S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
           S. 4610                                                  A. 6721
                             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
       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
       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 alcoholic beverage control law, in relation to  licenses  to
         sell  at retail for consumption on the premises (Part C); to amend the
         administrative code of the city of New York, in relation to the  taxa-
         tion  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  expiration  thereof
         (Part  F);  establishing  the  New  York  State  water  infrastructure
         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 depos-
         its; to amend the state finance law, in relation to  the  issuance  of
         bonds  and notes; to amend the New York state urban development corpo-
         ration 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
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD12578-01-5
       S. 4610                             2                            A. 6721
         youth facility improvement fund, in relation to the issuance of bonds;
         to  amend  the  private  housing  finance  law, in relation to housing
         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                             3                            A. 6721
         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                             4                            A. 6721
    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  7  of section 64 of the alcoholic beverage
    8  control law is amended by adding  a  new  paragraph  (e-7)  to  read  as
    9  follows:
   10    (E-7) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
   11  SION,  THE AUTHORITY MAY ISSUE A RETAIL LICENSE FOR ON-PREMISES CONSUMP-
   12  TION FOR A PREMISES WHICH SHALL BE WITHIN TWO HUNDRED FEET OF A BUILDING
   13  OCCUPIED EXCLUSIVELY AS A SCHOOL, CHURCH, SYNAGOGUE, OR OTHER  PLACE  OF
   14  WORSHIP,  PROVIDED  SUCH PREMISES CONSTITUTES A PREMISES FOR THE SALE OF
   15  FOOD OR BEVERAGES AT RETAIL FOR  CONSUMPTION  ON  THE  PREMISES  LOCATED
   16  WHOLLY WITHIN THE BOUNDARIES OF THE BOROUGH OF MANHATTAN IN THE CITY AND
   17  COUNTY OF NEW YORK, BOUNDED AND DESCRIBED AS FOLLOWS:
   18    BEGINNING  AT  THE  CORNER FORMED BY THE INTERSECTION OF THE NORTHERLY
   19  SIDE OF 63RD STREET WITH THE EASTERLY SIDE  OF  PARK  (FORMERLY  FOURTH)
   20  AVENUE, RUNNING THENCE EASTERLY ALONG SAID NORTHERLY SIDE OF 63RD STREET
   21  ONE  HUNDRED  (100) FEET; THENCE NORTHERLY AND PARALLEL WITH PARK AVENUE
   22  ONE HUNDRED (100) FEET AND FIVE (5) INCHES; THENCE RUNNING WESTERLY  AND
   23  PARALLEL WITH 63RD STREET ONE HUNDRED (100) FEET TO THE EASTERLY SIDE OF
   24  PARK  AVENUE;  THENCE  SOUTHERLY  ALONG  THE  SAID EASTERLY SIDE OF PARK
   25  AVENUE ONE HUNDRED (100) FEET AND FIVE (5) INCHES TO THE POINT OR  PLACE
   26  OF BEGINNING, THE PREMISES KNOWN AS 583 PARK AVENUE.
   27    S 2. This act shall take effect immediately.
   28                                   PART D
   29    Section  1.  Chapter  6  of title 11 of the administrative code of the
   30  city of New York is amended by adding a new subchapter 3-A  to  read  as
   31  follows:
   32                               SUBCHAPTER 3-A
   33                            CORPORATE TAX OF 2015
   34  SECTION 11-651 APPLICABILITY.
   35          11-652  DEFINITIONS.
   36          11-653  IMPOSITION OF TAX; EXEMPTIONS.
   37          11-654  COMPUTATION OF TAX.
   38          11-654.1 NET OPERATING LOSS.
   39          11-654.2 RECEIPTS ALLOCATION.
   40          11-654.3 COMBINED REPORTS.
   41          11-655  REPORTS.
   42          11-656  PAYMENT AND LIEN OF TAX.
   43          11-657  DECLARATION OF ESTIMATED TAX.
   44          11-658  PAYMENTS ON ACCOUNT OF ESTIMATED TAX.
   45          11-659  COLLECTION OF TAXES.
   46          11-660  LIMITATIONS OF TIME.
   47    S 11-651 APPLICABILITY.    1. NOTWITHSTANDING ANYTHING TO THE CONTRARY
   48  IN THIS CHAPTER, THIS SUBCHAPTER SHALL APPLY  TO  CORPORATIONS  FOR  TAX
   49  YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, EXCEPT
   50  THAT  IT  SHALL NOT APPLY TO ANY CORPORATION THAT (A) HAS AN ELECTION IN
   51  EFFECT UNDER SUBSECTION (A) OF SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE
   52  INTERNAL REVENUE CODE OF  1986,  AS  AMENDED,  OR  (B)  IS  A  QUALIFIED
       S. 4610                             5                            A. 6721
    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, IN ANY TAX YEAR COMMENCING ON OR AFTER
    4  SUCH  DATE. SUBCHAPTERS TWO AND THREE OF THIS CHAPTER SHALL NOT APPLY TO
    5  CORPORATIONS TO WHICH THIS SUBCHAPTER APPLIES FOR TAX  YEARS  COMMENCING
    6  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND FIFTEEN, EXCEPT TO THE EXTENT
    7  PROVIDED IN THIS SUBCHAPTER AND TO THE EXTENT THAT  THE  EFFECT  OF  THE
    8  APPLICATION  OF  SUBCHAPTERS TWO AND THREE TO TAX YEARS COMMENCING PRIOR
    9  TO JANUARY FIRST,  TWO  THOUSAND  FIFTEEN  CARRIES  OVER  TO  TAX  YEARS
   10  COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN.
   11    2.  EACH  REFERENCE  IN  THIS CODE TO SUBCHAPTERS TWO OR THREE OF THIS
   12  CHAPTER, OR ANY OF THE PROVISIONS THEREOF, SHALL BE DEEMED  A  REFERENCE
   13  ALSO  TO  THIS SUBCHAPTER, AND ANY OF THE APPLICABLE PROVISIONS THEREOF,
   14  WHERE APPROPRIATE AND WITH ALL NECESSARY MODIFICATIONS.
   15    S 11-652 DEFINITIONS.  1. (A) THE TERM "CORPORATION" INCLUDES  (1)  AN
   16  ASSOCIATION  WITHIN  THE MEANING OF PARAGRAPH THREE OF SUBSECTION (A) OF
   17  SECTION SEVENTY-SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE  (INCLUD-
   18  ING,  WHEN  APPLICABLE,  A LIMITED LIABILITY COMPANY), (2) A JOINT-STOCK
   19  COMPANY OR ASSOCIATION, (3) A PUBLICLY TRADED PARTNERSHIP TREATED  AS  A
   20  CORPORATION  FOR  PURPOSES  OF  THE  INTERNAL  REVENUE  CODE PURSUANT TO
   21  SECTION  SEVENTY-SEVEN  HUNDRED  FOUR  THEREOF  AND  (4)  ANY   BUSINESS
   22  CONDUCTED  BY  A  TRUSTEE  OR  TRUSTEES WHEREIN INTEREST OR OWNERSHIP IS
   23  EVIDENCED BY CERTIFICATE OR OTHER WRITTEN INSTRUMENT;
   24    (B) (1) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, AN UNINCOR-
   25  PORATED ORGANIZATION THAT (I) IS DESCRIBED IN SUBPARAGRAPH ONE OR  THREE
   26  OF PARAGRAPH (A) OF THIS SUBDIVISION, (II) WAS SUBJECT TO THE PROVISIONS
   27  OF CHAPTER FIVE OF THIS TITLE FOR ITS TAXABLE YEAR BEGINNING IN NINETEEN
   28  HUNDRED NINETY-FIVE, AND (III) MADE A ONE-TIME ELECTION NOT TO BE TREAT-
   29  ED  AS  A  CORPORATION  AND,  INSTEAD,  TO CONTINUE TO BE SUBJECT TO THE
   30  PROVISIONS OF CHAPTER FIVE OF THIS TITLE FOR ITS TAXABLE YEARS BEGINNING
   31  IN NINETEEN HUNDRED NINETY-SIX AND  THEREAFTER,  SHALL  CONTINUE  TO  BE
   32  SUBJECT  TO THE PROVISIONS OF CHAPTER FIVE OF THIS TITLE FOR ITS TAXABLE
   33  YEARS BEGINNING IN NINETEEN HUNDRED NINETY-SIX.
   34    (2) AN ELECTION UNDER THIS PARAGRAPH SHALL CONTINUE TO  BE  IN  EFFECT
   35  UNTIL REVOKED BY THE UNINCORPORATED ORGANIZATION. AN ELECTION UNDER THIS
   36  PARAGRAPH SHALL BE REVOKED BY THE FILING OF A RETURN UNDER THIS SUBCHAP-
   37  TER  FOR THE FIRST TAXABLE YEAR WITH RESPECT TO WHICH SUCH REVOCATION IS
   38  TO BE EFFECTIVE. SUCH RETURN SHALL BE FILED ON OR BEFORE  THE  DUE  DATE
   39  (DETERMINED  WITH  REGARD  TO  EXTENSIONS) FOR FILING SUCH RETURN. IN NO
   40  EVENT SHALL SUCH ELECTION OR REVOCATION BE FOR A PART OF A TAXABLE YEAR.
   41    (C) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION,  A  CORPORATION
   42  SHALL  NOT  INCLUDE  AN  ENTITY  CLASSIFIED AS A PARTNERSHIP FOR FEDERAL
   43  INCOME TAX PURPOSES.
   44    2. THE TERM "SUBSIDIARY" MEANS A CORPORATION OF WHICH OVER  FIFTY  PER
   45  CENTUM OF THE NUMBER OF SHARES OF STOCK ENTITLING THE HOLDERS THEREOF TO
   46  VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES IS OWNED BY THE TAXPAYER.
   47    2-A.  THE  TERM  "TAXPAYER" MEANS ANY CORPORATION SUBJECT TO TAX UNDER
   48  THIS SUBCHAPTER.
   49    3. INTENTIONALLY OMITTED.
