE NEXT SIX TAXABLE 6 YEARS. THE ELECTION WILL AUTOMATICALLY BE RENEWED FOR ANOTHER SEVEN 7 TAXABLE YEARS AFTER IT HAS BEEN IN EFFECT FOR SEVEN TAXABLE YEARS UNLESS 8 IT IS AFFIRMATIVELY REVOKED. THE REVOCATION SHALL BE MADE ON AN 9 ORIGINAL, TIMELY FILED RETURN (DETERMINED WITH REGARD TO EXTENSIONS) FOR 10 THE FIRST TAXABLE YEAR AFTER THE COMPLETION OF A SEVEN YEAR PERIOD FOR 11 WHICH AN ELECTION UNDER THIS SUBDIVISION WAS IN PLACE. IN THE CASE OF A 12 REVOCATION, A NEW ELECTION UNDER THIS SUBDIVISION SHALL NOT BE PERMITTED 13 IN ANY OF THE IMMEDIATELY FOLLOWING THREE TAXABLE YEARS. IN DETERMINING 14 THE SEVEN AND THREE YEAR PERIODS DESCRIBED IN THIS PARAGRAPH, SHORT 15 TAXABLE YEARS SHALL NOT BE CONSIDERED OR COUNTED. 16 4. (A) IN COMPUTING THE TAX BASES FOR A COMBINED REPORT, THE COMBINED 17 GROUP SHALL GENERALLY BE TREATED AS A SINGLE CORPORATION, EXCEPT AS 18 OTHERWISE PROVIDED, AND SUBJECT TO ANY REGULATIONS OR GUIDANCE ISSUED BY 19 THE COMMISSIONER OF FINANCE OR THE DEPARTMENT OF FINANCE. 20 (B)(1) IN COMPUTING COMBINED BUSINESS INCOME, ALL INTERCORPORATE DIVI- 21 DENDS SHALL BE ELIMINATED, AND ALL OTHER INTERCORPORATE TRANSACTIONS 22 SHALL BE DEFERRED IN A MANNER SIMILAR TO THE UNITED STATES TREASURY 23 DEPARTMENT REGULATIONS RELATING TO INTERCOMPANY TRANSACTIONS UNDER 24 SECTION FIFTEEN HUNDRED TWO OF THE INTERNAL REVENUE CODE. 25 (2) IN COMPUTING COMBINED CAPITAL, ALL INTERCORPORATE STOCKHOLDINGS, 26 INTERCORPORATE BILLS, INTERCORPORATE NOTES RECEIVABLE AND PAYABLE, 27 INTERCORPORATE ACCOUNTS RECEIVABLE AND PAYABLE, AND OTHER INTERCORPORATE 28 INDEBTEDNESS, SHALL BE ELIMINATED. 29 (C) QUALIFICATION FOR CREDITS, INCLUDING ANY LIMITATIONS THEREON, 30 SHALL BE DETERMINED SEPARATELY FOR EACH OF THE MEMBERS OF THE COMBINED 31 GROUP, AND SHALL NOT BE DETERMINED ON A COMBINED GROUP BASIS, EXCEPT AS 32 OTHERWISE PROVIDED. HOWEVER, THE CREDITS SHALL BE APPLIED AGAINST THE 33 COMBINED TAX OF THE GROUP. TO THE EXTENT THAT A PROVISION OF SECTION 34 11-654 OF THIS SUBCHAPTER, OR ANY OTHER APPLICABLE SECTION OF THIS 35 SUBCHAPTER, LIMITS A CREDIT TO THE FIXED DOLLAR MINIMUM AMOUNT 36 PRESCRIBED IN CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI- 37 VISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER, SUCH FIXED DOLLAR MINI- 38 MUM AMOUNT SHALL BE THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE 39 TO THE DESIGNATED AGENT OF THE COMBINED GROUP. 40 (D)(1) A NET OPERATING LOSS DEDUCTION IS ALLOWED IN COMPUTING THE 41 COMBINED BUSINESS INCOME BASE. SUCH DEDUCTION MAY REDUCE THE TAX ON THE 42 COMBINED BUSINESS INCOME BASE TO THE HIGHER OF THE TAX ON THE COMBINED 43 CAPITAL OR THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE TO THE 44 DESIGNATED AGENT OF THE COMBINED GROUP. A COMBINED NET OPERATING LOSS 45 DEDUCTION IS EQUAL TO THE AMOUNT OF COMBINED NET OPERATING LOSS OR LOSS- 46 ES FROM ONE OR MORE TAXABLE YEARS THAT ARE CARRIED FORWARD OR CARRIED 47 BACK TO A PARTICULAR TAXABLE YEAR. A COMBINED NET OPERATING LOSS IS THE 48 COMBINED BUSINESS LOSS INCURRED IN A PARTICULAR TAXABLE YEAR MULTIPLIED 49 BY THE COMBINED BUSINESS ALLOCATION PERCENTAGE FOR THAT YEAR DETERMINED 50 AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION. 51 (2) THE COMBINED NET OPERATING LOSS DEDUCTION AND COMBINED NET OPERAT- 52 ING LOSS ARE ALSO SUBJECT TO THE PROVISIONS CONTAINED IN PARAGRAPHS (A) 53 THROUGH (G) OF SUBDIVISION THREE OF SECTION 11-654.1 OF THIS SUBCHAPTER. 54 (3) IN THE CASE OF A CORPORATION THAT FILES A COMBINED REPORT, EITHER 55 IN THE YEAR THE NET OPERATING LOSS IS INCURRED OR IN THE YEAR IN WHICH A 56 DEDUCTION IS CLAIMED ON ACCOUNT OF THE LOSS, THE COMBINED NET OPERATING S. 4610--A 70 A. 6721--A 1 LOSS DEDUCTION IS DETERMINED AS IF THE COMBINED GROUP IS A SINGLE CORPO- 2 RATION AND, TO THE EXTENT POSSIBLE AND NOT OTHERWISE INCONSISTENT WITH 3 THIS SUBDIVISION, IS SUBJECT TO THE SAME LIMITATIONS THAT WOULD APPLY 4 FOR FEDERAL INCOME TAX PURPOSES UNDER THE INTERNAL REVENUE CODE AND THE 5 CODE OF FEDERAL REGULATIONS AS IF SUCH CORPORATION HAD FILED FOR SUCH 6 TAXABLE YEAR A CONSOLIDATED FEDERAL INCOME TAX RETURN WITH THE SAME 7 CORPORATIONS INCLUDED IN THE COMBINED REPORT. IF A CORPORATION FILES A 8 COMBINED REPORT, REGARDLESS OF WHETHER IT FILED A SEPARATE RETURN OR 9 CONSOLIDATED RETURN FOR FEDERAL INCOME TAX PURPOSES, THE NET OPERATING 10 LOSS AND NET OPERATING LOSS DEDUCTION FOR THE COMBINED GROUP MUST BE 11 COMPUTED AS IF THE CORPORATION HAD FILED A CONSOLIDATED RETURN FOR THE 12 SAME CORPORATIONS FOR FEDERAL INCOME TAX PURPOSES. 13 (4) IN GENERAL, ANY NET OPERATING LOSS CARRYOVER FROM A YEAR IN WHICH 14 A COMBINED REPORT WAS FILED SHALL BE BASED ON THE COMBINED NET OPERATING 15 LOSS OF THE GROUP OF CORPORATIONS FILING SUCH REPORT. THE PORTION OF THE 16 COMBINED LOSS ATTRIBUTABLE TO ANY MEMBER OF THE GROUP THAT FILES A SEPA- 17 RATE REPORT FOR A SUCCEEDING TAXABLE YEAR WILL BE AN AMOUNT BEARING THE 18 SAME RELATION TO THE COMBINED LOSS AS THE NET OPERATING LOSS OF SUCH 19 CORPORATION BEARS TO THE TOTAL NET OPERATING LOSS OF ALL MEMBERS OF THE 20 GROUP HAVING SUCH LOSSES TO THE EXTENT THAT THEY ARE TAKEN INTO ACCOUNT 21 IN COMPUTING THE COMBINED NET OPERATING LOSS. 22 (D-1) A PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION IS ALLOWED IN 23 COMPUTING THE COMBINED BUSINESS INCOME BASE, AS PROVIDED IN SUBDIVISIONS 24 ONE AND TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER. SUCH SUBTRACTION MAY 25 REDUCE THE TAX ON COMBINED BUSINESS INCOME TO THE HIGHER OF THE TAX ON 26 COMBINED CAPITAL OR THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE 27 TO THE DESIGNATED AGENT OF THE COMBINED GROUP. 28 (E)(I) ANY ELECTION MADE PURSUANT TO PARAGRAPH (B) OF SUBDIVISION 29 FIVE, PARAGRAPHS (B) AND (C) OF SUBDIVISION FIVE-A OF SECTION 11-652 OF 30 THIS SUBCHAPTER, AND PARAGRAPH (G) OF SUBDIVISION THREE OF SECTION 31 11-654.1 OF THIS SUBCHAPTER SHALL APPLY TO ALL MEMBERS OF THE COMBINED 32 GROUP. 33 (II) THE DETERMINATION OF WHETHER OR NOT THE LIMITATION ON INVESTMENT 34 INCOME PROVIDED IN SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION 35 FIVE OF SECTION 11-652 OF THIS SUBCHAPTER TO THE COMBINED GROUP SHALL BE 36 BASED ON THE INVESTMENT INCOME OF THE COMBINED GROUP, DETERMINED WITHOUT 37 REGARD TO INTEREST EXPENSES ATTRIBUTABLE TO INVESTMENT CAPITAL OR 38 INVESTMENT INCOME, AND THE ENTIRE NET INCOME OF THE COMBINED GROUP. 39 (F)(1) IN THE CASE OF A CAPTIVE REIT OR CAPTIVE RIC REQUIRED UNDER 40 THIS SECTION TO BE INCLUDED IN A COMBINED REPORT, ENTIRE NET INCOME 41 SHALL BE COMPUTED AS REQUIRED UNDER SUBDIVISION SEVEN (IN THE CASE OF A 42 CAPTIVE REIT) OR SUBDIVISION EIGHT (IN THE CASE OF A CAPTIVE RIC) OF 43 SECTION 11-653 OF THIS SUBCHAPTER. HOWEVER, THE DEDUCTION UNDER THE 44 INTERNAL REVENUE CODE FOR DIVIDENDS PAID BY THE CAPTIVE REIT OR CAPTIVE 45 RIC TO ANY MEMBER OF THE AFFILIATED GROUP THAT INCLUDES THE CORPORATION 46 THAT DIRECTLY OR INDIRECTLY OWNS OVER FIFTY PERCENT OF THE VOTING STOCK 47 OF THE CAPTIVE REIT OR CAPTIVE RIC SHALL NOT BE ALLOWED. FOR PURPOSES 48 OF THIS SUBPARAGRAPH, THE TERM "AFFILIATED GROUP" MEANS "AFFILIATED 49 GROUP" AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVEN- 50 UE CODE, BUT WITHOUT REGARD TO THE EXCEPTIONS PROVIDED FOR IN SUBSECTION 51 (B) OF THAT SECTION. 52 (2) IN THE CASE OF A COMBINABLE CAPTIVE INSURANCE COMPANY REQUIRED 53 UNDER THIS SECTION TO BE INCLUDED IN A COMBINED REPORT, ENTIRE NET 54 INCOME SHALL BE COMPUTED AS REQUIRED BY SUBDIVISION EIGHT OF SECTION 55 11-652 OF THIS SUBCHAPTER. S. 4610--A 71 A. 6721--A 1 (G) IF MORE THAN ONE MEMBER OF A COMBINED GROUP IS ELIGIBLE FOR ANY OF 2 THE MODIFICATIONS DESCRIBED IN PARAGRAPHS (Q), (R) OR (S) OF SUBDIVISION 3 EIGHT OF SECTION 11-652 OF THIS SUBCHAPTER, ALL SUCH MEMBERS MUST 4 UTILIZE THE SAME MODIFICATION. 5 5. (A) IN DETERMINING THE BUSINESS ALLOCATION PERCENTAGE FOR A 6 COMBINED REPORT, THE RECEIPTS, NET INCOME, NET GAINS AND OTHER ITEMS OF 7 EACH MEMBER OF THE COMBINED GROUP, WHETHER OR NOT THEY ARE A TAXPAYER, 8 ARE INCLUDED AND INTERCORPORATE RECEIPTS, INCOME AND GAINS ARE ELIMI- 9 NATED. RECEIPTS, NET INCOME, NET GAINS AND OTHER ITEMS ARE SOURCED, AND 10 THE AMOUNTS ALLOWED IN THE RECEIPTS FRACTION ARE DETERMINED, AS PROVIDED 11 IN SECTION 11-654.2 OF THIS SUBCHAPTER. 12 (B) AN ELECTION MADE TO ALLOCATE INCOME AND GAINS FROM QUALIFYING 13 FINANCIAL INSTRUMENTS PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH (A) OF 14 SUBDIVISION FIVE OF SECTION 11-654.2 OF THIS SUBCHAPTER SHALL APPLY TO 15 ALL MEMBERS OF THE COMBINED GROUP. 16 6. EVERY MEMBER OF THE COMBINED GROUP THAT IS SUBJECT TO TAX UNDER 17 THIS ARTICLE SHALL BE JOINTLY AND SEVERALLY LIABLE FOR THE TAX DUE 18 PURSUANT TO A COMBINED REPORT. 19 7. EACH COMBINED GROUP SHALL APPOINT A DESIGNATED AGENT FOR THE 20 COMBINED GROUP, WHICH SHALL BE A TAXPAYER. ONLY THE DESIGNATED AGENT MAY 21 ACT ON BEHALF OF THE MEMBERS OF THE COMBINED GROUP FOR MATTERS RELATING 22 TO THE COMBINED REPORT. 23 S 11-655 REPORTS. 1. EVERY CORPORATION HAVING AN OFFICER, AGENT OR 24 REPRESENTATIVE WITHIN THE CITY, SHALL ANNUALLY ON OR BEFORE MARCH 25 FIFTEENTH, TRANSMIT TO THE COMMISSIONER OF FINANCE A REPORT IN A FORM 26 PRESCRIBED BY THE COMMISSIONER OF FINANCE (EXCEPT THAT A CORPORATION 27 WHICH REPORTS ON THE BASIS OF A FISCAL YEAR SHALL TRANSMIT ITS REPORT 28 WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR) 29 SETTING FORTH SUCH INFORMATION AS THE COMMISSIONER OF FINANCE MAY 30 PRESCRIBE, AND EVERY TAXPAYER WHICH CEASES TO DO BUSINESS IN THE CITY OR 31 TO BE SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER SHALL TRANSMIT TO 32 THE COMMISSIONER OF FINANCE A REPORT ON THE DATE OF SUCH CESSATION OR AT 33 SUCH OTHER TIME AS THE COMMISSIONER OF FINANCE MAY REQUIRE COVERING EACH 34 YEAR OR PERIOD FOR WHICH NO REPORT WAS THERETOFORE FILED. EVERY TAXPAYER 35 SHALL ALSO TRANSMIT SUCH OTHER REPORTS AND SUCH FACTS AND INFORMATION AS 36 THE COMMISSIONER OF FINANCE MAY REQUIRE IN THE ADMINISTRATION OF THIS 37 SUBCHAPTER. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION 38 OF TIME FOR FILING REPORTS WHENEVER GOOD CAUSE EXISTS. 39 AN AUTOMATIC EXTENSION OF SIX MONTHS FOR THE FILING OF ITS ANNUAL 40 REPORT SHALL BE ALLOWED ANY TAXPAYER IF, WITHIN THE TIME PRESCRIBED BY 41 THE PRECEDING PARAGRAPH, WHICHEVER IS APPLICABLE, SUCH TAXPAYER FILES 42 WITH THE COMMISSIONER OF FINANCE AN APPLICATION FOR EXTENSION IN SUCH 43 FORM AS THE COMMISSIONER OF FINANCE MAY PRESCRIBE BY REGULATION AND PAYS 44 ON OR BEFORE THE DATE OF SUCH FILING THE AMOUNT PROPERLY ESTIMATED AS 45 ITS TAX. 46 2. EVERY REPORT SHALL HAVE ANNEXED THERETO A CERTIFICATION BY THE 47 PRESIDENT, VICE-PRESIDENT, TREASURER, ASSISTANT TREASURER, CHIEF 48 ACCOUNTING OFFICER OR ANOTHER OFFICER OF THE TAXPAYER DULY AUTHORIZED SO 49 TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED THEREIN ARE TRUE. IN 50 THE CASE OF AN ASSOCIATION, WITHIN THE MEANING OF PARAGRAPH THREE OF 51 SECTION (A) OF SECTION SEVENTY-SEVEN HUNDRED ONE OF THE INTERNAL REVENUE 52 CODE, A PUBLICLY-TRADED PARTNERSHIP TREATED AS A CORPORATION FOR 53 PURPOSES OF THE INTERNAL REVENUE CODE PURSUANT TO SECTION SEVENTY-SEVEN 54 HUNDRED FOUR THEREOF AND ANY BUSINESS CONDUCTED BY A TRUSTEE OR TRUSTEES 55 WHEREIN INTEREST OR OWNERSHIP IS EVIDENCED BY CERTIFICATES OR OTHER 56 WRITTEN INSTRUMENTS, SUCH CERTIFICATION SHALL BE MADE BY ANY PERSON DULY S. 4610--A 72 A. 6721--A 1 AUTHORIZED SO TO ACT ON BEHALF OF SUCH ASSOCIATION, PUBLICLY-TRADED 2 PARTNERSHIP OR BUSINESS. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON 3 A CERTIFICATION OF THE REPORT SHALL BE PRIMA FACIE EVIDENCE THAT SUCH 4 INDIVIDUAL IS AUTHORIZED TO SIGN AND CERTIFY THE REPORT ON BEHALF OF THE 5 CORPORATION. BLANK FORMS OF REPORTS SHALL BE FURNISHED BY THE COMMIS- 6 SIONER OF FINANCE, ON APPLICATION, BUT FAILURE TO SECURE SUCH A BLANK 7 SHALL NOT RELEASE ANY CORPORATION FROM THE OBLIGATION OF MAKING ANY 8 REPORT REQUIRED BY THIS SUBCHAPTER. 9 2-A. THE COMMISSIONER OF FINANCE MAY PRESCRIBE REGULATIONS AND 10 INSTRUCTIONS REQUIRING RETURNS OF INFORMATION TO BE MADE AND FILED IN 11 CONJUNCTION WITH THE REPORTS REQUIRED TO BE FILED PURSUANT TO THIS 12 SECTION, RELATING TO PAYMENTS MADE TO SHAREHOLDERS OWNING, DIRECTLY OR 13 INDIRECTLY, INDIVIDUALLY OR IN THE AGGREGATE, MORE THAN FIFTY PERCENT OF 14 THE ISSUED CAPITAL STOCK OF THE TAXPAYER, WHERE SUCH PAYMENTS ARE TREAT- 15 ED AS PAYMENTS OF INTEREST IN THE COMPUTATION OF ENTIRE NET INCOME 16 REPORTED ON SUCH REPORTS. 17 3. IF THE AMOUNT OF TAXABLE INCOME OR OTHER BASIS OF TAX FOR ANY YEAR 18 OF ANY TAXPAYER AS RETURNED TO THE UNITED STATES TREASURY DEPARTMENT OR 19 THE NEW YORK STATE COMMISSIONER OF TAXATION AND FINANCE IS CHANGED OR 20 CORRECTED BY THE COMMISSIONER OF INTERNAL REVENUE OR OTHER OFFICER OF 21 THE UNITED STATES OR THE NEW YORK STATE COMMISSIONER OF TAXATION AND 22 FINANCE OR OTHER COMPETENT AUTHORITY, OR WHERE A RENEGOTIATION OF A 23 CONTRACT OR SUBCONTRACT WITH THE UNITED STATES OR THE STATE OF NEW YORK 24 RESULTS IN A CHANGE IN TAXABLE INCOME OR OTHER BASIS OF TAX, OR WHERE A 25 RECOVERY OF A WAR LOSS RESULTS IN A COMPUTATION OR RECOMPUTATION OF ANY 26 TAX IMPOSED BY THE UNITED STATES OR THE STATE OF NEW YORK, OR IF A 27 TAXPAYER, PURSUANT TO SUBSECTION (D) OF SECTION SIXTY-TWO HUNDRED THIR- 28 TEEN OF THE INTERNAL REVENUE CODE, EXECUTES A NOTICE OF WAIVER OF THE 29 RESTRICTIONS PROVIDED IN SUBSECTION (A) OF SAID SECTION, OR IF A TAXPAY- 30 ER, PURSUANT TO SUBSECTION (F) OF SECTION ONE THOUSAND EIGHTY-ONE OF THE 31 TAX LAW, EXECUTES A NOTICE OF WAIVER OF THE RESTRICTIONS PROVIDED IN 32 SUBSECTION (C) OF SAID SECTION, SUCH TAXPAYER SHALL REPORT SUCH CHANGED 33 OR CORRECTED TAXABLE INCOME OR OTHER BASIS OF TAX, OR THE RESULTS OF 34 SUCH RENEGOTIATION, OR SUCH COMPUTATION, OR RECOMPUTATION, OR SUCH 35 EXECUTION OF SUCH NOTICE OF WAIVER AND THE CHANGES OR CORRECTIONS OF THE 36 TAXPAYER'S FEDERAL OR NEW YORK STATE TAXABLE INCOME OR OTHER BASIS OF 37 TAX ON WHICH IT IS BASED, WITHIN NINETY DAYS (OR ONE HUNDRED TWENTY 38 DAYS, IN THE CASE OF A TAXPAYER MAKING A COMBINED REPORT UNDER THIS 39 SUBCHAPTER FOR SUCH YEAR) AFTER SUCH EXECUTION OR THE FINAL DETERMI- 40 NATION OF SUCH CHANGE OR CORRECTION OR RENEGOTIATION, OR SUCH COMPUTA- 41 TION, OR RECOMPUTATION, OR AS REQUIRED BY THE COMMISSIONER OF FINANCE, 42 AND SHALL CONCEDE THE ACCURACY OF SUCH DETERMINATION OR STATE WHEREIN IT 43 IS ERRONEOUS. THE ALLOWANCE OF A TENTATIVE CARRYBACK ADJUSTMENT BASED 44 UPON A NET OPERATING LOSS CARRYBACK OR NET CAPITAL LOSS CARRYBACK PURSU- 45 ANT TO SECTION SIXTY-FOUR HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE 46 SHALL BE TREATED AS A FINAL DETERMINATION FOR PURPOSES OF THIS SUBDIVI- 47 SION. ANY TAXPAYER FILING AN AMENDED RETURN WITH SUCH DEPARTMENT SHALL 48 ALSO FILE WITHIN NINETY DAYS (OR ONE HUNDRED TWENTY DAYS, IN THE CASE OF 49 A TAXPAYER MAKING A COMBINED REPORT UNDER THIS SUBCHAPTER FOR SUCH YEAR) 50 THEREAFTER AN AMENDED REPORT WITH THE COMMISSIONER OF FINANCE. 51 4. THE PROVISIONS OF SECTION 11-654.3 OF THIS SUBCHAPTER SHALL APPLY 52 TO COMBINED REPORTS. 53 5. IN CASE IT SHALL APPEAR TO THE COMMISSIONER OF FINANCE THAT ANY 54 AGREEMENT, UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN THE TAXPAYER AND 55 ANY OTHER CORPORATION OR ANY PERSON OR FIRM, WHEREBY THE ACTIVITY, BUSI- 56 NESS, INCOME OR CAPITAL OF THE TAXPAYER WITHIN THE CITY IS IMPROPERLY OR S. 4610--A 73 A. 6721--A 1 INACCURATELY REFLECTED, THE COMMISSIONER OF FINANCE IS AUTHORIZED AND 2 EMPOWERED, IN ITS DISCRETION AND IN SUCH MANNER AS IT MAY DETERMINE, TO 3 ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPITAL, AND TO ELIMINATE ASSETS 4 IN COMPUTING ANY ALLOCATION PERCENTAGE PROVIDED ONLY THAT ANY INCOME 5 DIRECTLY TRACEABLE THERETO BE ALSO EXCLUDED FROM ENTIRE NET INCOME, SO 6 AS EQUITABLY TO DETERMINE THE TAX. WHERE (A) ANY TAXPAYER CONDUCTS ITS 7 ACTIVITY OR BUSINESS UNDER ANY AGREEMENT, ARRANGEMENT OR UNDERSTANDING 8 IN SUCH MANNER AS EITHER DIRECTLY OR INDIRECTLY TO BENEFIT ITS MEMBERS 9 OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR PERSONS DIRECTLY OR 10 INDIRECTLY INTERESTED IN SUCH ACTIVITY OR BUSINESS, BY ENTERING INTO ANY 11 TRANSACTION AT MORE OR LESS THAN A FAIR PRICE WHICH, BUT FOR SUCH AGREE- 12 MENT, ARRANGEMENT OR UNDERSTANDING, MIGHT HAVE BEEN PAID OR RECEIVED 13 THEREFOR, OR (B) ANY TAXPAYER, A SUBSTANTIAL PORTION OF WHOSE CAPITAL 14 STOCK IS OWNED EITHER DIRECTLY OR INDIRECTLY BY ANOTHER CORPORATION, 15 ENTERS INTO ANY TRANSACTION WITH SUCH OTHER CORPORATION ON SUCH TERMS AS 16 TO CREATE AN IMPROPER LOSS OR NET INCOME, THE COMMISSIONER OF FINANCE 17 MAY INCLUDE IN THE ENTIRE NET INCOME OF THE TAXPAYER THE FAIR PROFITS, 18 WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, THE TAXPAY- 19 ER MIGHT HAVE DERIVED FROM SUCH TRANSACTION. WHERE ANY TAXPAYER OWNS, 20 DIRECTLY OR INDIRECTLY, MORE THAN FIFTY PERCENT OF THE CAPITAL STOCK OF 21 ANOTHER CORPORATION SUBJECT TO TAX UNDER SECTION FIFTEEN HUNDRED TWO-A 22 OF THE TAX LAW AND FIFTY PERCENT OR LESS OF WHOSE GROSS RECEIPTS FOR THE 23 TAXABLE YEAR CONSIST OF PREMIUMS, THE COMMISSIONER OF FINANCE MAY 24 INCLUDE IN THE ENTIRE NET INCOME OF THE TAXPAYER, AS A DEEMED DISTRIB- 25 UTION, THE AMOUNT OF THE NET INCOME OF THE OTHER CORPORATION THAT IS IN 26 EXCESS OF ITS NET PREMIUM INCOME. 27 6. AN ACTION MAY BE BROUGHT AT ANY TIME BY THE CORPORATION COUNSEL AT 28 THE INSTANCE OF THE COMMISSIONER OF FINANCE TO COMPEL THE FILING OF 29 REPORTS DUE UNDER THIS SUBCHAPTER. 30 7. REPORTS SHALL BE PRESERVED FOR FIVE YEARS, AND THEREAFTER UNTIL THE 31 COMMISSIONER OF FINANCE ORDERS THEM TO BE DESTROYED. 32 8. WHERE THE NEW YORK STATE COMMISSIONER OF TAXATION AND FINANCE 33 CHANGES OR CORRECTS A TAXPAYER'S SALES AND COMPENSATING USE TAX LIABIL- 34 ITY WITH RESPECT TO THE PURCHASE OR USE OF ITEMS FOR WHICH A SALES OR 35 COMPENSATING USE TAX CREDIT AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER 36 WAS CLAIMED, THE TAXPAYER SHALL REPORT SUCH CHANGE OR CORRECTION TO THE 37 COMMISSIONER OF FINANCE WITHIN NINETY DAYS OF THE FINAL DETERMINATION OF 38 SUCH CHANGE OR CORRECTION, OR AS REQUIRED BY THE COMMISSIONER OF 39 FINANCE, AND SHALL CONCEDE THE ACCURACY OF SUCH DETERMINATION OR STATE 40 WHEREIN IT IS ERRONEOUS. ANY TAXPAYER FILING AN AMENDED RETURN OR REPORT 41 RELATING TO THE PURCHASE OR USE OF SUCH ITEMS SHALL ALSO FILE WITHIN 42 NINETY DAYS THEREAFTER A COPY OF SUCH AMENDED RETURN OR REPORT WITH THE 43 COMMISSIONER OF FINANCE. 44 S 11-656 PAYMENT AND LIEN OF TAX. 1. TO THE EXTENT THE TAX IMPOSED BY 45 SECTION 11-653 OF THIS SUBCHAPTER SHALL NOT HAVE BEEN PREVIOUSLY PAID 46 PURSUANT TO SECTION 11-658 OF THIS SUBCHAPTER: 47 (A) SUCH TAX, OR THE BALANCE THEREOF, SHALL BE PAYABLE TO THE COMMIS- 48 SIONER OF FINANCE IN FULL AT THE TIME THE REPORT IS REQUIRED TO BE 49 FILED; AND 50 (B) SUCH TAX, OR THE BALANCE THEREOF, IMPOSED ON ANY TAXPAYER WHICH 51 CEASES TO DO BUSINESS IN THE CITY OR TO BE SUBJECT TO THE TAX IMPOSED BY 52 THIS SUBCHAPTER SHALL BE PAYABLE TO THE COMMISSIONER OF FINANCE AT THE 53 TIME THE REPORT IS REQUIRED TO BE FILED; ALL OTHER TAXES OF ANY SUCH 54 TAXPAYER, WHICH PURSUANT TO THE FOREGOING PROVISIONS OF THIS SECTION 55 WOULD OTHERWISE BE PAYABLE SUBSEQUENT TO THE TIME SUCH REPORT IS 56 REQUIRED TO BE FILED, SHALL NEVERTHELESS BE PAYABLE AT SUCH TIME. S. 4610--A 74 A. 6721--A 1 IF THE TAXPAYER, WITHIN THE TIME PRESCRIBED BY SECTION 11-655 OF THIS 2 SUBCHAPTER, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME TO 3 FILE ITS ANNUAL REPORT AND SHALL HAVE PAID TO THE COMMISSIONER OF 4 FINANCE ON OR BEFORE THE DATE SUCH APPLICATION IS FILED AN AMOUNT PROP- 5 ERLY ESTIMATED AS PROVIDED BY SAID SECTION, THE ONLY AMOUNT PAYABLE IN 6 ADDITION TO THE TAX SHALL BE INTEREST AT THE UNDERPAYMENT RATE SET BY 7 THE COMMISSIONER OF FINANCE PURSUANT TO SECTION 11-687 OF THIS CHAPTER, 8 OR, IF NO RATE IS SET, AT THE RATE OF SEVEN AND ONE-HALF PERCENT PER 9 ANNUM UPON THE AMOUNT BY WHICH THE TAX, OR THE PORTION THEREOF PAYABLE 10 ON OR BEFORE THE DATE THE REPORT WAS REQUIRED TO BE FILED, EXCEEDS THE 11 AMOUNT SO PAID. FOR PURPOSES OF THE PRECEDING SENTENCE: 12 (1) AN AMOUNT SO PAID SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS 13 EITHER: (I) NOT LESS THAN NINETY PERCENT OF THE TAX AS FINALLY DETER- 14 MINED, OR (II) NOT LESS THAN THE TAX SHOWN ON THE TAXPAYER'S REPORT FOR 15 THE PRECEDING TAXABLE YEAR, IF SUCH PRECEDING YEAR WAS A TAXABLE YEAR OF 16 TWELVE MONTHS; AND 17 (2) THE TIME WHEN A REPORT IS REQUIRED TO BE FILED SHALL BE DETERMINED 18 WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH REPORT. 19 2. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION OF 20 TIME FOR PAYMENT OF ANY TAX IMPOSED BY THIS SUBCHAPTER UNDER SUCH CONDI- 21 TIONS AS THE COMMISSIONER OF FINANCE DEEMS JUST AND PROPER. 22 3. INTENTIONALLY OMITTED. 23 S 11-657 DECLARATION OF ESTIMATED TAX. 1. EVERY TAXPAYER SUBJECT TO 24 THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER SHALL MAKE A DECLA- 25 RATION OF ITS ESTIMATED TAX FOR THE CURRENT PRIVILEGE PERIOD, CONTAINING 26 SUCH INFORMATION AS THE COMMISSIONER OF FINANCE MAY PRESCRIBE BY REGU- 27 LATIONS OR INSTRUCTIONS, IF SUCH ESTIMATED TAX CAN REASONABLY BE 28 EXPECTED TO EXCEED ONE THOUSAND DOLLARS. 29 2. THE TERM "ESTIMATED TAX" MEANS THE AMOUNT WHICH A TAXPAYER ESTI- 30 MATES TO BE THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER FOR THE 31 CURRENT PRIVILEGE PERIOD, LESS THE AMOUNT WHICH IT ESTIMATES TO BE THE 32 SUM OF ANY CREDITS ALLOWABLE AGAINST THE TAX. 33 3. IN THE CASE OF A TAXPAYER WHICH REPORTS ON THE BASIS OF A CALENDAR 34 YEAR, A DECLARATION OF ESTIMATED TAX SHALL BE FILED ON OR BEFORE JUNE 35 FIFTEENTH OF THE CURRENT PRIVILEGE PERIOD, EXCEPT THAT IF THE REQUIRE- 36 MENTS OF SUBDIVISION ONE OF THIS SECTION ARE FIRST MET: 37 (A) AFTER MAY THIRTY-FIRST AND BEFORE SEPTEMBER FIRST OF SUCH CURRENT 38 PRIVILEGE PERIOD, THE DECLARATION SHALL BE FILED ON OR BEFORE SEPTEMBER 39 FIFTEENTH; OR 40 (B) AFTER AUGUST THIRTY-FIRST AND BEFORE DECEMBER FIRST OF SUCH 41 CURRENT PRIVILEGE PERIOD, THE DECLARATION SHALL BE FILED ON OR BEFORE 42 DECEMBER FIFTEENTH. 43 4. A TAXPAYER MAY AMEND A DECLARATION UNDER REGULATIONS OF THE COMMIS- 44 SIONER OF FINANCE. 45 5. IF, ON OR BEFORE FEBRUARY FIFTEENTH OF THE SUCCEEDING YEAR IN THE 46 CASE OF A TAXPAYER WHICH REPORTS ON THE BASIS OF A CALENDAR YEAR, A 47 TAXPAYER FILES ITS REPORT FOR THE YEAR FOR WHICH THE DECLARATION IS 48 REQUIRED, AND PAYS THEREWITH THE BALANCE, IF ANY, OF THE FULL AMOUNT OF 49 THE TAX SHOWN TO BE DUE ON THE REPORT: 50 (A) SUCH REPORT SHALL BE CONSIDERED AS ITS DECLARATION IF NO DECLARA- 51 TION IS REQUIRED TO BE FILED DURING THE CALENDAR OR FISCAL YEAR FOR 52 WHICH THE TAX WAS IMPOSED, BUT IS OTHERWISE REQUIRED TO BE FILED ON OR 53 BEFORE DECEMBER FIFTEENTH PURSUANT TO SUBDIVISION THREE OF THIS SECTION; 54 AND 55 (B) SUCH REPORT SHALL BE CONSIDERED AS THE AMENDMENT PERMITTED BY 56 SUBDIVISION FOUR OF THIS SECTION TO BE FILED ON OR BEFORE DECEMBER S. 4610--A 75 A. 6721--A 1 FIFTEENTH IF THE TAX SHOWN ON THE REPORT IS GREATER THAN THE ESTIMATED 2 TAX SHOWN ON A DECLARATION PREVIOUSLY MADE. 3 6. THIS SECTION SHALL APPLY TO PRIVILEGE PERIODS OF TWELVE MONTHS 4 OTHER THAN A CALENDAR YEAR BY THE SUBSTITUTION OF THE MONTHS OF SUCH 5 FISCAL YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN THIS SECTION. 6 7. IF THE PRIVILEGE PERIOD FOR WHICH A TAX IS IMPOSED BY SECTION 7 11-653 OF THIS SUBCHAPTER IS LESS THAN TWELVE MONTHS, EVERY TAXPAYER 8 REQUIRED TO MAKE A DECLARATION OF ESTIMATED TAX FOR SUCH PRIVILEGE PERI- 9 OD SHALL MAKE SUCH A DECLARATION IN ACCORDANCE WITH REGULATIONS OF THE 10 COMMISSIONER OF FINANCE. 11 8. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION OF 12 TIME, NOT TO EXCEED THREE MONTHS, FOR THE FILING OF ANY DECLARATION 13 REQUIRED PURSUANT TO THIS SECTION, ON SUCH TERMS AND CONDITIONS AS IT 14 MAY REQUIRE. 15 S 11-658 PAYMENTS ON ACCOUNT OF ESTIMATED TAX. 1. EVERY TAXPAYER 16 SUBJECT TO THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER SHALL 17 PAY WITH THE REPORT REQUIRED TO BE FILED FOR THE PRECEDING PRIVILEGE 18 PERIOD, IF ANY, OR WITH AN APPLICATION FOR EXTENSION OF THE TIME AND 19 FILING SUCH REPORT, AN AMOUNT EQUAL TO TWENTY-FIVE PER CENTUM OF THE 20 PRECEDING YEAR'S TAX IF SUCH PRECEDING YEAR'S TAX EXCEEDED ONE THOUSAND 21 DOLLARS. 22 2. THE ESTIMATED TAX WITH RESPECT TO WHICH A DECLARATION FOR SUCH 23 PRIVILEGE PERIOD IS REQUIRED SHALL BE PAID, IN THE CASE OF A TAXPAYER 24 WHICH REPORTS ON THE BASIS OF A CALENDAR YEAR, AS FOLLOWS: 25 (A) IF THE DECLARATION IS FILED ON OR BEFORE JUNE FIFTEENTH, THE ESTI- 26 MATED TAX SHOWN THEREON, AFTER APPLYING THERETO THE AMOUNT, IF ANY, PAID 27 DURING THE SAME PRIVILEGE PERIOD PURSUANT TO SUBDIVISION ONE OF THIS 28 SECTION, SHALL BE PAID IN THREE EQUAL INSTALLMENTS. ONE OF SUCH INSTALL- 29 MENTS SHALL BE PAID AT THE TIME OF THE FILING OF THE DECLARATION, ONE 30 SHALL BE PAID ON THE FOLLOWING SEPTEMBER FIFTEENTH, AND ONE ON THE 31 FOLLOWING DECEMBER FIFTEENTH. 32 (B) IF THE DECLARATION IS FILED AFTER JUNE FIFTEENTH AND NOT AFTER 33 SEPTEMBER FIFTEENTH OF SUCH PRIVILEGE PERIOD, AND IS NOT REQUIRED TO BE 34 FILED ON OR BEFORE JUNE FIFTEENTH OF SUCH PERIOD, THE ESTIMATED TAX 35 SHOWN ON SUCH DECLARATION, AFTER APPLYING THERETO THE AMOUNT, IF ANY, 36 PAID DURING THE SAME PRIVILEGE PERIOD PURSUANT TO SUBDIVISION ONE OF 37 THIS SECTION, SHALL BE PAID IN TWO EQUAL INSTALLMENTS. ONE OF SUCH 38 INSTALLMENTS SHALL BE PAID AT THE TIME OF THE FILING OF THE DECLARATION 39 AND ONE SHALL BE PAID ON THE FOLLOWING DECEMBER FIFTEENTH. 40 (C) IF THE DECLARATION IS FILED AFTER SEPTEMBER FIFTEENTH OF SUCH 41 PRIVILEGE PERIOD, AND IS NOT REQUIRED TO BE FILED ON OR BEFORE SEPTEMBER 42 FIFTEENTH OF SUCH PRIVILEGE PERIOD, THE ESTIMATED TAX SHOWN ON SUCH 43 DECLARATION, AFTER APPLYING THERETO THE AMOUNT, IF ANY, PAID IN RESPECT 44 TO SUCH PRIVILEGE PERIOD PURSUANT TO SUBDIVISION ONE OF THIS SECTION, 45 SHALL BE PAID IN FULL AT THE TIME OF THE FILING OF THE DECLARATION. 46 (D) IF THE DECLARATION IS FILED AFTER THE TIME PRESCRIBED THEREFOR, OR 47 AFTER THE EXPIRATION OF ANY EXTENSION OF TIME THEREFOR, PARAGRAPHS (B) 48 AND (C) OF THIS SUBDIVISION SHALL NOT APPLY, AND THERE SHALL BE PAID AT 49 THE TIME OF SUCH FILING ALL INSTALLMENTS OF ESTIMATED TAX PAYABLE AT OR 50 BEFORE SUCH TIME, AND THE REMAINING INSTALLMENTS SHALL BE PAID AT THE 51 TIMES AT WHICH, AND IN THE AMOUNTS IN WHICH, THEY WOULD HAVE BEEN PAYA- 52 BLE IF THE DECLARATION HAD BEEN FILED WHEN DUE. 53 3. IF ANY AMENDMENT OF A DECLARATION IS FILED, THE REMAINING INSTALL- 54 MENTS, IF ANY, SHALL BE RATABLY INCREASED OR DECREASED (AS THE CASE MAY 55 BE) TO REFLECT ANY INCREASE OR DECREASE IN THE ESTIMATED TAX BY REASON 56 OF SUCH AMENDMENT, AND IF ANY AMENDMENT IS MADE AFTER SEPTEMBER S. 4610--A 76 A. 6721--A 1 FIFTEENTH OF THE PRIVILEGE PERIOD, ANY INCREASE IN THE ESTIMATED TAX BY 2 REASON THEREOF SHALL BE PAID AT THE TIME OF MAKING SUCH AMENDMENT. 3 4. ANY AMOUNT PAID SHALL BE APPLIED AFTER PAYMENT AS A FIRST INSTALL- 4 MENT AGAINST THE ESTIMATED TAX OF THE TAXPAYER FOR THE CURRENT PRIVILEGE 5 PERIOD SHOWN ON THE DECLARATION REQUIRED TO BE FILED PURSUANT TO SECTION 6 11-657 OF THIS SUBCHAPTER OR, IF NO DECLARATION OF ESTIMATED TAX IS 7 REQUIRED TO BE FILED BY THE TAXPAYER PURSUANT TO SUCH SECTION, ANY SUCH 8 AMOUNT SHALL BE CONSIDERED A PAYMENT ON ACCOUNT OF THE TAX SHOWN ON THE 9 REPORT REQUIRED TO BE FILED BY THE TAXPAYER FOR SUCH PRIVILEGE PERIOD. 10 5. NOTWITHSTANDING THE PROVISIONS OF SECTION 11-679 OF THIS CHAPTER OR 11 OF SECTION THREE-A OF THE GENERAL MUNICIPAL LAW, IF AN AMOUNT PAID 12 PURSUANT TO SUBDIVISION ONE OF THIS SECTION EXCEEDS THE TAX SHOWN ON THE 13 REPORT REQUIRED TO BE FILED BY THE TAXPAYER FOR THE PRIVILEGE PERIOD 14 DURING WHICH THE AMOUNT WAS PAID, INTEREST SHALL BE ALLOWED AND PAID ON 15 THE AMOUNT BY WHICH THE AMOUNT SO PAID PURSUANT TO SUCH SUBDIVISION 16 EXCEEDS SUCH TAX, AT THE OVERPAYMENT RATE SET BY THE COMMISSIONER OF 17 FINANCE PURSUANT TO SECTION 11-687 OF THIS CHAPTER, OR, IF NO RATE IS 18 SET, AT THE RATE OF FOUR PERCENT PER ANNUM FROM THE DATE OF PAYMENT OF 19 THE AMOUNT SO PAID PURSUANT TO SUCH SUBDIVISION TO THE FIFTEENTH DAY OF 20 THE THIRD MONTH FOLLOWING THE CLOSE OF THE PRIVILEGE PERIOD, PROVIDED, 21 HOWEVER, THAT NO INTEREST SHALL BE ALLOWED OR PAID UNDER THIS SUBDIVI- 22 SION IF THE AMOUNT THEREOF IS LESS THAN ONE DOLLAR OR IF SUCH INTEREST 23 BECOMES PAYABLE SOLELY BECAUSE OF A CARRYBACK OF A NET OPERATING LOSS IN 24 A SUBSEQUENT PRIVILEGE PERIOD. 25 6. AS USED IN THIS SECTION, "THE PRECEDING YEAR'S TAX" MEANS THE TAX 26 IMPOSED UPON THE TAXPAYER BY SECTION 11-653 OF THIS SUBCHAPTER FOR THE 27 PRECEDING CALENDAR OR FISCAL YEAR, OR, FOR PURPOSES OF COMPUTING THE 28 FIRST INSTALLMENT OF ESTIMATED TAX WHEN AN APPLICATION HAS BEEN FILED 29 FOR EXTENSION OF THE TIME FOR FILING THE REPORT REQUIRED TO BE FILED FOR 30 SUCH PRECEDING CALENDAR OR FISCAL YEAR, THE AMOUNT PROPERLY ESTIMATED 31 PURSUANT TO SECTION 11-657 OF THIS SUBCHAPTER AS THE TAX IMPOSED UPON 32 THE TAXPAYER FOR SUCH CALENDAR OR FISCAL YEAR. 33 7. THIS SECTION SHALL APPLY TO A PRIVILEGE PERIOD OF LESS THAN TWELVE 34 MONTHS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSIONER OF FINANCE. 35 8. THE PROVISIONS OF THIS SECTION SHALL APPLY TO PRIVILEGE PERIODS OF 36 TWELVE MONTHS OTHER THAN A CALENDAR YEAR BY THE SUBSTITUTION OF THE 37 MONTHS OF SUCH FISCAL YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN 38 SUCH PROVISIONS. 39 9. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION OF 40 TIME, NOT TO EXCEED SIX MONTHS, FOR PAYMENT OF ANY INSTALLMENT OF ESTI- 41 MATED TAX REQUIRED PURSUANT TO THIS SECTION, ON SUCH TERMS AND CONDI- 42 TIONS AS THE COMMISSIONER OF FINANCE MAY REQUIRE INCLUDING THE FURNISH- 43 ING OF A BOND OR OTHER SECURITY BY THE TAXPAYER IN AN AMOUNT NOT 44 EXCEEDING TWICE THE AMOUNT FOR WHICH ANY EXTENSION OF TIME FOR PAYMENT 45 IS GRANTED, PROVIDED, HOWEVER, THAT INTEREST AT THE UNDERPAYMENT RATE 46 SET BY THE COMMISSIONER OF FINANCE PURSUANT TO SECTION 11-687 OF THIS 47 SUBCHAPTER, OR, IF NO RATE IS SET, AT THE RATE OF SEVEN AND ONE-HALF 48 PERCENT PER ANNUM FOR THE PERIOD OF THE EXTENSION SHALL BE CHARGED AND 49 COLLECTED ON THE AMOUNT FOR WHICH ANY EXTENSION OF TIME FOR PAYMENT IS 50 GRANTED UNDER THIS SUBDIVISION. 51 10. A TAXPAYER MAY ELECT TO PAY ANY INSTALLMENT OF ESTIMATED TAX PRIOR 52 TO THE DATE PRESCRIBED IN THIS SECTION FOR PAYMENT THEREOF. 53 11. INTENTIONALLY OMITTED. 54 S 11-659 COLLECTION OF TAXES. EVERY FOREIGN CORPORATION (OTHER THAN A 55 MONEYED CORPORATION) SUBJECT TO THE PROVISIONS OF THIS SUBCHAPTER, 56 EXCEPT A CORPORATION HAVING AUTHORITY TO DO BUSINESS BY VIRTUE OF S. 4610--A 77 A. 6721--A 1 SECTION THIRTEEN HUNDRED FIVE OF THE BUSINESS CORPORATION LAW, SHALL 2 FILE IN THE DEPARTMENT OF STATE A CERTIFICATE OF DESIGNATION IN ITS 3 CORPORATE NAME, SIGNED AND ACKNOWLEDGED BY ITS PRESIDENT OR A VICE-PRE- 4 SIDENT OR ITS SECRETARY OR TREASURER, UNDER ITS CORPORATE SEAL, DESIG- 5 NATING THE SECRETARY OF STATE AS ITS AGENT UPON WHOM PROCESS IN ANY 6 ACTION PROVIDED FOR BY THIS SUBCHAPTER MAY BE SERVED WITHIN THIS STATE, 7 AND SETTING FORTH AN ADDRESS TO WHICH THE SECRETARY OF STATE SHALL MAIL 8 A COPY OF ANY SUCH PROCESS AGAINST THE CORPORATION WHICH MAY BE SERVED 9 UPON THE SECRETARY OF STATE. IN CASE ANY SUCH CORPORATION SHALL HAVE 10 FAILED TO FILE SUCH CERTIFICATE OF DESIGNATION, IT SHALL BE DEEMED TO 11 HAVE DESIGNATED THE SECRETARY OF STATE AS ITS AGENT UPON WHOM SUCH PROC- 12 ESS AGAINST IT MAY BE SERVED; AND UNTIL A CERTIFICATE OF DESIGNATION 13 SHALL HAVE BEEN FILED THE CORPORATION SHALL BE DEEMED TO HAVE DIRECTED 14 THE SECRETARY OF STATE TO MAIL COPIES OF PROCESS SERVED UPON HIM OR HER 15 TO THE CORPORATION AT ITS LAST KNOWN OFFICE ADDRESS WITHIN OR WITHOUT 16 THE STATE. WHEN A CERTIFICATE OF DESIGNATION HAS BEEN FILED BY SUCH 17 CORPORATION THE SECRETARY OF STATE SHALL MAIL COPIES OF PROCESS THERE- 18 AFTER SERVED UPON THE SECRETARY OF STATE TO THE ADDRESS SET FORTH IN 19 SUCH CERTIFICATE. ANY SUCH CORPORATION, FROM TIME TO TIME, MAY CHANGE 20 THE ADDRESS TO WHICH THE SECRETARY OF STATE IS DIRECTED TO MAIL COPIES 21 OF PROCESS, BY FILING A CERTIFICATE TO THAT EFFECT EXECUTED, SIGNED AND 22 ACKNOWLEDGED IN LIKE MANNER AS A CERTIFICATE OF DESIGNATION AS HEREIN 23 PROVIDED. SERVICE OF PROCESS UPON ANY SUCH CORPORATION OR UPON ANY 24 CORPORATION HAVING A CERTIFICATE OF AUTHORITY UNDER SECTION EIGHT 25 HUNDRED FIVE OF THE LIMITED LIABILITY COMPANY LAW OR HAVING AUTHORITY TO 26 DO BUSINESS BY VIRTUE OF SECTION THIRTEEN HUNDRED FIVE OF THE BUSINESS 27 CORPORATION LAW, IN ANY ACTION COMMENCED AT ANY TIME PURSUANT TO THE 28 PROVISIONS OF THIS SUBCHAPTER, MAY BE MADE BY EITHER: (A) PERSONALLY 29 DELIVERING TO AND LEAVING WITH THE SECRETARY OF STATE, A DEPUTY SECRE- 30 TARY OF STATE OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO 31 RECEIVE SUCH SERVICE DUPLICATE COPIES THEREOF AT THE OFFICE OF THE 32 DEPARTMENT OF STATE IN THE CITY OF ALBANY, IN WHICH EVENT THE SECRETARY 33 OF STATE SHALL FORTHWITH SEND BY REGISTERED MAIL, RETURN RECEIPT 34 REQUESTED, ONE OF SUCH COPIES TO THE CORPORATION AT THE ADDRESS DESIG- 35 NATED BY IT OR AT ITS LAST KNOWN OFFICE ADDRESS WITHIN OR WITHOUT THE 36 STATE, OR (B) PERSONALLY DELIVERING TO AND LEAVING WITH THE SECRETARY OF 37 STATE, A DEPUTY SECRETARY OF STATE OR WITH ANY PERSON AUTHORIZED BY THE 38 SECRETARY OF STATE TO RECEIVE SUCH SERVICE, A COPY THEREOF AT THE OFFICE 39 OF THE DEPARTMENT OF STATE IN THE CITY OF ALBANY AND BY DELIVERING A 40 COPY THEREOF TO, AND LEAVING SUCH COPY WITH, THE PRESIDENT, VICE-PRESI- 41 DENT, SECRETARY, ASSISTANT SECRETARY, TREASURER, ASSISTANT TREASURER, OR 42 CASHIER OF SUCH CORPORATION, OR THE OFFICER PERFORMING CORRESPONDING 43 FUNCTIONS UNDER ANOTHER NAME, OR A DIRECTOR OR MANAGING AGENT OF SUCH 44 CORPORATION, PERSONALLY WITHOUT THE STATE. PROOF OF SUCH PERSONAL 45 SERVICE WITHOUT THE STATE SHALL BE FILED WITH THE CLERK OF THE COURT IN 46 WHICH THE ACTION IS PENDING WITHIN THIRTY DAYS AFTER SUCH SERVICE, AND 47 SUCH SERVICE SHALL BE COMPLETE TEN DAYS AFTER PROOF THEREOF IS FILED. 48 S 11-660 LIMITATIONS OF TIME. THE PROVISIONS OF THE CIVIL PRACTICE LAW 49 AND RULES RELATIVE TO THE LIMITATION OF TIME ENFORCING A CIVIL REMEDY 50 SHALL NOT APPLY TO ANY PROCEEDING OR ACTION TAKEN TO LEVY, APPRAISE, 51 ASSESS, DETERMINE OR ENFORCE THE COLLECTION OF ANY TAX OR PENALTY 52 PRESCRIBED BY THIS SUBCHAPTER, PROVIDED, HOWEVER, THAT AS TO REAL ESTATE 53 IN THE HANDS OF PERSONS WHO ARE OWNERS THEREOF WHO WOULD BE PURCHASERS 54 IN GOOD FAITH BUT FOR SUCH TAX OR PENALTY AND AS TO THE LIEN ON REAL 55 ESTATE OF MORTGAGES HELD BY PERSONS WHO WOULD BE HOLDERS THEREOF IN GOOD 56 FAITH BUT FOR SUCH TAX OR PENALTY, ALL SUCH TAXES AND PENALTIES SHALL S. 4610--A 78 A. 6721--A 1 CEASE TO BE A LIEN ON SUCH REAL ESTATE AS AGAINST SUCH PURCHASERS OR 2 HOLDERS AFTER THE EXPIRATION OF TEN YEARS FROM THE DATE SUCH TAXES 3 BECAME DUE AND PAYABLE. THE LIMITATIONS HEREIN PROVIDED FOR SHALL NOT 4 APPLY TO ANY TRANSFER FROM A CORPORATION TO A PERSON OR CORPORATION WITH 5 INTENT TO AVOID PAYMENT OF ANY TAXES, OR WHERE WITH LIKE INTENT THE 6 TRANSFER IS MADE TO A GRANTEE CORPORATION, OR ANY SUBSEQUENT GRANTEE 7 CORPORATION, CONTROLLED BY SUCH GRANTOR OR WHICH HAS ANY COMMUNITY OF 8 INTEREST WITH IT, EITHER THROUGH STOCK OWNERSHIP OR OTHERWISE. 9 S 2. Subparagraph (A) of paragraph 2 of subdivision (f) of section 10 11-508 of the administrative code of the city of New York, as added by 11 chapter 485 of the laws of 1994, is amended to read as follows: 12 (A) In the case of an issuer or obligor subject to tax under subchap- 13 ter two OR THREE-A of chapter six of this title, or subject to tax as a 14 utility corporation under chapter eleven of this title, the issuer's 15 allocation percentage shall be the percentage of the appropriate measure 16 (as defined hereinafter) which is required to be allocated within the 17 city on the report or reports, if any, required of the issuer or obligor 18 under chapter six or eleven of this title for the preceding year. The 19 appropriate measure referred to in the preceding sentence shall be: in 20 the case of an issuer or obligor subject to subchapter two OR THREE-A of 21 chapter six of this title, entire capital; and in the case of an issuer 22 or obligor subject to chapter eleven of this title as a utility corpo- 23 ration, gross income. 24 S 3. The administrative code of the city of New York is amended by 25 adding a new section 11-602.1 to read as follows: 26 S 11-602.1 APPLICATION OF THIS SUBCHAPTER. 1. FOR TAXABLE YEARS BEGIN- 27 NING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, THE TAX IMPOSED 28 UNDER THIS SUBCHAPTER SHALL ONLY APPLY TO A CORPORATION THAT (A) HAS AN 29 ELECTION IN EFFECT UNDER SUBSECTION (A) OF SECTION THIRTEEN HUNDRED 30 SIXTY-TWO OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (B) IS A 31 QUALIFIED SUBCHAPTER S SUBSIDIARY WITHIN THE MEANING OF PARAGRAPH THREE 32 OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL 33 REVENUE CODE OF 1986, AS AMENDED. 34 2. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND 35 FIFTEEN, THE TAX IMPOSED UNDER THIS SUBCHAPTER SHALL NOT APPLY TO A 36 CORPORATION THAT IS NOT DESCRIBED IN SUBDIVISION ONE OF THIS SECTION 37 EXCEPT TO THE EXTENT PROVIDED IN SUBCHAPTER THREE-A OF THIS CHAPTER. 38 3. CROSS-REFERENCE. FOR THE TAXATION OF CORPORATIONS THAT ARE NOT 39 DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, THAT WERE TAXABLE UNDER 40 THIS SUBCHAPTER FOR TAX YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU- 41 SAND FIFTEEN, SEE SUBCHAPTER THREE-A OF THIS CHAPTER. 42 S 4. Subdivision (a) of section 11-639 of the administrative code of 43 the city of New York is amended to read as follows: 44 (a) (1) For the privilege of doing business in the city in a corporate 45 or organized capacity, a tax, computed under section 11-643 of this 46 part, is hereby annually imposed on every banking corporation for each 47 of its taxable years, or any part thereof, beginning on or after January 48 first, nineteen hundred seventy-three AND BEFORE JANUARY FIRST, TWO 49 THOUSAND FIFTEEN. 50 (2) FOR THE PRIVILEGE OF DOING BUSINESS IN THE CITY IN A CORPORATE OR 51 ORGANIZED CAPACITY, A TAX, COMPUTED UNDER SECTION 11-643 OF THIS PART, 52 IS HEREBY ANNUALLY IMPOSED ON EVERY BANKING CORPORATION FOR EACH TAXABLE 53 YEAR, OR ANY PART THEREOF, COMMENCING ON OR AFTER JANUARY FIRST, TWO 54 THOUSAND FIFTEEN, WHERE SUCH BANKING CORPORATION (I) HAS AN ELECTION IN 55 EFFECT UNDER SUBSECTION (A) OF SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE 56 INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (II) IS A QUALIFIED S. 4610--A 79 A. 6721--A 1 SUBCHAPTER S SUBSIDIARY WITHIN THE MEANING OF PARAGRAPH THREE OF 2 SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL 3 REVENUE CODE OF 1986, AS AMENDED. 4 S 5. Section 11-639 of the administrative code of the city of New York 5 is amended by adding a new subdivision (d) to read as follows: 6 (D) CROSS-REFERENCE. FOR THE TAXATION OF CORPORATIONS THAT ARE NOT 7 DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION, THAT WERE 8 TAXABLE UNDER THIS SUBCHAPTER FOR TAX YEARS BEGINNING BEFORE JANUARY 9 FIRST, TWO THOUSAND FIFTEEN, SEE SUBCHAPTER THREE-A OF THIS CHAPTER. 10 S 6. Paragraph 2 of subdivision (b) of section 11-641 of the adminis- 11 trative code of the city of New York, as amended by chapter 525 of the 12 laws of 1988, is amended to read as follows: 13 (2) taxes on or measured by income or profits paid or accrued within 14 the taxable year to the United States, or any of its possessions or to 15 any foreign country and taxes imposed under article nine, nine-A, thir- 16 teen-A or thirty-two of the tax law AS IN EFFECT ON DECEMBER 17 THIRTY-FIRST, TWO THOUSAND FOURTEEN and any tax imposed under this part 18 or subchapter two OR THREE-A of this chapter; 19 S 7. Subdivision 1 and paragraph (a) of subdivision 2 of section 20 11-671 of the administrative code of the city of New York are amended to 21 read as follows: 22 1. General. The provisions of this subchapter shall apply to the 23 administration of and the procedures with respect to the taxes imposed 24 by subchapters two, three, THREE-A and four of this chapter. 25 (a) the term "named subchapters" means subchapters two, three OR 26 THREE-A and four of this chapter; 27 S 8. Paragraph (a) of subdivision 5 and subdivisions 7, 8 and 9 of 28 section 11-672 of the administrative code of the city of New York, para- 29 graph (a) of subdivision 5 as amended by chapter 525 of the laws of 30 1988, and paragraph (b) of subdivision 9 as amended by chapter 808 of 31 the laws of 1992, are amended to read as follows: 32 (a) If the taxpayer fails to comply with subchapter two [or], three OR 33 THREE-A of this chapter in not reporting a change or correction or rene- 34 gotiation, or computation or recomputation of tax, increasing or 35 decreasing its federal or New York state taxable income, alternative 36 minimum taxable income or other basis of tax as reported on its federal 37 or New York state income tax return or in not reporting a change or 38 correction or renegotiation, or computation or recomputation of tax, 39 which is treated in the same manner as if it were a deficiency for 40 federal or New York state income tax purposes or in not filing an 41 amended return or in not reporting the execution of a notice of waiver 42 executed pursuant to subsection (d) of section six thousand two hundred 43 thirteen of the internal revenue code or pursuant to subdivision (f) of 44 section one thousand eighty-one of the tax law, instead of the mode and 45 time of assessment provided for in subdivision two of this section, the 46 commissioner of finance may assess a deficiency based upon such 47 increased or decreased federal or New York state taxable income, alter- 48 native minimum taxable income or other basis of tax by mailing to the 49 taxpayer a notice of additional tax due specifying the amount of the 50 deficiency, and such deficiency, together with the interest, additions 51 to tax and penalties stated in such notice, shall be deemed assessed on 52 the date such notice is mailed unless within thirty days after the mail- 53 ing of such notice a report of the federal or New York state change or 54 correction or renegotiation, or computation or recomputation of tax, or 55 an amended return, where such return was required by subchapter two 56 [or], three OR THREE-A, is filed accompanied by a statement showing S. 4610--A 80 A. 6721--A 1 wherein such federal or New York state determination and such notice of 2 additional tax due are erroneous. 3 7. Two or more corporations. In case of a combined return under 4 subchapter two OR THREE-A or a consolidated return under subchapter 5 three of two or more corporations, the commissioner of finance may 6 determine a deficiency of tax under subchapter two [or subchapter], 7 three OR THREE-A of this chapter with respect to the entire tax due upon 8 such return against any taxpayer included therein. In the case of a 9 taxpayer which might have been included in such a return under subchap- 10 ter two [or subchapter], three OR THREE-A of this chapter when the tax 11 was originally reported, the commissioner of finance may determine a 12 deficiency of tax under subchapter two [or], three OR THREE-A of this 13 chapter against such taxpayer and against any other taxpayers which 14 might have been included in such a return. 15 8. Deficiency defined. For the purposes of this subchapter, a defi- 16 ciency means the amount of the tax imposed by the named subchapters, or 17 any of them, less: (a) the amount shown as the tax upon the taxpayer's 18 return (whether the return was made or the tax computed by it or by the 19 commissioner of finance), and less (b) the amounts previously assessed 20 (or collected without assessment) as a deficiency and plus (c) the 21 amount of any rebates. For the purpose of this definition, the tax 22 imposed by subchapter two [or], three OR THREE-A of this chapter and the 23 tax shown on the return shall both be determined without regard to any 24 payment of estimated tax; and a rebate means so much of an abatement, 25 credit, refund or other repayment (whether or not erroneous) as was made 26 on the ground that the amounts entering into the definition of a defi- 27 ciency showed a balance in favor of the taxpayer. 28 9. Exception where change or correction of sales and compensating use 29 tax liability is not reported. 30 (a) If a taxpayer fails to comply with subchapter two OR THREE-A of 31 this chapter in not reporting a change or correction of its sales and 32 compensating use tax liability or in not filing a copy of an amended 33 return or report relating to its sales and compensating use tax liabil- 34 ity, instead of the mode and time of assessment provided for in subdivi- 35 sion two of this section, the commissioner of finance may assess a defi- 36 ciency based upon such changed or corrected sales and compensating use 37 tax liability, as same relates to credits claimed under subchapter two 38 OR THREE-A of this chapter, by mailing to the taxpayer a notice of addi- 39 tional tax due specifying the amount of the deficiency, and such defi- 40 ciency, together with the interest, additions to tax and penalties stat- 41 ed in such notice, shall be deemed assessed on the date such notice is 42 mailed unless within thirty days after the mailing of such notice a 43 report of the state change or correction or a copy of an amended return 44 or report, where such copy was required by subchapter two OR THREE-A, is 45 filed accompanied by a statement showing wherein such state determi- 46 nation and such notice of additional tax due are erroneous. 47 (b) Such notice shall not be considered as a notice of deficiency for 48 the purposes of this section, subdivision six of section 11-678 (limit- 49 ing credits or refunds after petition to the tax appeals tribunal), or 50 subdivision two of section 11-680 (authorizing the filing of a petition 51 with the tax appeals tribunal based on a notice of deficiency), nor 52 shall such assessment or the collection thereof be prohibited by the 53 provisions of subdivision three of this section. 54 (c) If the taxpayer has terminated its existence, a notice of addi- 55 tional tax due may be mailed to its last known address in or out of the 56 city, and such notice shall be sufficient for purposes of this subchap- S. 4610--A 81 A. 6721--A 1 ter. If the commissioner of finance has received notice that a person is 2 acting for the taxpayer in a fiduciary capacity, a copy of such notice 3 shall also be mailed to the fiduciary named in such notice. 4 S 9. Subdivisions 1 and 3 of section 11-673 of the administrative code 5 of the city of New York, the first undesignated paragraph of subdivision 6 1 as amended by chapter 808 of the laws of 1992, are amended to read as 7 follows: 8 1. Assessment date. The amount of tax which a return shows to be due, 9 or the amount of tax which a return would have shown to be due but for a 10 mathematical error, shall be deemed to be assessed on the date of filing 11 of the return (including any amended return showing an increase of tax). 12 If a notice of deficiency has been mailed, the amount of the deficiency 13 shall be deemed to be assessed on the date specified in subdivision two 14 of section 11-672 of this subchapter if no petition is both served on 15 the commissioner of finance and filed with the tax appeals tribunal, or 16 if a petition is so served and filed, then upon the date when a decision 17 of the tax appeals tribunal establishing the amount of the deficiency 18 becomes final. If a report or an amended return filed pursuant to 19 subchapter two [or], three OR THREE-A of this chapter concedes the accu- 20 racy of a federal or New York state adjustment or change or correction 21 or renegotiation or computation or recomputation of tax, any deficiency 22 in tax under subchapter two [or], three OR THREE-A of this chapter 23 resulting therefrom shall be deemed to be assessed on the date of filing 24 such report or amended return, and such assessment shall be timely 25 notwithstanding section 11-674 of this chapter. 26 If a report filed pursuant to subchapter two OR THREE-A of this chap- 27 ter concedes the accuracy of a state change or correction of sales and 28 compensating use tax liability, any deficiency in tax under subchapter 29 two OR THREE-A of this chapter resulting therefrom shall be deemed 30 assessed on the date of filing such report, and such assessment shall be 31 timely notwithstanding section 11-674 of this chapter. 32 If a notice of additional tax due, as prescribed in subdivision five 33 of section 11-672 of this chapter, has been mailed, the amount of the 34 deficiency shall be deemed to be assessed on the date specified in such 35 subdivision unless within thirty days after the mailing of such notice a 36 report of the federal or New York state adjustment or change or 37 correction or renegotiation or computation or recomputation of tax, or 38 an amended return, where such return was required by subchapter two 39 [or], three OR THREE-A of this chapter, is filed accompanied by a state- 40 ment showing wherein such federal or New York state determination and 41 such notice of additional tax due are erroneous. 42 If a notice of additional tax due, as prescribed in subdivision nine 43 of section 11-672 of this subchapter, has been mailed, the amount of the 44 deficiency shall be deemed to be assessed on the date specified in such 45 subdivision unless within thirty days after the mailing of such notice a 46 report of the state change or correction, or a copy of an amended return 47 or report, where such copy was required by subchapter two OR THREE-A of 48 this chapter, is filed accompanied by a statement showing wherein such 49 state determination and such notice of additional tax due are erroneous. 50 Any amount paid as a tax or in respect of a tax, other than amounts 51 paid as estimated tax, shall be deemed to be assessed upon the date of 52 receipt of payment notwithstanding any other provisions. 53 3. Estimated tax. No unpaid amount of estimated tax under subchapter 54 two [or], three OR THREE-A of this chapter shall be assessed. 55 S 10. Subdivisions 3 and 4 of section 11-674 of the administrative 56 code of the city of New York, subparagraph 3 of paragraph (a) and para- S. 4610--A 82 A. 6721--A 1 graph (c) of subdivision 3 as amended by chapter 525 of the laws of 1988 2 and paragraph (d) of subdivision 3 as amended by local law number 57 of 3 the city of New York for the year 2001, are amended to read as follows: 4 3. Exceptions. 5 (a) Assessment at any time. The tax may be assessed at any time if: 6 (1) no return is filed, 7 (2) a false or fraudulent return is filed with intent to evade tax, 8 (3) in the case of the tax imposed under subchapter two [or], three OR 9 THREE-A of this chapter, the taxpayer fails to file a report or amended 10 return required thereunder, in respect of an increase or decrease in 11 federal or New York state taxable income, alternative minimum taxable 12 income or other basis of tax or federal or New York state tax, or in 13 respect of a change or correction or renegotiation or in respect of the 14 execution of a notice of waiver report of which is required thereunder, 15 or computation or recomputation of tax, which is treated in the same 16 manner as if it were a deficiency for federal or New York state income 17 tax purposes, or 18 (4) in the case of the tax imposed under subchapter two OR THREE-A of 19 this chapter, the taxpayer fails to file a report or amended return or 20 report required thereunder, in respect of a change or correction of 21 sales and compensating use tax liability, relating to the purchase or 22 use of items for which a sales or compensating use tax credit against 23 the tax imposed by subchapter two OR THREE-A was claimed. 24 (b) Extension by agreement. Where, before the expiration of the time 25 prescribed in this section for the assessment of tax, both the commis- 26 sioner of finance and the taxpayer have consented in writing to its 27 assessment after such time, the tax may be assessed at any time prior to 28 the expiration of the period agreed upon. The period so agreed upon may 29 be extended by subsequent agreements in writing made before the expira- 30 tion of the period previously agreed upon. 31 (c) Report of federal or New York state change or correction. In the 32 case of the tax imposed under subchapter two [or], three OR THREE-A of 33 this chapter, if the taxpayer files a report or amended return required 34 thereunder, in respect of an increase or decrease in federal or New York 35 state taxable income, alternative minimum taxable income or other basis 36 of tax or federal or New York state tax, or in respect of a change or 37 correction or renegotiation, or in respect of the execution of a notice 38 of waiver report of which is required thereunder, or computation or 39 recomputation of tax, which is treated in the same manner as if it were 40 a deficiency for federal or New York state income tax purposes, the 41 assessment (if not deemed to have been made upon the filing of the 42 report or amended return) may be made at any time within two years after 43 such report or amended return was filed. The amount of such assessment 44 of tax shall not exceed the amount of the increase in city tax attribut- 45 able to such federal or New York state change or correction or renegoti- 46 ation, or computation or recomputation of tax. The provisions of this 47 paragraph shall not affect the time within which or the amount for which 48 an assessment may otherwise be made. 49 (d) Deficiency attributable to carry back. If a deficiency of tax 50 under subchapter two OR THREE-A of this chapter is attributable to the 51 application to taxpayer of a net operating loss carry back or a capital 52 loss carry back, it may be assessed at any time that a deficiency for 53 the taxable year of the loss may be assessed. 54 (e) Recovery of erroneous refund. An erroneous refund shall be consid- 55 ered an underpayment of tax on the date made, and an assessment of a 56 deficiency arising out of an erroneous refund may be made at any time S. 4610--A 83 A. 6721--A 1 within two years from the making of the refund, except that the assess- 2 ment may be made within five years from the making of the refund if it 3 appears that any part of the refund was induced by fraud or misrepresen- 4 tation of a material fact. 5 (f) Request for prompt assessment. The tax shall be assessed within 6 eighteen months after written request therefor (made after the return is 7 filed) by the taxpayer or by a fiduciary representing the taxpayer, but 8 not more than three years after the return was filed, except as other- 9 wise provided in this subdivision and subdivision four. This subdivision 10 shall not apply unless: 11 (1) (A) such written request notifies the commissioner of finance that 12 the taxpayer contemplates dissolution at or before the expiration of 13 such eighteen-month period, (B) the dissolution is in good faith begun 14 before the expiration of such eighteen-month period, (C) the dissolution 15 is completed; 16 (2) (A) such written request notifies the commissioner of finance that 17 a dissolution has in good faith been begun, and (B) the dissolution is 18 completed; or 19 (3) a dissolution has been completed at the time such written request 20 is made. 21 (g) Change of the allocation of taxpayer's income or capital. [No] 22 (1) WITH REGARD TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO 23 THOUSAND FIFTEEN, NO change of the allocation of income or capital upon 24 which the taxpayer's return (or any additional assessment) was based 25 shall be made where an assessment of tax is made during the additional 26 period of limitation under subparagraph three or four of paragraph (a), 27 or under paragraph (c), (d) or (i); and where any such assessment has 28 been made, or where a notice of deficiency has been mailed to the 29 taxpayer on the basis of any such proposed assessment, no change of the 30 allocation of income or capital shall be made in a proceeding on the 31 taxpayer's claim for refund of such assessment or on the taxpayer's 32 petition for redetermination of such deficiency. 33 (2) WITH REGARD TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, 34 TWO THOUSAND FIFTEEN, NO CHANGE OF THE ALLOCATION OF INCOME OR CAPITAL 35 UPON WHICH THE TAXPAYER'S RETURN (OR ANY ADDITIONAL ASSESSMENT) WAS 36 BASED SHALL BE MADE WHERE AN ASSESSMENT OF TAX IS MADE DURING THE ADDI- 37 TIONAL PERIOD OF LIMITATION UNDER SUBPARAGRAPH THREE OR FOUR OF PARA- 38 GRAPH (A) OR UNDER PARAGRAPH (C), (D) OR (I), EXCEPT TO THE EXTENT SUCH 39 ASSESSMENT IS BASED ON AN INCREASE OR DECREASE IN NEW YORK STATE TAXABLE 40 INCOME OR OTHER BASIS OF TAX OR NEW YORK STATE TAX, OR BASED ON A 41 CHANGE, CORRECTION OR RENEGOTIATION OF TAX, OR BASED ON THE EXECUTION OF 42 A NOTICE OF WAIVER REPORT WHICH IS REQUIRED THEREUNDER, OR COMPUTATION 43 OR RECOMPUTATION OF TAX, WHICH IS TREATED IN THE SAME MANNER AS IF IT 44 WERE A DEFICIENCY FOR NEW YORK STATE INCOME TAX PURPOSES; AND WHERE ANY 45 SUCH ASSESSMENT HAS BEEN MADE, OR WHERE A NOTICE OF DEFICIENCY HAS BEEN 46 MAILED TO THE TAXPAYER ON THE BASIS OF ANY SUCH PROPOSED ASSESSMENT, NO 47 CHANGE OF THE ALLOCATION OF INCOME OR CAPITAL SHALL BE MADE IN A 48 PROCEEDING ON THE TAXPAYER'S CLAIM FOR REFUND OF SUCH ASSESSMENT OR ON 49 THE TAXPAYER'S PETITION FOR REDETERMINATION OF SUCH DEFICIENCY, EXCEPT 50 TO THE EXTENT SUCH ASSESSMENT IS BASED ON AN INCREASE OR DECREASE IN NEW 51 YORK STATE TAXABLE INCOME OR OTHER BASIS OF TAX OR NEW YORK STATE TAX, 52 OR BASED ON A CHANGE OR CORRECTION OR RENEGOTIATION OF TAX, OR BASED ON 53 THE EXECUTION OF A NOTICE OF WAIVER REPORT WHICH IS REQUIRED THEREUNDER, 54 OR COMPUTATION OR RECOMPUTATION OF TAX, WHICH IS TREATED IN THE SAME 55 MANNER AS IF IT WERE AN OVERPAYMENT FOR NEW YORK STATE INCOME TAX 56 PURPOSES. S. 4610--A 84 A. 6721--A 1 (h) Report concerning waste treatment facility. Under the circum- 2 stances described in subparagraph three of paragraph (g) of subdivision 3 eight of section 11-602 of this chapter OR IN SUBPARAGRAPH THREE OF 4 PARAGRAPH (G) OF SUBDIVISION EIGHT OF SECTION 11-652 OF THIS CHAPTER, 5 the tax may be assessed within three years after the filing of the 6 report containing the information required by such paragraph. 7 (i) Report of changed or corrected sales and compensating use tax 8 liability. In the case of a tax imposed under subchapter two OR THREE-A 9 of this chapter, if the taxpayer files a report or amended return or 10 report required thereunder, in respect of a change or correction of 11 sales and compensating use tax liability, the assessment (if not deemed 12 to have been made upon the filing of the report) may be made at any time 13 within two years after such report or amended return or report was 14 filed. The amount of such assessment of tax shall not exceed the amount 15 of the increase in city tax attributable to such state change or 16 correction. The provisions of this paragraph shall not affect the time 17 within which or the amount for which an assessment may otherwise be 18 made. 19 4. Omission of income on return. The tax may be assessed at any time 20 within six years after the return was filed if a taxpayer omits from 21 gross income required to be reported on a return under any of the named 22 subchapters an amount properly includable therein which is in excess of 23 twenty-five per centum of the amount of gross income stated in the 24 return. 25 For the purposes of this subdivision: 26 (a) the term "gross income" means gross income for federal income tax 27 purposes as reportable on a return under subchapter two OR THREE-A of 28 this chapter and "gross earnings", "gross income," "gross operating 29 income" and "gross direct premiums less return premiums," as those terms 30 are used in whichever of the named subchapters is applicable; 31 (b) there shall not be taken into account any amount which is omitted 32 in the return if such amount is disclosed in the return, or in a state- 33 ment attached to the return, in a manner adequate to apprise the commis- 34 sioner of finance of the nature and amount of such item. 35 S 11. Subdivisions 2 and 5 of section 11-675 of the administrative 36 code of the city of New York, subdivision 5 as amended by local law 37 number 57 of the city of New York for the year 2001, are amended to read 38 as follows: 39 2. Exception as to estimated tax. This section shall not apply to any 40 failure to pay estimated tax under subchapter two [or subchapter], three 41 OR THREE-A of this chapter. 42 5. Tax reduced by carry back. If the amount of tax under subchapter 43 two OR THREE-A for any taxable year is reduced by reason of a carryback 44 of a net operating loss or a capital loss, such reduction in tax shall 45 not affect the computation of interest under this section for the period 46 ending with the filing date for the taxable year in which the net oper- 47 ating loss or capital loss arises. Such filing date shall be determined 48 without regard to extensions of time to file. 49 S 12. Subdivision 3 of section 11-676 of the administrative code of 50 the city of New York, as amended by chapter 201 of the laws of 2009, is 51 amended to read as follows: 52 3. Failure to file declaration or underpayment of estimated tax. If 53 any taxpayer fails to file a declaration of estimated tax under subchap- 54 ter two [or], three OR THREE-A of this chapter, or fails to pay all or 55 any part of an amount which is applied as an installment against such 56 estimated tax, it shall be deemed to have made an underpayment of esti- S. 4610--A 85 A. 6721--A 1 mated tax. There shall be added to the tax for the taxable year an 2 amount at the underpayment rate set by the commissioner of finance 3 pursuant to section 11-687 of this subchapter, or, if no rate is set, at 4 the rate of seven and one-half percent per annum upon the amount of the 5 underpayment for the period of the underpayment but not beyond the 6 fifteenth day of the third month following the close of the taxable 7 year. The amount of the underpayment shall be, with respect to any 8 installment of estimated tax computed on the basis of the preceding 9 year's tax, the excess of the amount required to be paid over the 10 amount, if any, paid on or before the last day prescribed for such 11 payment or, with respect to any other installment of estimated tax, the 12 excess of the amount of the installment which would be required to be 13 paid if the estimated tax were equal to ninety percent of the tax shown 14 on the return for the taxable year (or if no return was filed, ninety 15 percent of the tax for such year) over the amount, if any, of the 16 installment paid on or before the last day prescribed for such payment. 17 In any case in which there would be no underpayment if "eighty percent" 18 were substituted for "ninety percent" each place it appears in this 19 subdivision, the addition to the tax shall be equal to seventy-five 20 percent of the amount otherwise determined. No underpayment shall be 21 deemed to exist with respect to a declaration or installment otherwise 22 due on or after the termination of existence of the taxpayer. 23 S 13. The opening paragraph of subdivision 4 of section 11-676 of the 24 administrative code of the city of New York is amended to read as 25 follows: 26 The addition to tax under subdivision three with respect to any under- 27 payment of any amount which is applied as an installment against esti- 28 mated tax under subchapter two [or], three OR THREE-A of this chapter 29 shall not be imposed if the total amount of all payments of estimated 30 tax made on or before the last date prescribed for the payment of any 31 such amount equals or exceeds the amount which would have been required 32 to be paid on or before such date if the estimated tax were whichever of 33 the following is the least: 34 S 14. Subdivision 13 of section 11-676 of the administrative code of 35 the city of New York, as added by chapter 525 of the laws of 1988, is 36 amended to read as follows: 37 13. Failure to file report of information relating to certain interest 38 payments. In case of failure to file the report of information required 39 under EITHER subdivision two-a of section 11-605 of this chapter OR 40 SUBDIVISION TWO-A OF SECTION 11-655 OF THIS CHAPTER, unless it is shown 41 that such failure is due to reasonable cause and not due to willful 42 neglect, there shall be added to the tax a penalty of five hundred 43 dollars. 