   50    3-A. THE TERM "STOCK" MEANS AN  INTEREST  IN  A  CORPORATION  THAT  IS
   51  TREATED AS EQUITY FOR FEDERAL INCOME TAX PURPOSES.
   52    4. (A) THE TERM "INVESTMENT CAPITAL" MEANS INVESTMENTS IN STOCKS THAT:
   53  (I)  SATISFY THE DEFINITION OF A CAPITAL ASSET UNDER SECTION 1221 OF THE
   54  INTERNAL REVENUE CODE AT ALL TIMES THE TAXPAYER OWNED SUCH STOCKS DURING
   55  THE TAXABLE YEAR; (II) ARE HELD BY THE TAXPAYER FOR INVESTMENT FOR  MORE
   56  THAN ONE YEAR; (III) THE DISPOSITIONS OF WHICH ARE, OR WOULD BE, TREATED
       S. 4610                             6                            A. 6721
    1  BY  THE  TAXPAYER  AS GENERATING LONG-TERM CAPITAL GAINS OR LOSSES UNDER
    2  THE INTERNAL REVENUE CODE; (IV) FOR STOCKS ACQUIRED ON OR AFTER  JANUARY
    3  FIRST,  TWO  THOUSAND FIFTEEN, AT ANY TIME AFTER THE CLOSE OF THE DAY IN
    4  WHICH  THEY  ARE ACQUIRED, HAVE NEVER BEEN HELD FOR SALE TO CUSTOMERS IN
    5  THE REGULAR COURSE OF BUSINESS; AND (V) BEFORE THE CLOSE OF THE  DAY  ON
    6  WHICH  THE  STOCK WAS ACQUIRED, ARE CLEARLY IDENTIFIED IN THE TAXPAYER'S
    7  RECORDS AS STOCK HELD FOR INVESTMENT IN  THE  SAME  MANNER  AS  REQUIRED
    8  UNDER SECTION 1236(A)(1) OF THE INTERNAL REVENUE CODE FOR THE STOCK OF A
    9  DEALER  IN SECURITIES TO BE ELIGIBLE FOR CAPITAL GAIN TREATMENT (WHETHER
   10  OR NOT THE TAXPAYER IS A DEALER OF SECURITIES SUBJECT TO SECTION  1236),
   11  PROVIDED,  HOWEVER,  THAT FOR STOCK ACQUIRED PRIOR TO OCTOBER FIRST, TWO
   12  THOUSAND FIFTEEN THAT WAS NOT SUBJECT TO SECTION 1236(A) OF THE INTERNAL
   13  REVENUE CODE, SUCH IDENTIFICATION IN THE TAXPAYER'S RECORDS  MUST  OCCUR
   14  BEFORE  OCTOBER FIRST, TWO THOUSAND FIFTEEN. STOCK IN A CORPORATION THAT
   15  IS CONDUCTING A UNITARY BUSINESS WITH THE TAXPAYER, STOCK  IN  A  CORPO-
   16  RATION  THAT IS INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER PURSUANT
   17  TO THE COMMONLY OWNED GROUP ELECTION IN  SUBDIVISION  THREE  OF  SECTION
   18  11-654.3  OF  THIS  SUBCHAPTER, AND STOCK USED BY THE TAXPAYER SHALL NOT
   19  CONSTITUTE INVESTMENT CAPITAL. FOR PURPOSES OF THIS SUBDIVISION, IF  THE
   20  TAXPAYER  OWNS  OR  CONTROLS,  DIRECTLY  OR INDIRECTLY, LESS THAN TWENTY
   21  PERCENT OF THE VOTING POWER OF THE STOCK OF A CORPORATION,  THAT  CORPO-
   22  RATION  WILL BE PRESUMED TO BE CONDUCTING A BUSINESS THAT IS NOT UNITARY
   23  WITH THE BUSINESS OF THE TAXPAYER.
   24    (B) THERE SHALL BE DEDUCTED FROM INVESTMENT  CAPITAL  ANY  LIABILITIES
   25  WHICH  ARE DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO INVESTMENT CAPITAL. IF
   26  THE AMOUNT OF THOSE LIABILITIES EXCEEDS THE AMOUNT OF  INVESTMENT  CAPI-
   27  TAL, THE AMOUNT OF INVESTMENT CAPITAL SHALL BE ZERO.
   28    (C)  INVESTMENT  CAPITAL  SHALL  NOT  INCLUDE ANY SUCH INVESTMENTS THE
   29  INCOME FROM WHICH IS EXCLUDED FROM ENTIRE NET  INCOME  PURSUANT  TO  THE
   30  PROVISIONS  OF PARAGRAPH (C-1) OF SUBDIVISION EIGHT OF THIS SECTION, AND
   31  THAT INVESTMENT CAPITAL SHALL BE COMPUTED WITHOUT REGARD TO  LIABILITIES
   32  DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO SUCH INVESTMENTS, BUT ONLY IF AIR
   33  CARRIERS  ORGANIZED  IN  THE  UNITED STATES AND OPERATING IN THE FOREIGN
   34  COUNTRY OR COUNTRIES IN WHICH THE TAXPAYER HAS ITS MAJOR BASE  OF  OPER-
   35  ATIONS  AND  IN WHICH IT IS ORGANIZED, RESIDENT OR HEADQUARTERED (IF NOT
   36  IN THE SAME COUNTRY AS ITS MAJOR BASE OF OPERATIONS) ARE NOT SUBJECT  TO
   37  ANY  TAX BASED ON OR MEASURED BY CAPITAL IMPOSED BY SUCH FOREIGN COUNTRY
   38  OR COUNTRIES OR ANY POLITICAL SUBDIVISION  THEREOF,  OR  IF  TAXED,  ARE
   39  PROVIDED  AN EXEMPTION, EQUIVALENT TO THAT PROVIDED FOR HEREIN, FROM ANY
   40  TAX BASED ON OR MEASURED BY CAPITAL IMPOSED BY SUCH FOREIGN  COUNTRY  OR
   41  COUNTRIES  AND  FROM  ANY  SUCH TAX IMPOSED BY ANY POLITICAL SUBDIVISION
   42  THEREOF.
   43    (D) IF A TAXPAYER ACQUIRES STOCK THAT IS A CAPITAL ASSET UNDER SECTION
   44  1221 OF THE INTERNAL REVENUE CODE DURING THE TAXABLE YEAR AND OWNS  THAT
   45  STOCK  ON  THE LAST DAY OF THE TAXABLE YEAR, IT WILL BE PRESUMED, SOLELY
   46  FOR THE PURPOSES OF DETERMINING WHETHER THAT STOCK SHOULD BE  CLASSIFIED
   47  AS  INVESTMENT CAPITAL AFTER IT IS ACQUIRED, THAT THE TAXPAYER HELD THAT
   48  STOCK FOR MORE THAN ONE YEAR. HOWEVER, IF THE TAXPAYER DOES NOT IN  FACT
   49  OWN THAT STOCK AT THE TIME IT ACTUALLY FILES ITS ORIGINAL REPORT FOR THE
   50  TAXABLE YEAR IN WHICH IT ACQUIRED THE STOCK, THEN THE PRESUMPTION IN THE
   51  PRECEDING  SENTENCE SHALL NOT APPLY AND THE ACTUAL PERIOD OF TIME DURING
   52  WHICH THE TAXPAYER OWNED THE STOCK SHALL BE USED  TO  DETERMINE  WHETHER
   53  THE  STOCK  SHOULD  BE  CLASSIFIED  AS  INVESTMENT  CAPITAL  AFTER IT IS
   54  ACQUIRED. IF THE  TAXPAYER  RELIES  ON  THE  PRESUMPTION  IN  THE  FIRST
   55  SENTENCE  OF THIS PARAGRAPH BUT DOES NOT OWN THE STOCK FOR MORE THAN ONE
   56  YEAR, THE TAXPAYER MUST INCREASE ITS TOTAL BUSINESS CAPITAL IN THE IMME-
       S. 4610                             7                            A. 6721
    1  DIATELY SUCCEEDING TAXABLE YEAR BY THE  AMOUNT  INCLUDED  IN  INVESTMENT
    2  CAPITAL  FOR  THAT  STOCK,  NET  OF ANY LIABILITIES ATTRIBUTABLE TO THAT
    3  STOCK COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION AND MUST
    4  INCREASE  ITS BUSINESS INCOME IN THE IMMEDIATELY SUCCEEDING TAXABLE YEAR
    5  BY THE AMOUNT OF INCOME AND NET GAINS (BUT NOT LESS THAN ZERO) FROM THAT
    6  STOCK INCLUDED  IN  INVESTMENT  INCOME,  LESS  ANY  INTEREST  DEDUCTIONS
    7  DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THAT STOCK, AS PROVIDED IN SUBDI-
    8  VISION FIVE OF THIS SECTION.
    9    (E)  WHEN  INCOME  OR  GAIN  FROM  A DEBT OBLIGATION OR OTHER SECURITY
   10  CANNOT BE ALLOCATED TO THE CITY USING THE BUSINESS ALLOCATION PERCENTAGE
   11  AS A RESULT OF THE UNITED STATES  CONSTITUTIONAL  PRINCIPLES,  THE  DEBT
   12  OBLIGATION OR OTHER SECURITY WILL BE INCLUDED IN INVESTMENT CAPITAL.
   13    5.   (A)(I) THE TERM "INVESTMENT INCOME" MEANS INCOME, INCLUDING CAPI-
   14  TAL GAINS IN EXCESS OF CAPITAL LOSSES, FROM INVESTMENT CAPITAL,  TO  THE
   15  EXTENT  INCLUDED IN COMPUTING ENTIRE NET INCOME, LESS, IN THE DISCRETION
   16  OF THE COMMISSIONER OF FINANCE, ANY  INTEREST  DEDUCTIONS  ALLOWABLE  IN
   17  COMPUTING  ENTIRE  NET INCOME WHICH ARE DIRECTLY OR INDIRECTLY ATTRIBUT-
   18  ABLE TO INVESTMENT CAPITAL OR INVESTMENT INCOME, PROVIDED, HOWEVER, THAT
   19  IN NO CASE SHALL INVESTMENT INCOME EXCEED ENTIRE NET INCOME.
   20    (II) IF THE AMOUNT OF INTEREST DEDUCTIONS  SUBTRACTED  UNDER  SUBPARA-
   21  GRAPH  (I)  OF  THIS  PARAGRAPH EXCEEDS INVESTMENT INCOME, THE EXCESS OF
   22  SUCH AMOUNT OVER INVESTMENT INCOME MUST BE  ADDED  BACK  TO  ENTIRE  NET
   23  INCOME.
   24    (III) IF THE TAXPAYER'S INVESTMENT INCOME DETERMINED WITHOUT REGARD TO
   25  THE  INTEREST DEDUCTIONS SUBTRACTED UNDER SUBPARAGRAPH (I) OF THIS PARA-
   26  GRAPH COMPRISES MORE THAN EIGHT PERCENT OF  THE  TAXPAYER'S  ENTIRE  NET
   27  INCOME,  INVESTMENT  INCOME  DETERMINED  WITHOUT REGARD TO SUCH INTEREST
   28  DEDUCTIONS CANNOT EXCEED EIGHT PERCENT  OF  THE  TAXPAYER'S  ENTIRE  NET
   29  INCOME.
   30    (B)  IN LIEU OF SUBTRACTING FROM INVESTMENT INCOME THE AMOUNT OF THOSE
   31  INTEREST DEDUCTIONS, THE TAXPAYER  MAY  MAKE  A  REVOCABLE  ELECTION  TO
   32  REDUCE  ITS TOTAL INVESTMENT INCOME, DETERMINED AFTER APPLYING THE LIMI-
   33  TATION IN SUBPARAGRAPH (III) OF PARAGRAPH (A) OF  THIS  SUBDIVISION,  BY
   34  FORTY  PERCENT.  IF  THE TAXPAYER MAKES THIS ELECTION, THE TAXPAYER MUST
   35  ALSO MAKE THE ELECTIONS PROVIDED FOR IN PARAGRAPHS (B) AND (C) OF SUBDI-
   36  VISION FIVE-A OF THIS SECTION. IF THE TAXPAYER SUBSEQUENTLY REVOKES THIS
   37  ELECTION, THE TAXPAYER MUST REVOKE THE ELECTIONS PROVIDED FOR  IN  PARA-