44 S 15. Subdivision 2 of section 11-677 of the administrative code of 45 the city of New York is amended to read as follows: 46 2. Credits against estimated tax. The commissioner of finance may 47 prescribe regulations providing for the crediting against the estimated 48 tax under subchapter two [or], three OR THREE-A of this chapter for any 49 taxable year of the amount determined to be an overpayment of tax under 50 any such subchapter for a preceding taxable year. If any overpayment of 51 tax is so claimed as a credit against estimated tax for the succeeding 52 taxable year, such amount shall be considered as a payment of the tax 53 under subchapter two [or], three OR THREE-A of this chapter for the 54 succeeding taxable year (whether or not claimed as a credit in the 55 declaration of estimated tax for such succeeding taxable year), and no S. 4610--A 86 A. 6721--A 1 claim for credit or refund of such overpayment shall be allowed for the 2 taxable year for which the overpayment arises. 3 S 16. Subdivisions 3, 4, 9 and 11 of section 11-678 of the administra- 4 tive code of the city of New York, subdivision 3 as amended by chapter 5 241 of the laws of 1989 and subdivision 4 as amended by local law number 6 57 of the city of New York for the year 2001, are amended to read as 7 follows: 8 3. Notice of change or correction of federal or New York state income 9 or other basis of tax. If a taxpayer is required by subchapter two [or], 10 three OR THREE-A of this chapter to file a report or amended return in 11 respect of (a) a decrease or increase in federal or New York state taxa- 12 ble income, alternative minimum taxable income or other basis of tax or 13 federal or New York state tax, (b) a federal or New York state change or 14 correction or renegotiation, or computation or recomputation of tax, 15 which is treated in the same manner as if it were an overpayment for 16 federal or New York state income tax purposes, claim for credit or 17 refund of any resulting overpayment of tax shall be filed by the taxpay- 18 er within two years from the time such report or amended return was 19 required to be filed with the commissioner of finance. If the report or 20 amended return required by subchapter two [or], three OR THREE-A of this 21 chapter is not filed within the ninety day period therein specified, no 22 interest shall be payable on any claim for credit or refund of the over- 23 payment attributable to the federal or New York state change or 24 correction. The amount of such credit or refund: 25 (c) shall, (I) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO 26 THOUSAND FIFTEEN, be computed without change of the allocation of income 27 or capital upon which the taxpayer's return (or any additional assess- 28 ment) was based, and, (II) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU- 29 ARY FIRST, TWO THOUSAND FIFTEEN, BE COMPUTED WITHOUT CHANGE OF THE ALLO- 30 CATION OF INCOME OR CAPITAL UPON WHICH THE TAXPAYER'S RETURN (OR ANY 31 ADDITIONAL ASSESSMENT) WAS BASED TO THE EXTENT THAT THE CLAIM FOR REFUND 32 ARISES FROM A DECREASE OR INCREASE IN FEDERAL TAXABLE INCOME OR OTHER 33 BASIS OF TAX OR FEDERAL TAX, OR FROM A FEDERAL CHANGE, CORRECTION, RENE- 34 GOTIATION, COMPUTATION OR RECOMPUTATION OF TAX, WHICH IS TREATED IN THE 35 SAME MANNER AS IF IT WERE AN OVERPAYMENT FOR FEDERAL INCOME TAX 36 PURPOSES, AND 37 (d) shall not exceed the amount of the reduction in tax attributable 38 to such decrease or increase in federal or New York state taxable 39 income, alternative minimum taxable income or other basis of tax or 40 federal or New York state tax or to such federal or New York state 41 change or correction or renegotiation, or computation or recomputation 42 of tax. 43 This subdivision shall not affect the time within which or the amount 44 for which a claim for credit or refund may be filed apart from this 45 subdivision. 46 4. Overpayment attributable to net operating loss carry back or capi- 47 tal loss carry back. A claim for credit or refund of so much of an over- 48 payment under subchapter two OR THREE-A of this chapter as is attribut- 49 able to the application to the taxpayer of a net operating loss carry 50 back or a capital loss carry back shall be filed within three years from 51 the time the return was due (including extensions thereof) for the taxa- 52 ble year of the loss, or within the period prescribed in subdivision two 53 in respect of such taxable year, or within the period prescribed in 54 subdivision three, where applicable, in respect to the taxable year to 55 which the net operating loss or capital loss is carried back, whichever 56 expires the latest. Where such claim for credit or refund is filed after S. 4610--A 87 A. 6721--A 1 the expiration of the period prescribed in subdivision one or in subdi- 2 vision two where applicable, in respect to the taxable year to which the 3 net operating loss or capital loss is carried back, the amount of such 4 credit or refund shall be computed without change of the allocation of 5 income or capital upon which the taxpayer's return (or any additional 6 assessment) was based. 7 9. Prepaid tax. For purposes of this section, any tax paid by the 8 taxpayer before the last day prescribed for its payment (including any 9 amount paid by the taxpayer as estimated tax for a taxable year) shall 10 be deemed to have been paid by it on the fifteenth day of the third 11 month following the close of the taxable year the income of which is the 12 basis for tax under subchapter two [or], three OR THREE-A of this chap- 13 ter, or on the last day prescribed in part one of subchapter three or 14 subchapter four for the filing of a final return for such taxable year, 15 or portion thereof, determined in all cases without regard to any exten- 16 sion of time granted the taxpayer. 17 11. Notice of change or correction of sales and compensating use tax 18 liability. (a) If a taxpayer is required by subchapter two OR THREE-A of 19 this chapter to file a report or amended return in respect of a change 20 or correction of its sales and compensating use tax liability, claim for 21 credit or refund of any resulting overpayment of tax shall be filed by 22 the taxpayer within two years from the time such report or amended 23 return was required to be filed with the commissioner of finance. The 24 amount of such credit or refund shall be computed without change of the 25 allocation of income or capital upon which the taxpayer's return (or any 26 additional assessment) was based, and shall not exceed the amount of the 27 reduction in tax attributable to such change or correction of sales and 28 compensating use tax liability. 29 (b) This subdivision shall not affect the time within which or the 30 amount for which a claim for credit or refund may be filed apart from 31 this subdivision. 32 S 17. Subdivisions 4 and 6 of section 11-679 of the administrative 33 code of the city of New York, subdivision 4 as amended by local law 34 number 57 of the city of New York for the year 2001 and subdivision 6 as 35 amended by chapter 241 of the laws of 1989, are amended to read as 36 follows: 37 4. Refund of tax caused by carryback. For purposes of this section, if 38 any overpayment of tax imposed by subchapter two OR THREE-A of this 39 chapter results from a carryback of a net operating loss or a net capi- 40 tal loss, such overpayment shall be deemed not to have been made prior 41 to the filing date for the taxable year in which such net operating loss 42 or net capital loss arises. Such filing date shall be determined without 43 regard to extensions of time to file. For purposes of subdivision three 44 of this section any overpayment described herein shall be treated as an 45 overpayment for the loss year and such subdivision shall be applied with 46 respect to such overpayment by treating the return for the loss year as 47 not filed before claim for such overpayment is filed. The term "loss 48 year" means the taxable year in which such loss arises. 49 6. Cross reference. For provision with respect to interest after fail- 50 ure to file a report of federal or New York state change or correction 51 or amended return under subchapter two [or], three OR THREE-A, see 52 subdivision three of section 11-678 of this subchapter. 53 S 18. Paragraph (d) of subdivision 4 of section 11-680 of the adminis- 54 trative code of the city of New York, as amended by chapter 808 of the 55 laws of 1992, is amended to read as follows: S. 4610--A 88 A. 6721--A 1 (d) Restriction on further notices of deficiency. If the taxpayer 2 files a petition with the tax appeals tribunal under this section, no 3 notice of deficiency under section 11-672 of this subchapter may there- 4 after be issued by the commissioner of finance for the same taxable 5 year, except in case of fraud or with respect to an increase or decrease 6 in federal or New York state taxable income, alternative minimum taxable 7 income or other basis of tax or federal or New York state tax or a 8 federal or New York state change or correction or renegotiation, or 9 computation or recomputation of tax, which is treated in the same manner 10 as if it were a deficiency for federal or New York state income tax 11 purposes, required to be reported under subchapter two [or], three OR 12 THREE-A of this chapter or with respect to a state change or correction 13 of sales and compensating use tax liability required to be reported 14 under subchapter two OR THREE-A of this chapter. 15 S 19. Paragraph (c) of subdivision 5 of section 11-680 of the adminis- 16 trative code of the city of New York, as amended by chapter 808 of the 17 laws of 1992, is amended to read as follows: 18 (c) whether the petitioner is liable for any increase in a deficiency 19 where such increase is asserted initially after a notice of deficiency 20 was mailed and a petition under this section filed, unless such increase 21 in deficiency is the result of an increase or decrease in federal or New 22 York state taxable income, alternative minimum taxable income or other 23 basis of tax or federal or New York state tax or a federal or New York 24 state change or correction or renegotiation, or computation or recompu- 25 tation of tax, which is treated in the same manner as if it were a defi- 26 ciency for federal or New York state income tax purposes, required to be 27 reported under subchapter two [or], three OR THREE-A of this chapter, 28 and of which increase, decrease, change or correction or renegotiation, 29 or computation or recomputation, the commissioner of finance had no 30 notice at the time he or she mailed the notice of deficiency or unless 31 such increase in deficiency is the result of a change or correction of 32 sales and compensating use tax liability required to be reported under 33 subchapter two OR THREE-A of this chapter, and of which change or 34 correction the commissioner of finance had no notice at the time he or 35 she mailed the notice of deficiency; and 36 S 20. Paragraph (a) of subdivision 5 of section 11-687 of the adminis- 37 trative code of the city of New York, as amended by chapter 201 of the 38 laws of 2009, is amended to read as follows: 39 (a) Authority to set interest rates. The commissioner of finance shall 40 set the overpayment and underpayment rates of interest to be paid pursu- 41 ant to sections 11-606, 11-608, 11-645, 11-647, 11-656, 11-658, 11-675, 42 11-676, and 11-679 of this chapter, but if no such rate or rates of 43 interest are set, such overpayment rate shall be deemed to be set at six 44 percent per annum and such underpayment rate shall be deemed to be set 45 at seven and one-half percent per annum. Such overpayment and underpay- 46 ment rates shall be the rates prescribed in paragraph (b) of this subdi- 47 vision but the underpayment rate shall not be less than seven and one- 48 half percent per annum. Any such rates set by the commissioner of 49 finance shall apply to taxes, or any portion thereof, which remain or 50 become due or overpaid on or after the date on which such rates become 51 effective and shall apply only with respect to interest computed or 52 computable for periods or portions of periods occurring in the period 53 during which such rates are in effect. 54 S 21. Subdivision 7 of section 11-688 of the administrative code of 55 the city of New York, as added by section 22 of part M of chapter 686 of 56 the laws of 2003, is amended to read as follows: S. 4610--A 89 A. 6721--A 1 7. Notwithstanding anything in subdivision one of this section, the 2 commissioner of finance may disclose to a taxpayer or a taxpayer's 3 related member, as defined in paragraph (n) of subdivision eight of 4 section 11-602, PARAGRAPH (N) OF SUBDIVISION EIGHT OF SECTION 11-652 or 5 paragraph one of subdivision (q) of section 11-641 of this chapter, 6 information relating to any royalty paid, incurred or received by such 7 taxpayer or related member to or from the other, including the treatment 8 of such payments by the taxpayer or the related member in any report or 9 return transmitted to the commissioner of finance under this title. 10 S 22. Paragraph 4 of subdivision (f) of section 11-704 of the adminis- 11 trative code of the city of New York, as amended by chapter 831 of the 12 laws of 1992, is amended to read as follows: 13 (4) No tenant shall be authorized to receive a reduction in base rent 14 subject to tax under the provisions of this subdivision, until the prem- 15 ises with respect to which it is claiming a reduction in base rent meet 16 the requirements in the definition of eligible premises and until it has 17 obtained a certification of eligibility from the mayor or an agency 18 designated by the mayor, and an annual certification from the mayor or 19 an agency designated by the mayor as to the number of eligible aggregate 20 employment shares maintained by such tenant which may qualify for 21 obtaining a base rent reduction for the tenant's tax year. Any written 22 documentation submitted to the mayor or such agency or agencies in order 23 to obtain any such certification shall be deemed a written instrument 24 for purposes of section 175.00 of the penal law. Application fees for 25 such certifications shall be determined by the mayor or such agency or 26 agencies. No certification of eligibility shall be issued to an eligible 27 business on or after July first, nineteen hundred ninety-nine unless 28 such business meets the requirements of either subparagraph (a) or (b) 29 below: 30 (a) (1) prior to such date such business has purchased, leased or 31 entered into a contract to purchase or lease particular premises or a 32 parcel on which will be constructed such premises or already owned such 33 premises or parcel; 34 (2) prior to such date improvements have been commenced on such prem- 35 ises or parcel which improvements will meet the requirements of subdivi- 36 sion (e) of section 22-621 of this code relating to expenditures for 37 improvements; 38 (3) prior to such date such business submits a preliminary application 39 for a certification of eligibility to such mayor or such agency or agen- 40 cies with respect to a proposed relocation to such particular premises; 41 and 42 (4) such business relocates to such particular premises not later than 43 thirty-six months or, in a case in which the expenditures made for the 44 improvements specified in clause two of this subparagraph are in excess 45 of fifty million dollars within seventy-two months from the date of 46 submission of such preliminary application; or 47 (b) (1) not later than June thirtieth, two thousand two, such business 48 has purchased, leased or entered into a contract to purchase or lease 49 particular premises wholly contained in a building in which at least an 50 aggregate of forty per centum or two hundred thousand square feet, 51 whichever is less, of the nonresidential floor area of such building has 52 been purchased or leased by a business or businesses which meet or will 53 meet the requirements of subparagraph (a) of this paragraph with respect 54 to such floor area and which are or will become certified as eligible to 55 receive a credit under section 22-622 of this code with respect to such 56 floor area; S. 4610--A 90 A. 6721--A 1 (2) not later than June thirtieth, two thousand two, such business 2 submits a preliminary application for a certification of eligibility to 3 such mayor or such agency or agencies with respect to a proposed relo- 4 cation to such particular premises; and 5 (3) not later than June thirtieth, two thousand two, such business 6 relocates to such particular premises. 7 Any tenant subject to a tax imposed under chapter five, or subchapter 8 two [or], three OR THREE-A of chapter six, of this title obtaining a 9 certification of eligibility pursuant to subdivision (b) of section 10 22-622 of the code shall be deemed to have obtained the certification of 11 eligibility required by this paragraph. 12 S 23. Subdivision (a) and the opening paragraph of subdivision (o) of 13 section 22-621 of the administrative code of the city of New York, 14 subdivision (a) as amended by chapter 149 of the laws of 1999 and the 15 opening paragraph of subdivision (o) as added by chapter 143 of the laws 16 of 2004, are amended to read as follows: 17 (a) "Eligible Business." Any person subject to a tax imposed under 18 chapter five, or subchapter two [or], three OR THREE-A of chapter six, 19 or chapter eleven, of title eleven of the code, that: (1) has been 20 conducting substantial business operations at one or more business 21 locations outside the eligible area for the twenty-four consecutive 22 months immediately preceding the taxable year during which such eligible 23 business relocates as defined in subdivision (j) of this section; and 24 (2) on or after May twenty-seventh, nineteen hundred eighty-seven relo- 25 cates as defined in subdivision (j) of this section all or part of such 26 business operations; and (3) either (i) on or after May twenty-seventh, 27 nineteen hundred eighty-seven first enters into a contract to purchase 28 or lease the premises to which it relocates as defined in subdivision 29 (j) of this section, or a parcel on which will be constructed such prem- 30 ises, or (ii) as of May twenty-seventh, nineteen hundred eighty-seven 31 owns such parcel or premises and has not prior to such date made appli- 32 cation for benefits pursuant to part four of subchapter two of chapter 33 two of title eleven of the code. 34 "Total attributed eligible aggregate employment shares" means, for any 35 relocation, the sum of the number of eligible aggregate employment 36 shares apportioned to such relocation pursuant to paragraph one of this 37 subdivision, less any excess shares determined with respect to such 38 relocation pursuant to paragraph two of this subdivision, plus any 39 excess shares attributed to such relocation pursuant to paragraph three 40 of this subdivision. Except as provided in paragraph four of this subdi- 41 vision, any eligible aggregate employment shares that are attributed to 42 a relocation to particular premises pursuant to paragraph three of this 43 subdivision shall be treated as eligible aggregate employment shares 44 that are maintained with respect to such premises and shall be subject 45 to all provisions of this chapter and the provisions for a credit 46 against a tax imposed under chapter five or subchapter two [or], three 47 OR THREE-A of chapter six or chapter eleven of title eleven of the code 48 as such provisions pertain to such relocation. 49 S 24. Subdivisions (a) and (d) of section 22-622 of the administrative 50 code of the city of New York, subdivision (a) as amended and subdivision 51 (d) as added by chapter 149 of the laws of 1999, are amended to read as 52 follows: 53 (a) An eligible business that relocates as defined in subdivision (j) 54 of section 22-621 of the code shall be allowed to receive a credit 55 against a tax imposed by chapter five, or subchapter two [or], three OR 56 THREE-A of chapter six, or chapter eleven, of title eleven of the code, S. 4610--A 91 A. 6721--A 1 as described in subdivision (i) of section 11-503, subdivision seventeen 2 of section 11-604, SUBDIVISION SEVENTEEN OF SECTION 11-654, section 3 11-643.7 and section 11-1105.2 of the code, and a reduction in base rent 4 subject to tax as described in subdivision f of section 11-704 of the 5 code, provided, however, notwithstanding any other provision of law to 6 the contrary, no such credit shall be allowed against the tax imposed 7 under such chapter eleven for a relocation taking place prior to January 8 first, nineteen hundred ninety-nine. 9 (d) An eligible business other than a utility company subject to the 10 supervision of the department of public service shall not be authorized 11 to receive a credit against the gross receipts tax imposed under chapter 12 eleven of title eleven of the code, unless such eligible business elects 13 to take the credit authorized by this section against the tax imposed by 14 such chapter on an application filed with respect to the first relo- 15 cation of such business that qualifies or will qualify under this 16 section, with the mayor or the agency designated by such mayor pursuant 17 to subdivision (b) of this section. The election authorized by this 18 subdivision may not be withdrawn after the issuance of such certif- 19 ication of eligibility. No taxpayer that has previously received a 20 certification of eligibility to receive such credit against any tax 21 imposed by chapter five or subchapter two [or], three OR THREE-A of 22 chapter six of title eleven of the code may make the election authorized 23 by this subdivision. No taxpayer that makes the election provided in 24 this subdivision shall be authorized to take such credit against any tax 25 imposed by chapter five or subchapter two [or], three OR THREE-A of 26 chapter six of title eleven of the code. 27 S 25. Subdivisions (a) and (l) of section 22-623 of the administrative 28 code of the city of New York, subdivision (a) as added by chapter 143 of 29 the laws of 2004 and subdivision (l) as added by section 10 of part E of 30 chapter 2 of the laws of 2005, are amended to read as follows: 31 (a) "Eligible business" means any person subject to a tax imposed 32 under chapter five, or subchapter two [or], three OR THREE-A of chapter 33 six, or chapter eleven, of title eleven of the code, that: 34 (1) has been conducting substantial business operations at one or more 35 business locations outside the city of New York for the twenty-four 36 consecutive months immediately preceding the taxable year during which 37 such eligible business relocates as defined in subdivision (j) of this 38 section but has not maintained employment shares at premises in the city 39 of New York at any time during the period beginning January first, two 40 thousand two and ending on the date it enters into a lease or a contract 41 to purchase the premises that will qualify as eligible premises pursuant 42 to this chapter; and 43 (2) on or after July first, two thousand three relocates as defined in 44 subdivision (j) of this section all or part of such business operations. 45 (l) "Special eligible business" means any person subject to a tax 46 imposed under chapter five, or subchapter two [or], three OR THREE-A of 47 chapter six, or chapter eleven, of title eleven of the code, that: (1) 48 has been conducting substantial business operations at one or more busi- 49 ness locations outside the city of New York for the twenty-four consec- 50 utive months immediately preceding the taxable year during which such 51 eligible business relocates as defined in subdivision (m); (2) main- 52 tained employment shares at premises in Manhattan in the city of New 53 York at some time during the period beginning January first, two thou- 54 sand two, and ending on the date it enters into a lease or a contract to 55 purchase the premises that will qualify as eligible premises pursuant to 56 this section, and (3) on or after June thirtieth, two thousand five, S. 4610--A 92 A. 6721--A 1 relocates as defined in subdivision (m) of this section all or part of 2 such business operations. 3 S 26. Subdivisions (a) and (d) of section 22-624 of the administrative 4 code of the city of New York, subdivision (a) as amended by section 11 5 of part E of chapter 2 of the laws of 2005 and subdivision (d) as 6 amended by section 12 of part E of chapter 2 of the laws of 2005, are 7 amended to read as follows: 8 (a) An eligible business that relocates as defined in subdivision (j) 9 of section 22-623 of this chapter or a special eligible business that 10 relocates as defined in subdivision (m) of section 22-623 of this chap- 11 ter shall be allowed to receive a credit against a tax imposed by chap- 12 ter five, or subchapter two [or], three OR THREE-A of chapter six, or 13 chapter eleven, of title eleven of the code, as described in subdivision 14 (l) of section 11-503, subdivision nineteen of section 11-604, SUBDIVI- 15 SION NINETEEN OF SECTION 11-654, section 11-643.9 or section 11-1105.3 16 of the code. 17 (d) An eligible business or special eligible business other than a 18 utility company subject to the supervision of the department of public 19 service shall not be authorized to receive a credit against the gross 20 receipts tax imposed under chapter eleven of title eleven of the code 21 unless such eligible business or special eligible business elects to 22 take the credit authorized by this section against the tax imposed by 23 such chapter on its application filed with the mayor or the agency 24 designated by such mayor pursuant to subdivision (b) of this section. 25 The election authorized by this subdivision may not be withdrawn after 26 the issuance of such certification of eligibility. No taxpayer that has 27 previously received a certification of eligibility to receive such cred- 28 it against any tax imposed by chapter five or subchapter two [or], three 29 OR THREE-A of chapter six of title eleven of the code may make the 30 election authorized by this subdivision. No taxpayer that makes the 31 election provided in this subdivision shall be authorized to take such 32 credit against any tax imposed by chapter five or subchapter two [or], 33 three OR THREE-A of chapter six of title eleven of the code. 34 S 27. No addition to tax under subdivision 3 of section 11-676 of the 35 administrative code of the city of New York shall be imposed with 36 respect to declarations or payments of estimated tax required under 37 sections 11-657 and 11-658 of the administrative code of the city of New 38 York for declarations otherwise required to be filed and payments other- 39 wise required to be made, by reason of section one of this act, prior to 40 or on June 15, 2015, on the condition that the taxpayer files such 41 declarations and makes such payments no later than the first date 42 following June 15, 2015 on which an installment of estimated tax is 43 required to be paid, together with all other such declarations and 44 payments then due. 45 S 28. Severability clause. If any clause, sentence, paragraph, subdi- 46 vision, section or part of this act shall be adjudged by any court of 47 competent jurisdiction to be invalid, such judgment shall not affect, 48 impair, or invalidate the remainder thereof, but shall be confined in 49 its operation to the clause, sentence, paragraph, subdivision, section 50 or part thereof directly involved in the controversy in which such judg- 51 ment shall have been rendered. It is hereby declared to be the intent of 52 the legislature that this act would have been enacted even if such 53 invalid provisions had not been included herein. 54 S 29. This act shall take effect immediately and shall apply to taxa- 55 ble years beginning on or after January 1, 2015. S. 4610--A 93 A. 6721--A 1 PART E 2 Section 1. Chapter 567 of the laws of 2010 relating to establishing a 3 special commission on compensation, and providing for their powers and 4 duties; and to provide periodic salary increases to state officers is 5 REPEALED. 6 S 2. 1. On the first of June of every fourth year, commencing June 1, 7 2015, there shall be established a commission on legislative, judicial 8 and executive compensation to examine, evaluate and make recommendations 9 with respect to adequate levels of compensation and non-salary benefits 10 for members of the legislature, judges and justices of the state-paid 11 courts of the unified court system, statewide elected officials, and 12 those state officers referred to in section 169 of the executive law. 13 2. (a) In accordance with the provisions of this section, the commis- 14 sion shall examine: (1) the prevailing adequacy of pay levels and other 15 non-salary benefits received by members of the legislature, statewide 16 elected officials, and those state officers referred to in section 169 17 of the executive law; and 18 (2) the prevailing adequacy of pay levels and non-salary benefits 19 received by the judges and justices of the state-paid courts of the 20 unified court system and housing judges of the civil court of the city 21 of New York and determine whether any of such pay levels warrant adjust- 22 ment; and 23 (b) The commission shall determine whether: (1) for any of the four 24 years commencing on the first of April of such years, following the year 25 in which the commission is established, the annual salaries for the 26 judges and justices of the state-paid courts of the unified court system 27 and housing judges of the civil court of the city of New York warrant an 28 increase; and 29 (2) on the first of January after the November general election at 30 which members of the state legislature are elected following the year in 31 which the commission is established, and on the first of January follow- 32 ing the next such election, the like annual salaries and allowances of 33 members of the legislature, and salaries of statewide elected officials 34 and state officers referred to in section 169 of the executive law 35 warrant an increase. 36 3. In discharging its responsibilities under subdivision two of this 37 section, the commission shall take into account all appropriate factors 38 including, but not limited to: the overall economic climate; rates of 39 inflation; changes in public-sector spending; the levels of compensation 40 and non-salary benefits received by executive branch officials and 41 legislators of other states and of the federal government; the levels of 42 compensation and non-salary benefits received by professionals in 43 government, academia and private and nonprofit enterprise; and the 44 state's ability to fund increases in compensation and non-salary bene- 45 fits. 46 S 3. 1. The commission shall consist of seven members to be appointed 47 as follows: three shall be appointed by the governor; one shall be 48 appointed by the temporary president of the senate; one shall be 49 appointed by the speaker of the assembly; and two shall be appointed by 50 the chief judge of the state, one of whom shall serve as chair of the 51 commission. With regard to any matters regarding legislative or execu- 52 tive compensation, the chair shall preside but not vote. Vacancies in 53 the commission shall be filled in the same manner as original appoint- 54 ments. To the extent practicable, members of the commission shall have S. 4610--A 94 A. 6721--A 1 experience in one or more of the following: determination of executive 2 compensation, human resource administration or financial management. 3 2. The commission shall only meet within the state, may hold public 4 hearings, at least one of which shall be open for the public to provide 5 comments and shall have all the powers of a legislative committee pursu- 6 ant to the legislative law. It shall be governed by articles 6, 6-A and 7 7 of the public officers law. 8 3. The members of the commission shall receive no compensation for 9 their services but shall be allowed their actual and necessary expenses 10 incurred in the performance of their duties hereunder. 11 4. No member of the commission shall be disqualified from holding any 12 other public office or employment, nor shall he or she forfeit any such 13 office or employment by reason of his or her appointment pursuant to 14 this section, notwithstanding the provisions of any general, special or 15 local law, regulation, ordinance or city charter. 16 5. To the maximum extent feasible, the commission shall be entitled to 17 request and receive and shall utilize and be provided with such facili- 18 ties, resources and data of any court, department, division, board, 19 bureau, commission, agency or public authority of the state or any poli- 20 tical subdivision thereof as it may reasonably request to carry out 21 properly its powers and duties pursuant to this section. 22 6. The commission may request, and shall receive, reasonable assist- 23 ance from state agency personnel as necessary for the performance of its 24 function. 25 7. The commission shall make a report to the governor, the legisla- 26 ture and the chief judge of the state of its findings, conclusions, 27 determinations and recommendations, if any, not later than the thirty- 28 first of December of the year in which the commission is established for 29 judicial compensation and the fifteenth of November the following year 30 for legislative and executive compensation. Any findings, conclusions, 31 determinations and recommendations in the report must be adopted by a 32 majority vote of the commission and findings, conclusions, determi- 33 nations and recommendations with respect to executive and legislative 34 compensation shall also be supported by at least one member appointed by 35 each appointing authority. Each recommendation made to implement a 36 determination pursuant to section two of this act shall have the force 37 of law, and shall supersede, where appropriate, inconsistent provisions 38 of article 7-B of the judiciary law, section 169 of the executive law, 39 and sections 5 and 5-a of the legislative law, unless modified or abro- 40 gated by statute prior to April first of the year as to which such 41 determination applies to judicial compensation and January first of the 42 year as to which such determination applies to legislative and executive 43 compensation. 44 8. Upon the making of its report as provided in subdivision seven of 45 this section, each commission established pursuant to this section shall 46 be deemed dissolved. 47 S 4. Date of entitlement to salary increase. Notwithstanding the 48 provisions of this act or of any other law, each increase in salary or 49 compensation of any officer or employee provided by this act shall be 50 added to the salary or compensation of such officer or employee at the 51 beginning of that payroll period the first day of which is nearest to 52 the effective date of such increase as provided in this act, or at the 53 beginning of the earlier of two payroll periods the first days of which 54 are nearest but equally near to the effective date of such increase as 55 provided in this act; provided, however, the payment of such salary 56 increase pursuant to this section on a date prior thereto instead of on S. 4610--A 95 A. 6721--A 1 such effective date, shall not operate to confer any additional salary 2 rights or benefits on such officer or employee. The annual salaries as 3 prescribed pursuant to this act whenever adjusted pursuant to the 4 provisions of this act, shall be rounded up to the nearest multiple of 5 one hundred dollars. 6 S 5. This act shall take effect immediately and shall be deemed to 7 have been in full force and effect on and after April 1, 2015. 8 PART F 9 Section 1. This act shall be known and may be cited as the "Infras- 10 tructure investment act". 11 S 2. For the purposes of this act: 12 (a) "authorized state entity" shall mean the New York state thruway 13 authority, the department of transportation, the office of parks, recre- 14 ation and historic preservation, the department of environmental conser- 15 vation and the New York state bridge authority. 16 (b) "best value" shall mean the basis for awarding contracts for 17 services to the offerer that optimize quality, cost and efficiency, 18 price and performance criteria, which may include, but is not limited 19 to: 20 1. The quality of the contractor's performance on previous projects; 21 2. The timeliness of the contractor's performance on previous 22 projects; 23 3. The level of customer satisfaction with the contractor's perform- 24 ance on previous projects; 25 4. The contractor's record of performing previous projects on budget 26 and ability to minimize cost overruns; 27 5. The contractor's ability to limit change orders; 28 6. The contractor's ability to prepare appropriate project plans; 29 7. The contractor's technical capacities; 30 8. The individual qualifications of the contractor's key personnel; 31 9. The contractor's ability to assess and manage risk and minimize 32 risk impact; and 33 10. The contractor's past record of compliance with article 15-A of 34 the executive law. 35 Such basis shall reflect, wherever possible, objective and quantifi- 36 able analysis. 37 (c) "capital project" shall have the same meaning as such term is 38 defined by subdivision 2-a of section 2 of the state finance law. 39 (d) "cost plus" shall mean compensating a contractor for the cost to 40 complete a contract by reimbursing actual costs for labor, equipment and 41 materials plus an additional amount for overhead and profit. 42 (e) "design-build contract" shall mean a contract for the design and 43 construction of a capital project with a single entity, which may be a 44 team comprised of separate entities. 45 (f) "procurement record" means documentation of the decisions made and 46 the approach taken in the procurement process. 47 S 3. Notwithstanding the provisions of section 38 of the highway law, 48 section 136-a of the state finance law, section 359 of the public 49 authorities law, section 7210 of the education law, and the provisions 50 of any other law to the contrary, and in conformity with the require- 51 ments of this act, an authorized state entity may utilize the alterna- 52 tive delivery method referred to as design-build contracts, in consulta- 53 tion with relevant local labor organizations and construction industry, 54 for capital projects related to the state's physical infrastructure, S. 4610--A 96 A. 6721--A 1 including, but not limited to, the state's highways, bridges, dams, 2 flood control projects, canals, and parks, including, but not limited 3 to, to repair damage caused by natural disaster, to correct health and 4 safety defects, to comply with federal and state laws, standards, and 5 regulations, to extend the useful life of or replace the state's high- 6 ways, bridges, dams, flood control projects, canals, and parks or to 7 improve or add to the state's highways, bridges, dams, flood control 8 projects, canals, and parks; provided that for the contracts executed by 9 the department of transportation, the office of parks, recreation and 10 historic preservation, or the department of environmental conservation, 11 the total cost of each such project shall not be less than one million 12 two hundred thousand dollars ($1,200,000). 13 S 4. An entity selected by an authorized state entity to enter into a 14 design-build contract shall be selected through a two-step method, as 15 follows: 16 (a) Step one. Generation of a list of entities that have demonstrated 17 the general capability to perform the design-build contract. Such list 18 shall consist of a specified number of entities, as determined by an 19 authorized state entity, and shall be generated based upon the author- 20 ized state entity's review of responses to a publicly advertised request 21 for qualifications. The authorized state entity's request for qualifica- 22 tions shall include a general description of the project, the maximum 23 number of entities to be included on the list, and the selection crite- 24 ria to be used in generating the list. Such selection criteria shall 25 include the qualifications and experience of the design and construction 26 team, organization, demonstrated responsibility, ability of the team or 27 of a member or members of the team to comply with applicable require- 28 ments, including the provisions of articles 145, 147 and 148 of the 29 education law, past record of compliance with the labor law, and such 30 other qualifications the authorized state entity deems appropriate which 31 may include but are not limited to project understanding, financial 32 capability and record of past performance. The authorized state entity 33 shall evaluate and rate all entities responding to the request for qual- 34 ifications. Based upon such ratings, the authorized state entity shall 35 list the entities that shall receive a request for proposals in accord- 36 ance with subdivision (b) of this section. To the extent consistent 37 with applicable federal law, the authorized state entity shall consider, 38 when awarding any contract pursuant to this section, the participation 39 of: (i) firms certified pursuant to article 15-A of the executive law as 40 minority or women-owned businesses and the ability of other businesses 41 under consideration to work with minority and women-owned businesses so 42 as to promote and assist participation by such businesses; and (ii) 43 small business concerns identified pursuant to subdivision (b) of 44 section 139-g of the state finance law. 45 (b) Step two. Selection of the proposal which is the best value to the 46 state. The authorized state entity shall issue a request for proposals 47 to the entities listed pursuant to subdivision (a) of this section. If 48 such an entity consists of a team of separate entities, the entities 49 that comprise such a team must remain unchanged from the entity as list- 50 ed pursuant to subdivision (a) of this section unless otherwise approved 51 by the authorized state entity. The request for proposals shall set 52 forth the project's scope of work, and other requirements, as determined 53 by the authorized state entity. The request for proposals shall specify 54 the criteria to be used to evaluate the responses and the relative 55 weight of each such criteria. Such criteria shall include the 56 proposal's cost, the quality of the proposal's solution, the qualifica- S. 4610--A 97 A. 6721--A 1 tions and experience of the design-build entity, and other factors 2 deemed pertinent by the authorized state entity, which may include, but 3 shall not be limited to, the proposal's project implementation, ability 4 to complete the work in a timely and satisfactory manner, maintenance 5 costs of the completed project, maintenance of traffic approach, and 6 community impact. Any contract awarded pursuant to this act shall be 7 awarded to a responsive and responsible entity that submits the 8 proposal, which, in consideration of these and other specified criteria 9 deemed pertinent to the project, offers the best value to the state, as 10 determined by the authorized state entity. Nothing herein shall be 11 construed to prohibit the authorized entity from negotiating final 12 contract terms and conditions including cost. 13 S 5. Any contract entered into pursuant to this act shall include a 14 clause requiring that any professional services regulated by articles 15 145, 147 and 148 of the education law shall be performed and stamped and 16 sealed, where appropriate, by a professional licensed in accordance with 17 such articles. 18 S 6. Construction for each capital project undertaken by the author- 19 ized state entity pursuant to this act shall be deemed a "public work" 20 to be performed in accordance with the provisions of article 8 of the 21 labor law, as well as subject to sections 200, 240, 241 and 242 of the 22 labor law and enforcement of prevailing wage requirements by the New 23 York state department of labor. 24 S 7. If otherwise applicable, capital projects undertaken by the 25 authorized state entity pursuant to this act shall be subject to section 26 135 of the state finance law and section 222 of the labor law. 27 S 8. Each contract entered into by the authorized state entity pursu- 28 ant to this section shall comply with the objectives and goals of minor- 29 ity and women-owned business enterprises pursuant to article 15-A of the 30 executive law or, for projects receiving federal aid, shall comply with 31 applicable federal requirements for disadvantaged business enterprises. 32 S 9. Capital projects undertaken by the authorized state entity pursu- 33 ant to this act shall be subject to the requirements of article 8 of the 34 environmental conservation law, and, where applicable, the requirements 35 of the national environmental policy act. 36 S 10. If otherwise applicable, capital projects undertaken by the 37 authorized state entity pursuant to this act shall be governed by 38 sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph 39 g of subdivision 9 of section 163 of the state finance law. 40 S 11. The submission of a proposal or responses or the execution of a 41 design-build contract pursuant to this act shall not be construed to be 42 a violation of section 6512 of the education law. 43 S 12. Nothing contained in this act shall limit the right or obli- 44 gation of the authorized state entity to comply with the provisions of 45 any existing contract, including any existing contract with or for the 46 benefit of the holders of the obligations of the authorized state enti- 47 ty, or to award contracts as otherwise provided by law. 48 S 13. Alternative construction awarding processes. (a) Notwithstand- 49 ing the provisions of any other law to the contrary, the authorized 50 state entity may award a construction contract: 51 1. To the contractor offering the best value; or 52 2. Utilizing a cost-plus not to exceed guaranteed maximum price form 53 of contract in which the authorized state entity shall be entitled to 54 monitor and audit all project costs. In establishing the schedule and 55 process for determining a guaranteed maximum price, the contract between 56 the authorized state entity and the contractor shall: S. 4610--A 98 A. 6721--A 1 (i) describe the scope of the work and the cost of performing such 2 work; 3 (ii) include a detailed line item cost breakdown; 4 (iii) include a list of all drawings, specifications and other infor- 5 mation on which the guaranteed maximum price is based; 6 (iv) include the dates for substantial and final completion on which 7 the guaranteed maximum price is based; and 8 (v) include a schedule of unit prices; or 9 3. Utilizing a lump sum contract in which the contractor agrees to 10 accept a set dollar amount for a contract which comprises a single bid 11 without providing a cost breakdown for all costs such as for equipment, 12 labor, materials, as well as such contractor's profit for completing all 13 items of work comprising the project. 14 (b) Capital projects undertaken by an authorized state entity may 15 include an incentive clause in the contract for various performance 16 objectives, but the incentive clause shall not include an incentive that 17 exceeds the quantifiable value of the benefit received by the state. The 18 authorized state entity shall establish such performance and payment 19 bonds as it deems necessary. 20 S 14. Prequalified contractors. (a) Notwithstanding any other 21 provision of law, the authorized state entity may maintain a list of 22 prequalified contractors who are eligible to submit a proposal pursuant 23 to this act and entry into such list shall be continuously available. 24 Prospective contractors may be prequalified as contractors to provide 25 particular types of construction, in accordance with general criteria 26 established by the authorized state entity which may include, but shall 27 not be limited to, the experience, past performance, ability to under- 28 take the type and complexity of work, financial capability, responsibil- 29 ity, compliance with equal employment opportunity requirements and anti- 30 discrimination laws, and reliability. Such prequalification may be by 31 categories designed by size and other factors. 32 (b) A contractor who is denied prequalification or whose prequalifica- 33 tion is revoked or suspended by the authorized state entity may appeal 34 such decision to the authorized state entity. If such a suspension 35 extends for more than three months, it shall be deemed a revocation of 36 the prequalification. The authorized state entity may proceed with the 37 contract award during any appeal. 38 S 15. Nothing in this act shall affect existing powers of New York 39 state public entities to use alternative project delivery methods. 40 S 16. A report shall be submitted on or no later than June 30, 2016 to 41 the governor, the temporary president of the senate and the speaker of 42 the assembly by the New York state urban development corporation 43 containing information on each authorized state entity that has entered 44 into a design-build contract pursuant to this act, which shall include, 45 but not be limited to, a description of each project, procurement infor- 46 mation including the short list of qualified bidders, the total cost of 47 each project, the estimated cost and schedule savings of each project, 48 an explanation of how the savings were determined, and whether a project 49 labor agreement was used, and if applicable, the justification for using 50 a project labor agreement. 51 S 17. This act shall take effect immediately and shall expire and be 52 deemed repealed 2 years after such date, provided that, projects with 53 requests for qualifications issued prior to such repeal shall be permit- 54 ted to continue under this act notwithstanding such repeal. 55 PART G S. 4610--A 99 A. 6721--A 1 Section 1. This act may be known and be cited as the "New York State 2 water infrastructure improvement act of 2015". 3 S 2. For purposes of this act: 4 1. "water quality infrastructure project" shall mean "sewage treatment 5 works" as defined in section 17-1903 of the environmental conservation 6 law or "eligible project" as defined in paragraphs (a), (b), (c) and (e) 7 of subdivision 4 of section 1160 of the public health law. 8 2. "construction" shall mean: 9 (a) for sewage treatment works, the same as defined in section 17-1903 10 of the environmental conservation law; and 11 (b) for eligible projects, the same meaning as defined in section 1160 12 of the public health law. 13 3. "municipality" shall mean any county, city, town, village, district 14 corporation, county or town improvement district, school district, Indi- 15 an nation or tribe recognized by the state or the United States with a 16 reservation wholly or partly within the boundaries of New York state, 17 any public benefit corporation or public authority established pursuant 18 to the laws of New York or any agency of New York state which is 19 empowered to construct and operate a water quality infrastructure 20 project, or any two or more of the foregoing which are acting jointly in 21 connection with a water quality infrastructure project. 22 S 3. 1. The environmental facilities corporation shall undertake and 23 provide state financial assistance payments, from funds appropriated for 24 such purpose, to municipalities in support of water quality infrastruc- 25 ture projects provided, however, in any such year that funds are appro- 26 priated for such purpose, no municipality shall receive more than five 27 million dollars of appropriated funds. Such state financial assistance 28 payments shall be awarded only to water quality infrastructure projects 29 for: 30 (a) replacement or repair of infrastructure; or 31 (b) compliance with environmental and public health laws and regu- 32 lations related to water quality. 33 2. Any state financial assistance payment awarded pursuant to this act 34 shall not exceed sixty percent of the project cost. 35 3. A municipality may make an application for such state financial 36 assistance payment, in a manner, form and timeframe and containing such 37 information as the environmental facilities corporation may require 38 provided however, such requirements shall not include a requirement for 39 prior listing on the intended use plan. 40 4. A municipality shall not be required to accept environmental facil- 41 ities corporation loan financing in order to obtain a state financial 42 assistance payment pursuant to this act if it can provide proof of 43 having obtained similarly low cost financing or other funding from 44 another source. 45 5. In awarding such state financial assistance payments, the environ- 46 mental facilities corporation shall consider and give preference to 47 municipalities that meet the hardship criteria established by the envi- 48 ronmental facilities corporation pursuant to section 1285-m of the 49 public authorities law and projects that result in the greatest water 50 quality improvement or greatest reduction in serious risk to public 51 health. For the purposes of this act, the hardship criteria of section 52 1285-m of the public authorities law shall also apply to sewage treat- 53 ment works defined in section 17-1903 of the environmental conservation 54 law. 55 S 4. This act shall take effect April 1, 2015. S. 4610--A 100 A. 6721--A 1 PART H 2 Section 1. The state finance law is amended by adding a new section 3 93-b to read as follows: 4 S 93-B. DEDICATED INFRASTRUCTURE INVESTMENT FUND. 1. DEDICATED INFRAS- 5 TRUCTURE INVESTMENT FUND. (A) THERE IS HEREBY ESTABLISHED IN THE JOINT 6 CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND 7 FINANCE A SPECIAL FUND TO BE KNOWN AS THE "DEDICATED INFRASTRUCTURE 8 INVESTMENT FUND". 9 (B) ACCOUNT. THE DEDICATED INFRASTRUCTURE INVESTMENT FUND SHALL 10 CONSIST OF ONE ACCOUNT, THE "INFRASTRUCTURE INVESTMENT ACCOUNT". MONEYS 11 IN THIS ACCOUNT SHALL BE KEPT SEPARATE AND NOT COMMINGLED WITH ANY OTHER 12 MONEYS IN THE CUSTODY OF THE COMPTROLLER. 13 (C) SOURCES OF FUNDS. THE SOURCES OF FUNDS SHALL CONSIST OF ALL MONEYS 14 COLLECTED THEREFOR, OR MONEYS CREDITED, APPROPRIATED OR TRANSFERRED 15 THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW OR ANY OTHER 16 MONEYS MADE AVAILABLE FOR THE PURPOSES OF THE FUND. ANY INTEREST 17 RECEIVED BY THE COMPTROLLER ON MONEYS ON DEPOSIT SHALL BE RETAINED AND 18 BECOME PART OF THE FUND, UNLESS OTHERWISE DIRECTED BY LAW. 19 2. USES OF FUNDS. FOLLOWING APPROPRIATION BY THE LEGISLATURE, MONEYS 20 IN THE INFRASTRUCTURE INVESTMENT ACCOUNT SHALL BE AVAILABLE TO FINANCE 21 PROJECTS, WORKS, ACTIVITIES OR PURPOSES NECESSARY TO SUPPORT STATEWIDE 22 INVESTMENTS AS APPROPRIATED BY THE LEGISLATURE. NOTHING CONTAINED IN 23 THIS SECTION SHALL BE CONSTRUED TO LIMIT IN ANY WAY THE PROJECTS, WORKS, 24 ACTIVITIES OR PURPOSES THAT CAN BE FINANCED FROM THIS ACCOUNT, INCLUDING 25 BUT NOT LIMITED TO LOANS OF MONEY TO PUBLIC CORPORATIONS OR AUTHORITIES 26 UNDER TERMS APPROVED BY THE DIRECTOR OF THE BUDGET. 27 3. TRANSFERS. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE 28 CONTRARY, FOR THE STATE FISCAL YEAR COMMENCING ON APRIL FIRST, TWO THOU- 29 SAND FIFTEEN, THE COMPTROLLER IS HEREBY AUTHORIZED TO TRANSFER MONIES 30 FROM THE DEDICATED INFRASTRUCTURE INVESTMENT FUND TO THE GENERAL FUND, 31 AND FROM THE GENERAL FUND TO THE DEDICATED INFRASTRUCTURE INVESTMENT 32 FUND, IN AN AMOUNT DETERMINED BY THE DIRECTOR OF THE BUDGET TO THE 33 EXTENT MONEYS ARE AVAILABLE IN THE FUND; PROVIDED, HOWEVER, THAT THE 34 COMPTROLLER IS ONLY AUTHORIZED TO TRANSFER MONIES FROM THE DEDICATED 35 INFRASTRUCTURE INVESTMENT FUND TO THE GENERAL FUND IN THE EVENT OF AN 36 ECONOMIC DOWNTURN AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION; 37 AND/OR TO FULFILL DISALLOWANCES AND/OR SETTLEMENTS RELATED TO OVER-PAY- 38 MENTS OF FEDERAL MEDICARE AND MEDICAID REVENUES IN EXCESS OF ONE HUNDRED 39 MILLION DOLLARS FROM ANTICIPATED LEVELS, AS DETERMINED BY THE DIRECTOR 40 OF THE BUDGET AND DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION. 41 (A) ECONOMIC DOWNTURN. NOTWITHSTANDING ANY LAW TO THE CONTRARY, FOR 42 THE PURPOSE OF THIS SECTION, THE COMMISSIONER OF LABOR SHALL CALCULATE 43 AND PUBLISH, ON OR BEFORE THE FIFTEENTH DAY OF EACH MONTH, A COMPOSITE 44 INDEX OF BUSINESS CYCLE INDICATORS. SUCH INDEX SHALL BE CALCULATED USING 45 MONTHLY DATA ON NEW YORK STATE EMPLOYMENT, TOTAL MANUFACTURING HOURS 46 WORKED, AND UNEMPLOYMENT PREPARED BY THE DEPARTMENT OF LABOR OR ITS 47 SUCCESSOR AGENCY, AND TOTAL SALES TAX COLLECTED NET OF LAW CHANGES, 48 PREPARED BY THE DEPARTMENT OF TAXATION AND FINANCE OR ITS SUCCESSOR 49 AGENCY. SUCH INDEX SHALL BE CONSTRUCTED IN ACCORDANCE WITH THE PROCE- 50 DURES FOR CALCULATING COMPOSITE INDEXES ISSUED BY THE CONFERENCE BOARD 51 OR ITS SUCCESSOR ORGANIZATION, AND ADJUSTED FOR SEASONAL VARIATIONS IN 52 ACCORDANCE WITH THE PROCEDURES ISSUED BY THE CENSUS BUREAU OF THE UNITED 53 STATES DEPARTMENT OF COMMERCE OR ITS SUCCESSOR AGENCY. IF THE COMPOSITE 54 INDEX DECLINES FOR FIVE CONSECUTIVE MONTHS, THE COMMISSIONER OF LABOR 55 SHALL NOTIFY THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY S. 4610--A 101 A. 6721--A 1 PRESIDENT OF THE SENATE, AND THE MINORITY LEADERS OF THE ASSEMBLY AND 2 THE SENATE. UPON SUCH NOTIFICATION, THE DIRECTOR OF THE BUDGET MAY 3 AUTHORIZE AND DIRECT THE COMPTROLLER TO TRANSFER FROM THE DEDICATED 4 INFRASTRUCTURE INVESTMENT FUND TO THE GENERAL FUND SUCH AMOUNTS AS THE 5 DIRECTOR OF THE BUDGET DEEMS NECESSARY TO MEET THE REQUIREMENTS OF THE 6 STATE FINANCIAL PLAN. THE AUTHORITY TO TRANSFER FUNDS UNDER THE 7 PROVISIONS OF THIS PARAGRAPH SHALL LAPSE WHEN THE COMPOSITE INDEX SHALL 8 HAVE INCREASED FOR FIVE CONSECUTIVE MONTHS OR TWELVE MONTHS FROM THE 9 ORIGINAL NOTIFICATION OF THE COMMISSIONER OF LABOR, WHICHEVER OCCURS 10 EARLIER. PROVIDED, HOWEVER, THAT FOR EVERY ADDITIONAL AND CONSECUTIVE 11 MONTHLY DECLINE SUCCEEDING THE FIVE MONTH DECLINE SO NOTED BY THE 12 COMMISSIONER OF LABOR, THE TWELVE MONTH LAPSE DATE SHALL BE EXTENDED BY 13 ONE ADDITIONAL MONTH. 14 (B) FEDERAL MEDICARE AND MEDICAID REVENUES. NOTWITHSTANDING ANY LAW TO 15 THE CONTRARY, THE DIRECTOR OF THE BUDGET MAY AUTHORIZE AND DIRECT THE 16 COMPTROLLER TO TRANSFER FROM THE DEDICATED INFRASTRUCTURE INVESTMENT 17 FUND TO THE GENERAL FUND AN AMOUNT NOT TO EXCEED THE DISALLOWANCES 18 AND/OR SETTLEMENTS RELATED TO THE OVER-PAYMENTS OF FEDERAL MEDICARE AND 19 MEDICAID REVENUES. IN THE EVENT THIS AUTHORIZATION IS UTILIZED, THE 20 DIRECTOR OF THE BUDGET MAY AUTHORIZE AND DIRECT THE COMPTROLLER TO 21 TRANSFER SUCH AMOUNT AND THE CONCOMITANT REDUCTION IN STATE SHARE MEDI- 22 CARE AND MEDICAID REVENUES FROM THE GENERAL FUND TO THE MISCELLANEOUS 23 SPECIAL REVENUE FUND, MENTAL HYGIENE PROGRAM FUND (21907), THE MISCELLA- 24 NEOUS SPECIAL REVENUE FUND, PATIENT INCOME ACCOUNT (21909), AND THE 25 MEDICAID MANAGEMENT INFORMATION SYSTEM (MMIS) STATEWIDE ESCROW FUND 26 (60901). 27 (C) PRIOR TO AUTHORIZING ANY TRANSFER FROM THE DEDICATED INFRASTRUC- 28 TURE INVESTMENT FUND ACCOUNTS PURSUANT TO THE PROVISIONS OF THIS 29 SECTION, THE DIRECTOR OF THE BUDGET SHALL NOTIFY THE SPEAKER OF THE 30 ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE MINORITY LEAD- 31 ERS OF THE ASSEMBLY AND THE SENATE. SUCH LETTER SHALL SPECIFY THE 32 REASONS FOR THE TRANSFER AND THE AMOUNT THEREOF. 33 S 2. This act shall take effect immediately. 34 PART I 35 Section 1. The state comptroller is hereby authorized and directed to 36 loan money in accordance with the provisions set forth in subdivision 5 37 of section 4 of the state finance law to the following funds and/or 38 accounts: 39 1. Tuition reimbursement account (20451). 40 2. Proprietary vocational school supervision account (20452). 41 3. Local government records management account (20501). 42 4. Child health plus program account (20810). 43 5. EPIC premium account (20818). 44 6. Education - New (20901). 45 7. VLT - Sound basic education fund (20904). 46 8. Sewage treatment program management and administration fund 47 (21000). 48 9. Hazardous bulk storage account (21061). 49 10. Federal grants indirect cost recovery account (21065). 50 11. Low level radioactive waste account (21066). 51 12. Recreation account (21067). 52 13. Public safety recovery account (21077). 53 14. Environmental regulatory account (21081). 54 15. Natural resource account (21082). S. 4610--A 102 A. 6721--A 1 16. Mined land reclamation program account (21084). 2 17. Great lakes restoration initiative account (21087). 3 18. Environmental protection and oil spill compensation fund (21200). 4 19. Public transportation systems account (21401). 5 20. Metropolitan mass transportation (21402). 6 21. Operating permit program account (21451). 7 22. Mobile source account (21452). 8 23. Statewide planning and research cooperative system account 9 (21902). 10 24. OPWDD provider of service account (21903). 11 25. Mental hygiene program fund account (21907). 12 26. Mental hygiene patient income account (21909). 13 27. Financial control board account (21911). 14 28. Regulation of racing account (21912). 15 29. New York Metropolitan Transportation Council account (21913). 16 30. State university dormitory income reimbursable account (21937). 17 31. Energy research account (21943). 18 32. Criminal justice improvement account (21945). 19 33. Fingerprint identification and technology account (21950). 20 34. Environmental laboratory reference fee account (21959). 21 35. Clinical laboratory reference system assessment account (21962). 22 36. Indirect cost recovery account (21978). 23 37. High school equivalency program account (21979). 24 38. Multi-agency training account (21989). 25 39. Bell jar collection account (22003). 26 40. Industry and utility service account (22004). 27 41. Real property disposition account (22006). 28 42. Parking account (22007). 29 43. Asbestos safety training program account (22009). 30 44. Batavia school for the blind account (22032). 31 45. Investment services account (22034). 32 46. Surplus property account (22036). 33 47. Financial oversight account (22039). 34 48. Regulation of indian gaming account (22046). 35 49. Rome school for the deaf account (22053). 36 50. Seized assets account (22054). 37 51. Administrative adjudication account (22055). 38 52. Federal salary sharing account (22056). 39 53. New York City assessment account (22062). 40 54. Cultural education account (22063). 41 55. Local services account (22078). 42 56. DHCR mortgage servicing account (22085). 43 57. Department of motor vehicles compulsory insurance account (22087). 44 58. Housing indirect cost recovery account (22090). 45 59. Accident prevention course program account (22094). 46 60. DHCR-HCA application fee account (22100). 47 61. Low income housing monitoring account (22130). 48 62. Corporation administration account (22135). 49 63. Montrose veteran's home account (22144). 50 64. Deferred compensation administration account (22151). 51 65. Rent revenue other New York City account (22156). 52 66. Rent revenue account (22158). 53 67. Tax revenue arrearage account (22168). 54 68. State university general income offset account (22654). 55 69. State police motor vehicle law enforcement account (22802). 56 70. Highway safety program account (23001). S. 4610--A 103 A. 6721--A 1 71. EFC drinking water program account (23101). 2 72. DOH drinking water program account (23102). 3 73. NYCCC operating offset account (23151). 4 74. Commercial gaming revenue account (23701). 5 75. Commercial gaming regulation account (23702). 6 76. Highway and bridge capital account (30051). 