   38  GRAPHS  (B)  AND  (C)  OF SUBDIVISION FIVE-A OF THIS SECTION. A TAXPAYER
   39  THAT DOES NOT MAKE THIS ELECTION BECAUSE IT HAS  NO  INVESTMENT  CAPITAL
   40  WILL NOT BE PRECLUDED FROM MAKING THOSE OTHER ELECTIONS.
   41    (C)  INVESTMENT  INCOME  SHALL NOT INCLUDE ANY AMOUNT TREATED AS DIVI-
   42  DENDS PURSUANT TO SECTION SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE.
   43    5-A. (A) THE TERM "OTHER EXEMPT INCOME" MEANS THE SUM  OF  EXEMPT  CFC
   44  INCOME AND EXEMPT UNITARY CORPORATION DIVIDENDS.
   45    (B)  "EXEMPT  CFC  INCOME" MEANS THE INCOME REQUIRED TO BE INCLUDED IN
   46  THE TAXPAYER'S FEDERAL  GROSS  INCOME  PURSUANT  TO  SUBSECTION  (A)  OF
   47  SECTION  NINE  HUNDRED  FIFTY-ONE OF THE INTERNAL REVENUE CODE, RECEIVED
   48  FROM A CORPORATION THAT  IS  CONDUCTING  A  UNITARY  BUSINESS  WITH  THE
   49  TAXPAYER  BUT  IS  NOT  INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER,
   50  LESS, IN THE DISCRETION OF THE COMMISSIONER  OF  FINANCE,  ANY  INTEREST
   51  DEDUCTIONS  DIRECTLY  OR INDIRECTLY ATTRIBUTABLE TO THAT INCOME. IN LIEU
   52  OF SUBTRACTING FROM ITS EXEMPT CFC INCOME THE AMOUNT OF  THOSE  INTEREST
   53  DEDUCTIONS,  THE  TAXPAYER  MAY  MAKE A REVOCABLE ELECTION TO REDUCE ITS
   54  TOTAL EXEMPT CFC INCOME BY FORTY PERCENT. IF  THE  TAXPAYER  MAKES  THIS
   55  ELECTION,  THE  TAXPAYER  MUST  ALSO  MAKE THE ELECTIONS PROVIDED FOR IN
   56  PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION AND PARAGRAPH  (C)  OF
       S. 4610                             8                            A. 6721
    1  THIS  SUBDIVISION.  IF  THE TAXPAYER SUBSEQUENTLY REVOKES THIS ELECTION,
    2  THE TAXPAYER MUST REVOKE THE ELECTIONS PROVIDED FOR IN PARAGRAPH (B)  OF
    3  SUBDIVISION  FIVE OF THIS SECTION AND PARAGRAPH (C) OF THIS SUBDIVISION.
    4  A  TAXPAYER  WHICH  DOES NOT MAKE THIS ELECTION BECAUSE IT HAS NO EXEMPT
    5  CFC INCOME WILL NOT BE PRECLUDED FROM MAKING THOSE OTHER ELECTIONS.
    6    (C) "EXEMPT UNITARY CORPORATE DIVIDENDS" MEANS THOSE DIVIDENDS FROM  A
    7  CORPORATION  THAT IS CONDUCTING A UNITARY BUSINESS WITH THE TAXPAYER BUT
    8  IS NOT INCLUDED IN A COMBINED REPORT WITH THE  TAXPAYER,  LESS,  IN  THE
    9  DISCRETION  OF  THE  COMMISSIONER  OF  FINANCE,  ANY INTEREST DEDUCTIONS
   10  DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO SUCH INCOME. OTHER THAN  DIVIDEND
   11  INCOME  RECEIVED FROM CORPORATIONS THAT ARE TAXABLE UNDER CHAPTER ELEVEN
   12  OF THIS TITLE (EXCEPT FOR VENDORS OF  UTILITY  SERVICES  THAT  ARE  ALSO
   13  TAXABLE  UNDER THIS SUBCHAPTER) OR WOULD BE TAXABLE UNDER CHAPTER ELEVEN
   14  OF THIS TITLE (EXCEPT FOR VENDORS OF  UTILITY  SERVICES  THAT  ARE  ALSO
   15  TAXABLE  UNDER  THIS SUBCHAPTER) IF SUBJECT TO TAX AND CORPORATIONS THAT
   16  WOULD HAVE BEEN TAXABLE AS INSURANCE CORPORATIONS UNDER FORMER PART  IV,
   17  TITLE R, CHAPTER FORTY-SIX OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW
   18  YORK  AS  IN EFFECT ON JUNE THIRTIETH, NINETEEN HUNDRED SEVENTY-FOUR, IN
   19  LIEU OF SUBTRACTING FROM THIS DIVIDEND INCOME THOSE INTEREST DEDUCTIONS,
   20  THE TAXPAYER MAY MAKE A REVOCABLE ELECTION TO REDUCE THE TOTAL AMOUNT OF
   21  THIS DIVIDEND INCOME BY  FORTY  PERCENT.  IF  THE  TAXPAYER  MAKES  THIS
   22  ELECTION,  THE  TAXPAYER  MUST  ALSO  MAKE THE ELECTIONS PROVIDED FOR IN
   23  PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION AND PARAGRAPH  (B)  OF
   24  THIS  SUBDIVISION.   IF THE TAXPAYER SUBSEQUENTLY REVOKES THIS ELECTION,
   25  THE TAXPAYER MUST REVOKE THE ELECTIONS PROVIDED FOR IN PARAGRAPH (B)  OF
   26  SUBDIVISION  FIVE OF THIS SECTION AND PARAGRAPH (B) OF THIS SUBDIVISION.
   27  A TAXPAYER THAT DOES NOT MAKE THIS ELECTION BECAUSE IT HAS NOT  RECEIVED
   28  ANY  EXEMPT  UNITARY  CORPORATION  DIVIDENDS OR IS PRECLUDED FROM MAKING
   29  THIS ELECTION FOR DIVIDENDS RECEIVED FROM CORPORATIONS THAT ARE  TAXABLE
   30  UNDER  CHAPTER  ELEVEN  OF  THIS  TITLE  (EXCEPT  FOR VENDORS OF UTILITY
   31  SERVICES THAT ARE ALSO TAXABLE UNDER THIS SUBCHAPTER) OR WOULD BE  TAXA-
   32  BLE  UNDER  CHAPTER  ELEVEN  OF THIS TITLE IF SUBJECT TO TAX (EXCEPT FOR
   33  VENDORS OF UTILITY SERVICES THAT ARE ALSO TAXABLE UNDER THIS SUBCHAPTER)
   34  SHALL NOT BE PRECLUDED FROM MAKING THOSE OTHER ELECTIONS.
   35    (D) IF THE TAXPAYER ATTRIBUTES INTEREST  DEDUCTIONS  TO  OTHER  EXEMPT
   36  INCOME  AND  THE AMOUNT DEDUCTED EXCEEDS OTHER EXEMPT INCOME, THE EXCESS
   37  OF THE INTEREST DEDUCTIONS OVER OTHER EXEMPT INCOME MUST BE  ADDED  BACK
   38  TO ENTIRE NET INCOME. IN NO CASE SHALL OTHER EXEMPT INCOME EXCEED ENTIRE
   39  NET INCOME.
   40    (E)  OTHER EXEMPT INCOME SHALL NOT INCLUDE ANY AMOUNT TREATED AS DIVI-
   41  DENDS PURSUANT TO SECTION SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE.
   42    6. (A) THE TERM  "BUSINESS  CAPITAL"  MEANS  ALL  ASSETS,  OTHER  THAN
   43  INVESTMENT  CAPITAL  AND  STOCK ISSUED BY THE TAXPAYER, LESS LIABILITIES
   44  NOT DEDUCTED FROM INVESTMENT CAPITAL; PROVIDED, HOWEVER, BUSINESS  CAPI-
   45  TAL SHALL INCLUDE ONLY THOSE ASSETS THE INCOME, LOSS OR EXPENSE OF WHICH
   46  ARE  PROPERLY  REFLECTED  (OR  WOULD HAVE BEEN PROPERLY REFLECTED IF NOT
   47  FULLY DEPRECIATED OR EXPENSED OR DEPRECIATED OR EXPENSED  TO  A  NOMINAL
   48  AMOUNT) IN THE COMPUTATION OF ENTIRE NET INCOME FOR THE TAXABLE YEAR.
   49    (B)  PROVIDED, FURTHER, "BUSINESS CAPITAL" SHALL NOT INCLUDE ASSETS TO
   50  THE EXTENT EMPLOYED FOR  THE  PURPOSE  OF  GENERATING  INCOME  WHICH  IS
   51  EXCLUDED  FROM ENTIRE NET INCOME PURSUANT TO THE PROVISIONS OF PARAGRAPH
   52  (C-1) OF SUBDIVISION EIGHT OF THIS SECTION AND SHALL BE COMPUTED WITHOUT
   53  REGARD TO  LIABILITIES  DIRECTLY  OR  INDIRECTLY  ATTRIBUTABLE  TO  SUCH
   54  ASSETS,  BUT  ONLY  IF  AIR  CARRIERS ORGANIZED IN THE UNITED STATES AND
   55  OPERATING IN THE FOREIGN COUNTRY OR COUNTRIES IN WHICH THE TAXPAYER  HAS
   56  ITS  MAJOR  BASE OF OPERATIONS AND IN WHICH IT IS ORGANIZED, RESIDENT OR
       S. 4610                             9                            A. 6721
    1  HEADQUARTERED (IF NOT IN THE SAME COUNTRY AS ITS  MAJOR  BASE  OF  OPER-
    2  ATIONS)  ARE  NOT  SUBJECT  TO  ANY  TAX BASED ON OR MEASURED BY CAPITAL
    3  IMPOSED BY SUCH FOREIGN COUNTRY OR COUNTRIES OR ANY  POLITICAL  SUBDIVI-
    4  SION THEREOF, OR IF TAXED, ARE PROVIDED AN EXEMPTION, EQUIVALENT TO THAT
    5  PROVIDED  FOR  HEREIN,  FROM  ANY  TAX  BASED  ON OR MEASURED BY CAPITAL
    6  IMPOSED BY SUCH FOREIGN COUNTRY OR  COUNTRIES  AND  FROM  ANY  SUCH  TAX
    7  IMPOSED BY ANY POLITICAL SUBDIVISION THEREOF.
    8    7. THE TERM "BUSINESS INCOME" MEANS ENTIRE NET INCOME MINUS INVESTMENT
    9  INCOME  AND OTHER EXEMPT INCOME. IN NO EVENT SHALL THE SUM OF INVESTMENT
   10  INCOME AND OTHER EXEMPT INCOME EXCEED ENTIRE NET INCOME. IF THE TAXPAYER
   11  MAKES THE ELECTION PROVIDED FOR IN SUBPARAGRAPH ONE OF PARAGRAPH (A)  OF
   12  SUBDIVISION FIVE OF SECTION 11-654.2 OF THIS SUBCHAPTER, THEN ALL INCOME
   13  FROM QUALIFIED FINANCIAL INSTRUMENTS SHALL CONSTITUTE BUSINESS INCOME.
   14    8. THE TERM "ENTIRE NET INCOME" MEANS TOTAL NET INCOME FROM ALL SOURC-
   15  ES,  WHICH  SHALL  BE  PRESUMABLY THE SAME AS THE ENTIRE TAXABLE INCOME,
   16  WHICH, EXCEPT AS HEREAFTER PROVIDED IN THIS SUBDIVISION,
   17    (I) THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED  STATES  TREASURY
   18  DEPARTMENT, OR
   19    (II)  THE  TAXPAYER,  IN THE CASE OF A CORPORATION THAT IS EXEMPT FROM
   20  FEDERAL INCOME TAX (OTHER THAN THE TAX  ON  UNRELATED  BUSINESS  TAXABLE
   21  INCOME IMPOSED UNDER SECTION FIVE HUNDRED ELEVEN OF THE INTERNAL REVENUE
   22  CODE) BUT WHICH IS SUBJECT TO TAX UNDER THIS SUBCHAPTER, WOULD HAVE BEEN
   23  REQUIRED TO REPORT TO THE UNITED STATES TREASURY DEPARTMENT BUT FOR SUCH
   24  EXEMPTION, OR
   25    (III)  IN THE CASE OF AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF
   26  THE INTERNAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC CORPORATION"  AS
   27  DEFINED  IN  SECTION  SEVEN  THOUSAND SEVEN HUNDRED ONE OF SUCH CODE, IS
   28  EFFECTIVELY CONNECTED WITH THE CONDUCT OF A TRADE OR BUSINESS WITHIN THE
   29  UNITED STATES AS DETERMINED UNDER SECTION EIGHT  HUNDRED  EIGHTY-TWO  OF
   30  THE INTERNAL REVENUE CODE.
   31    (A) ENTIRE NET INCOME SHALL NOT INCLUDE:
   32    (1) INTENTIONALLY OMITTED;
   33    (2) INTENTIONALLY OMITTED;
   34    (2-A)   ANY   AMOUNTS   TREATED   AS  DIVIDENDS  PURSUANT  TO  SECTION
   35  SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE;
   36    (3) BONA FIDE GIFTS;
   37    (4) INCOME AND DEDUCTIONS WITH RESPECT TO AMOUNTS RECEIVED FROM SCHOOL
   38  DISTRICTS AND FROM CORPORATIONS AND ASSOCIATIONS, ORGANIZED AND OPERATED
   39  EXCLUSIVELY FOR RELIGIOUS, CHARITABLE OR EDUCATIONAL PURPOSES,  NO  PART
   40  OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHARE-
   41  HOLDER OR INDIVIDUAL, FOR THE OPERATION OF SCHOOL BUSES;
   42    (5)  ANY  REFUND  OR  CREDIT  OF  A TAX IMPOSED UNDER THIS CHAPTER, OR
   43  IMPOSED BY ARTICLE NINE, NINE-A, TWENTY-THREE, OR FORMER  ARTICLE  THIR-
   44  TY-TWO  OF  THE  TAX  LAW,  FOR  WHICH TAX NO EXCLUSION OR DEDUCTION WAS
   45  ALLOWED IN DETERMINING THE  TAXPAYER'S  ENTIRE  NET  INCOME  UNDER  THIS
   46  SUBCHAPTER,  SUBCHAPTER TWO, OR SUBCHAPTER THREE OF THIS CHAPTER FOR ANY
   47  PRIOR YEAR;
   48    (6) INTENTIONALLY OMITTED;
   49    (7) THAT PORTION OF WAGES AND SALARIES PAID OR INCURRED FOR THE  TAXA-
   50  BLE YEAR FOR WHICH A DEDUCTION IS NOT ALLOWED PURSUANT TO THE PROVISIONS
   51  OF SECTION TWO HUNDRED EIGHTY C OF THE INTERNAL REVENUE CODE;
   52    (8)  EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT-
   53  ING  VEHICLE  DESCRIBED  IN  SUBPARAGRAPH  (D)  OF  PARAGRAPH  EIGHT  OF
   54  SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
   55  UE  CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF
   56  A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT,
       S. 4610                            10                            A. 6721
    1  FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH  BUSINESSES,  WHICH
    2  IS  PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED
    3  EIGHTY-NINE, ANY AMOUNT WHICH IS  INCLUDED  IN  THE  TAXPAYER'S  FEDERAL
    4  TAXABLE  INCOME  SOLELY  AS A RESULT OF AN ELECTION MADE PURSUANT TO THE
    5  PROVISIONS OF SUCH PARAGRAPH EIGHT AS IT WAS IN  EFFECT  FOR  AGREEMENTS
    6  ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR;
    7    (9)  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 THE  TAXPAYER  COULD  HAVE  EXCLUDED  FROM
   15  FEDERAL TAXABLE INCOME HAD IT NOT MADE THE ELECTION PROVIDED FOR IN SUCH
   16  PARAGRAPH EIGHT AS IT WAS IN EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO
   17  JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR;
   18    (10)  THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (J) OF THIS SUBDIVI-
   19  SION;
   20    (11) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (J)  OF  THIS
   21  SUBDIVISION  APPLIES,  THE AMOUNT, IF ANY, BY WHICH THE AGGREGATE OF THE
   22  AMOUNTS DESCRIBED IN SUBPARAGRAPH ELEVEN OF PARAGRAPH (B) OF THIS SUBDI-
   23  VISION ATTRIBUTABLE TO  SUCH  PROPERTY  EXCEEDS  THE  AGGREGATE  OF  THE
   24  AMOUNTS  DESCRIBED  IN PARAGRAPH (J) OF THIS SUBDIVISION ATTRIBUTABLE TO
   25  SUCH PROPERTY;
   26    (12) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (K) OF THIS  SUBDIVI-
   27  SION;
   28    (13)  THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (O) OF THIS SUBDIVI-
   29  SION;
   30    (14) THE AMOUNT COMPUTED PURSUANT TO PARAGRAPH (Q), (R) OR (S) OF THIS
   31  SUBDIVISION, BUT ONLY THE AMOUNT DETERMINED  PURSUANT  TO  ONE  OF  SUCH
   32  PARAGRAPHS; AND
   33    (15)  THE  AMOUNT  COMPUTED PURSUANT TO PARAGRAPH (T) OF THIS SUBDIVI-
   34  SION.
   35    (A-1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER,  IN  THE
   36  CASE OF A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP SUBJECT TO THE TAX
   37  IMPOSED  BY  CHAPTER  ELEVEN  OF  THIS TITLE AS A UTILITY, AS DEFINED IN
   38  SUBDIVISION SIX OF SECTION 11-1101 OF SUCH CHAPTER,  ENTIRE  NET  INCOME
   39  SHALL  NOT  INCLUDE  THE  TAXPAYER'S  DISTRIBUTIVE OR PRO RATA SHARE FOR
   40  FEDERAL INCOME TAX PURPOSES  OF  ANY  ITEM  OF  INCOME,  GAIN,  LOSS  OR
   41  DEDUCTION  OF  SUCH  PARTNERSHIP,  OR  ANY ITEM OF INCOME, GAIN, LOSS OR
   42  DEDUCTION OF SUCH PARTNERSHIP THAT THE TAXPAYER IS REQUIRED TO TAKE INTO
   43  ACCOUNT SEPARATELY FOR FEDERAL INCOME TAX PURPOSES.
   44    (B) ENTIRE NET INCOME  SHALL  BE  DETERMINED  WITHOUT  THE  EXCLUSION,
   45  DEDUCTION OR CREDIT OF:
   46    (1)  IN  THE  CASE OF AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF
   47  THE INTERNAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC CORPORATION"  AS
   48  DEFINED  IN  SECTION  SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE, (I)
   49  ANY PART OF ANY INCOME FROM DIVIDENDS OR INTEREST ON ANY KIND OF  STOCK,
   50  SECURITIES OR INDEBTEDNESS, BUT ONLY IF SUCH INCOME IS TREATED AS EFFEC-
   51  TIVELY  CONNECTED  WITH THE CONDUCT OF A TRADE OR BUSINESS IN THE UNITED
   52  STATES PURSUANT TO SECTION EIGHT  HUNDRED  SIXTY-FOUR  OF  THE  INTERNAL
   53  REVENUE  CODE,  (II) ANY INCOME EXEMPT FROM FEDERAL TAXABLE INCOME UNDER
   54  ANY TREATY OBLIGATION OF THE UNITED STATES,  BUT  ONLY  IF  SUCH  INCOME
   55  WOULD  BE  TREATED  AS  EFFECTIVELY  CONNECTED  IN  THE  ABSENCE OF SUCH
   56  EXEMPTION PROVIDED THAT SUCH TREATY OBLIGATION  DOES  NOT  PRECLUDE  THE
       S. 4610                            11                            A. 6721
    1  TAXATION  OF  SUCH INCOME BY A STATE, OR (III) ANY INCOME WHICH WOULD BE
    2  TREATED AS EFFECTIVELY CONNECTED IF SUCH INCOME WERE NOT  EXCLUDED  FROM
    3  GROSS  INCOME PURSUANT TO SUBSECTION (A) OF SECTION ONE HUNDRED THREE OF
    4  THE INTERNAL REVENUE CODE;
    5    (2)  ANY  PART OF ANY INCOME FROM DIVIDENDS OR INTEREST OF ANY KIND OF
    6  STOCK, SECURITIES, OR INDEBTEDNESS;
    7    (3) TAXES ON OR MEASURED BY PROFITS OR INCOME PAID OR ACCRUED  TO  THE
    8  UNITED  STATES,  ANY  OF  ITS POSSESSIONS, TERRITORIES OR COMMONWEALTHS,
    9  INCLUDING TAXES IN LIEU OF ANY OF THE FOREGOING TAXES OTHERWISE GENERAL-
   10  LY IMPOSED BY ANY POSSESSION, TERRITORY OR COMMONWEALTH  OF  THE  UNITED
   11  STATES,  OR  TAXES  PAID  OR  ACCRUED  TO  THE STATE UNDER ARTICLE NINE,
   12  NINE-A, THIRTEEN-A OR THIRTY-TWO OF THE TAX LAW AS IN EFFECT ON DECEMBER
   13  THIRTY-FIRST, TWO THOUSAND FOURTEEN;
   14    (3-A) TAXES ON OR MEASURED BY PROFITS  OR  INCOME,  OR  WHICH  INCLUDE
   15  PROFITS  OR  INCOME  AS A MEASURE, PAID OR ACCRUED TO ANY OTHER STATE OF
   16  THE UNITED STATES, OR ANY  POLITICAL  SUBDIVISION  THEREOF,  OR  TO  THE
   17  DISTRICT  OF  COLUMBIA,  INCLUDING TAXES EXPRESSLY IN LIEU OF ANY OF THE
   18  FOREGOING TAXES OTHERWISE GENERALLY IMPOSED BY ANY OTHER  STATE  OF  THE
   19  UNITED  STATES, OR ANY POLITICAL SUBDIVISION THEREOF, OR THE DISTRICT OF
   20  COLUMBIA;
   21    (4) TAXES IMPOSED UNDER THIS CHAPTER;
   22    (4-A) INTENTIONALLY OMITTED;
   23    (4-B) THE AMOUNT ALLOWED AS AN EXCLUSION OR A DEDUCTION IMPOSED BY THE
   24  TAX LAW IN DETERMINING  THE  ENTIRE  TAXABLE  INCOME  FOR  A  RELOCATION
   25  DESCRIBED  IN  SUBDIVISION THIRTEEN OF SECTION 11-654 OF THIS SUBCHAPTER
   26  WHICH THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED  STATES  TREASURY
   27  DEPARTMENT BUT ONLY SUCH PORTION OF SUCH EXCLUSION OR DEDUCTION WHICH IS
   28  NOT  IN  EXCESS OF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO SUBDIVI-
   29  SION THIRTEEN OF SECTION 11-654 OF THIS SUBCHAPTER;
   30    (4-C) THE AMOUNT ALLOWED AS AN EXCLUSION OR A DEDUCTION IMPOSED BY THE
   31  TAX LAW FOR A RELOCATION DESCRIBED IN SUBDIVISION  FOURTEEN  OF  SECTION
   32  11-654 OF THIS SUBCHAPTER IN DETERMINING THE ENTIRE TAXABLE INCOME WHICH
   33  THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED STATES TREASURY DEPART-
   34  MENT  BUT  ONLY SUCH PORTION OF SUCH EXCLUSION OR DEDUCTION WHICH IS NOT