7 77. State university residence hall rehabilitation fund (30100). 8 78. State parks infrastructure account (30351). 9 79. Clean water/clean air implementation fund (30500). 10 80. Hazardous waste remedial cleanup account (31506). 11 81. Youth facilities improvement account (31701). 12 82. Housing assistance fund (31800). 13 83. Housing program fund (31850). 14 84. Highway facility purpose account (31951). 15 85. Information technology capital financing account (32215). 16 86. New York racing account (32213). 17 87. Mental hygiene facilities capital improvement fund (32300). 18 88. Correctional facilities capital improvement fund (32350). 19 89. New York State Storm Recovery Capital Fund (33000). 20 90. OGS convention center account (50318). 21 91. Centralized services fund (55000). 22 92. Archives records management account (55052). 23 93. Federal single audit account (55053). 24 94. Civil service law section II administrative account (55055). 25 95. Civil service EHS occupational health program account (55056). 26 96. Banking services account (55057). 27 97. Cultural resources survey account (55058). 28 98. Neighborhood work project (55059). 29 99. Automation & printing chargeback account (55060). 30 100. OFT NYT account (55061). 31 101. Data center account (55062). 32 102. Intrusion detection account (55066). 33 103. Domestic violence grant account (55067). 34 104. Centralized technology services account (55069). 35 105. Labor contact center account (55071). 36 106. Human services contact center account (55072). 37 107. Tax contact center account (55073). 38 108. Executive direction internal audit account (55251). 39 109. CIO Information technology centralized services account (55252). 40 110. Health insurance internal service account (55300). 41 111. Civil service employee benefits division administrative account 42 (55301). 43 112. Correctional industries revolving fund (55350). 44 113. Employees health insurance account (60201). 45 114. Medicaid management information system escrow fund (60900). 46 S 1-a. The state comptroller is hereby authorized and directed to loan 47 money in accordance with the provisions set forth in subdivision 5 of 48 section 4 of the state finance law to any account within the following 49 federal funds, provided the comptroller has made a determination that 50 sufficient federal grant award authority is available to reimburse such 51 loans: 52 1. Federal USDA-food and nutrition services fund (25000). 53 2. Federal health and human services fund (25100). 54 3. Federal education fund (25200). 55 4. Federal block grant fund (25250). 56 5. Federal miscellaneous operating grants fund (25300). S. 4610--A 104 A. 6721--A 1 6. Federal unemployment insurance administration fund (25900). 2 7. Federal unemployment insurance occupational training fund (25950). 3 8. Federal emergency employment act fund (26000). 4 9. Federal capital projects fund (31350). 5 S 2. Notwithstanding any law to the contrary, and in accordance with 6 section 4 of the state finance law, the comptroller is hereby authorized 7 and directed to transfer, upon request of the director of the budget, on 8 or before March 31, 2016, up to the unencumbered balance or the follow- 9 ing amounts: 10 Economic Development and Public Authorities: 11 1. $175,000 from the miscellaneous special revenue fund, underground 12 facilities safety training account (22172), to the general fund. 13 2. An amount up to the unencumbered balance from the miscellaneous 14 special revenue fund, business and licensing services account (21977), 15 to the general fund. 16 3. $14,810,000 from the miscellaneous special revenue fund, code 17 enforcement account (21904), to the general fund. 18 4. $3,000,000 from the general fund to the miscellaneous special 19 revenue fund, tax revenue arrearage account (22168). 20 5. $552,000 from the miscellaneous special revenue fund, consumer food 21 industry account (21966), to the general fund. 22 Education: 23 1. $2,219,000,000 from the general fund to the state lottery fund, 24 education account (20901), as reimbursement for disbursements made from 25 such fund for supplemental aid to education pursuant to section 92-c of 26 the state finance law that are in excess of the amounts deposited in 27 such fund for such purposes pursuant to section 1612 of the tax law. 28 2. $950,000,000 from the general fund to the state lottery fund, VLT 29 education account (20904), as reimbursement for disbursements made from 30 such fund for supplemental aid to education pursuant to section 92-c of 31 the state finance law that are in excess of the amounts deposited in 32 such fund for such purposes pursuant to section 1612 of the tax law. 33 3. Moneys from the state lottery fund up to an amount deposited in 34 such fund pursuant to section 1612 of the tax law in excess of the 35 current year appropriation for supplemental aid to education pursuant to 36 section 92-c of the state finance law. 37 4. $300,000 from the local government records management improvement 38 fund (20500) to the archives partnership trust fund (20350). 39 5. $900,000 from the general fund to the miscellaneous special revenue 40 fund, Batavia school for the blind account (22032). 41 6. $900,000 from the general fund to the miscellaneous special revenue 42 fund, Rome school for the deaf account (22053). 43 7. $343,400,000 from the state university dormitory income fund 44 (40350) to the miscellaneous special revenue fund, state university 45 dormitory income reimbursable account (21937). 46 8. $24,000,000 from any of the state education department special 47 revenue and internal service funds to the miscellaneous special revenue 48 fund, indirect cost recovery account (21978). 49 9. $8,318,000 from the general fund to the state university income 50 fund, state university income offset account (22654), for the state's 51 share of repayment of the STIP loan. 52 10. $45,000,000 from the state university income fund, state universi- 53 ty hospitals income reimbursable account (22656) to the general fund for 54 hospital debt service for the period April 1, 2015 through March 31, 55 2016. 56 Environmental Affairs: S. 4610--A 105 A. 6721--A 1 1. $16,000,000 from any of the department of environmental conserva- 2 tion's special revenue federal funds to the environmental conservation 3 special revenue fund, federal indirect recovery account (21065). 4 2. $2,000,000 from any of the department of environmental conserva- 5 tion's special revenue federal funds to the conservation fund as neces- 6 sary to avoid diversion of conservation funds. 7 3. $3,000,000 from any of the office of parks, recreation and historic 8 preservation capital projects federal funds and special revenue federal 9 funds to the miscellaneous special revenue fund, federal grant indirect 10 cost recovery account (22188). 11 4. $1,000,000 from any of the office of parks, recreation and historic 12 preservation special revenue federal funds to the miscellaneous special 13 revenue fund, I love NY water account (21930). 14 5. $23,000,000 from the general fund to the environmental protection 15 fund, environmental protection fund transfer account (30451). 16 6. $8,500,000 from the general fund to the hazardous waste remedial 17 fund, hazardous waste oversight and assistance account (31505). 18 7. $25,000,000 from the environmental protection fund, environmental 19 protection transfer account (30451), to the general fund. 20 Family Assistance: 21 1. $10,000,000 from any of the office of children and family services, 22 office of temporary and disability assistance, or department of health 23 special revenue federal funds and the general fund, in accordance with 24 agreements with social services districts, to the miscellaneous special 25 revenue fund, office of human resources development state match account 26 (21967). 27 2. $3,000,000 from any of the office of children and family services 28 or office of temporary and disability assistance special revenue federal 29 funds to the miscellaneous special revenue fund, family preservation and 30 support services and family violence services account (22082). 31 3. $18,670,000 from any of the office of children and family services, 32 office of temporary and disability assistance, or department of health 33 special revenue federal funds and any other miscellaneous revenues 34 generated from the operation of office of children and family services 35 programs to the general fund. 36 4. $166,000,000 from any of the office of temporary and disability 37 assistance or department of health special revenue funds to the general 38 fund. 39 5. $2,500,000 from any of the office of temporary and disability 40 assistance or office of children and family services special revenue 41 federal funds to the miscellaneous special revenue fund, office of 42 temporary and disability assistance program account (21980). 43 6. $35,000,000 from any of the office of children and family services, 44 office of temporary and disability assistance, department of labor, and 45 department of health special revenue federal funds to the office of 46 children and family services miscellaneous special revenue fund, multi- 47 agency training contract account (21989). 48 7. $65,000,000 from the miscellaneous special revenue fund, youth 49 facility per diem account (22186), to the general fund. 50 8. $621,850 from the general fund to the combined gifts, grants, and 51 bequests fund, WB Hoyt Memorial account (20128). 52 9. $3,100,000 from the miscellaneous special revenue fund, state 53 central registry (22028), to the general fund. 54 General Government: 55 1. $1,566,000 from the miscellaneous special revenue fund, examination 56 and miscellaneous revenue account (22065) to the general fund. S. 4610--A 106 A. 6721--A 1 2. $12,500,000 from the general fund to the health insurance revolving 2 fund (55300). 3 3. $192,400,000 from the health insurance reserve receipts fund 4 (60550) to the general fund. 5 4. $150,000 from the general fund to the not-for-profit revolving loan 6 fund (20650). 7 5. $150,000 from the not-for-profit revolving loan fund (20650) to the 8 general fund. 9 6. $3,000,000 from the miscellaneous special revenue fund, surplus 10 property account (22036), to the general fund. 11 7. $19,900,000 from the general fund to the miscellaneous special 12 revenue fund, alcoholic beverage control account (22033). 13 8. $23,000,000 from the miscellaneous special revenue fund, revenue 14 arrearage account (22024), to the general fund. 15 9. $1,826,000 from the miscellaneous special revenue fund, revenue 16 arrearage account (22024), to the miscellaneous special revenue fund, 17 authority budget office account (22138). 18 10. $1,000,000 from the miscellaneous special revenue fund, parking 19 services account (22007), to the general fund, for the purpose of reim- 20 bursing the costs of debt service related to state parking facilities. 21 11. $21,794,000 from the general fund to the internal service fund, 22 COPS account (55013). 23 12. $8,360,000 from the general fund to the agencies internal service 24 fund, central technology services account (55069), for the purpose of 25 enterprise technology projects. 26 13. $5,000,000 from the miscellaneous special revenue fund, workers' 27 compensation account (21995), to the miscellaneous capital projects 28 fund, workers' compensation board IT business process design fund. 29 Health: 30 1. $30,000,000 from the miscellaneous special revenue fund, quality of 31 care account (21915), to the general fund. 32 2. $1,000,000 from the general fund to the combined gifts, grants and 33 bequests fund, breast cancer research and education account (20155), an 34 amount equal to the monies collected and deposited into that account in 35 the previous fiscal year. 36 3. $250,000 from the general fund to the combined gifts, grants and 37 bequests fund, prostate cancer research, detection, and education 38 account (20183), an amount equal to the moneys collected and deposited 39 into that account in the previous fiscal year. 40 4. $500,000 from the general fund to the combined gifts, grants and 41 bequests fund, Alzheimer's disease research and assistance account 42 (20143), an amount equal to the moneys collected and deposited into that 43 account in the previous fiscal year. 44 5. $30,295,000 from the HCRA resources fund (20800) to the miscella- 45 neous special revenue fund, empire state stem cell trust fund account 46 (22161). 47 6. $30,000,000 from any of the department of health accounts within 48 the federal health and human services fund to the miscellaneous special 49 revenue fund, quality of care account (21915). 50 7. $6,000,000 from the miscellaneous special revenue fund, certificate 51 of need account (21920), to the miscellaneous capital projects fund, 52 healthcare IT capital subfund. 53 8. $1,000,000 from the miscellaneous special revenue fund, adminis- 54 tration program account (21982), to the miscellaneous capital projects 55 fund, healthcare IT capital account (32216). S. 4610--A 107 A. 6721--A 1 9. $1,000,000 from the miscellaneous special revenue fund, vital 2 records account (22103), to the miscellaneous capital projects fund, 3 healthcare IT capital account (32216). 4 10. $55,000,000 from the HCRA resources fund (20800) to the capital 5 projects fund (30000). 6 11. $3,700,000 from the miscellaneous New York state agency fund, 7 medical assistance account to the general fund. 8 12. $6,740,000 from the general fund to the medical marihuana trust 9 fund, health operation and oversight account (23755). 10 13. $4,096,000 from the HCRA resources fund (20800), to the miscella- 11 neous special revenue fund, cigarette strike force account. 12 14. $3,086,000 from the miscellaneous special revenue fund, certif- 13 icate of need account (21920), to the general fund. 14 Labor: 15 1. $400,000 from the miscellaneous special revenue fund, DOL fee and 16 penalty account (21923), to the child performer's protection fund, child 17 performer protection account (20401). 18 2. $8,400,000 from the miscellaneous special revenue fund, DOL fee and 19 penalty account (21923), to the general fund. 20 3. $3,300,000 from the unemployment insurance interest and penalty 21 fund, unemployment insurance special interest and penalty account 22 (23601), to the general fund. 23 Mental Hygiene: 24 1. $10,000,000 from the miscellaneous special revenue fund, mental 25 hygiene patient income account (21909), to the miscellaneous special 26 revenue fund, federal salary sharing account (22056). 27 2. $15,000,000 from the miscellaneous special revenue fund, mental 28 hygiene patient income account (21909), to the miscellaneous special 29 revenue fund, provider of service accounts (21903). 30 3. $15,000,000 from the miscellaneous special revenue fund, mental 31 hygiene program fund account (21907), to the miscellaneous special 32 revenue fund, provider of service account (21903). 33 4. $1,400,000,000 from the general fund to the miscellaneous special 34 revenue fund, mental hygiene patient income account (21909). 35 5. $1,850,000,000 from the general fund to the miscellaneous special 36 revenue fund, mental hygiene program fund account (21907). 37 6. $100,000,000 from the miscellaneous special revenue fund, mental 38 hygiene program fund account (21907), to the general fund. 39 7. $100,000,000 from the miscellaneous special revenue fund, mental 40 hygiene patient income account (21909), to the general fund. 41 8. $292,888,000 from the chemical dependence service fund, chemical 42 dependence service account (22700), to the general fund. 43 Public Protection: 44 1. $1,350,000 from the miscellaneous special revenue fund, emergency 45 management account (21944), to the general fund. 46 2. $3,300,000 from the general fund to the miscellaneous special 47 revenue fund, recruitment incentive account (22171). 48 3. $13,000,000 from the general fund to the correctional industries 49 revolving fund, correctional industries internal service account 50 (55350). 51 4. $3,000,000 from the federal miscellaneous operating grants fund, 52 DMNA damage account (25324), to the general fund. 53 5. $14,300,000 from the general fund to the miscellaneous special 54 revenue fund, crimes against revenue program account (22015). 55 6. $22,900,000 from the miscellaneous special revenue fund, criminal 56 justice improvement account (21945), to the general fund. S. 4610--A 108 A. 6721--A 1 7. $50,000,000 from the miscellaneous special revenue fund, statewide 2 public safety communications account (22123), to the general fund. 3 8. $106,000,000 from the state police motor vehicle law enforcement 4 and motor vehicle theft and insurance fraud prevention fund, state 5 police motor vehicle enforcement account (22802), to the general fund 6 for state operation expenses of the division of state police. 7 9. $21,500,000 from the general fund to the correctional facilities 8 capital improvement fund (32350). 9 10. $5,000,000 from the general fund to the dedicated highway and 10 bridge trust fund (30050) for the purpose of work zone safety activities 11 provided by the division of state police for the department of transpor- 12 tation. 13 11. $5,000,000 from the miscellaneous special revenue fund, statewide 14 public safety communications account (22123), to the capital projects 15 fund (30000). 16 12. $2,900,000 from the miscellaneous special revenue fund, legal 17 services assistance account (22096), to the general fund. 18 13. $300,000 from the state police motor vehicle law enforcement and 19 motor vehicle theft and insurance fraud prevention fund, motor vehicle 20 theft and insurance fraud account (22801), to the general fund. 21 Transportation: 22 1. $17,672,000 from the federal miscellaneous operating grants fund to 23 the miscellaneous special revenue fund, New York Metropolitan Transpor- 24 tation Council account (21913). 25 2. $20,147,000 from the federal capital projects fund to the miscella- 26 neous special revenue fund, New York Metropolitan Transportation Council 27 account (21913). 28 3. $15,700,000 from the miscellaneous special revenue fund, compulsory 29 insurance account (22087), to the general fund. 30 4. $14,878,096 from the general fund to the mass transportation oper- 31 ating assistance fund, public transportation systems operating assist- 32 ance account (21401), of which $12,000,000 constitutes the base need for 33 operations. 34 5. $728,507,000 from the general fund to the dedicated highway and 35 bridge trust fund (30050). 36 6. $606,000 from the miscellaneous special revenue fund, accident 37 prevention course program account (22094), to the general fund. 38 7. $6,000 from the miscellaneous special revenue fund, motorcycle 39 safety account (21976), to the general fund. 40 8. $309,250,000 from the general fund to the MTA financial assistance 41 fund, mobility tax trust account (23651). 42 9. $20,000,000 from the mass transportation operating assistance fund, 43 metropolitan mass transportation operating assistance account (21402), 44 to the general debt service fund (40151), for reimbursement of the 45 state's expenses in connection with payments of debt service and related 46 expenses for the metropolitan transportation authority's state service 47 contract bonds. 48 10. $5,000,000 from the miscellaneous special revenue fund, transpor- 49 tation regulation account (22067) to the dedicated highway and bridge 50 trust fund (30050), for disbursements made from such fund for motor 51 carrier safety that are in excess of the amounts deposited in the dedi- 52 cated highway and bridge trust fund (30050) for such purpose pursuant to 53 section 94 of the transportation law. 54 11. $121,548,000 from the mass transportation operating assistance 55 fund, metropolitan mass transportation operating assistance account 56 (21402), to the transit assistance for capital investments fund, metro- S. 4610--A 109 A. 6721--A 1 politan transit assistance for capital investments account, for 2 disbursements made from such fund pursuant to a chapter of the laws of 3 2015. 4 Miscellaneous: 5 1. $200,000,000 from the general fund to any funds or accounts for the 6 purpose of reimbursing certain outstanding accounts receivable balances. 7 2. $500,000,000 from the general fund to the debt reduction reserve 8 fund (40000). 9 3. $450,000,000 from the New York state storm recovery capital fund 10 (33000) to the revenue bond tax fund (40152). 11 4. $15,500,000 from the general fund, community projects account GG 12 (10256), to the general fund, state purposes account (10050). 13 5. $4,550,000,000 from the general fund to the dedicated infrastruc- 14 ture investment fund infrastructure investment account. 15 6. Upon request of the director of the budget, up to $850,000,000 from 16 the general fund to any special revenue fund or account, agency fund or 17 account, or any combination of funds or accounts. 18 S 3. Notwithstanding any law to the contrary, and in accordance with 19 section 4 of the state finance law, the comptroller is hereby authorized 20 and directed to transfer, on or before March 31, 2016: 21 1. Upon request of the commissioner of environmental conservation, up 22 to $11,354,000 from revenues credited to any of the department of envi- 23 ronmental conservation special revenue funds, including $3,285,400 from 24 the environmental protection and oil spill compensation fund (21200), 25 and $1,779,600 from the conservation fund (21150), to the environmental 26 conservation special revenue fund, indirect charges account (21060). 27 2. Upon request of the commissioner of agriculture and markets, up to 28 $3,000,000 from any special revenue fund or enterprise fund within the 29 department of agriculture and markets to the general fund, to pay appro- 30 priate administrative expenses. 31 3. Upon request of the commissioner of agriculture and markets, up to 32 $2,000,000 from the state exposition special fund, state fair receipts 33 account (50051) to the miscellaneous capital projects fund, state fair 34 capital improvement account (32208). 35 4. Upon request of the commissioner of the division of housing and 36 community renewal, up to $6,221,000 from revenues credited to any divi- 37 sion of housing and community renewal federal or miscellaneous special 38 revenue fund to the miscellaneous special revenue fund, housing indirect 39 cost recovery account (22090). 40 5. Upon request of the commissioner of the division of housing and 41 community renewal, up to $5,500,000 may be transferred from any miscel- 42 laneous special revenue fund account, to any miscellaneous special 43 revenue fund. 44 6. Upon request of the commissioner of health up to $5,000,000 from 45 revenues credited to any of the department of health's special revenue 46 funds, to the miscellaneous special revenue fund, administration account 47 (21982). 48 S 4. On or before March 31, 2016, the comptroller is hereby authorized 49 and directed to deposit earnings that would otherwise accrue to the 50 general fund that are attributable to the operation of section 98-a of 51 the state finance law, to the agencies internal service fund, banking 52 services account (55057), for the purpose of meeting direct payments 53 from such account. 54 S 5. Notwithstanding any law to the contrary, upon the direction of 55 the director of the budget and upon requisition by the state university 56 of New York, the dormitory authority of the state of New York is S. 4610--A 110 A. 6721--A 1 directed to transfer, up to $22,000,000 in revenues generated from the 2 sale of notes or bonds, to the state university of New York for 3 reimbursement of bondable equipment for further transfer to the state's 4 general fund. 5 S 6. Notwithstanding any law to the contrary, and in accordance with 6 section 4 of the state finance law, the comptroller is hereby authorized 7 and directed to transfer, upon request of the director of the budget and 8 upon consultation with the state university chancellor or his or her 9 designee, on or before March 31, 2016, up to $16,000,000 from the state 10 university income fund general revenue account (22653) to the state 11 general fund for debt service costs related to campus supported capital 12 project costs for the NY-SUNY 2020 challenge grant program at the 13 University at Buffalo. 14 S 7. Notwithstanding any law to the contrary, and in accordance with 15 section 4 of the state finance law, the comptroller is hereby authorized 16 and directed to transfer, upon request of the director of the budget and 17 upon consultation with the state university chancellor or his or her 18 designee, on or before March 31, 2016, up to $6,500,000 from the state 19 university income fund general revenue account (22653) to the state 20 general fund for debt service costs related to campus supported capital 21 project costs for the NY-SUNY 2020 challenge grant program at the 22 University at Albany. 23 S 8. Notwithstanding any law to the contrary, the state university 24 chancellor or his or her designee is authorized and directed to transfer 25 estimated tuition revenue balances from the state university collection 26 fund (61000) to the state university income fund, state university 27 general revenue offset account (22655) on or before March 31, 2016. 28 S 9. Notwithstanding any law to the contrary, and in accordance with 29 section 4 of the state finance law, the comptroller is hereby authorized 30 and directed to transfer, upon request of the director of the budget, up 31 to $87,864,000 from the general fund to the state university income 32 fund, state university hospitals income reimbursable account (22656) 33 during the period July 1, 2015 through June 30, 2016 to reflect ongoing 34 state subsidy of SUNY hospitals and to pay costs attributable to the 35 SUNY hospitals' state agency status. 36 S 10. Notwithstanding any law to the contrary, and in accordance with 37 section 4 of the state finance law, the comptroller is hereby authorized 38 and directed to transfer, upon request of the director of the budget, up 39 to $1,004,249,800 from the general fund to the state university income 40 fund, state university general revenue offset account (22655) during the 41 period of July 1, 2015 through June 30, 2016 to support operations at 42 the state university. 43 S 11. Notwithstanding any law to the contrary, and in accordance with 44 section 4 of the state finance law, the comptroller is hereby authorized 45 and directed to transfer, upon request of the director of the budget, up 46 to $3,370,000 from the general fund to the state university income fund, 47 state university general revenue offset account (22655) during the peri- 48 od of April 1, 2015 through June 30, 2015 to support operations at the 49 state university. 50 S 12. Notwithstanding any law to the contrary, and in accordance with 51 section 4 of the state finance law, the comptroller is hereby authorized 52 and directed to transfer, upon request of the state university chancel- 53 lor or his or her designee, up to $55,000,000 from the state university 54 income fund, state university hospitals income reimbursable account 55 (22656), for services and expenses of hospital operations and capital 56 expenditures at the state university hospitals; and the state university S. 4610--A 111 A. 6721--A 1 income fund, Long Island veterans' home account (22652) to the state 2 university capital projects fund (32400) on or before June 30, 2016. 3 S 12-a. Subdivision 2 of section 92-cc of the state finance law, as 4 amended by section 17 of part U of chapter 59 of the laws of 2012, is 5 amended to read as follows: 6 2. Such fund shall have a maximum balance not to exceed [three] FIVE 7 per centum of the aggregate amount projected to be disbursed from the 8 general fund during the fiscal year immediately following the then-cur- 9 rent fiscal year. At the request of the director of the budget, the 10 state comptroller shall transfer monies to the rainy day reserve fund up 11 to and including an amount equivalent to [three-tenths of] SEVENTY-FIVE 12 ONE-HUNDREDTHS OF one per centum of the aggregate amount projected to be 13 disbursed from the general fund during the then-current fiscal year, 14 unless such transfer would increase the rainy day reserve fund to an 15 amount in excess of [three] FIVE per centum of the aggregate amount 16 projected to be disbursed from the general fund during the fiscal year 17 immediately following the then-current fiscal year, in which event such 18 transfer shall be limited to such amount as will increase the rainy day 19 reserve fund to such [three] FIVE per centum limitation. 20 S 13. Notwithstanding any law to the contrary, and in accordance with 21 section 4 of the state finance law, the comptroller, after consultation 22 with the state university chancellor or his or her designee, is hereby 23 authorized and directed to transfer moneys, in the first instance, from 24 the state university collection fund, Stony Brook hospital collection 25 account (61006), Brooklyn hospital collection account (61007), and Syra- 26 cuse hospital collection account (61008) to the state university income 27 fund, state university hospitals income reimbursable account (22656) in 28 the event insufficient funds are available in the state university 29 income fund, state university hospitals income reimbursable account 30 (22656) to permit the full transfer of moneys authorized for transfer, 31 to the general fund for payment of debt service related to the SUNY 32 hospitals. Notwithstanding any law to the contrary, the comptroller is 33 also hereby authorized and directed, after consultation with the state 34 university chancellor or his or her designee, to transfer moneys from 35 the state university income fund to the state university income fund, 36 state university hospitals income reimbursable account (22656) in the 37 event insufficient funds are available in the state university income 38 fund, state university hospitals income reimbursable account (22656) to 39 pay hospital operating costs or to permit the full transfer of moneys 40 authorized for transfer, to the general fund for payment of debt service 41 related to the SUNY hospitals on or before March 31, 2016. 42 S 14. Notwithstanding any law to the contrary, upon the direction of 43 the director of the budget and the chancellor of the state university of 44 New York or his or her designee, and in accordance with section 4 of the 45 state finance law, the comptroller is hereby authorized and directed to 46 transfer monies from the state university dormitory income fund (40350) 47 to the state university residence hall rehabilitation fund (30100), and 48 from the state university residence hall rehabilitation fund (30100) to 49 the state university dormitory income fund (40350), in a net amount not 50 to exceed $80 million. 51 S 15. Notwithstanding any law to the contrary, and in accordance with 52 section 4 of the state finance law, the comptroller is hereby authorized 53 and directed to transfer monies, upon request of the director of the 54 budget, on or before March 31, 2016, from and to any of the following 55 accounts: the miscellaneous special revenue fund, patient income account 56 (21909), the miscellaneous special revenue fund, mental hygiene program S. 4610--A 112 A. 6721--A 1 fund account (21907), the miscellaneous special revenue fund, federal 2 salary sharing account (22056), or the general fund in any combination, 3 the aggregate of which shall not exceed $350 million. 4 S 16. Notwithstanding any law to the contrary, and in accordance with 5 section 4 of the state finance law, the comptroller is hereby authorized 6 and directed to transfer, at the request of the director of the budget, 7 up to $500 million from the unencumbered balance of any special revenue 8 fund or account, agency fund or account, internal service fund or 9 account, enterprise fund or account, or any combination of such funds 10 and accounts, to the general fund. The amounts transferred pursuant to 11 this authorization shall be in addition to any other transfers expressly 12 authorized in the 2015-16 budget. Transfers from federal funds, debt 13 service funds, capital projects funds, the community projects fund, or 14 funds that would result in the loss of eligibility for federal benefits 15 or federal funds pursuant to federal law, rule, or regulation as assent- 16 ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws of 17 1951 are not permitted pursuant to this authorization. 