   35  IN EXCESS OF THE AMOUNT OF THE CREDIT ALLOWED  PURSUANT  TO  SUBDIVISION
   36  FOURTEEN OF SECTION 11-654 OF THIS SUBCHAPTER;
   37    (4-D) INTENTIONALLY OMITTED;
   38    (4-E) INTENTIONALLY OMITTED;
   39    (5) INTENTIONALLY OMITTED;
   40    (6)  ANY  AMOUNT  ALLOWED  AS  A  DEDUCTION FOR THE TAXABLE YEAR UNDER
   41  SECTION ONE HUNDRED SEVENTY-TWO OF THE INTERNAL REVENUE CODE,  INCLUDING
   42  CARRYOVERS OF DEDUCTIONS FROM PRIOR TAXABLE YEARS;
   43    (7)  ANY  AMOUNT  BY  REASON OF THE GRANTING, ISSUING OR ASSUMING OF A
   44  RESTRICTED STOCK OPTION, AS DEFINED IN  THE  INTERNAL  REVENUE  CODE  OF
   45  NINETEEN  HUNDRED  FIFTY-FOUR, OR BY REASON OF THE TRANSFER OF THE SHARE
   46  OF STOCK UPON THE EXERCISE OF THE OPTION, UNLESS SUCH SHARE IS  DISPOSED
   47  OF  BY  THE  GRANTEE OF THE OPTION WITHIN TWO YEARS FROM THE DATE OF THE
   48  GRANTING OF THE OPTION OR WITHIN SIX MONTHS AFTER THE TRANSFER  OF  SUCH
   49  SHARE TO THE GRANTEE;
   50    (8) INTENTIONALLY OMITTED;
   51    (9)  EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT-
   52  ING  VEHICLE  DESCRIBED  IN  SUBPARAGRAPH  (D)  OF  PARAGRAPH  EIGHT  OF
   53  SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
   54  UE  CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF
   55  A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT,
   56  FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH  BUSINESSES,  WHICH
       S. 4610                            12                            A. 6721
    1  IS  PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED
    2  EIGHTY-NINE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED  AS  A  DEDUCTION  IN
    3  COMPUTING  ITS  FEDERAL TAXABLE INCOME SOLELY AS A RESULT OF AN ELECTION
    4  MADE  PURSUANT  TO  THE  PROVISIONS OF SUCH PARAGRAPH EIGHT AS IT WAS IN
    5  EFFECT FOR AGREEMENTS ENTERED INTO  PRIOR  TO  JANUARY  FIRST,  NINETEEN
    6  HUNDRED EIGHTY-FOUR;
    7    (10) 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 THE TAXPAYER WOULD HAVE BEEN REQUIRED TO
   15  INCLUDE IN THE COMPUTATION OF ITS FEDERAL TAXABLE INCOME HAD IT NOT MADE
   16  THE ELECTION PERMITTED PURSUANT TO SUCH PARAGRAPH EIGHT  AS  IT  WAS  IN
   17  EFFECT  FOR  AGREEMENTS  ENTERED  INTO  PRIOR TO JANUARY FIRST, NINETEEN
   18  HUNDRED EIGHTY-FOUR;
   19    (11) IN THE CASE OF PROPERTY PLACED IN SERVICE IN TAXABLE YEARS BEGIN-
   20  NING BEFORE NINETEEN HUNDRED NINETY-FOUR, FOR  TAXABLE  YEARS  BEGINNING
   21  AFTER  DECEMBER  THIRTY-FIRST,  NINETEEN HUNDRED EIGHTY-ONE, EXCEPT WITH
   22  RESPECT TO PROPERTY SUBJECT TO THE PROVISIONS  OF  SECTION  TWO  HUNDRED
   23  EIGHTY  F  OF  THE  INTERNAL  REVENUE  CODE,  PROPERTY  SUBJECT  TO  THE
   24  PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF  THE  INTERNAL  REVENUE
   25  CODE WHICH IS PLACED IN SERVICE IN THIS STATE IN TAXABLE YEARS BEGINNING
   26  AFTER  DECEMBER  THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-FOUR AND PROPERTY
   27  OF A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION,  STEAM-
   28  BOAT,  FERRY  OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES,
   29  WHICH IS PLACED IN SERVICE BEFORE TAXABLE YEARS  BEGINNING  IN  NINETEEN
   30  HUNDRED  EIGHTY-NINE,  THE  AMOUNT  ALLOWABLE  AS A DEDUCTION DETERMINED
   31  UNDER SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE CODE;
   32    (12) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (J)  OF  THIS
   33  SUBDIVISION  APPLIES,  THE AMOUNT, IF ANY, BY WHICH THE AGGREGATE OF THE
   34  AMOUNTS DESCRIBED IN SUCH PARAGRAPH (J) ATTRIBUTABLE  TO  SUCH  PROPERTY
   35  EXCEEDS THE AGGREGATE OF THE AMOUNTS DESCRIBED IN SUBPARAGRAPH ELEVEN OF
   36  THIS PARAGRAPH ATTRIBUTABLE TO SUCH PROPERTY;
   37    (13) INTENTIONALLY OMITTED;
   38    (14) INTENTIONALLY OMITTED;
   39    (15) INTENTIONALLY OMITTED;
   40    (16)  IN  THE CASE OF QUALIFIED PROPERTY DESCRIBED IN PARAGRAPH TWO OF
   41  SUBSECTION (K) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
   42  UE CODE, OTHER THAN QUALIFIED  RESURGENCE  ZONE  PROPERTY  DESCRIBED  IN
   43  PARAGRAPH  (M)  OF  THIS  SUBDIVISION, AND OTHER THAN QUALIFIED NEW YORK
   44  LIBERTY ZONE PROPERTY DESCRIBED IN PARAGRAPH TWO OF  SUBSECTION  (B)  OF
   45  SECTION  FOURTEEN HUNDRED L OF THE INTERNAL REVENUE CODE (WITHOUT REGARD
   46  TO CLAUSE (I) OF SUBPARAGRAPH (C) OF SUCH PARAGRAPH), THE AMOUNT  ALLOW-
   47  ABLE  AS A DEDUCTION UNDER SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTER-
   48  NAL REVENUE CODE;
   49    (17) IN THE CASE OF A TAXPAYER THAT  IS  NOT  AN  ELIGIBLE  FARMER  AS
   50  DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE
   51  AMOUNT ALLOWABLE AS A DEDUCTION UNDER SECTIONS ONE HUNDRED SEVENTY-NINE,
   52  ONE  HUNDRED  SIXTY-SEVEN  AND  ONE  HUNDRED SIXTY-EIGHT OF THE INTERNAL
   53  REVENUE CODE WITH RESPECT TO A SPORT  UTILITY  VEHICLE  THAT  IS  NOT  A
   54  PASSENGER  AUTOMOBILE  AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (D) OF
   55  SECTION TWO HUNDRED EIGHTY F OF THE INTERNAL REVENUE CODE;
       S. 4610                            13                            A. 6721
    1    (18) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
    2  HUNDRED NINETY-NINE OF THE INTERNAL REVENUE CODE;
    3    (19) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
    4  CLE TWENTY-THREE OF THE TAX LAW.
    5    (C) INTENTIONALLY OMITTED.
    6    (C-1)(1)  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS SUBCHAPTER, IN
    7  THE CASE OF A TAXPAYER WHICH IS A FOREIGN AIR CARRIER HOLDING A  FOREIGN
    8  AIR CARRIER PERMIT ISSUED BY THE UNITED STATES DEPARTMENT OF TRANSPORTA-
    9  TION PURSUANT TO SECTION FOUR HUNDRED TWO OF THE FEDERAL AVIATION ACT OF
   10  NINETEEN  HUNDRED  FIFTY-EIGHT, AS AMENDED, AND WHICH IS QUALIFIED UNDER
   11  SUBPARAGRAPH TWO OF THIS PARAGRAPH, ENTIRE NET INCOME SHALL NOT INCLUDE,
   12  AND SHALL BE COMPUTED WITHOUT THE  DEDUCTION  OF,  AMOUNTS  DIRECTLY  OR
   13  INDIRECTLY  ATTRIBUTABLE  TO,  (I)  ANY INCOME DERIVED FROM THE INTERNA-
   14  TIONAL OPERATION  OF  AIRCRAFT  AS  DESCRIBED  IN  AND  SUBJECT  TO  THE
   15  PROVISIONS OF SECTION EIGHT HUNDRED EIGHTY-THREE OF THE INTERNAL REVENUE
   16  CODE,  (II)  INCOME  WITHOUT THE UNITED STATES WHICH IS DERIVED FROM THE
   17  OPERATION OF AIRCRAFT, AND (III) INCOME WITHOUT THE UNITED STATES  WHICH
   18  IS  OF  A  TYPE  DESCRIBED  IN  SUBDIVISION (A) OF SECTION EIGHT HUNDRED
   19  EIGHTY-ONE OF THE INTERNAL REVENUE CODE EXCEPT THAT IT IS  DERIVED  FROM
   20  SOURCES  WITHOUT  THE  UNITED  STATES.   ENTIRE NET INCOME SHALL INCLUDE
   21  INCOME DESCRIBED IN CLAUSES (I), (II) AND (III) OF THIS SUBPARAGRAPH  IN
   22  THE CASE OF TAXPAYERS NOT DESCRIBED IN THE PREVIOUS SENTENCE;
   23    (2)  A  TAXPAYER  IS QUALIFIED UNDER THIS SUBPARAGRAPH IF AIR CARRIERS
   24  ORGANIZED IN THE UNITED STATES AND OPERATING IN THE FOREIGN  COUNTRY  OR
   25  COUNTRIES  IN WHICH THE TAXPAYER HAS ITS MAJOR BASE OF OPERATIONS AND IN
   26  WHICH IT IS ORGANIZED, RESIDENT OR HEADQUARTERED (IF  NOT  IN  THE  SAME
   27  COUNTRY  AS  ITS MAJOR BASE OF OPERATIONS) ARE NOT SUBJECT TO ANY INCOME
   28  TAX OR OTHER TAX BASED ON OR MEASURED BY INCOME OR RECEIPTS  IMPOSED  BY
   29  SUCH  FOREIGN COUNTRY OR COUNTRIES OR ANY POLITICAL SUBDIVISION THEREOF,
   30  OR IF SO SUBJECT TO SUCH TAX, ARE PROVIDED AN EXEMPTION  FROM  SUCH  TAX
   31  EQUIVALENT TO THAT PROVIDED FOR HEREIN.
   32    (D) THE COMMISSIONER OF FINANCE MAY, WHENEVER NECESSARY IN ORDER PROP-
   33  ERLY  TO  REFLECT  THE  ENTIRE NET INCOME OF ANY TAXPAYER, DETERMINE THE
   34  YEAR OR PERIOD IN WHICH  ANY  ITEM  OF  INCOME  OR  DEDUCTION  SHALL  BE
   35  INCLUDED,  WITHOUT  REGARD  TO  THE METHOD OF ACCOUNTING EMPLOYED BY THE
   36  TAXPAYER.
   37    (E) THE ENTIRE NET INCOME OF ANY BRIDGE COMMISSION CREATED BY  ACT  OF
   38  CONGRESS  TO  CONSTRUCT  A BRIDGE ACROSS AN INTERNATIONAL BOUNDARY MEANS
   39  ITS GROSS INCOME LESS THE EXPENSE OF MAINTAINING AND OPERATING ITS PROP-
   40  ERTIES, THE ANNUAL INTEREST UPON ITS BONDS AND  OTHER  OBLIGATIONS,  AND
   41  THE  ANNUAL  CHARGE  FOR  THE RETIREMENT OF SUCH BONDS OR OBLIGATIONS AT
   42  MATURITY.
   43    (F) INTENTIONALLY OMITTED.