18 S 16-a. Notwithstanding any law to the contrary, and in accordance 19 with section 4 of the state finance law, the comptroller is hereby 20 authorized and directed to transfer, at the request of the director of 21 the budget, up to 28 million dollars ($28,000,000) from the unencumbered 22 balance of any special revenue fund or account, or combination of funds 23 and accounts, to the community projects fund. The amounts transferred 24 pursuant to this authorization shall be in addition to any other trans- 25 fers expressly authorized in the 2014-15 budget. Transfers from federal 26 funds, debt services funds, capital projects funds, or funds that would 27 result in the loss of eligibility for federal benefits or federal funds 28 pursuant to federal law, rule, or regulation as assented to in chapter 29 683 of the laws of 1938 and chapter 700 of the laws of 1951 are not 30 permitted pursuant to this authorization. The director of the budget 31 shall (a) have received a request in writing from one or both houses of 32 the legislature, and (b) notify both houses of the legislature in writ- 33 ing prior to initiating transfers pursuant to this authorization. The 34 comptroller shall provide the director of the budget, the chair of the 35 senate finance committee, and the chair of the assembly ways and means 36 committee with an accurate accounting and report of any transfers that 37 occur pursuant to this section on or before the fifteenth day of the 38 following month in which such transfers occur. 39 S 17. Notwithstanding any law to the contrary, and in accordance with 40 section 4 of the state finance law, the comptroller is hereby authorized 41 and directed to transfer, at the request of the director of the budget, 42 up to $100 million from any non-general fund or account, or combination 43 of funds and accounts, to the miscellaneous special revenue fund, tech- 44 nology financing account (22207) or the miscellaneous capital projects 45 fund, information technology capital financing account (32215), for the 46 purpose of consolidating technology procurement and services. The 47 amounts transferred to the miscellaneous special revenue fund, technolo- 48 gy financing account (22207) pursuant to this authorization shall be 49 equal to or less than the amount of such monies intended to support 50 information technology costs which are attributable, according to a 51 plan, to such account made in pursuance to an appropriation by law. 52 Transfers to the technology financing account shall be completed from 53 amounts collected by non-general funds or accounts pursuant to a fund 54 deposit schedule or permanent statute, and shall be transferred to the 55 technology financing account pursuant to a schedule agreed upon by the 56 affected agency commissioner. Transfers from funds that would result in S. 4610--A 113 A. 6721--A 1 the loss of eligibility for federal benefits or federal funds pursuant 2 to federal law, rule, or regulation as assented to in chapter 683 of the 3 laws of 1938 and chapter 700 of the laws of 1951 are not permitted 4 pursuant to this authorization. 5 S 18. Notwithstanding any law to the contrary, and in accordance with 6 section 4 of the state finance law, the comptroller is hereby authorized 7 and directed to transfer, at the request of the director of the budget, 8 up to $300 million from any non-general fund or account, or combination 9 of funds and accounts, to the general fund for the purpose of consol- 10 idating technology procurement and services. The amounts transferred 11 pursuant to this authorization shall be equal to or less than the amount 12 of such monies intended to support information technology costs which 13 are attributable, according to a plan, to such account made in pursuance 14 to an appropriation by law. Transfers to the general fund shall be 15 completed from amounts collected by non-general funds or accounts pursu- 16 ant to a fund deposit schedule. Transfers from funds that would result 17 in the loss of eligibility for federal benefits or federal funds pursu- 18 ant to federal law, rule, or regulation as assented to in chapter 683 of 19 the laws of 1938 and chapter 700 of the laws of 1951 are not permitted 20 pursuant to this authorization. 21 S 19. Notwithstanding any provision of law to the contrary, as deemed 22 feasible and advisable by its trustees, the power authority of the state 23 of New York is authorized and directed to (i) make a contribution to the 24 state treasury to the credit of the general fund, or as otherwise 25 directed in writing by the director of the budget, in an amount of up to 26 $90,000,000 for the state fiscal year commencing April 1, 2015, the 27 proceeds of which will be utilized to support energy-related initiatives 28 of the state, or for economic development purposes, and (ii) transfer up 29 to $25,000,000 of any such contribution by June 30, 2015 and the remain- 30 der of any such contribution by March 31, 2016. Such economic develop- 31 ment purposes may include, but shall not be limited to, efforts to 32 attract and expand business investment and job creation in New York 33 state through the Open for Business program as well as all expenses 34 associated with Global NY and trade missions, domestic and interna- 35 tional, promoting New York businesses; provided that in the event any 36 contributed funds are used by a state agency or public authority for the 37 purpose of advertising and promoting the benefits of the START-UP NY 38 program, no more than sixty percent of the contributed funds used for 39 such purpose shall be used for advertising and promotion outside the 40 state of New York. 41 S 20. Notwithstanding any provision of law, rule or regulation to the 42 contrary, the New York State energy research and development authority 43 is authorized and directed to make a contribution to the state treasury 44 to the credit of the general fund in the amount of $41,000,000 from 45 proceeds collected by the authority from the auction or sale of carbon 46 dioxide emission allowances allocated by the department of environmental 47 conservation under the Regional Greenhouse Gas Initiative on or before 48 March 31, 2016. 49 S 21. Subdivision 5 of section 97-rrr of the state finance law, as 50 amended by section 20 of part I of chapter 55 of the laws of 2014, is 51 amended to read as follows: 52 5. Notwithstanding the provisions of section one hundred seventy-one-a 53 of the tax law, as separately amended by chapters four hundred eighty- 54 one and four hundred eighty-four of the laws of nineteen hundred eight- 55 y-one, and notwithstanding the provisions of chapter ninety-four of the 56 laws of two thousand eleven, or any other provisions of law to the S. 4610--A 114 A. 6721--A 1 contrary, during the fiscal year beginning April first, two thousand 2 [fourteen] FIFTEEN, the state comptroller is hereby authorized and 3 directed to deposit to the fund created pursuant to this section from 4 amounts collected pursuant to article twenty-two of the tax law and 5 pursuant to a schedule submitted by the director of the budget, up to 6 [$3,429,375,000] $3,382,279,000, as may be certified in such schedule as 7 necessary to meet the purposes of such fund for the fiscal year begin- 8 ning April first, two thousand [fourteen] FIFTEEN. 9 S 22. The comptroller is authorized and directed to deposit to the 10 general fund-state purposes account reimbursements from moneys appropri- 11 ated or reappropriated to the correctional facilities capital improve- 12 ment fund by a chapter of the laws of 2015. Reimbursements shall be 13 available for spending from appropriations made to the department of 14 corrections and community supervision in the general fund-state purposes 15 accounts by a chapter of the laws of 2015 for costs associated with the 16 administration and security of capital projects and for other costs 17 which are attributable, according to a plan, to such capital projects. 18 S 23. Notwithstanding any other law, rule, or regulation to the 19 contrary, the state comptroller is hereby authorized and directed to use 20 any balance remaining in the mental health services fund debt service 21 appropriation, after payment by the state comptroller of all obligations 22 required pursuant to any lease, sublease, or other financing arrangement 23 between the dormitory authority of the state of New York as successor to 24 the New York state medical care facilities finance agency, and the 25 facilities development corporation pursuant to chapter 83 of the laws of 26 1995 and the department of mental hygiene for the purpose of making 27 payments to the dormitory authority of the state of New York for the 28 amount of the earnings for the investment of monies deposited in the 29 mental health services fund that such agency determines will or may have 30 to be rebated to the federal government pursuant to the provisions of 31 the internal revenue code of 1986, as amended, in order to enable such 32 agency to maintain the exemption from federal income taxation on the 33 interest paid to the holders of such agency's mental services facilities 34 improvement revenue bonds. Annually on or before each June 30th, such 35 agency shall certify to the state comptroller its determination of the 36 amounts received in the mental health services fund as a result of the 37 investment of monies deposited therein that will or may have to be 38 rebated to the federal government pursuant to the provisions of the 39 internal revenue code of 1986, as amended. 40 S 24. Subdivision 8 of section 68-b of the state finance law, as 41 amended by section 44 of part HH of chapter 57 of the laws of 2013, is 42 amended to read as follows: 43 8. Revenue bonds may only be issued for authorized purposes, as 44 defined in section sixty-eight-a of this article. Notwithstanding the 45 foregoing, the dormitory authority of the state of New York [and], the 46 urban development corporation AND THE NEW YORK STATE THRUWAY AUTHORITY 47 may issue revenue bonds for any authorized purpose of any other such 48 authorized issuer through March thirty-first, two thousand [fifteen] 49 TWENTY. ANY SUCH REVENUE BONDS ISSUED BY THE NEW YORK STATE THRUWAY 50 AUTHORITY SHALL BE SUBJECT TO THE APPROVAL OF THE NEW YORK STATE PUBLIC 51 AUTHORITIES CONTROL BOARD, PURSUANT TO SECTION FIFTY-ONE OF THE PUBLIC 52 AUTHORITIES LAW. The authorized issuers shall not issue any revenue 53 bonds in an amount in excess of statutory authorizations for such 54 authorized purposes. Authorizations for such authorized purposes shall 55 be reduced in an amount equal to the amount of revenue bonds issued for 56 such authorized purposes under this article. Such reduction shall not be S. 4610--A 115 A. 6721--A 1 made in relation to revenue bonds issued to fund reserve funds, if any, 2 and costs of issuance, if these items are not counted under existing 3 authorizations, nor shall revenue bonds issued to refund bonds issued 4 under existing authorizations reduce the amount of such authorizations. 5 S 24-a. Subdivision 8 of section 69-n of the state finance law, as 6 added by section 58 of part HH of chapter 57 of the laws of 2013, is 7 amended to read as follows: 8 8. Revenue bonds may only be issued for authorized purposes, as 9 defined in section sixty-nine-m of this article. Notwithstanding the 10 foregoing, any authorized issuer may issue revenue bonds for any author- 11 ized purpose. ANY SUCH REVENUE BONDS ISSUED BY THE NEW YORK STATE THRU- 12 WAY AUTHORITY SHALL BE SUBJECT TO THE APPROVAL OF THE NEW YORK STATE 13 PUBLIC AUTHORITIES CONTROL BOARD, PURSUANT TO SECTION FIFTY-ONE OF THE 14 PUBLIC AUTHORITIES LAW. The authorized issuers shall not issue any 15 revenue bonds in an amount in excess of statutory authorizations for 16 such authorized purposes. Authorizations for such authorized purposes 17 shall be reduced in an amount equal to the amount of revenue bonds 18 issued for such authorized purposes under this article. Such reduction 19 shall not be made in relation to revenue bonds issued to fund reserve 20 funds, if any, and costs of issuance, if these items are not counted 21 under existing authorizations, nor shall revenue bonds issued to refund 22 bonds issued under existing authorizations reduce the amount of such 23 authorizations. 24 S 25. Subdivision 1 of section 47 of section 1 of chapter 174 of the 25 laws of 1968, constituting the New York state urban development corpo- 26 ration act, as amended by section 28 of part I of chapter 55 of the laws 27 of 2014, is amended to read as follows: 28 1. Notwithstanding the provisions of any other law to the contrary, 29 the dormitory authority and the corporation are hereby authorized to 30 issue bonds or notes in one or more series for the purpose of funding 31 project costs for the office of information technology services, depart- 32 ment of law, and other state costs associated with such capital 33 projects. The aggregate principal amount of bonds authorized to be 34 issued pursuant to this section shall not exceed [one] TWO hundred 35 [eighty-two] SIXTY-NINE million [four] ONE hundred forty thousand 36 dollars, excluding bonds issued to fund one or more debt service reserve 37 funds, to pay costs of issuance of such bonds, and bonds or notes issued 38 to refund or otherwise repay such bonds or notes previously issued. Such 39 bonds and notes of the dormitory authority and the corporation shall not 40 be a debt of the state, and the state shall not be liable thereon, nor 41 shall they be payable out of any funds other than those appropriated by 42 the state to the dormitory authority and the corporation for principal, 43 interest, and related expenses pursuant to a service contract and such 44 bonds and notes shall contain on the face thereof a statement to such 45 effect. Except for purposes of complying with the internal revenue code, 46 any interest income earned on bond proceeds shall only be used to pay 47 debt service on such bonds. 48 S 26. Section 1 of chapter 174 of the laws of 1968, constituting the 49 New York state urban development corporation act, is amended by adding a 50 new section 51 to read as follows: 51 S 51. 1. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO THE 52 CONTRARY, THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION 53 ARE HEREBY AUTHORIZED TO ISSUE BONDS OR NOTES IN ONE OR MORE SERIES FOR 54 THE PURPOSE OF FUNDING PROJECT COSTS FOR THE NONPROFIT INFRASTRUCTURE 55 CAPITAL INVESTMENT PROGRAM AND OTHER STATE COSTS ASSOCIATED WITH SUCH 56 CAPITAL PROJECTS. THE AGGREGATE PRINCIPAL AMOUNT OF BONDS AUTHORIZED TO S. 4610--A 116 A. 6721--A 1 BE ISSUED PURSUANT TO THIS SECTION SHALL NOT EXCEED FIFTY MILLION 2 DOLLARS, EXCLUDING BONDS ISSUED TO FUND ONE OR MORE DEBT SERVICE RESERVE 3 FUNDS, TO PAY COSTS OF ISSUANCE OF SUCH BONDS, AND BONDS OR NOTES ISSUED 4 TO REFUND OR OTHERWISE REPAY SUCH BONDS OR NOTES PREVIOUSLY ISSUED. SUCH 5 BONDS AND NOTES OF THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT 6 CORPORATION SHALL NOT BE A DEBT OF THE STATE, AND THE STATE SHALL NOT BE 7 LIABLE THEREON, NOR SHALL THEY BE PAYABLE OUT OF ANY FUNDS OTHER THAN 8 THOSE APPROPRIATED BY THE STATE TO THE DORMITORY AUTHORITY AND THE URBAN 9 DEVELOPMENT CORPORATION FOR PRINCIPAL, INTEREST, AND RELATED EXPENSES 10 PURSUANT TO A SERVICE CONTRACT AND SUCH BONDS AND NOTES SHALL CONTAIN ON 11 THE FACE THEREOF A STATEMENT TO SUCH EFFECT. EXCEPT FOR PURPOSES OF 12 COMPLYING WITH THE INTERNAL REVENUE CODE, ANY INTEREST INCOME EARNED ON 13 BOND PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS. 14 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN 15 ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPO- 16 RATION IN UNDERTAKING THE FINANCING FOR PROJECT COSTS FOR THE NONPROFIT 17 INFRASTRUCTURE CAPITAL INVESTMENT PROGRAM AND OTHER STATE COSTS ASSOCI- 18 ATED WITH SUCH CAPITAL PROJECTS, THE DIRECTOR OF THE BUDGET IS HEREBY 19 AUTHORIZED TO ENTER INTO ONE OR MORE SERVICE CONTRACTS WITH THE DORMITO- 20 RY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION, NONE OF WHICH SHALL 21 EXCEED THIRTY YEARS IN DURATION, UPON SUCH TERMS AND CONDITIONS AS THE 22 DIRECTOR OF THE BUDGET AND THE DORMITORY AUTHORITY AND THE URBAN DEVEL- 23 OPMENT CORPORATION AGREE, SO AS TO ANNUALLY PROVIDE TO THE DORMITORY 24 AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION, IN THE AGGREGATE, A SUM 25 NOT TO EXCEED THE PRINCIPAL, INTEREST, AND RELATED EXPENSES REQUIRED FOR 26 SUCH BONDS AND NOTES. ANY SERVICE CONTRACT ENTERED INTO PURSUANT TO THIS 27 SECTION SHALL PROVIDE THAT THE OBLIGATION OF THE STATE TO PAY THE AMOUNT 28 THEREIN PROVIDED SHALL NOT CONSTITUTE A DEBT OF THE STATE WITHIN THE 29 MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED 30 EXECUTORY ONLY TO THE EXTENT OF MONIES AVAILABLE AND THAT NO LIABILITY 31 SHALL BE INCURRED BY THE STATE BEYOND THE MONIES AVAILABLE FOR SUCH 32 PURPOSE, SUBJECT TO ANNUAL APPROPRIATION BY THE LEGISLATURE. ANY SUCH 33 CONTRACT OR ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED 34 AND PLEDGED BY THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPO- 35 RATION AS SECURITY FOR ITS BONDS AND NOTES, AS AUTHORIZED BY THIS 36 SECTION. 37 S 27. Subdivision 1 of section 16 of part D of chapter 389 of the laws 38 of 1997, relating to the financing of the correctional facilities 39 improvement fund and the youth facility improvement fund, as amended by 40 section 29 of part I of chapter 55 of the laws of 2014, is amended to 41 read as follows: 42 1. Subject to the provisions of chapter 59 of the laws of 2000, but 43 notwithstanding the provisions of section 18 of section 1 of chapter 174 44 of the laws of 1968, the New York state urban development corporation is 45 hereby authorized to issue bonds, notes and other obligations in an 46 aggregate principal amount not to exceed seven billion one hundred 47 [forty-eight] SIXTY-THREE million THREE HUNDRED sixty-nine thousand 48 dollars [$7,148,069,000] $7,163,369,000, and shall include all bonds, 49 notes and other obligations issued pursuant to chapter 56 of the laws of 50 1983, as amended or supplemented. The proceeds of such bonds, notes or 51 other obligations shall be paid to the state, for deposit in the correc- 52 tional facilities capital improvement fund to pay for all or any portion 53 of the amount or amounts paid by the state from appropriations or reap- 54 propriations made to the department of corrections and community super- 55 vision from the correctional facilities capital improvement fund for 56 capital projects. The aggregate amount of bonds, notes or other obli- S. 4610--A 117 A. 6721--A 1 gations authorized to be issued pursuant to this section shall exclude 2 bonds, notes or other obligations issued to refund or otherwise repay 3 bonds, notes or other obligations theretofore issued, the proceeds of 4 which were paid to the state for all or a portion of the amounts 5 expended by the state from appropriations or reappropriations made to 6 the department of corrections and community supervision; provided, 7 however, that upon any such refunding or repayment the total aggregate 8 principal amount of outstanding bonds, notes or other obligations may be 9 greater than seven billion one hundred [forty-eight] SIXTY-THREE million 10 THREE HUNDRED sixty-nine thousand dollars [$7,148,069,000] 11 $7,163,369,000, only if the present value of the aggregate debt service 12 of the refunding or repayment bonds, notes or other obligations to be 13 issued shall not exceed the present value of the aggregate debt service 14 of the bonds, notes or other obligations so to be refunded or repaid. 15 For the purposes hereof, the present value of the aggregate debt service 16 of the refunding or repayment bonds, notes or other obligations and of 17 the aggregate debt service of the bonds, notes or other obligations so 18 refunded or repaid, shall be calculated by utilizing the effective 19 interest rate of the refunding or repayment bonds, notes or other obli- 20 gations, which shall be that rate arrived at by doubling the semi-annual 21 interest rate (compounded semi-annually) necessary to discount the debt 22 service payments on the refunding or repayment bonds, notes or other 23 obligations from the payment dates thereof to the date of issue of the 24 refunding or repayment bonds, notes or other obligations and to the 25 price bid including estimated accrued interest or proceeds received by 26 the corporation including estimated accrued interest from the sale ther- 27 eof. 28 S 28. Paragraph (a) of subdivision 2 of section 47-e of the private 29 housing finance law, as amended by section 30 of part I of chapter 55 of 30 the laws of 2014, is amended to read as follows: 31 (a) Subject to the provisions of chapter fifty-nine of the laws of two 32 thousand, in order to enhance and encourage the promotion of housing 33 programs and thereby achieve the stated purposes and objectives of such 34 housing programs, the agency shall have the power and is hereby author- 35 ized from time to time to issue negotiable housing program bonds and 36 notes in such principal amount as shall be necessary to provide suffi- 37 cient funds for the repayment of amounts disbursed (and not previously 38 reimbursed) pursuant to law or any prior year making capital appropri- 39 ations or reappropriations for the purposes of the housing program; 40 provided, however, that the agency may issue such bonds and notes in an 41 aggregate principal amount not exceeding [two] THREE billion [nine] ONE 42 hundred [ninety-nine] FIFTY-THREE million SEVEN HUNDRED ninety-nine 43 thousand dollars, plus a principal amount of bonds issued to fund the 44 debt service reserve fund in accordance with the debt service reserve 45 fund requirement established by the agency and to fund any other 46 reserves that the agency reasonably deems necessary for the security or 47 marketability of such bonds and to provide for the payment of fees and 48 other charges and expenses, including underwriters' discount, trustee 49 and rating agency fees, bond insurance, credit enhancement and liquidity 50 enhancement related to the issuance of such bonds and notes. No reserve 51 fund securing the housing program bonds shall be entitled or eligible to 52 receive state funds apportioned or appropriated to maintain or restore 53 such reserve fund at or to a particular level, except to the extent of 54 any deficiency resulting directly or indirectly from a failure of the 55 state to appropriate or pay the agreed amount under any of the contracts 56 provided for in subdivision four of this section. S. 4610--A 118 A. 6721--A 1 S 29. Subdivision (b) of section 11 of chapter 329 of the laws of 2 1991, amending the state finance law and other laws relating to the 3 establishment of the dedicated highway and bridge trust fund, as amended 4 by section 31 of part I of chapter 55 of the laws of 2014, is amended to 5 read as follows: 6 (b) Any service contract or contracts for projects authorized pursuant 7 to sections 10-c, 10-f, 10-g and 80-b of the highway law and section 8 14-k of the transportation law, and entered into pursuant to subdivision 9 (a) of this section, shall provide for state commitments to provide 10 annually to the thruway authority a sum or sums, upon such terms and 11 conditions as shall be deemed appropriate by the director of the budget, 12 to fund, or fund the debt service requirements of any bonds or any obli- 13 gations of the thruway authority issued to fund or to reimburse the 14 state for funding such projects having a cost not in excess of 15 [$8,120,728,000] $8,658,881,000 cumulatively by the end of fiscal year 16 [2014-15] 2015-16. 17 S 30. Subdivision 1 of section 1689-i of the public authorities law, 18 as amended by section 32 of part I of chapter 55 of the laws of 2014, is 19 amended to read as follows: 20 1. The dormitory authority is authorized to issue bonds, at the 21 request of the commissioner of education, to finance eligible library 22 construction projects pursuant to section two hundred seventy-three-a of 23 the education law, in amounts certified by such commissioner not to 24 exceed a total principal amount of [one hundred twenty-six] ONE HUNDRED 25 FORTY million dollars. 26 S 31. Subdivision (a) of section 27 of part Y of chapter 61 of the 27 laws of 2005, providing for the administration of certain funds and 28 accounts related to the 2005-2006 budget, as amended by section 33 of 29 part I of chapter 55 of the laws of 2014, is amended to read as follows: 30 (a) Subject to the provisions of chapter 59 of the laws of 2000, but 31 notwithstanding any provisions of law to the contrary, the urban devel- 32 opment corporation is hereby authorized to issue bonds or notes in one 33 or more series in an aggregate principal amount not to exceed 34 [$149,600,000] $155,600,000, excluding bonds issued to finance one or 35 more debt service reserve funds, to pay costs of issuance of such bonds, 36 and bonds or notes issued to refund or otherwise repay such bonds or 37 notes previously issued, for the purpose of financing capital projects 38 including IT initiatives for the division of state police, debt service 39 and leases; and to reimburse the state general fund for disbursements 40 made therefor. Such bonds and notes of such authorized issuer shall not 41 be a debt of the state, and the state shall not be liable thereon, nor 42 shall they be payable out of any funds other than those appropriated by 43 the state to such authorized issuer for debt service and related 44 expenses pursuant to any service contract executed pursuant to subdivi- 45 sion (b) of this section and such bonds and notes shall contain on the 46 face thereof a statement to such effect. Except for purposes of comply- 47 ing with the internal revenue code, any interest income earned on bond 48 proceeds shall only be used to pay debt service on such bonds. 49 S 32. Section 44 of section 1 of chapter 174 of the laws of 1968, 50 constituting the New York state urban development corporation act, as 51 amended by section 34 of part I of chapter 55 of the laws of 2014, is 52 amended to read as follows: 53 S 44. Issuance of certain bonds or notes. 1. Notwithstanding the 54 provisions of any other law to the contrary, the dormitory authority and 55 the corporation are hereby authorized to issue bonds or notes in one or 56 more series for the purpose of funding project costs for the regional S. 4610--A 119 A. 6721--A 1 economic development council initiative, the economic transformation 2 program, state university of New York college for nanoscale and science 3 engineering, projects within the city of Buffalo or surrounding envi- 4 rons, the New York works economic development fund, projects for the 5 retention of professional football in western New York, the empire state 6 economic development fund, the clarkson-trudeau partnership, the New 7 York genome center, the cornell university college of veterinary medi- 8 cine, the olympic regional development authority, a project at nano 9 Utica, onondaga county revitalization projects, BINGHAMTON UNIVERSITY 10 SCHOOL OF PHARMACY, NEW YORK POWER ELECTRONICS MANUFACTURING CONSORTIUM, 11 REGIONAL INFRASTRUCTURE PROJECTS, and other state costs associated with 12 such projects. The aggregate principal amount of bonds authorized to be 13 issued pursuant to this section shall not exceed two billion [two] EIGHT 14 hundred [three] EIGHTY-EIGHT million two hundred fifty-seven thousand 15 dollars, excluding bonds issued to fund one or more debt service reserve 16 funds, to pay costs of issuance of such bonds, and bonds or notes issued 17 to refund or otherwise repay such bonds or notes previously issued. Such 18 bonds and notes of the dormitory authority and the corporation shall not 19 be a debt of the state, and the state shall not be liable thereon, nor 20 shall they be payable out of any funds other than those appropriated by 21 the state to the dormitory authority and the corporation for principal, 22 interest, and related expenses pursuant to a service contract and such 23 bonds and notes shall contain on the face thereof a statement to such 24 effect. Except for purposes of complying with the internal revenue code, 25 any interest income earned on bond proceeds shall only be used to pay 26 debt service on such bonds. 27 2. Notwithstanding any other provision of law to the contrary, in 28 order to assist the dormitory authority and the corporation in undertak- 29 ing the financing for project costs for the regional economic develop- 30 ment council initiative, the economic transformation program, state 31 university of New York college for nanoscale and science engineering, 32 projects within the city of Buffalo or surrounding environs, the New 33 York works economic development fund, projects for the retention of 34 professional football in western New York, the empire state economic 35 development fund, the clarkson-trudeau partnership, the New York genome 36 center, the cornell university college of veterinary medicine, the olym- 37 pic regional development authority, a project at nano Utica, onondaga 38 county revitalization projects, BINGHAMTON UNIVERSITY SCHOOL OF PHARMA- 39 CY, NEW YORK POWER ELECTRONICS MANUFACTURING CONSORTIUM, REGIONAL 40 INFRASTRUCTURE PROJECTS and other state costs associated with such 41 projects, the director of the budget is hereby authorized to enter into 42 one or more service contracts with the dormitory authority and the 43 corporation, none of which shall exceed thirty years in duration, upon 44 such terms and conditions as the director of the budget and the dormito- 45 ry authority and the corporation agree, so as to annually provide to the 46 dormitory authority and the corporation, in the aggregate, a sum not to 47 exceed the principal, interest, and related expenses required for such 48 bonds and notes. Any service contract entered into pursuant to this 49 section shall provide that the obligation of the state to pay the amount 50 therein provided shall not constitute a debt of the state within the 51 meaning of any constitutional or statutory provision and shall be deemed 52 executory only to the extent of monies available and that no liability 53 shall be incurred by the state beyond the monies available for such 54 purpose, subject to annual appropriation by the legislature. Any such 55 contract or any payments made or to be made thereunder may be assigned S. 4610--A 120 A. 6721--A 1 and pledged by the dormitory authority and the corporation as security 2 for its bonds and notes, as authorized by this section. 