   44    (G) AT THE ELECTION OF THE TAXPAYER, A DEDUCTION SHALL BE ALLOWED  FOR
   45  EXPENDITURES   PAID   OR  INCURRED  DURING  THE  TAXABLE  YEAR  FOR  THE
   46  CONSTRUCTION, RECONSTRUCTION,  ERECTION  OR  IMPROVEMENT  OF  INDUSTRIAL
   47  WASTE TREATMENT FACILITIES AND AIR POLLUTION CONTROL FACILITIES.
   48    (1)(I)  THE  TERM  "INDUSTRIAL  WASTE TREATMENT FACILITIES" SHALL MEAN
   49  FACILITIES FOR THE TREATMENT, NEUTRALIZATION OR STABILIZATION OF  INDUS-
   50  TRIAL  WASTE  (AS  THE  TERM  "INDUSTRIAL  WASTE"  IS DEFINED IN SECTION
   51  17-0105 OF THE ENVIRONMENTAL CONSERVATION LAW) FROM A POINT  IMMEDIATELY
   52  PRECEDING  THE  POINT OF SUCH TREATMENT, NEUTRALIZATION OR STABILIZATION
   53  TO THE POINT OF DISPOSAL, INCLUDING THE NECESSARY PUMPING AND  TRANSMIT-
   54  TING FACILITIES, BUT EXCLUDING SUCH FACILITIES INSTALLED FOR THE PRIMARY
   55  PURPOSE  OF  SALVAGING  MATERIALS  WHICH ARE USABLE IN THE MANUFACTURING
   56  PROCESS OR ARE MARKETABLE.
       S. 4610                            14                            A. 6721
    1    (II) THE TERM "AIR POLLUTION CONTROL FACILITIES" SHALL MEAN FACILITIES
    2  WHICH REMOVE, REDUCE, OR RENDER LESS NOXIOUS  AIR  CONTAMINANTS  EMITTED
    3  FROM  AN  AIR  CONTAMINATION  SOURCE (AS THE TERMS "AIR CONTAMINANT" AND
    4  "AIR CONTAMINATION SOURCE" ARE DEFINED IN SECTION 19-0107 OF  THE  ENVI-
    5  RONMENTAL CONSERVATION LAW) FROM A POINT IMMEDIATELY PRECEDING THE POINT
    6  OF  SUCH  REMOVAL,  REDUCTION  OR RENDERING TO THE POINT OF DISCHARGE OF
    7  AIR, MEETING EMISSION STANDARDS AS  ESTABLISHED  BY  THE  AIR  POLLUTION
    8  CONTROL  BOARD,  BUT EXCLUDING SUCH FACILITIES INSTALLED FOR THE PRIMARY
    9  PURPOSE OF SALVAGING MATERIALS WHICH ARE  USABLE  IN  THE  MANUFACTURING
   10  PROCESS  OR ARE MARKETABLE AND EXCLUDING THOSE FACILITIES WHICH RELY FOR
   11  THEIR EFFICACY ON DILUTION, DISPERSION OR ASSIMILATION  OF  AIR  CONTAM-
   12  INANTS IN THE AMBIENT AIR AFTER EMISSION.
   13    (2)  HOWEVER, SUCH DEDUCTION SHALL BE ALLOWED ONLY (I) WITH RESPECT TO
   14  TANGIBLE PROPERTY WHICH IS DEPRECIABLE, PURSUANT TO SECTION ONE  HUNDRED
   15  SIXTY-SEVEN OF THE INTERNAL REVENUE CODE, HAVING A SITUS IN THE CITY AND
   16  USED  IN  THE  TAXPAYER'S  TRADE  OR  BUSINESS, THE CONSTRUCTION, RECON-
   17  STRUCTION, ERECTION OR IMPROVEMENT OF WHICH, IN THE CASE  OF  INDUSTRIAL
   18  WASTE  TREATMENT  FACILITIES,  IS  INITIATED  ON OR AFTER JANUARY FIRST,
   19  NINETEEN HUNDRED SIXTY-SIX, AND ONLY FOR EXPENDITURES PAID  OR  INCURRED
   20  PRIOR  TO  JANUARY FIRST, NINETEEN HUNDRED SEVENTY-TWO, OR WHICH, IN THE
   21  CASE OF AIR POLLUTION CONTROL FACILITIES, IS INITIATED ON OR AFTER JANU-
   22  ARY FIRST, NINETEEN HUNDRED SIXTY-SIX, AND
   23    (II) ON CONDITION THAT SUCH FACILITIES  HAVE  BEEN  CERTIFIED  BY  THE
   24  STATE  COMMISSIONER  OF  ENVIRONMENTAL CONSERVATION OR THE STATE COMMIS-
   25  SIONER'S DESIGNATED REPRESENTATIVE, IN THE SAME MANNER AS  PROVIDED  FOR
   26  IN  SECTION 17-0707 OR 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW, AS
   27  APPLICABLE, AS COMPLYING WITH APPLICABLE PROVISIONS OF THE ENVIRONMENTAL
   28  CONSERVATION LAW, THE STATE SANITARY CODE AND  REGULATIONS,  PERMITS  OR
   29  ORDERS ISSUED PURSUANT THERETO, AND
   30    (III) ON CONDITION THAT ENTIRE NET INCOME FOR THE TAXABLE YEAR AND ALL
   31  SUCCEEDING  TAXABLE  YEARS  BE  COMPUTED WITHOUT ANY DEDUCTIONS FOR SUCH
   32  EXPENDITURES OR FOR DEPRECIATION OF THE SAME  PROPERTY  OTHER  THAN  THE
   33  DEDUCTIONS ALLOWED BY THIS PARAGRAPH EXCEPT TO THE EXTENT THAT THE BASIS
   34  OF  THE PROPERTY MAY BE ATTRIBUTABLE TO FACTORS OTHER THAN SUCH EXPENDI-
   35  TURES, OR IN CASE A DEDUCTION IS ALLOWABLE PURSUANT  TO  THIS  PARAGRAPH
   36  FOR  ONLY  A  PART OF SUCH EXPENDITURES, ON CONDITION THAT ANY DEDUCTION
   37  ALLOWED FOR FEDERAL INCOME TAX PURPOSES FOR  SUCH  EXPENDITURES  OR  FOR
   38  DEPRECIATION  OF THE SAME PROPERTY BE PROPORTIONATELY REDUCED IN COMPUT-
   39  ING ENTIRE NET INCOME FOR THE TAXABLE YEAR AND  ALL  SUCCEEDING  TAXABLE
   40  YEARS, AND
   41    (IV)  WHERE  THE ELECTION PROVIDED FOR IN PARAGRAPH (D) OF SUBDIVISION
   42  THREE OF SECTION 11-604 OF THIS CHAPTER OR THE ELECTION PROVIDED FOR  IN
   43  SUBDIVISION (K) OF SECTION 11-641 OF THIS CHAPTER HAS NOT BEEN EXERCISED
   44  IN RESPECT TO THE SAME PROPERTY.
   45    (3)(I)  IF  EXPENDITURES  IN  RESPECT TO AN INDUSTRIAL WASTE TREATMENT
   46  FACILITY OR AN AIR POLLUTION CONTROL  FACILITY  HAVE  BEEN  DEDUCTED  AS
   47  PROVIDED HEREIN AND IF WITHIN TEN YEARS FROM THE END OF THE TAXABLE YEAR
   48  IN WHICH SUCH DEDUCTION WAS ALLOWED SUCH PROPERTY OR ANY PART THEREOF IS
   49  USED  FOR THE PRIMARY PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN
   50  THE MANUFACTURING PROCESS OR ARE MARKETABLE, THE TAXPAYER  SHALL  REPORT
   51  SUCH CHANGE OF USE IN ITS REPORT FOR THE FIRST TAXABLE YEAR DURING WHICH
   52  IT OCCURS, AND THE COMMISSIONER OF FINANCE MAY RECOMPUTE THE TAX FOR THE
   53  YEAR  OR YEARS FOR WHICH SUCH DEDUCTION WAS ALLOWED AND ANY CARRYBACK OR
   54  CARRYOVER YEAR, AND MAY ASSESS ANY ADDITIONAL TAX  RESULTING  FROM  SUCH
   55  RECOMPUTATION  WITHIN  THE  TIME  FIXED  BY PARAGRAPH (H) OF SUBDIVISION
   56  THREE OF SECTION 11-674 OF THIS CHAPTER.
       S. 4610                            15                            A. 6721
    1    (II) IF A DEDUCTION IS ALLOWED AS  HEREIN  PROVIDED  FOR  EXPENDITURES
    2  PAID  OR  INCURRED  DURING  ANY TAXABLE YEAR ON THE BASIS OF A TEMPORARY
    3  CERTIFICATE OF COMPLIANCE ISSUED PURSUANT TO THE ENVIRONMENTAL CONSERVA-
    4  TION LAW AND IF THE TAXPAYER FAILS TO OBTAIN A PERMANENT CERTIFICATE  OF
    5  COMPLIANCE  UPON COMPLETION OF THE FACILITIES WITH RESPECT TO WHICH SUCH
    6  TEMPORARY CERTIFICATE WAS ISSUED, THE TAXPAYER SHALL REPORT SUCH FAILURE
    7  IN ITS REPORT FOR THE TAXABLE YEAR  DURING  WHICH  SUCH  FACILITIES  ARE
    8  COMPLETED, 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    (4) IN ANY TAXABLE YEAR WHEN PROPERTY IS SOLD  OR  OTHERWISE  DISPOSED