3 S 33. Subdivisions 1 and 3 of section 1285-p of the public authorities 4 law, subdivision 1 as amended by section 55 of part HH of chapter 57 of 5 the laws of 2013 and subdivision 3 as amended by section 35 of part I of 6 chapter 55 of the laws of 2014, are amended to read as follows: 7 1. Subject to chapter fifty-nine of the laws of two thousand, but 8 notwithstanding any other provisions of law to the contrary, in order to 9 assist the corporation in undertaking the administration and the financ- 10 ing of the design, acquisition, construction, improvement, installation, 11 and related work for all or any portion of any of the following environ- 12 mental infrastructure projects and for the provision of funds to the 13 state for any amounts disbursed therefor: (a) projects authorized under 14 the environmental protection fund, or for which appropriations are made 15 to the environmental protection fund including, but not limited to 16 municipal parks and historic preservation, stewardship, farmland 17 protection, non-point source, pollution control, Hudson River Park, land 18 acquisition, and waterfront revitalization; (b) department of environ- 19 mental conservation capital appropriations for Onondaga Lake for certain 20 water quality improvement projects in the same manner as set forth in 21 paragraph (d) of subdivision one of section 56-0303 of the environmental 22 conservation law; (c) for the purpose of the administration, management, 23 maintenance, and use of the real property at the western New York nucle- 24 ar service center; [and] (d) department of environmental conservation 25 capital appropriations for the administration, design, acquisition, 26 construction, improvement, installation, and related work on department 27 of environmental conservation environmental infrastructure projects; 28 [and] (e) office of parks, recreation and historic preservation appro- 29 priations or reappropriations from the state parks infrastructure fund; 30 [and] (f) capital grants for the cleaner, greener communities program 31 AND (G) CAPITAL COSTS OF WATER QUALITY INFRASTRUCTURE PROJECTS the 32 director of the division of budget and the corporation are each author- 33 ized to enter into one or more service contracts, none of which shall 34 exceed twenty years in duration, upon such terms and conditions as the 35 director and the corporation may agree, so as to annually provide to the 36 corporation in the aggregate, a sum not to exceed the annual debt 37 service payments and related expenses required for any bonds and notes 38 authorized pursuant to section twelve hundred ninety of this title. Any 39 service contract entered into pursuant to this section shall provide 40 that the obligation of the state to fund or to pay the amounts therein 41 provided for shall not constitute a debt of the state within the meaning 42 of any constitutional or statutory provision and shall be deemed execu- 43 tory only to the extent of moneys available for such purposes, subject 44 to annual appropriation by the legislature. Any such service contract or 45 any payments made or to be made thereunder may be assigned and pledged 46 by the corporation as security for its bonds and notes, as authorized 47 pursuant to section twelve hundred ninety of this title. 48 3. The maximum amount of bonds that may be issued for the purpose of 49 financing environmental infrastructure projects authorized by this 50 section shall be one billion [three] SEVEN hundred [ninety-eight] SEVEN- 51 TY-FIVE million [two] SEVEN hundred sixty thousand dollars, exclusive of 52 bonds issued to fund any debt service reserve funds, pay costs of issu- 53 ance of such bonds, and bonds or notes issued to refund or otherwise 54 repay bonds or notes previously issued. Such bonds and notes of the 55 corporation shall not be a debt of the state, and the state shall not be 56 liable thereon, nor shall they be payable out of any funds other than S. 4610--A 121 A. 6721--A 1 those appropriated by the state to the corporation for debt service and 2 related expenses pursuant to any service contracts executed pursuant to 3 subdivision one of this section, and such bonds and notes shall contain 4 on the face thereof a statement to such effect. 5 S 34. Subdivision 1 of section 45 of section 1 of chapter 174 of the 6 laws of 1968, constituting the New York state urban development corpo- 7 ration act, as amended by section 37 of part I of chapter 55 of the laws 8 of 2014, is amended to read as follows: 9 1. Notwithstanding the provisions of any other law to the contrary, 10 the urban development corporation of the state of New York is hereby 11 authorized to issue bonds or notes in one or more series for the purpose 12 of funding project costs for the implementation of a NY-SUNY and NY-CUNY 13 2020 challenge grant program subject to the approval of a NY-SUNY and 14 NY-CUNY 2020 plan or plans by the governor and either the chancellor of 15 the state university of New York or the chancellor of the city universi- 16 ty of New York, as applicable. The aggregate principal amount of bonds 17 authorized to be issued pursuant to this section shall not exceed 18 [$330,000,000] $440,000,000, excluding bonds issued to fund one or more 19 debt service reserve funds, to pay costs of issuance of such bonds, and 20 bonds or notes issued to refund or otherwise repay such bonds or notes 21 previously issued. Such bonds and notes of the corporation shall not be 22 a debt of the state, and the state shall not be liable thereon, nor 23 shall they be payable out of any funds other than those appropriated by 24 the state to the corporation for principal, interest, and related 25 expenses pursuant to a service contract and such bonds and notes shall 26 contain on the face thereof a statement to such effect. Except for 27 purposes of complying with the internal revenue code, any interest 28 income earned on bond proceeds shall only be used to pay debt service on 29 such bonds. 30 S 35. Subdivision (a) of section 48 of part K of chapter 81 of the 31 laws of 2002, providing for the administration of certain funds and 32 accounts related to the 2002-2003 budget, as amended by section 38 of 33 part I of chapter 55 of the laws of 2014, is amended to read as follows: 34 (a) Subject to the provisions of chapter 59 of the laws of 2000 but 35 notwithstanding the provisions of section 18 of the urban development 36 corporation act, the corporation is hereby authorized to issue bonds or 37 notes in one or more series in an aggregate principal amount not to 38 exceed $197,000,000 excluding bonds issued to fund one or more debt 39 service reserve funds, to pay costs of issuance of such bonds, and bonds 40 or notes issued to refund or otherwise repay such bonds or notes previ- 41 ously issued, for the purpose of financing capital costs related to 42 homeland security and training facilities for the division of state 43 police, the division of military and naval affairs, and any other state 44 agency, including the reimbursement of any disbursements made from the 45 state capital projects fund, and is hereby authorized to issue bonds or 46 notes in one or more series in an aggregate principal amount not to 47 exceed [$317,800,000] $469,800,000, excluding bonds issued to fund one 48 or more debt service reserve funds, to pay costs of issuance of such 49 bonds, and bonds or notes issued to refund or otherwise repay such bonds 50 or notes previously issued, for the purpose of financing improvements to 51 State office buildings and other facilities located statewide, including 52 the reimbursement of any disbursements made from the state capital 53 projects fund. Such bonds and notes of the corporation shall not be a 54 debt of the state, and the state shall not be liable thereon, nor shall 55 they be payable out of any funds other than those appropriated by the 56 state to the corporation for debt service and related expenses pursuant S. 4610--A 122 A. 6721--A 1 to any service contracts executed pursuant to subdivision (b) of this 2 section, and such bonds and notes shall contain on the face thereof a 3 statement to such effect. 4 S 36. Subdivision 1 of section 386-b of the public authorities law, as 5 amended by section 39 of part I of chapter 55 of the laws of 2014, is 6 amended to read as follows: 7 1. Notwithstanding any other provision of law to the contrary, the 8 authority, the dormitory authority and the urban development corporation 9 are hereby authorized to issue bonds or notes in one or more series for 10 the purpose of financing peace bridge projects and capital costs of 11 state and local highways, parkways, bridges, the New York state thruway, 12 Indian reservation roads, and facilities, and transportation infrastruc- 13 ture projects including aviation projects, non-MTA mass transit 14 projects, and rail service preservation projects, including work appur- 15 tenant and ancillary thereto. The aggregate principal amount of bonds 16 authorized to be issued pursuant to this section shall not exceed [four] 17 ONE BILLION SIX hundred [sixty-five] NINETY million dollars 18 [($465,000,000)] $1,690,000,000, excluding bonds issued to fund one or 19 more debt service reserve funds, to pay costs of issuance of such bonds, 20 and to refund or otherwise repay such bonds or notes previously issued. 21 Such bonds and notes of the authority, the dormitory authority and the 22 urban development corporation shall not be a debt of the state, and the 23 state shall not be liable thereon, nor shall they be payable out of any 24 funds other than those appropriated by the state to the authority, the 25 dormitory authority and the urban development corporation for principal, 26 interest, and related expenses pursuant to a service contract and such 27 bonds and notes shall contain on the face thereof a statement to such 28 effect. Except for purposes of complying with the internal revenue code, 29 any interest income earned on bond proceeds shall only be used to pay 30 debt service on such bonds. 31 S 37. Paragraph (c) of subdivision 19 of section 1680 of the public 32 authorities law, as amended by section 40 of part I of chapter 55 of the 33 laws of 2014, is amended to read as follows: 34 (c) Subject to the provisions of chapter fifty-nine of the laws of two 35 thousand, the dormitory authority shall not issue any bonds for state 36 university educational facilities purposes if the principal amount of 37 bonds to be issued when added to the aggregate principal amount of bonds 38 issued by the dormitory authority on and after July first, nineteen 39 hundred eighty-eight for state university educational facilities will 40 exceed [ten] ELEVEN billion [nine] TWO hundred [eighty-four] 41 TWENTY-EIGHT million dollars; provided, however, that bonds issued or to 42 be issued shall be excluded from such limitation if: (1) such bonds are 43 issued to refund state university construction bonds and state universi- 44 ty construction notes previously issued by the housing finance agency; 45 or (2) such bonds are issued to refund bonds of the authority or other 46 obligations issued for state university educational facilities purposes 47 and the present value of the aggregate debt service on the refunding 48 bonds does not exceed the present value of the aggregate debt service on 49 the bonds refunded thereby; provided, further that upon certification by 50 the director of the budget that the issuance of refunding bonds or other 51 obligations issued between April first, nineteen hundred ninety-two and 52 March thirty-first, nineteen hundred ninety-three will generate long 53 term economic benefits to the state, as assessed on a present value 54 basis, such issuance will be deemed to have met the present value test 55 noted above. For purposes of this subdivision, the present value of the 56 aggregate debt service of the refunding bonds and the aggregate debt S. 4610--A 123 A. 6721--A 1 service of the bonds refunded, shall be calculated by utilizing the true 2 interest cost of the refunding bonds, which shall be that rate arrived 3 at by doubling the semi-annual interest rate (compounded semi-annually) 4 necessary to discount the debt service payments on the refunding bonds 5 from the payment dates thereof to the date of issue of the refunding 6 bonds to the purchase price of the refunding bonds, including interest 7 accrued thereon prior to the issuance thereof. The maturity of such 8 bonds, other than bonds issued to refund outstanding bonds, shall not 9 exceed the weighted average economic life, as certified by the state 10 university construction fund, of the facilities in connection with which 11 the bonds are issued, and in any case not later than the earlier of 12 thirty years or the expiration of the term of any lease, sublease or 13 other agreement relating thereto; provided that no note, including 14 renewals thereof, shall mature later than five years after the date of 15 issuance of such note. The legislature reserves the right to amend or 16 repeal such limit, and the state of New York, the dormitory authority, 17 the state university of New York, and the state university construction 18 fund are prohibited from covenanting or making any other agreements with 19 or for the benefit of bondholders which might in any way affect such 20 right. 21 S 38. Paragraph (c) of subdivision 14 of section 1680 of the public 22 authorities law, as amended by section 41 of part I of chapter 55 of the 23 laws of 2014, is amended to read as follows: 24 (c) Subject to the provisions of chapter fifty-nine of the laws of two 25 thousand, (i) the dormitory authority shall not deliver a series of 26 bonds for city university community college facilities, except to refund 27 or to be substituted for or in lieu of other bonds in relation to city 28 university community college facilities pursuant to a resolution of the 29 dormitory authority adopted before July first, nineteen hundred eighty- 30 five or any resolution supplemental thereto, if the principal amount of 31 bonds so to be issued when added to all principal amounts of bonds 32 previously issued by the dormitory authority for city university commu- 33 nity college facilities, except to refund or to be substituted in lieu 34 of other bonds in relation to city university community college facili- 35 ties will exceed the sum of four hundred twenty-five million dollars and 36 (ii) the dormitory authority shall not deliver a series of bonds issued 37 for city university facilities, including community college facilities, 38 pursuant to a resolution of the dormitory authority adopted on or after 39 July first, nineteen hundred eighty-five, except to refund or to be 40 substituted for or in lieu of other bonds in relation to city university 41 facilities and except for bonds issued pursuant to a resolution supple- 42 mental to a resolution of the dormitory authority adopted prior to July 43 first, nineteen hundred eighty-five, if the principal amount of bonds so 44 to be issued when added to the principal amount of bonds previously 45 issued pursuant to any such resolution, except bonds issued to refund or 46 to be substituted for or in lieu of other bonds in relation to city 47 university facilities, will exceed seven billion [two] THREE hundred 48 [seventy-three] NINETY-TWO million [three] SEVEN hundred [thirty-one] 49 FIFTY-THREE thousand dollars. The legislature reserves the right to 50 amend or repeal such limit, and the state of New York, the dormitory 51 authority, the city university, and the fund are prohibited from coven- 52 anting or making any other agreements with or for the benefit of bond- 53 holders which might in any way affect such right. 54 S 39. Subdivision 10-a of section 1680 of the public authorities law, 55 as amended by section 42 of part I of chapter 55 of the laws of 2014, is 56 amended to read as follows: S. 4610--A 124 A. 6721--A 1 10-a. Subject to the provisions of chapter fifty-nine of the laws of 2 two thousand, but notwithstanding any other provision of the law to the 3 contrary, the maximum amount of bonds and notes to be issued after March 4 thirty-first, two thousand two, on behalf of the state, in relation to 5 any locally sponsored community college, shall be [seven] EIGHT hundred 6 [seventy-six] THIRTY-EIGHT million [three] FOUR hundred [five] 7 FIFTY-EIGHT thousand dollars. Such amount shall be exclusive of bonds 8 and notes issued to fund any reserve fund or funds, costs of issuance 9 and to refund any outstanding bonds and notes, issued on behalf of the 10 state, relating to a locally sponsored community college. 11 S 40. Section 1680-r of the public authorities law, as added by 12 section 43 of part I of chapter 55 of the laws of 2014, is amended to 13 read as follows: 14 S 1680-r. Authorization for the issuance of bonds for the capital 15 restructuring financing program AND THE HEALTH CARE FACILITY TRANSFORMA- 16 TION PROGRAM. 1. Notwithstanding the provisions of any other law to the 17 contrary, the dormitory authority and the urban development corporation 18 are hereby authorized to issue bonds or notes in one or more series for 19 the purpose of funding project costs for the capital restructuring 20 financing program for health care and related facilities licensed pursu- 21 ant to the public health law or the mental hygiene law and other state 22 costs associated with such capital projects AND THE HEALTH CARE FACILITY 23 TRANSFORMATION PROGRAM. The aggregate principal amount of bonds author- 24 ized to be issued pursuant to this section shall not exceed [one] TWO 25 billion two hundred million dollars, excluding bonds issued to fund one 26 or more debt service reserve funds, to pay costs of issuance of such 27 bonds, and bonds or notes issued to refund or otherwise repay such bonds 28 or notes previously issued. Such bonds and notes of the dormitory 29 authority and the urban development corporation shall not be a debt of 30 the state, and the state shall not be liable thereon, nor shall they be 31 payable out of any funds other than those appropriated by the state to 32 the dormitory authority and the urban development corporation for prin- 33 cipal, interest, and related expenses pursuant to a service contract and 34 such bonds and notes shall contain on the face thereof a statement to 35 such effect. Except for purposes of complying with the internal revenue 36 code, any interest income earned on bond proceeds shall only be used to 37 pay debt service on such bonds. 38 2. Notwithstanding any other provision of law to the contrary, in 39 order to assist the dormitory authority and the urban development corpo- 40 ration in undertaking the financing for project costs for the capital 41 restructuring financing program for health care and related facilities 42 licensed pursuant to the public health law or the mental hygiene law and 43 other state costs associated with such capital projects AND THE HEALTH 44 CARE FACILITY TRANSFORMATION PROGRAM, the director of the budget is 45 hereby authorized to enter into one or more service contracts with the 46 dormitory authority and the urban development corporation, none of which 47 shall exceed thirty years in duration, upon such terms and conditions as 48 the director of the budget and the dormitory authority and the urban 49 development corporation agree, so as to annually provide to the dormito- 50 ry authority and the urban development corporation, in the aggregate, a 51 sum not to exceed the principal, interest, and related expenses required 52 for such bonds and notes. Any service contract entered into pursuant to 53 this section shall provide that the obligation of the state to pay the 54 amount therein provided shall not constitute a debt of the state within 55 the meaning of any constitutional or statutory provision and shall be 56 deemed executory only to the extent of monies available and that no S. 4610--A 125 A. 6721--A 1 liability shall be incurred by the state beyond the monies available for 2 such purpose, subject to annual appropriation by the legislature. Any 3 such contract or any payments made or to be made thereunder may be 4 assigned and pledged by the dormitory authority and the urban develop- 5 ment corporation as security for its bonds and notes, as authorized by 6 this section. 7 S 41. Subdivision 1 of section 17 of part D of chapter 389 of the laws 8 of 1997, relating to the financing of the correctional facilities 9 improvement fund and the youth facility improvement fund, as amended by 10 section 44 of part I of chapter 55 of the laws of 2014, is amended to 11 read as follows: 12 1. Subject to the provisions of chapter 59 of the laws of 2000, but 13 notwithstanding the provisions of section 18 of section 1 of chapter 174 14 of the laws of 1968, the New York state urban development corporation is 15 hereby authorized to issue bonds, notes and other obligations in an 16 aggregate principal amount not to exceed [four] SIX hundred [sixty-five] 17 ELEVEN million [three] TWO hundred [sixty-five] FIFTEEN thousand dollars 18 [($465,365,000)] ($611,215,000), which authorization increases the 19 aggregate principal amount of bonds, notes and other obligations author- 20 ized by section 40 of chapter 309 of the laws of 1996, and shall include 21 all bonds, notes and other obligations issued pursuant to chapter 211 of 22 the laws of 1990, as amended or supplemented. The proceeds of such 23 bonds, notes or other obligations shall be paid to the state, for depos- 24 it in the youth facilities improvement fund, to pay for all or any 25 portion of the amount or amounts paid by the state from appropriations 26 or reappropriations made to the office of children and family services 27 from the youth facilities improvement fund for capital projects. The 28 aggregate amount of bonds, notes and other obligations authorized to be 29 issued pursuant to this section shall exclude bonds, notes or other 30 obligations issued to refund or otherwise repay bonds, notes or other 31 obligations theretofore issued, the proceeds of which were paid to the 32 state for all or a portion of the amounts expended by the state from 33 appropriations or reappropriations made to the office of children and 34 family services; provided, however, that upon any such refunding or 35 repayment the total aggregate principal amount of outstanding bonds, 36 notes or other obligations may be greater than [four] SIX hundred 37 [sixty-five] ELEVEN million [three] TWO hundred [sixty-five] FIFTEEN 38 thousand dollars [($465,365,000)] ($611,215,000), only if the present 39 value of the aggregate debt service of the refunding or repayment bonds, 40 notes or other obligations to be issued shall not exceed the present 41 value of the aggregate debt service of the bonds, notes or other obli- 42 gations so to be refunded or repaid. For the purposes hereof, the pres- 43 ent value of the aggregate debt service of the refunding or repayment 44 bonds, notes or other obligations and of the aggregate debt service of 45 the bonds, notes or other obligations so refunded or repaid, shall be 46 calculated by utilizing the effective interest rate of the refunding or 47 repayment bonds, notes or other obligations, which shall be that rate 48 arrived at by doubling the semi-annual interest rate (compounded semi- 49 annually) necessary to discount the debt service payments on the refund- 50 ing or repayment bonds, notes or other obligations from the payment 51 dates thereof to the date of issue of the refunding or repayment bonds, 52 notes or other obligations and to the price bid including estimated 53 accrued interest or proceeds received by the corporation including esti- 54 mated accrued interest from the sale thereof. 55 S 42. Paragraph b of subdivision 2 of section 9-a of section 1 of 56 chapter 392 of the laws of 1973, constituting the New York state medical S. 4610--A 126 A. 6721--A 1 care facilities finance agency act, as amended by section 46 of part I 2 of chapter 55 of the laws of 2014, is amended to read as follows: 3 b. The agency shall have power and is hereby authorized from time to 4 time to issue negotiable bonds and notes in conformity with applicable 5 provisions of the uniform commercial code in such principal amount as, 6 in the opinion of the agency, shall be necessary, after taking into 7 account other moneys which may be available for the purpose, to provide 8 sufficient funds to the facilities development corporation, or any 9 successor agency, for the financing or refinancing of or for the design, 10 construction, acquisition, reconstruction, rehabilitation or improvement 11 of mental health services facilities pursuant to paragraph a of this 12 subdivision, the payment of interest on mental health services improve- 13 ment bonds and mental health services improvement notes issued for such 14 purposes, the establishment of reserves to secure such bonds and notes, 15 the cost or premium of bond insurance or the costs of any financial 16 mechanisms which may be used to reduce the debt service that would be 17 payable by the agency on its mental health services facilities improve- 18 ment bonds and notes and all other expenditures of the agency incident 19 to and necessary or convenient to providing the facilities development 20 corporation, or any successor agency, with funds for the financing or 21 refinancing of or for any such design, construction, acquisition, recon- 22 struction, rehabilitation or improvement and for the refunding of mental 23 hygiene improvement bonds issued pursuant to section 47-b of the private 24 housing finance law; provided, however, that the agency shall not issue 25 mental health services facilities improvement bonds and mental health 26 services facilities improvement notes in an aggregate principal amount 27 exceeding seven billion [four] SEVEN hundred [thirty-five] TWENTY-TWO 28 million eight hundred fifteen thousand dollars, excluding mental health 29 services facilities improvement bonds and mental health services facili- 30 ties improvement notes issued to refund outstanding mental health 31 services facilities improvement bonds and mental health services facili- 32 ties improvement notes; provided, however, that upon any such refunding 33 or repayment of mental health services facilities improvement bonds 34 and/or mental health services facilities improvement notes the total 35 aggregate principal amount of outstanding mental health services facili- 36 ties improvement bonds and mental health facilities improvement notes 37 may be greater than seven billion [four] SEVEN hundred [thirty-five] 38 TWENTY-TWO million eight hundred fifteen thousand dollars only if, 39 except as hereinafter provided with respect to mental health services 40 facilities bonds and mental health services facilities notes issued to 41 refund mental hygiene improvement bonds authorized to be issued pursuant 42 to the provisions of section 47-b of the private housing finance law, 43 the present value of the aggregate debt service of the refunding or 44 repayment bonds to be issued shall not exceed the present value of the 45 aggregate debt service of the bonds to be refunded or repaid. For 46 purposes hereof, the present values of the aggregate debt service of the 47 refunding or repayment bonds, notes or other obligations and of the 48 aggregate debt service of the bonds, notes or other obligations so 49 refunded or repaid, shall be calculated by utilizing the effective 50 interest rate of the refunding or repayment bonds, notes or other obli- 51 gations, which shall be that rate arrived at by doubling the semi-annual 52 interest rate (compounded semi-annually) necessary to discount the debt 53 service payments on the refunding or repayment bonds, notes or other 54 obligations from the payment dates thereof to the date of issue of the 55 refunding or repayment bonds, notes or other obligations and to the 56 price bid including estimated accrued interest or proceeds received by S. 4610--A 127 A. 6721--A 1 the authority including estimated accrued interest from the sale there- 2 of. Such bonds, other than bonds issued to refund outstanding bonds, 3 shall be scheduled to mature over a term not to exceed the average 4 useful life, as certified by the facilities development corporation, of 5 the projects for which the bonds are issued, and in any case shall not 6 exceed thirty years and the maximum maturity of notes or any renewals 7 thereof shall not exceed five years from the date of the original issue 8 of such notes. Notwithstanding the provisions of this section, the agen- 9 cy shall have the power and is hereby authorized to issue mental health 10 services facilities improvement bonds and/or mental health services 11 facilities improvement notes to refund outstanding mental hygiene 12 improvement bonds authorized to be issued pursuant to the provisions of 13 section 47-b of the private housing finance law and the amount of bonds 14 issued or outstanding for such purposes shall not be included for 15 purposes of determining the amount of bonds issued pursuant to this 16 section. The director of the budget shall allocate the aggregate princi- 17 pal authorized to be issued by the agency among the office of mental 18 health, office for people with developmental disabilities, and the 19 office of alcoholism and substance abuse services, in consultation with 20 their respective commissioners to finance bondable appropriations previ- 21 ously approved by the legislature. 22 S 43. Paragraph (b) of subdivision 3 of section 1 and clause (B) of 23 subparagraph (iii) of paragraph (j) of subdivision 4 of section 1 of 24 part D of chapter 63 of the laws of 2005 relating to the composition and 25 responsibilities of the New York state higher education capital matching 26 grant board, as amended by section 46-c of part I of chapter 55 of the 27 laws of 2014, is amended to read as follows: 28 (b) Within amounts appropriated therefor, the board is hereby author- 29 ized and directed to award matching capital grants totaling [180] 210 30 million dollars. Each college shall be eligible for a grant award amount 31 as determined by the calculations pursuant to subdivision five of this 32 section. In addition, such colleges shall be eligible to compete for 33 additional funds pursuant to paragraph (h) of subdivision four of this 34 section. 35 (B) The dormitory authority shall not issue any bonds or notes in an 36 amount in excess of [180] 210 million dollars for the purposes of this 37 section; excluding bonds or notes issued to fund one or more debt 38 service reserve funds, to pay costs of issuance of such bonds, and bonds 39 or notes issued to refund or otherwise repay such bonds or notes previ- 40 ously issued. Except for purposes of complying with the internal revenue 41 code, any interest on bond proceeds shall only be used to pay debt 42 service on such bonds. 43 S 44. Subdivision 1 of section 49 of section 1 of chapter 174 of the 44 laws of 1968, constituting the New York state urban development corpo- 45 ration act, as amended by section 46-a of part I of chapter 55 of the 46 laws of 2014, is amended to read as follows: 47 1. Notwithstanding the provisions of any other law to the contrary, 48 the dormitory authority and the corporation are hereby authorized to 49 issue bonds or notes in one or more series for the purpose of funding 50 project costs for the state and municipal facilities program and other 51 state costs associated with such capital projects. The aggregate princi- 52 pal amount of bonds authorized to be issued pursuant to this section 53 shall not exceed [seven hundred seventy] ONE BILLION ONE HUNDRED FIFTY- 54 FIVE million dollars, excluding bonds issued to fund one or more debt 55 service reserve funds, to pay costs of issuance of such bonds, and bonds 56 or notes issued to refund or otherwise repay such bonds or notes previ- S. 4610--A 128 A. 6721--A 1 ously issued. Such bonds and notes of the dormitory authority and the 2 corporation shall not be a debt of the state, and the state shall not be 3 liable thereon, nor shall they be payable out of any funds other than 4 those appropriated by the state to the dormitory authority and the 5 corporation for principal, interest, and related expenses pursuant to a 6 service contract and such bonds and notes shall contain on the face 7 thereof a statement to such effect. Except for purposes of complying 8 with the internal revenue code, any interest income earned on bond 9 proceeds shall only be used to pay debt service on such bonds. 10 S 45. Intentionally omitted. 11 S 46. Subdivision 1 of section 386-a of the public authorities law, as 12 added by section 46 of part U of chapter 59 of the laws of 2012, is 13 amended to read as follows: 14 1. Notwithstanding any other provision of law to the contrary, the 15 authority, the dormitory authority and the urban development corporation 16 are hereby authorized to issue bonds or notes in one or more series for 17 the purpose of assisting the metropolitan transportation authority in 18 the financing of transportation facilities as defined in subdivision 19 seventeen of section twelve hundred sixty-one of this chapter. The 20 aggregate principal amount of bonds authorized to be issued pursuant to 21 this section shall not exceed ONE BILLION [seven] FIVE hundred [seventy] 22 TWENTY million dollars [($770,000,000)] ($1,520,000,000), excluding 23 bonds issued to fund one or more debt service reserve funds, to pay 24 costs of issuance of such bonds, and to refund or otherwise repay such 25 bonds or notes previously issued. Such bonds and notes of the authority, 26 the dormitory authority and the urban development corporation shall not 27 be a debt of the state, and the state shall not be liable thereon, nor 28 shall they be payable out of any funds other than those appropriated by 29 the state to the authority, the dormitory authority and the urban devel- 30 opment corporation for principal, interest, and related expenses pursu- 31 ant to a service contract and such bonds and notes shall contain on the 32 face thereof a statement to such effect. Except for purposes of comply- 33 ing with the internal revenue code, any interest income earned on bond 34 proceeds shall only be used to pay debt service on such bonds. 35 S 47. This act shall take effect immediately and shall be deemed to 36 have been in full force and effect on and after April 1, 2015; provided, 37 however, that the provisions of sections one through eight and sections 38 thirteen through twenty of this act shall expire March 31, 2016, when 39 upon such date the provisions of such sections shall be deemed repealed. 40 PART J 41 Section 1. The public health law is amended by adding a new section 42 2825-a to read as follows: 43 S 2825-A. HEALTH CARE FACILITY TRANSFORMATION PROGRAM: KINGS COUNTY 44 PROJECT. 1. A KINGS COUNTY HEALTH CARE FACILITY TRANSFORMATION PROGRAM 45 IS HEREBY ESTABLISHED UNDER THE JOINT ADMINISTRATION OF THE COMMISSIONER 46 AND THE PRESIDENT OF THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK 47 FOR THE PURPOSE OF STRENGTHENING AND PROTECTING CONTINUED ACCESS TO 48 HEALTH CARE SERVICES IN COMMUNITIES. THE PROGRAM SHALL PROVIDE CAPITAL 49 FUNDING IN SUPPORT OF PROJECTS THAT REPLACE INEFFICIENT AND OUTDATED 50 FACILITIES AS PART OF A MERGER, CONSOLIDATION, ACQUISITION OR OTHER 51 SIGNIFICANT CORPORATE RESTRUCTURING ACTIVITY INTENDED TO CREATE A FINAN- 52 CIALLY SUSTAINABLE SYSTEM OF CARE. THE ISSUANCE OF ANY BONDS OR NOTES 53 HEREUNDER SHALL BE SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE DIVI- 54 SION OF THE BUDGET, AND ANY PROJECTS FUNDED THROUGH THE ISSUANCE OF S. 4610--A 129 A. 6721--A 1 BONDS OR NOTES HEREUNDER SHALL BE APPROVED BY THE NEW YORK STATE PUBLIC 2 AUTHORITIES CONTROL BOARD, AS REQUIRED UNDER SECTION FIFTY-ONE OF THE 3 PUBLIC AUTHORITIES LAW. 4 2. THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY SHALL ENTER 5 INTO AN AGREEMENT, SUBJECT TO APPROVAL BY THE DIRECTOR OF THE BUDGET, 6 AND SUBJECT TO SECTION SIXTEEN HUNDRED EIGHTY-R OF THE PUBLIC AUTHORI- 7 TIES LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND ADMINISTERING 8 THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION. SUCH FUNDS MAY BE 9 DISTRIBUTED BY THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY FOR 10 CAPITAL GRANTS TO GENERAL HOSPITALS, RESIDENTIAL HEALTH CARE FACILITIES, 11 DIAGNOSTIC AND TREATMENT CENTERS, PRIMARY CARE PROVIDERS, AND HOME CARE 12 PROVIDERS, CERTIFIED OR LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF THIS 13 CHAPTER, FOR CAPITAL NON-OPERATIONAL WORKS OR PURPOSES THAT SUPPORT THE 14 PURPOSES SET FORTH IN THIS SECTION. A COPY OF SUCH AGREEMENT, AND ANY 15 AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF THE SENATE FINANCE 16 COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, AND THE 17 DIRECTOR OF THE DIVISION OF BUDGET NO LATER THAN THIRTY DAYS PRIOR TO 18 THE RELEASE OF A REQUEST FOR APPLICATIONS FOR FUNDING UNDER THIS 19 PROGRAM. PROJECTS AWARDED UNDER SECTION TWENTY-EIGHT HUNDRED TWENTY-FIVE 20 OF THIS ARTICLE SHALL NOT BE ELIGIBLE FOR GRANTS OR AWARDS MADE AVAIL- 21 ABLE UNDER THIS SECTION. 22 3. NOTWITHSTANDING SECTION ONE HUNDRED SIXTY-THREE OF THE STATE 23 FINANCE LAW OR ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, UP TO 24 SEVEN HUNDRED MILLION DOLLARS OF THE FUNDS APPROPRIATED FOR THIS PROGRAM 25 SHALL BE AWARDED WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC- 26 ESS FOR CAPITAL GRANTS TO HEALTH CARE PROVIDERS (HEREAFTER "APPLICANTS") 27 LOCATED IN THE COUNTY OF KINGS. 28 (A) ELIGIBLE APPLICANTS SHALL SERVE COMMUNITIES WHOSE RESIDENTS ARE 29 EXPERIENCING SIGNIFICANT LEVELS OF HEALTH CARE DISPARITIES AND HEALTH 30 CARE NEEDS COMPARED TO OTHER COMMUNITIES WITHIN THE COUNTY OF KINGS AS 31 EVIDENCED BY: 32 (I) A HIGH NUMBER OF MEDICAID ENROLLEES AND UNINSURED INDIVIDUALS; 33 (II) ELEVATED BLOOD LEAD LEVEL RATES AMONG CHILDREN, HIGH RATES OF 34 DIABETES, HIGH BLOOD PRESSURE, ASTHMA, OBESITY, INFANT DEATH OR PREMA- 35 TURE BIRTH, HEART FAILURE, BEHAVIORAL HEALTH CONDITIONS, SUBSTANCE 36 ABUSE; 37 (III) LOW LEVELS OF INCOME, HIGH RATES OF UNEMPLOYMENT, DISTRESSED 38 HOUSING CONDITIONS, AND POOR NUTRITIONAL STATUS; 39 (IV) OTHER RISK FACTORS AS DETERMINED BY THE COMMISSIONER AND THE 40 PRESIDENT OF THE AUTHORITY; AND 41 (B) SUCH ELIGIBLE APPLICANT SHALL: 42 (I) (A) HAVE A LOSS FROM OPERATIONS FOR EACH OF THE THREE CONSECUTIVE 43 PRECEDING YEARS AS EVIDENCED BY AUDITED FINANCIAL STATEMENTS; 44 (B) HAVE A NEGATIVE FUND BALANCE OR NEGATIVE EQUITY POSITION IN EACH 45 OF THE THREE PRECEDING YEARS AS EVIDENCED BY AUDITED FINANCIAL STATE- 46 MENTS; AND 47 (C) HAVE A CURRENT RATIO OF LESS THAN 1:1 FOR EACH OF THREE CONSEC- 48 UTIVE PRECEDING YEARS; OR 49 (II) BE DEEMED BY THE COMMISSIONER AND PRESIDENT OF THE AUTHORITY TO 50 BE A PROVIDER THAT FULFILLS OR WILL FULFILL AN UNMET HEALTH CARE NEED 51 FOR ACUTE INPATIENT, OUTPATIENT, PRIMARY OR RESIDENTIAL HEALTH CARE 52 SERVICES IN A COMMUNITY. 53 4. IN DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER THIS SECTION, 54 THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY SHALL CONSIDER 55 CRITERIA INCLUDING, BUT NOT LIMITED TO: S. 4610--A 130 A. 6721--A 1 (A) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT WILL CONTRIBUTE 2 TO THE LONG TERM SUSTAINABILITY OF THE APPLICANT OR PRESERVATION OF 3 ESSENTIAL HEALTH SERVICES IN THE COMMUNITY OR COMMUNITIES SERVED BY THE 4 APPLICANT; 5 (B) THE EXTENT TO WHICH THE PROPOSED PROJECT OR PURPOSE IS ALIGNED 6 WITH DELIVERY SYSTEM REFORM INCENTIVE PAYMENT ("DSRIP") PROGRAM GOALS 7 AND OBJECTIVES; 8 (C) THE RELATIONSHIP BETWEEN THE PROPOSED CAPITAL PROJECT AND IDENTI- 9 FIED COMMUNITY NEED; 10 (D) THE EXTENT THAT THE PROPOSED CAPITAL PROJECT FURTHERS THE DEVELOP- 11 MENT OF PRIMARY CARE AND OTHER OUTPATIENT SERVICES; 12 (E) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT BENEFITS MEDICAID 13 ENROLLEES AND UNINSURED INDIVIDUALS; 14 (F) THE EXTENT TO WHICH THE APPLICANT HAS ENGAGED THE COMMUNITY 15 AFFECTED BY THE PROPOSED CAPITAL PROJECT AND THE MANNER IN WHICH COMMU- 16 NITY ENGAGEMENT HAS SHAPED SUCH CAPITAL PROJECT; AND 17 (G) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT ADDRESSES POTEN- 18 TIAL RISK TO PATIENT SAFETY AND WELFARE. 19 5. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO THE 20 CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND 21 ASSEMBLY HEALTH COMMITTEES. SUCH REPORTS SHALL BE SUBMITTED NO LATER 22 THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL CONFORM TO THE 23 REPORTING REQUIREMENTS OF SUBDIVISION TWENTY OF SECTION TWENTY-EIGHT 24 HUNDRED SEVEN OF THIS ARTICLE, AS APPLICABLE. 25 S 2. The public health law is amended by adding a new section 2825-b 26 to read as follows: 27 S 2825-B. ONEIDA COUNTY HEALTH CARE FACILITY TRANSFORMATION PROGRAM: 28 ONEIDA COUNTY PROJECT. 1. AN ONEIDA COUNTY HEALTH CARE FACILITY TRANS- 29 FORMATION PROGRAM IS HEREBY ESTABLISHED UNDER THE JOINT ADMINISTRATION 30 OF THE COMMISSIONER AND THE PRESIDENT OF THE DORMITORY AUTHORITY OF THE 31 STATE OF NEW YORK FOR THE PURPOSE OF STRENGTHENING AND PROTECTING 32 CONTINUED ACCESS TO HEALTH CARE SERVICES IN COMMUNITIES. THE PROGRAM 33 SHALL PROVIDE CAPITAL FUNDING IN SUPPORT OF PROJECTS LOCATED IN THE 34 LARGEST POPULATION CENTER IN ONEIDA COUNTY THAT CONSOLIDATE MULTIPLE 35 LICENSED HEALTH CARE FACILITIES INTO AN INTEGRATED SYSTEM OF CARE. THE 36 ISSUANCE OF ANY BONDS OR NOTES HEREUNDER SHALL BE SUBJECT TO THE 37 APPROVAL OF THE DIRECTOR OF THE DIVISION OF THE BUDGET, AND ANY PROJECTS 38 FUNDED THROUGH THE ISSUANCE OF BONDS OR NOTES HEREUNDER SHALL BE 39 APPROVED BY THE NEW YORK STATE PUBLIC AUTHORITIES CONTROL BOARD, AS 40 REQUIRED UNDER SECTION FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW. 41 2. THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY SHALL ENTER 42 INTO AN AGREEMENT, SUBJECT TO APPROVAL BY THE DIRECTOR OF THE BUDGET, 43 AND SUBJECT TO SECTION SIXTEEN HUNDRED EIGHTY-R OF THE PUBLIC AUTHORI- 44 TIES LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND ADMINISTERING 45 THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION. SUCH FUNDS MAY BE 46 DISTRIBUTED BY THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY FOR 47 CAPITAL GRANTS TO GENERAL HOSPITALS FOR THE PURPOSES OF CONSOLIDATING 48 MULTIPLE LICENSED HEALTH CARE FACILITIES INTO AN INTEGRATED SYSTEM OF 49 CARE FOR CAPITAL NON-OPERATIONAL WORKS OR PURPOSES THAT SUPPORT THE 50 PURPOSES SET FORTH IN THIS SECTION. A COPY OF SUCH AGREEMENT, AND ANY 51 AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF THE SENATE FINANCE 52 COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, AND THE 53 DIRECTOR OF THE DIVISION OF BUDGET NO LATER THAN THIRTY DAYS PRIOR TO 54 THE RELEASE OF A REQUEST FOR APPLICATIONS FOR FUNDING UNDER THIS 55 PROGRAM. PROJECTS AWARDED UNDER SECTION TWENTY-EIGHT HUNDRED TWENTY-FIVE S. 4610--A 131 A. 6721--A 1 OF THIS ARTICLE SHALL NOT BE ELIGIBLE FOR GRANTS OR AWARDS MADE AVAIL- 2 ABLE UNDER THIS SECTION. 3 3. NOTWITHSTANDING SECTION ONE HUNDRED SIXTY-THREE OF THE STATE 4 FINANCE LAW OR ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, UP TO 5 THREE HUNDRED MILLION DOLLARS OF THE FUNDS APPROPRIATED FOR THIS PROGRAM 6 SHALL BE AWARDED WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC- 7 ESS FOR CAPITAL GRANTS TO HEALTH CARE PROVIDERS (HEREAFTER "APPLICANTS") 8 LOCATED IN THE COUNTY OF ONEIDA. 9 4. IN DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER THIS SECTION, 10 THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY SHALL CONSIDER 11 CRITERIA INCLUDING, BUT NOT LIMITED TO: 12 (A) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT WILL CONTRIBUTE 13 TO THE INTEGRATION OF HEALTH CARE SERVICES AND LONG TERM SUSTAINABILITY 14 OF THE APPLICANT OR PRESERVATION OF ESSENTIAL HEALTH SERVICES IN THE 15 COMMUNITY OR COMMUNITIES SERVED BY THE APPLICANT; 16 (B) THE EXTENT TO WHICH THE PROPOSED PROJECT OR PURPOSE IS ALIGNED 17 WITH DELIVERY SYSTEM REFORM INCENTIVE PAYMENT ("DSRIP") PROGRAM GOALS 18 AND OBJECTIVES; 19 (C) THE RELATIONSHIP BETWEEN THE PROPOSED CAPITAL PROJECT AND IDENTI- 20 FIED COMMUNITY NEED; 21 (D) THE EXTENT THAT THE PROPOSED CAPITAL PROJECT FURTHERS THE DEVELOP- 22 MENT OF PRIMARY CARE AND OTHER OUTPATIENT SERVICES; 23 (E) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT BENEFITS MEDICAID 24 ENROLLEES AND UNINSURED INDIVIDUALS; 25 (F) THE EXTENT TO WHICH THE APPLICANT HAS ENGAGED THE COMMUNITY 26 AFFECTED BY THE PROPOSED CAPITAL PROJECT AND THE MANNER IN WHICH COMMU- 27 NITY ENGAGEMENT HAS SHAPED SUCH CAPITAL PROJECT; AND 28 (G) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT ADDRESSES POTEN- 29 TIAL RISK TO PATIENT SAFETY AND WELFARE. 30 5. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO THE 31 CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND 32 ASSEMBLY HEALTH COMMITTEES. SUCH REPORTS SHALL BE SUBMITTED NO LATER 33 THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL CONFORM TO THE 34 REPORTING REQUIREMENTS OF SUBDIVISION TWENTY OF SECTION TWENTY-EIGHT 35 HUNDRED SEVEN OF THIS ARTICLE, AS APPLICABLE. 36 S 3. The public health law is amended by adding a new section 2825-c 37 to read as follows: 38 S 2825-C. ESSENTIAL HEALTH CARE PROVIDER SUPPORT PROGRAM. 1. NOTWITH- 39 STANDING SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, OR 40 ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, WITHIN AMOUNTS APPRO- 41 PRIATED, FUNDS MAY BE ALLOCATED AND DISTRIBUTED BY THE COMMISSIONER 42 WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROCESS, FOR GRANTS TO 43 ESSENTIAL HEALTH CARE PROVIDERS TO SUPPORT DEBT RETIREMENT, CAPITAL 44 PROJECTS OR NON-CAPITAL PROJECTS THAT FACILITATE HEALTH CARE TRANSFORMA- 45 TION, INCLUDING MERGERS, CONSOLIDATION, AND RESTRUCTURING ACTIVITIES 46 INTENDED TO CREATE A FINANCIALLY SUSTAINABLE SYSTEM OF CARE. GRANTS 47 SHALL NOT BE AVAILABLE TO SUPPORT GENERAL OPERATING EXPENSES. FOR 48 PURPOSES OF THIS SECTION, AN ESSENTIAL HEALTH CARE PROVIDER IS A HOSPI- 49 TAL OR HOSPITAL SYSTEM THAT, IN THE DISCRETION OF THE COMMISSIONER, 50 OFFERS HEALTH CARE SERVICES WITHIN A DEFINED GEOGRAPHIC REGION WHERE 51 SUCH SERVICES WOULD OTHERWISE BE UNAVAILABLE TO THE POPULATION OF SUCH 52 REGION. 53 2. THE COMMISSIONER SHALL AWARD GRANTS FOR PROJECTS CONSISTENT WITH 54 THE PURPOSES OF THIS SECTION. ELIGIBLE APPLICANTS SHALL MEET THE FOLLOW- 55 ING CRITERIA: S. 4610--A 132 A. 6721--A 1 (A) (I) HAVE A LOSS FROM OPERATIONS FOR EACH OF THE THREE CONSECUTIVE 2 PRECEDING YEARS AS EVIDENCED BY AUDITED FINANCIAL STATEMENTS; 3 (II) HAVE A NEGATIVE FUND BALANCE OR NEGATIVE EQUITY POSITION IN EACH 4 OF THE THREE PRECEDING YEARS AS EVIDENCED BY AUDITED FINANCIAL STATE- 5 MENTS; AND 6 (III) HAVE A CURRENT RATIO OF LESS THAN 1:1 FOR EACH OF THREE CONSEC- 7 UTIVE PRECEDING YEARS; OR 8 (B) BE DEEMED BY THE COMMISSIONER TO BE A PROVIDER THAT FULFILLS OR 9 WILL FULFILL AN UNMET NEED FOR ACUTE INPATIENT, OUTPATIENT, PRIMARY OR 10 RESIDENTIAL HEALTH CARE SERVICES IN A DEFINED GEOGRAPHIC REGION WHERE 11 SUCH SERVICES WOULD BE OTHERWISE UNAVAILABLE TO THE POPULATION OF SUCH 12 REGION. 13 3. SUCH AWARDS SHALL BE DISTRIBUTED PURSUANT TO CRITERIA, INCLUDING 14 BUT NOT LIMITED TO: 15 (A) THE EXTENT TO WHICH THE PROPOSED PROJECT WILL CONTRIBUTE TO THE 16 LONG TERM SUSTAINABILITY OF THE APPLICANT OR PRESERVATION OF ESSENTIAL 17 HEALTH CARE SERVICES IN A COMMUNITY; 18 (B) THE EXTENT TO WHICH THE PROPOSED PROJECT OR PURPOSE IS ALIGNED 19 WITH DELIVERY SYSTEM REFORM INCENTIVE PAYMENT ("DSRIP") PROGRAM GOALS 20 AND OBJECTIVES; 21 (C) CONSIDERATION OF GEOGRAPHIC DISTRIBUTION OF FUNDS; 22 (D) THE RELATIONSHIP BETWEEN THE PROPOSED PROJECT AND AN IDENTIFIED 23 COMMUNITY NEED; 24 (E) THE EXTENT TO WHICH THE APPLICANT HAS ACCESS TO ALTERNATIVE 25 FINANCING; 26 (F) THE EXTENT TO WHICH THE PROPOSED PROJECT FURTHERS THE DEVELOPMENT 27 OF PRIMARY CARE; 28 (G) THE EXTENT TO WHICH THE PROPOSED PROJECT BENEFITS MEDICAID ENROL- 29 LEES AND UNINSURED INDIVIDUALS; 30 (H) THE EXTENT TO WHICH THE APPLICANT HAS ENGAGED THE COMMUNITY 31 AFFECTED BY THE PROPOSED PROJECT AND THE MANNER IN WHICH THE COMMUNITY 32 ENGAGEMENT HAS SHAPED SUCH PROJECT; AND 33 (I) THE EXTENT TO WHICH THE PROPOSED PROJECT ADDRESSES POTENTIAL RISK 34 TO PATIENT SAFETY AND WELFARE. 35 4. DISBURSEMENT OF AWARDS MADE PURSUANT TO THIS SECTION SHALL BE 36 CONDITIONED ON THE AWARDEE ACHIEVING CERTAIN PROCESS AND PERFORMANCE 37 METRICS AND MILESTONES AS DETERMINED IN THE SOLE DISCRETION OF THE 38 COMMISSIONER. SUCH METRICS AND MILESTONES SHALL BE STRUCTURED TO ENSURE 39 THAT THE HEALTH CARE TRANSFORMATION AND PROVIDER SUSTAINABILITY GOALS OF 40 THE PROJECT ARE ACHIEVED, AND SUCH METRICS AND MILESTONES SHALL BE 41 INCLUDED IN GRANT DISBURSEMENT AGREEMENTS OR OTHER CONTRACTUAL DOCUMENTS 42 AS REQUIRED BY THE COMMISSIONER. 43 5. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO THE 44 CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND 45 ASSEMBLY HEALTH COMMITTEES. SUCH REPORTS SHALL BE SUBMITTED NO LATER 46 THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL INCLUDE, FOR 47 EACH AWARD, THE NAME OF THE APPLICANT, A DESCRIPTION OF THE PROJECT OR 48 PURPOSE, THE AMOUNT OF THE AWARD, DISBURSEMENT DATE, AND STATUS OF 49 ACHIEVEMENT OF PROCESS AND PERFORMANCE METRICS AND MILESTONES PURSUANT 50 TO SUBDIVISION FOUR OF THIS SECTION. 51 S 4. The opening paragraph of subdivision 3 of section 2825 of the 52 public health law, as added by section 8 of part A of chapter 60 of the 53 laws of 2014, is amended to read as follows: 54 The commissioner and the president of the authority shall enter into 55 an agreement, subject to approval by the director of the budget and 56 subject to section sixteen hundred eighty-r of the public authorities S. 4610--A 133 A. 6721--A 1 law, as added by a chapter of the laws of two thousand fourteen, for the 2 purposes of awarding, distributing, and administering the funds made 3 available pursuant to this section. TO THE EXTENT PRACTICABLE, FUNDS 4 SHALL BE AWARDED REGIONALLY IN PROPORTION TO THE APPLICATIONS RECEIVED 5 FROM THE REQUEST FOR APPLICATION ISSUED BY OR BEFORE MAY FIRST, TWO 6 THOUSAND FIFTEEN. PROJECTS AWARDED UNDER SECTIONS TWENTY-EIGHT HUNDRED 7 TWENTY-FIVE-A AND TWENTY-EIGHT HUNDRED TWENTY-FIVE-B OF THIS ARTICLE 8 SHALL NOT BE ELIGIBLE FOR GRANTS OR AWARDS MADE AVAILABLE UNDER THIS 9 SECTION. 10 S 5. The public health law is amended by adding a new section 2815-a 11 to read as follows: 12 S 2815-A. COMMUNITY HEALTH CARE REVOLVING CAPITAL FUND. 1. DEFI- 13 NITIONS. AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES SHALL 14 HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING IS PLAINLY 15 REQUIRED BY THE CONTEXT: 16 A. "ADMINISTRATOR" SHALL MEAN A NOT FOR PROFIT COMMUNITY DEVELOPMENT 17 FINANCIAL INSTITUTION CDFI THAT IS CERTIFIED BY THE U.S. TREASURY COMMU- 18 NITY DEVELOPMENT FINANCIAL FUND, HAS EXPERIENCE FINANCING PROJECTS IN 19 THE NEW YORK STATE HEALTHCARE SECTOR AND OTHERWISE MEETS THE REQUIRE- 20 MENTS OF THIS SECTION. 21 B. "DORMITORY AUTHORITY" OR "AUTHORITY" SHALL MEAN THE DORMITORY 22 AUTHORITY OF THE STATE OF NEW YORK CREATED BY TITLE FOUR OF ARTICLE 23 EIGHT OF THE PUBLIC AUTHORITIES LAW WHICH HAS SUCCEEDED TO THE POWERS, 24 FUNCTIONS AND DUTIES OF THE MEDICAL CARE FACILITIES FINANCE AGENCY 25 PURSUANT TO CHAPTER EIGHTY-THREE OF THE LAWS OF NINETEEN HUNDRED NINE- 26 TY-FIVE. 27 C. "PARTICIPATING BORROWER" SHALL MEAN A COMMUNITY-BASED HEALTH CARE 28 PROVIDER, WHICH FOR THE PURPOSES OF THIS SECTION, SHALL BE DEFINED AS 29 DIAGNOSTIC AND TREATMENT CENTER LICENSED OR GRANTED AN OPERATING CERTIF- 30 ICATE UNDER ARTICLE TWENTY-EIGHT OF THIS CHAPTER, A MENTAL HEALTH CLINIC 31 LICENSED OR GRANTED AN OPERATING CERTIFICATE UNDER ARTICLE THIRTY-ONE OF 32 THE MENTAL HEALTH LAW; OR AN ALCOHOL AND SUBSTANCE ABUSE TREATMENT CLIN- 33 IC LICENSED OR GRANTED AN OPERATING CERTIFICATE UNDER ARTICLE THIRTY-TWO 34 OF THE MENTAL HYGIENE LAW, EACH ORGANIZED UNDER THE LAWS OF THIS STATE. 35 D. "REVOLVING CAPITAL FUND" SHALL MEAN COMMUNITY HEALTH CARE REVOLVING 36 CAPITAL FUND AUTHORIZED TO BE ESTABLISHED BY THE DORMITORY AUTHORITY AND 37 ADMINISTERED PURSUANT TO THIS SECTION. 38 2. REVOLVING CAPITAL FUND. THE DORMITORY AUTHORITY SHALL, WITHIN 39 AMOUNTS APPROPRIATED, ESTABLISH THE COMMUNITY HEALTH CARE REVOLVING 40 CAPITAL FUND. MONIES IN THE REVOLVING CAPITAL FUND SHALL BE UTILIZED 41 FOR THE PURPOSE OF MAKING LOANS TO QUALIFYING PARTICIPATING BORROWERS TO 42 IMPROVE ACCESS TO AFFORDABLE CAPITAL FINANCING TO EXPAND AND IMPROVE 43 CAPACITY TO PROVIDE HEALTH CARE IN THE STATE. FUNDS SHALL BE TRANSFERRED 44 BY THE COMMISSIONER TO THE DORMITORY AUTHORITY FOR DEPOSIT IN THE 45 REVOLVING CAPITAL FUND IN AN AMOUNT AS AUTHORIZED BY APPROPRIATION. 46 MONIES IN THE FUND SHALL BE: (A) HELD BY THE AUTHORITY PURSUANT TO THIS 47 SECTION AS CUSTODIAN PURSUANT TO AN AGREEMENT WITH THE COMMISSIONER 48 UNTIL TRANSFERRED TO THE ADMINISTRATOR PURSUANT TO THIS SECTION, AND (B) 49 INVESTED BY THE AUTHORITY IN ACCORDANCE WITH THE INVESTMENT GUIDELINES 50 OF THE AUTHORITY DURING SAID CUSTODIAL PERIOD. ALL INVESTMENT INCOME 51 SHALL BE CREDITED TO, AND SHALL BE DEPOSITED IN, THE REVOLVING CAPITAL 52 FUND. 53 3. ADMINISTRATION AGREEMENT. THE COMMISSIONER AND THE AUTHORITY SHALL 54 ENTER INTO AN AGREEMENT, SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE 55 BUDGET, FOR THE PURPOSE OF ADMINISTERING THE FUNDS IN THE REVOLVING 56 CAPITAL FUND THROUGH AN ADMINISTRATOR. A COPY OF SUCH AGREEMENT, AND ANY S. 4610--A 134 A. 6721--A 1 AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF THE SENATE FINANCE 2 COMMITTEE, THE DIRECTOR OF THE DIVISION OF BUDGET, AND THE CHAIR OF THE 3 ASSEMBLY WAYS AND MEANS COMMITTEE. THE AGREEMENT SHALL SPECIFY THAT THE 4 ADMINISTRATOR SHALL ADMINISTER THE COMMUNITY HEALTH CARE REVOLVING CAPI- 5 TAL FUND IN A MANNER THAT WILL BENEFIT THE PUBLIC HEALTH BY ENCOURAGING 6 IMPROVEMENTS IN THE COMMUNITY HEALTH CARE DELIVERY SYSTEM IN THE STATE, 7 IN COMPLIANCE WITH ALL APPLICABLE LAWS, RULES, REGULATIONS AND OTHER 8 REQUIREMENTS. 9 4. AGREEMENT WITH THE ADMINISTRATOR. THE DORMITORY AUTHORITY SHALL, IN 10 CONSULTATION WITH THE COMMISSIONER, ENTER INTO AN AGREEMENT WITH THE 11 ADMINISTRATOR. SUCH AGREEMENT SHALL PROVIDE FOR THE ADMINISTRATION OF 12 THE REVOLVING CAPITAL FUND ADMINISTRATOR, IN ACCORDANCE WITH THE 13 REQUIREMENTS OF THIS SECTION, THE COMMISSIONER AND DORMITORY AUTHORITY 14 AND ALL APPLICABLE LAWS, RULES, REGULATIONS AND OTHER REQUIREMENTS. UPON 15 THE EFFECTIVE DATE OF THE AGREEMENT, CUSTODY OF, AND RESPONSIBILITY FOR, 16 THE REVOLVING CAPITAL FUND SHALL BE TRANSFERRED FROM THE DORMITORY 17 AUTHORITY TO THE ADMINISTRATOR, SUBJECT TO THE REQUIREMENTS OF THE 18 AGREEMENT. SUCH AGREEMENT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE 19 FOLLOWING PROVISIONS: 20 A. THAT THE ADMINISTRATOR SHALL BE RESPONSIBLE FOR THE RECEIPT, 21 MANAGEMENT AND EXPENDITURE OF MONIES HELD IN THE REVOLVING CAPITAL FUND; 22 B. THAT THE ADMINISTRATOR SHALL MAINTAIN BOOKS AND RECORDS PERTAINING 23 TO ALL MONIES RECEIVED AND DISBURSED PURSUANT TO THIS SECTION AND THE 24 AGREEMENT; 25 C. THAT MONIES IN SUCH REVOLVING CAPITAL FUND SHALL BE UTILIZED FOR 26 THE PURPOSE OF MAKING LOANS TO QUALIFYING PARTICIPATING BORROWERS, TO 27 PROVIDE PARTICIPATING BORROWERS WITH IMPROVED ACCESS TO AFFORDABLE CAPI- 28 TAL TO EXPAND AND IMPROVE PREVENTIVE OR PRIMARY CARE CAPACITY; 29 D. THAT PARTICIPATING BORROWERS SHALL BE CHOSEN BY THE ADMINISTRATOR 30 THROUGH AN APPLICATION PROCESS APPROVED BY THE AUTHORITY AND THE COMMIS- 31 SIONER; 32 E. THAT ELIGIBLE USES OF FUNDS SO LOANED TO PARTICIPATING BORROWERS 33 SHALL INCLUDE BUT NOT BE LIMITED TO: (I) ELIGIBLE COSTS AS DESCRIBED IN 34 PARAGRAPH (F) OF THIS SUBDIVISION, ATTRIBUTABLE TO THE PROPOSED 35 CONSTRUCTION, RECONSTRUCTION, RENOVATION, REHABILITATION, REFURBISHING, 36 EXPANSION, UPGRADING AND EQUIPPING OF A PARTICIPATING BORROWER'S COMMU- 37 NITY-BASED HEALTH CARE FACILITY; (II) RESERVES FOR CREDIT ENHANCEMENT 38 INCLUDING LOAN GUARANTEES; (III) LOAN LOSS AND DEBT SERVICE RESERVES AND 39 SUBORDINATED LOANS; AND (IV) FACILITY FINANCING, INCLUDING LOANS FOR 40 PREDEVELOPMENT, ACQUISITION AND CONSTRUCTION, PERMANENT FINANCING AND 41 BRIDGE LOANS; 42 F. THAT ELIGIBLE COSTS UNDER THIS SECTION SHALL INCLUDE, BUT NOT BE 43 LIMITED TO, ALL HARD CONSTRUCTION COSTS AND ASSOCIATED PROFESSIONAL AND 44 OTHER COSTS, FURNITURE, FIXTURES AND EQUIPMENT, INCLUDING HEALTH INFOR- 45 MATION TECHNOLOGY, ACQUISITION, PREDEVELOPMENT DUE DILIGENCE, INITIAL 46 OPERATING EXPENSES AND WORKING CAPITAL; 47 G. THAT THE ADMINISTRATOR ADMINISTERING THE REVOLVING CAPITAL FUND 48 SHALL REPORT QUARTERLY ON THE TRANSACTIONS IN THE REVOLVING CAPITAL FUND 49 IN A FORM AND MANNER SPECIFIED BY THE AUTHORITY IN CONSULTATION WITH THE 50 COMMISSIONER, INCLUDING BUT NOT LIMITED TO: RECEIPTS OR DEPOSITS TO THE 51 FUND, DISBURSEMENTS, LOANS OR CREDIT ENHANCEMENT MADE FROM THE FUND, 52 INVESTMENT INCOME, AND THE BALANCE ON HAND AS OF THE END OF THE MONTH 53 FOR EACH SUCH QUARTER; 54 H. THAT THE ADMINISTRATOR SHALL BE REQUIRED TO INVEST MONIES ON DEPOS- 55 IT IN THE FUND IN ACCORDANCE WITH INVESTMENT GUIDELINES MEETING THE 56 REQUIREMENTS OF THE DEPARTMENT AND DORMITORY AUTHORITY, AND ALL INVEST- S. 4610--A 135 A. 6721--A 1 MENT INCOME SHALL BE CREDITED TO, AND ANY REPAYMENT OF LOANS AS HEREIN- 2 AFTER PROVIDED SHALL BE DEPOSITED IN, THE REVOLVING CAPITAL FUND, AND 3 SPENT THEREFROM ONLY FOR THE PURPOSES SET FORTH IN THIS SECTION; 4 I. THAT ONLY THE REASONABLE EXPENSES OF THE ADMINISTRATOR, AS DETER- 5 MINED BY THE COMMISSIONER AND PRESIDENT OF THE AUTHORITY, INCURRED IN 6 THE ESTABLISHMENT AND ADMINISTRATION OF THE REVOLVING CAPITAL LOAN 7 PROGRAM (INCLUDING THE RETENTION OF PROFESSIONALS AND CONSULTANTS, IF 8 ANY) MAY BE PAID OR REIMBURSED FROM THE REVOLVING CAPITAL FUND; 9 J. THAT REVOLVING CAPITAL FUND MONIES SHALL BE HELD IN TRUST AND USED 10 FOR THE BENEFIT OF ELIGIBLE COMMUNITY-BASED HEALTH CARE FACILITY CAPITAL 11 PROJECTS; AND 12 K. ANY OTHER TERM OR CONDITION AS DETERMINED BY THE AUTHORITY, IN 13 CONSULTATION WITH THE COMMISSIONER. 14 5. LOAN DOCUMENTATION. LOANS FROM THE REVOLVING CAPITAL FUND SHALL BE 15 MADE PURSUANT TO A WRITTEN LOAN AGREEMENT BETWEEN THE ADMINISTRATOR AND 16 THE PARTICIPATING BORROWER, SPECIFYING THE TERMS THEREOF INCLUDING 17 REPAYMENT TERMS. THE LOAN AGREEMENT SHALL BE IN SUCH FORM AND CONTENT AS 18 SHALL BE ACCEPTABLE TO THE COMMISSIONER AND DORMITORY AUTHORITY, AND MAY 19 INCLUDE SUCH OTHER ANY FURTHER WRITTEN DOCUMENTATION AND/OR AGREEMENTS 20 AS SHALL BE REQUIRED IN THE JUDGMENT OF THE COMMISSIONER AND DORMITORY 21 AUTHORITY, INCLUDING BUT NOT LIMITED TO ALL REQUIRED FILINGS UNDER THE 22 UNIFORM COMMERCIAL CODE. 23 S 6. Section 2826 of the public health law is amended by adding a new 24 subdivision (g) to read as follows: 25 (G) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, AND WITHIN 26 AMOUNTS APPROPRIATED FOR SUCH PURPOSES AS DESCRIBED HEREIN, FOR THE 27 PERIOD OF APRIL FIRST, TWO THOUSAND FIFTEEN THROUGH MARCH THIRTY-FIRST, 28 TWO THOUSAND SIXTEEN, THE COMMISSIONER MAY AWARD A TEMPORARY ADJUSTMENT 29 TO THE NON-CAPITAL COMPONENTS OF RATES, OR MAKE TEMPORARY LUMP-SUM MEDI- 30 CAID PAYMENTS TO ELIGIBLE GENERAL HOSPITALS IN SEVERE FINANCIAL DISTRESS 31 TO ENABLE SUCH FACILITIES TO MAINTAIN OPERATIONS AND VITAL SERVICES 32 WHILE SUCH FACILITIES ESTABLISH LONG TERM SOLUTIONS TO ACHIEVE SUSTAINA- 33 BLE HEALTH SERVICES. 34 (I) ELIGIBLE GENERAL HOSPITALS SHALL INCLUDE: 35 (A) A PUBLIC HOSPITAL, WHICH FOR PURPOSES OF THIS SUBDIVISION, SHALL 36 MEAN A GENERAL HOSPITAL OPERATED BY A COUNTY OR MUNICIPALITY, BUT SHALL 37 EXCLUDE ANY SUCH HOSPITAL OPERATED BY A PUBLIC BENEFIT CORPORATION; 38 (B) A FEDERALLY DESIGNATED CRITICAL ACCESS HOSPITAL; 39 (C) A FEDERALLY DESIGNATED SOLE COMMUNITY HOSPITAL; OR 40 (D) A GENERAL HOSPITAL THAT IS A SAFETY NET HOSPITAL, WHICH FOR 41 PURPOSES OF THIS SUBDIVISION SHALL MEAN: 42 (1) SUCH HOSPITAL HAS AT LEAST THIRTY PERCENT OF ITS INPATIENT 43 DISCHARGES MADE UP OF MEDICAID ELIGIBLE INDIVIDUALS, UNINSURED INDIVID- 44 UALS OR MEDICAID DUALLY ELIGIBLE INDIVIDUALS AND WITH AT LEAST 45 THIRTY-FIVE PERCENT OF ITS OUTPATIENT VISITS MADE UP OF MEDICAID ELIGI- 46 BLE INDIVIDUALS, UNINSURED INDIVIDUALS OR MEDICAID DUALLY-ELIGIBLE INDI- 47 VIDUALS; OR 48 (2) SUCH HOSPITAL SERVES AT LEAST THIRTY PERCENT OF THE RESIDENTS OF A 49 COUNTY OR A MULTI-COUNTY AREA WHO ARE MEDICAID ELIGIBLE INDIVIDUALS, 50 UNINSURED INDIVIDUALS OR MEDICAID DUALLY-ELIGIBLE INDIVIDUALS. 51 (II) ELIGIBLE APPLICANTS MUST DEMONSTRATE THAT WITHOUT SUCH AWARD, 52 THEY WILL BE IN SEVERE FINANCIAL DISTRESS THROUGH MARCH THIRTY-FIRST, 53 TWO THOUSAND SIXTEEN, AS EVIDENCED BY: 54 (A) CERTIFICATION THAT SUCH APPLICANT HAS LESS THAN FIFTEEN DAYS CASH 55 AND EQUIVALENTS; S. 4610--A 136 A. 6721--A 1 (B) SUCH APPLICANT HAS NO ASSETS THAT CAN BE MONETIZED OTHER THAN 2 THOSE VITAL TO OPERATIONS; AND 3 (C) SUCH APPLICANT HAS EXHAUSTED ALL EFFORTS TO OBTAIN RESOURCES FROM 4 CORPORATE PARENTS AND AFFILIATED ENTITIES TO SUSTAIN OPERATIONS. 5 (III) AWARDS UNDER THIS SUBDIVISION SHALL BE MADE UPON APPLICATION TO 6 THE DEPARTMENT. 7 (A) APPLICATIONS UNDER THIS SUBDIVISION SHALL INCLUDE A MULTI-YEAR 8 TRANSFORMATION PLAN THAT IS ALIGNED WITH THE DELIVERY SYSTEM REFORM 9 INCENTIVE PAYMENT ("DSRIP") PROGRAM GOALS AND OBJECTIVES. SUCH PLAN 10 SHALL BE APPROVED BY THE DEPARTMENT AND SHALL DEMONSTRATE A PATH TOWARDS 11 LONG TERM SUSTAINABILITY AND IMPROVED PATIENT CARE. 12 (B) THE DEPARTMENT MAY AUTHORIZE INITIAL AWARD PAYMENTS TO ELIGIBLE 13 APPLICANTS BASED SOLELY ON THE CRITERIA PURSUANT TO PARAGRAPHS (I) AND 14 (II) OF THIS SUBDIVISION. 15 (C) NOTWITHSTANDING SUBPARAGRAPH (B) OF THIS PARAGRAPH, THE DEPARTMENT 16 MAY SUSPEND OR REPEAL AN AWARD IF AN ELIGIBLE APPLICANT FAILS TO SUBMIT 17 A MULTI-YEAR TRANSFORMATION PLAN PURSUANT TO SUBPARAGRAPH (A) OF THIS 18 PARAGRAPH THAT IS ACCEPTABLE TO THE DEPARTMENT BY NO LATER THAN THE 19 THIRTIETH DAY OF SEPTEMBER TWO THOUSAND FIFTEEN. 20 (D) APPLICANTS UNDER THIS SUBDIVISION SHALL DETAIL THE EXTENT TO WHICH 21 THE AFFECTED COMMUNITY HAS BEEN ENGAGED AND CONSULTED ON POTENTIAL 22 PROJECTS OF SUCH APPLICATION, AS WELL AS ANY OUTREACH TO STAKEHOLDERS 23 AND HEALTH PLANS. 24 (E) THE DEPARTMENT SHALL REVIEW ALL APPLICATIONS UNDER THIS SUBDIVI- 25 SION, AND A DETERMINE: 26 (1) APPLICANT ELIGIBILITY; 27 (2) EACH APPLICANT'S PROJECTED FINANCIAL STATUS; 28 (3) EACH APPLICANT'S PROPOSED USE OF FUNDS TO MAINTAIN CRITICAL 29 SERVICES NEEDED BY ITS COMMUNITY; AND 30 (4) THE ANTICIPATED IMPACT OF THE LOSS OF SUCH SERVICES. 31 (F) AFTER REVIEW OF ALL APPLICATIONS UNDER THIS SUBDIVISION, AND A 32 DETERMINATION OF THE AGGREGATE AMOUNT OF REQUESTED FUNDS, THE DEPARTMENT 33 SHALL MAKE AWARDS TO ELIGIBLE APPLICANTS; PROVIDED, HOWEVER, THAT SUCH 34 AWARDS MAY BE IN AN AMOUNT LOWER THAN SUCH REQUESTED FUNDING, ON A PER 35 APPLICANT OR AGGREGATE BASIS. 36 (IV) AWARDS UNDER THIS SUBDIVISION MAY NOT BE USED FOR: 37 (A) CAPITAL EXPENDITURES, INCLUDING, BUT NOT LIMITED TO: CONSTRUCTION, 38 RENOVATION AND ACQUISITION OF CAPITAL EQUIPMENT, INCLUDING MAJOR MEDICAL 39 EQUIPMENT; 40 (B) CONSULTANT FEES; 41 (C) RETIREMENT OF LONG TERM DEBT; OR 42 (D) BANKRUPTCY-RELATED COSTS. 43 (V) PAYMENTS MADE TO AWARDEES PURSUANT TO THIS SUBDIVISION SHALL BE 44 MADE ON A MONTHLY BASIS. SUCH PAYMENTS WILL BE BASED ON THE APPLICANT'S 45 ACTUAL MONTHLY FINANCIAL PERFORMANCE DURING SUCH PERIOD AND THE REASON- 46 ABLE CASH AMOUNT NECESSARY TO SUSTAIN OPERATIONS FOR THE FOLLOWING 47 MONTH. THE APPLICANT'S MONTHLY FINANCIAL PERFORMANCE SHALL BE MEASURED 48 BY SUCH APPLICANT'S MONTHLY FINANCIAL AND ACTIVITY REPORTS, WHICH SHALL 49 INCLUDE, BUT NOT BE LIMITED TO, ACTUAL REVENUE AND EXPENSES FOR THE 50 PRIOR MONTH, PROJECTED CASH NEED FOR THE CURRENT MONTH, AND PROJECTED 51 CASH NEED FOR THE FOLLOWING MONTH. 52 (VI) THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO THE 53 CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND 54 ASSEMBLY HEALTH COMMITTEES. SUCH REPORTS SHALL BE SUBMITTED NO LATER 55 THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL INCLUDE FOR 56 EACH AWARD, THE NAME OF THE APPLICANT, THE AMOUNT OF THE AWARD, PAYMENTS S. 4610--A 137 A. 6721--A 1 TO DATE, AND A DESCRIPTION OF THE STATUS OF THE MULTI-YEAR TRANSFORMA- 2 TION PLAN PURSUANT TO PARAGRAPH (III) OF THIS SUBDIVISION. 3 S 7. This act shall take effect immediately. 4 S 2. Severability clause. If any clause, sentence, paragraph, subdivi- 5 sion, section or part of this act shall be adjudged by any court of 6 competent jurisdiction to be invalid, such judgment shall not affect, 7 impair, or invalidate the remainder thereof, but shall be confined in 8 its operation to the clause, sentence, paragraph, subdivision, section 9 or part thereof directly involved in the controversy in which such judg- 10 ment shall have been rendered. It is hereby declared to be the intent of 11 the legislature that this act would have been enacted even if such 12 invalid provisions had not been included herein. 13 S 3. This act shall take effect immediately provided, however, that 14 the applicable effective date of Parts A through J of this act shall be 15 as specifically set forth in the last section of such Parts.