   14  OF,  WITH RESPECT TO WHICH A DEDUCTION HAS BEEN ALLOWED PURSUANT TO THIS
   15  PARAGRAPH, SUCH DEDUCTION SHALL BE  DISREGARDED  IN  COMPUTING  GAIN  OR
   16  LOSS,  AND  THE  GAIN  OR  LOSS ON THE SALE OR OTHER DISPOSITION OF SUCH
   17  PROPERTY SHALL BE THE GAIN OR LOSS  ENTERING  INTO  THE  COMPUTATION  OF
   18  ENTIRE  TAXABLE  INCOME  WHICH THE TAXPAYER IS REQUIRED TO REPORT TO THE
   19  UNITED STATES TREASURY FOR SUCH TAXABLE YEAR;
   20    (H) WITH RESPECT TO GAIN DERIVED FROM THE SALE OR OTHER DISPOSITION OF
   21  ANY  PROPERTY  ACQUIRED  PRIOR  TO  JANUARY  FIRST,   NINETEEN   HUNDRED
   22  SIXTY-SIX;  WHICH  HAD  A FEDERAL ADJUSTED BASIS ON SUCH DATE (OR ON THE
   23  DATE OF ITS SALE OR OTHER DISPOSITION PRIOR TO JANUARY  FIRST,  NINETEEN
   24  HUNDRED  SIXTY-SIX)  LOWER  THAN ITS FAIR MARKET VALUE ON JANUARY FIRST,
   25  NINETEEN HUNDRED SIXTY-SIX OR THE DATE OF ITS SALE OR OTHER  DISPOSITION
   26  PRIOR  THERETO, EXCEPT PROPERTY DESCRIBED IN SUBSECTIONS ONE AND FOUR OF
   27  SECTION TWELVE HUNDRED TWENTY-ONE OF THE INTERNAL  REVENUE  CODE,  THERE
   28  SHALL BE DEDUCTED FROM ENTIRE NET INCOME, THE DIFFERENCE BETWEEN (1) THE
   29  AMOUNT  OF  THE TAXPAYER'S FEDERAL TAXABLE INCOME, AND (2) THE AMOUNT OF
   30  THE TAXPAYER'S FEDERAL  TAXABLE  INCOME  (IF  SMALLER  THAN  THE  AMOUNT
   31  DESCRIBED  IN  SUBPARAGRAPH  ONE  OF  THIS PARAGRAPH) COMPUTED AS IF THE
   32  FEDERAL ADJUSTED BASIS OF EACH SUCH  PROPERTY  (ON  THE  SALE  OR  OTHER
   33  DISPOSITION  OF WHICH GAIN WAS DERIVED) ON THE DATE OF THE SALE OR OTHER
   34  DISPOSITION HAD BEEN EQUAL TO EITHER (I) ITS FAIR MARKET VALUE ON  JANU-
   35  ARY  FIRST,  NINETEEN HUNDRED SIXTY-SIX OR THE DATE OF ITS SALE OR OTHER
   36  DISPOSITION PRIOR TO JANUARY FIRST, NINETEEN HUNDRED SIXTY-SIX, PLUS  OR
   37  MINUS  ALL  ADJUSTMENTS  TO BASIS MADE WITH RESPECT TO SUCH PROPERTY FOR
   38  FEDERAL INCOME TAX PURPOSES FOR PERIODS  ON  AND  AFTER  JANUARY  FIRST,
   39  NINETEEN  HUNDRED SIXTY-SIX OR (II) THE AMOUNT REALIZED FROM ITS SALE OR
   40  DISPOSITION, WHICHEVER IS  LOWER;  PROVIDED,  HOWEVER,  THAT  THE  TOTAL
   41  MODIFICATION  PROVIDED  BY THIS PARAGRAPH SHALL NOT EXCEED THE AMOUNT OF
   42  THE TAXPAYER'S NET GAIN FROM THE SALE OR OTHER DISPOSITION OF  ALL  SUCH
   43  PROPERTY.
   44    (I)  IF  THE PERIOD COVERED BY A REPORT UNDER THIS SUBCHAPTER IS OTHER
   45  THAN THE PERIOD COVERED BY THE REPORT  OF  THE  UNITED  STATES  TREASURY
   46  DEPARTMENT,  ENTIRE  NET  INCOME  SHALL BE DETERMINED BY MULTIPLYING THE
   47  FEDERAL TAXABLE INCOME (AS ADJUSTED PURSUANT TO THE PROVISIONS  OF  THIS
   48  SUBCHAPTER)  BY  THE  NUMBER  OF  CALENDAR MONTHS OR MAJOR PARTS THEREOF
   49  COVERED BY THE REPORT UNDER THIS SUBCHAPTER AND DIVIDING BY  THE  NUMBER
   50  OF  CALENDAR MONTHS OR MAJOR PARTS THEREOF COVERED BY THE REPORT TO SUCH
   51  DEPARTMENT. IF IT SHALL APPEAR THAT SUCH METHOD  OF  DETERMINING  ENTIRE
   52  NET  INCOME  DOES  NOT PROPERLY REFLECT THE TAXPAYER'S INCOME DURING THE
   53  PERIOD COVERED BY THE REPORT UNDER THIS SUBCHAPTER, THE COMMISSIONER  OF
   54  FINANCE  SHALL  BE AUTHORIZED IN HIS OR HER DISCRETION TO DETERMINE SUCH
   55  ENTIRE NET INCOME SOLELY ON THE BASIS OF THE  TAXPAYER'S  INCOME  DURING
   56  THE PERIOD COVERED BY ITS REPORT UNDER THIS SUBCHAPTER.
       S. 4610                            16                            A. 6721
    1    (J)  IN THE CASE OF PROPERTY PLACED IN SERVICE IN TAXABLE YEARS BEGIN-
    2  NING BEFORE NINETEEN HUNDRED NINETY-FOUR, FOR  TAXABLE  YEARS  BEGINNING
    3  AFTER  DECEMBER  THIRTY-FIRST,  NINETEEN HUNDRED EIGHTY-ONE, EXCEPT WITH
    4  RESPECT TO PROPERTY SUBJECT TO THE PROVISIONS  OF  SECTION  TWO  HUNDRED
    5  EIGHTY  F  OF  THE  INTERNAL  REVENUE  CODE  AND PROPERTY SUBJECT TO THE
    6  PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF  THE  INTERNAL  REVENUE
    7  CODE WHICH IS PLACED IN SERVICE IN THIS STATE IN TAXABLE YEARS BEGINNING
    8  AFTER  DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-FOUR, AND PROVIDED
    9  A DEDUCTION HAS NOT BEEN EXCLUDED FROM ENTIRE  NET  INCOME  PURSUANT  TO
   10  SUBPARAGRAPH NINE OF PARAGRAPH (B) OF THIS SUBDIVISION, A TAXPAYER SHALL
   11  BE  ALLOWED  WITH RESPECT TO PROPERTY WHICH IS SUBJECT TO THE PROVISIONS
   12  OF SECTION ONE HUNDRED SIXTY-EIGHT OF  THE  INTERNAL  REVENUE  CODE  THE
   13  DEPRECIATION  DEDUCTION  ALLOWABLE UNDER SECTION ONE HUNDRED SIXTY-SEVEN
   14  OF THE INTERNAL REVENUE CODE AS SUCH SECTION WOULD HAVE APPLIED TO PROP-
   15  ERTY PLACED  IN  SERVICE  ON  DECEMBER  THIRTY-FIRST,  NINETEEN  HUNDRED
   16  EIGHTY. THIS PARAGRAPH SHALL NOT APPLY TO PROPERTY OF A TAXPAYER PRINCI-
   17  PALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT, FERRY OR NAVIGA-
   18  TION  BUSINESS,  OR  TWO  OR MORE OF SUCH BUSINESSES, WHICH IS PLACED IN
   19  SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED EIGHTY-NINE.
   20    (K) IN THE CASE OF QUALIFIED PROPERTY DESCRIBED IN  PARAGRAPH  TWO  OF
   21  SUBSECTION (K) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
   22  UE  CODE,  OTHER  THAN  QUALIFIED  RESURGENCE ZONE PROPERTY DESCRIBED IN
   23  PARAGRAPH (M) OF THIS SUBDIVISION, AND OTHER  THAN  QUALIFIED  NEW  YORK
   24  LIBERTY  ZONE  PROPERTY  DESCRIBED IN PARAGRAPH TWO OF SUBSECTION (B) OF
   25  SECTION FOURTEEN HUNDRED L OF THE INTERNAL REVENUE CODE (WITHOUT  REGARD
   26  TO  CLAUSE  (I) OF SUBPARAGRAPH (C) OF SUCH PARAGRAPH), THE DEPRECIATION
   27  DEDUCTION ALLOWABLE  UNDER  SECTION  ONE  HUNDRED  SIXTY-SEVEN  AS  SUCH
   28  SECTION  WOULD HAVE APPLIED TO SUCH PROPERTY HAD IT BEEN ACQUIRED BY THE
   29  TAXPAYER ON SEPTEMBER TENTH, TWO THOUSAND ONE, PROVIDED,  HOWEVER,  THAT
   30  FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
   31  FOUR, IN THE CASE OF A PASSENGER MOTOR VEHICLE OR A SPORT UTILITY  VEHI-
   32  CLE  SUBJECT TO THE PROVISIONS OF PARAGRAPH (O) OF THIS SUBDIVISION, THE
   33  LIMITATION UNDER CLAUSE (I) OF SUBPARAGRAPH  (A)  OF  PARAGRAPH  ONE  OF
   34  SUBDIVISION  (A) OF SECTION TWO HUNDRED EIGHTY F OF THE INTERNAL REVENUE
   35  CODE APPLICABLE TO THE AMOUNT ALLOWED AS A DEDUCTION  UNDER  THIS  PARA-
   36  GRAPH  SHALL  BE  DETERMINED  AS  OF THE DATE SUCH VEHICLE WAS PLACED IN
   37  SERVICE AND NOT AS OF SEPTEMBER TENTH, TWO THOUSAND ONE.
   38    (L) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH  (K)  OF  THIS
   39  SUBDIVISION APPLIES, THE AMOUNT OF ANY GAIN OR LOSS INCLUDIBLE IN ENTIRE
   40  NET  INCOME  SHALL  BE ADJUSTED TO REFLECT THE INCLUSIONS AND EXCLUSIONS
   41  FROM ENTIRE NET INCOME PURSUANT TO SUBPARAGRAPH TWELVE OF PARAGRAPH  (A)
   42  AND  SUBPARAGRAPH SIXTEEN OF PARAGRAPH (B) OF THIS SUBDIVISION ATTRIBUT-
   43  ABLE TO SUCH PROPERTY.
   44    (M) FOR PURPOSES OF THIS PARAGRAPH AND PARAGRAPH (L) OF THIS  SUBDIVI-
   45  SION,  QUALIFIED  RESURGENCE ZONE PROPERTY SHALL MEAN QUALIFIED PROPERTY
   46  DESCRIBED IN PARAGRAPH TWO OF SUBSECTION  (K)  OF  SECTION  ONE  HUNDRED
   47  SIXTY-EIGHT OF THE INTERNAL REVENUE CODE SUBSTANTIALLY ALL OF THE USE OF
   48  WHICH  IS IN THE RESURGENCE ZONE, AS DEFINED BELOW, AND IS IN THE ACTIVE
   49  CONDUCT OF A TRADE OR BUSINESS BY THE TAXPAYER IN  SUCH  ZONE,  AND  THE
   50  ORIGINAL USE OF WHICH IN THE RESURGENCE ZONE COMMENCES WITH THE TAXPAYER
   51  AFTER SEPTEMBER TENTH, TWO THOUSAND ONE.  THE RESURGENCE ZONE SHALL MEAN
   52  THE  AREA OF NEW YORK COUNTY BOUNDED ON THE SOUTH BY A LINE RUNNING FROM
   53  THE INTERSECTION OF THE  HUDSON  RIVER  WITH  THE  HOLLAND  TUNNEL,  AND
   54  RUNNING  THENCE  EAST TO CANAL STREET, THEN RUNNING ALONG THE CENTERLINE
   55  OF CANAL STREET TO THE INTERSECTION OF  THE  BOWERY  AND  CANAL  STREET,
   56  RUNNING  THENCE IN A SOUTHEASTERLY DIRECTION DIAGONALLY ACROSS MANHATTAN
       S. 4610                            17                            A. 6721
    1  BRIDGE PLAZA, TO THE MANHATTAN BRIDGE, AND THENCE ALONG  THE  CENTERLINE
    2  OF THE MANHATTAN BRIDGE TO THE POINT WHERE THE CENTERLINE OF THE MANHAT-
    3  TAN BRIDGE WOULD INTERSECT WITH THE EASTERLY BANK OF THE EAST RIVER, AND
    4  BOUNDED  ON  THE  NORTH  BY  A LINE RUNNING FROM THE INTERSECTION OF THE
    5  HUDSON RIVER WITH THE HOLLAND TUNNEL AND RUNNING THENCE NORTH ALONG WEST
    6  AVENUE TO THE INTERSECTION OF CLARKSON STREET THEN  RUNNING  EAST  ALONG
    7  THE  CENTERLINE  OF  CLARKSON  STREET  TO THE INTERSECTION OF WASHINGTON
    8  AVENUE, THEN RUNNING SOUTH ALONG THE CENTERLINE OF WASHINGTON AVENUE  TO
    9  THE  INTERSECTION OF WEST HOUSTON STREET, THEN EAST ALONG THE CENTERLINE
   10  OF WEST HOUSTON STREET, THEN AT THE INTERSECTION OF THE  AVENUE  OF  THE
   11  AMERICAS  CONTINUING EAST ALONG THE CENTERLINE OF EAST HOUSTON STREET TO
   12  THE EASTERLY BANK OF THE EAST RIVER.
   13    (N) RELATED MEMBERS EXPENSE ADD BACK. (1) FOR PURPOSES OF  THIS  PARA-
   14  GRAPH: (I) "RELATED MEMBER" MEANS A RELATED PERSON AS DEFINED IN SUBPAR-
   15  AGRAPH  (C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED
   16  SIXTY-FIVE OF THE INTERNAL REVENUE CODE,  EXCEPT  THAT  "FIFTY  PERCENT"
   17  SHALL BE SUBSTITUTED FOR "TEN PERCENT".
   18    (II) "EFFECTIVE RATE OF TAX" MEANS, AS TO ANY CITY, THE MAXIMUM STATU-
   19  TORY  RATE  OF  TAX  IMPOSED  BY  THE  CITY  ON OR MEASURED BY A RELATED
   20  MEMBER'S NET INCOME MULTIPLIED BY THE  ALLOCATION  PERCENTAGE,  IF  ANY,
   21  APPLICABLE  TO  THE  RELATED MEMBER UNDER THE LAWS OF SAID JURISDICTION.
   22  FOR PURPOSES OF THIS DEFINITION, THE EFFECTIVE RATE OF  TAX  AS  TO  ANY
   23  CITY IS ZERO WHERE THE RELATED MEMBER'S NET INCOME TAX LIABILITY IN SAID
   24  CITY IS REPORTED ON A COMBINED OR CONSOLIDATED RETURN INCLUDING BOTH THE
   25  TAXPAYER  AND THE RELATED MEMBER WHERE THE REPORTED TRANSACTIONS BETWEEN
   26  THE TAXPAYER AND THE RELATED MEMBER ARE ELIMINATED OR OFFSET. ALSO,  FOR
   27  PURPOSES  OF  THIS  DEFINITION, WHEN COMPUTING THE EFFECTIVE RATE OF TAX
   28  FOR A CITY IN WHICH A RELATED  MEMBER'S  NET  INCOME  IS  ELIMINATED  OR
   29  OFFSET  BY  A  CREDIT  OR  SIMILAR ADJUSTMENT THAT IS DEPENDENT UPON THE
   30  RELATED MEMBER EITHER MAINTAINING OR  MANAGING  INTANGIBLE  PROPERTY  OR
   31  COLLECTING  INTEREST  INCOME IN THAT CITY, THE MAXIMUM STATUTORY RATE OF
   32  TAX IMPOSED BY SAID CITY SHALL BE DECREASED  TO  REFLECT  THE  STATUTORY
   33  RATE OF TAX THAT APPLIES TO THE RELATED MEMBER AS EFFECTIVELY REDUCED BY
   34  SUCH CREDIT OR SIMILAR ADJUSTMENT.
   35    (III) ROYALTY PAYMENTS ARE PAYMENTS DIRECTLY CONNECTED TO THE ACQUISI-
   36  TION,  USE, MAINTENANCE OR MANAGEMENT, OWNERSHIP, SALE, EXCHANGE, OR ANY
   37  OTHER DISPOSITION OF  LICENSES,  TRADEMARKS,  COPYRIGHTS,  TRADE  NAMES,
   38  TRADE  DRESS,  SERVICE MARKS, MASK WORKS, TRADE SECRETS, PATENTS AND ANY
   39  OTHER SIMILAR TYPES OF INTANGIBLE ASSETS AS DETERMINED  BY  THE  COMMIS-
   40  SIONER  OF FINANCE, AND INCLUDE AMOUNTS ALLOWABLE AS INTEREST DEDUCTIONS
   41  UNDER SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL  REVENUE  CODE  TO
   42  THE EXTENT SUCH AMOUNTS ARE DIRECTLY OR INDIRECTLY FOR, RELATED TO OR IN
   43  CONNECTION  WITH THE ACQUISITION, USE, MAINTENANCE OR MANAGEMENT, OWNER-
   44  SHIP, SALE, EXCHANGE OR DISPOSITION OF SUCH INTANGIBLE ASSETS.
   45    (IV) A VALID BUSINESS PURPOSE IS ONE OR MORE BUSINESS PURPOSES,  OTHER
   46  THAN  THE AVOIDANCE OR REDUCTION OF TAXATION, WHICH ALONE OR IN COMBINA-
   47  TION CONSTITUTE THE PRIMARY MOTIVATION FOR  SOME  BUSINESS  ACTIVITY  OR
   48  TRANSACTION,  WHICH ACTIVITY OR TRANSACTION CHANGES IN A MEANINGFUL WAY,
   49  APART FROM TAX EFFECTS, THE  ECONOMIC  POSITION  OF  THE  TAXPAYER.  THE
   50  ECONOMIC  POSITION  OF  THE  TAXPAYER INCLUDES AN INCREASE IN THE MARKET
   51  SHARE OF THE TAXPAYER, OR THE ENTRY BY THE TAXPAYER  INTO  NEW  BUSINESS
   52  MARKETS.
   53    (2) ROYALTY EXPENSE ADD BACKS. (I) EXCEPT WHERE A TAXPAYER IS INCLUDED
   54  IN  A  COMBINED  REPORT  PURSUANT TO SECTION 11-654.3 OF THIS SUBCHAPTER
   55  WITH THE APPLICABLE RELATED MEMBER, FOR THE PURPOSE OF COMPUTING  ENTIRE
   56  NET  INCOME  OR OTHER APPLICABLE TAXABLE BASIS, A TAXPAYER MUST ADD BACK
       S. 4610                            18                            A. 6721
    1  ROYALTY PAYMENTS DIRECTLY OR INDIRECTLY PAID, ACCRUED,  OR  INCURRED  IN
    2  CONNECTION  WITH ONE OR MORE DIRECT OR INDIRECT TRANSACTIONS WITH ONE OR
    3  MORE RELATED MEMBERS DURING THE TAXABLE YEAR TO THE EXTENT DEDUCTIBLE IN
    4  CALCULATING FEDERAL TAXABLE INCOME.
    5    (II)  EXCEPTIONS.  (A) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL
    6  NOT APPLY TO THE PORTION OF THE ROYALTY PAYMENT THAT THE TAXPAYER ESTAB-
    7  LISHES, BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE  AND  IN  THE  FORM
    8  SPECIFIED  BY  THE  COMMISSIONER  OF FINANCE, MEETS ALL OF THE FOLLOWING
    9  REQUIREMENTS: (I) THE RELATED MEMBER WAS SUBJECT TO TAX IN THIS CITY  OR
   10  ANOTHER CITY WITHIN THE UNITED STATES OR A FOREIGN NATION OR SOME COMBI-
   11  NATION  THEREOF  ON  A  TAX BASE THAT INCLUDED THE ROYALTY PAYMENT PAID,
   12  ACCRUED OR INCURRED BY THE TAXPAYER; (II) THE RELATED MEMBER DURING  THE
   13  SAME  TAXABLE YEAR DIRECTLY OR INDIRECTLY PAID, ACCRUED OR INCURRED SUCH
   14  PORTION TO A PERSON THAT IS NOT A RELATED MEMBER; AND (III)  THE  TRANS-
   15  ACTION  GIVING  RISE TO THE ROYALTY PAYMENT BETWEEN THE TAXPAYER AND THE
   16  RELATED MEMBER WAS UNDERTAKEN FOR A VALID BUSINESS PURPOSE.
   17    (B) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY  IF  THE
   18  TAXPAYER  ESTABLISHES,  BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE AND
   19  IN THE FORM SPECIFIED BY THE COMMISSIONER  OF  FINANCE,  THAT:  (I)  THE
   20  RELATED  MEMBER  WAS  SUBJECT TO TAX ON OR MEASURED BY ITS NET INCOME IN
   21  THIS CITY OR ANOTHER CITY WITHIN THE UNITED STATES, OR SOME  COMBINATION
   22  THEREOF;  (II)  THE  TAX  BASE FOR SAID TAX INCLUDED THE ROYALTY PAYMENT
   23  PAID, ACCRUED OR INCURRED BY  THE  TAXPAYER;  AND  (III)  THE  AGGREGATE
   24  EFFECTIVE  RATE  OF TAX APPLIED TO THE RELATED MEMBER IN THOSE JURISDIC-
   25  TIONS IS NO LESS THAN EIGHTY PERCENT OF THE STATUTORY RATE OF  TAX  THAT
   26  APPLIED  TO  THE  TAXPAYER  UNDER SECTION 11-604 OF THIS CHAPTER FOR THE
   27  TAXABLE YEAR.
   28    (C) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY  IF  THE
   29  TAXPAYER  ESTABLISHES,  BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE AND
   30  IN THE FORM SPECIFIED BY THE COMMISSIONER  OF  FINANCE,  THAT:  (I)  THE
   31  ROYALTY PAYMENT WAS PAID, ACCRUED OR INCURRED TO A RELATED MEMBER ORGAN-
   32  IZED  UNDER THE LAWS OF A COUNTRY OTHER THAN THE UNITED STATES; (II) THE
   33  RELATED MEMBER'S INCOME FROM THE TRANSACTION WAS SUBJECT TO A COMPREHEN-
   34  SIVE INCOME TAX TREATY BETWEEN SUCH COUNTRY AND THE UNITED STATES; (III)
   35  THE RELATED MEMBER WAS SUBJECT TO TAX IN A FOREIGN NATION ON A TAX  BASE
   36  THAT  INCLUDED  THE  ROYALTY  PAYMENT  PAID,  ACCRUED OR INCURRED BY THE
   37  TAXPAYER; (IV) THE RELATED MEMBER'S  INCOME  FROM  THE  TRANSACTION  WAS
   38  TAXED IN SUCH COUNTRY AT AN EFFECTIVE RATE OF TAX AT LEAST EQUAL TO THAT
   39  IMPOSED  BY  THIS CITY; AND (V) THE ROYALTY PAYMENT WAS PAID, ACCRUED OR
   40  INCURRED PURSUANT TO A TRANSACTION THAT WAS UNDERTAKEN FOR A VALID BUSI-
   41  NESS PURPOSE AND USING TERMS THAT REFLECT AN ARM'S LENGTH RELATIONSHIP.
   42    (D) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY  IF  THE
   43  TAXPAYER  AND THE COMMISSIONER OF FINANCE AGREE IN WRITING TO THE APPLI-
   44  CATION OR USE OF ALTERNATIVE ADJUSTMENTS OR  COMPUTATIONS.  THE  COMMIS-
   45  SIONER  OF  FINANCE MAY, IN HIS OR HER DISCRETION, AGREE TO THE APPLICA-
   46  TION OR USE OF ALTERNATIVE ADJUSTMENTS OR COMPUTATIONS WHEN  HE  OR  SHE
   47  CONCLUDES  THAT  IN  THE  ABSENCE  OF  SUCH  AGREEMENT THE INCOME OF THE
   48  TAXPAYER WOULD NOT BE PROPERLY REFLECTED.
   49    (O) IN THE CASE OF A TAXPAYER  THAT  IS  NOT  AN  ELIGIBLE  FARMER  AS
   50  DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE
   51  DEDUCTIONS  ALLOWABLE  UNDER  SECTIONS  ONE  HUNDRED  SEVENTY-NINE,  ONE
   52  HUNDRED SIXTY-SEVEN AND ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL  REVENUE
   53  CODE  WITH  RESPECT  TO  A SPORT UTILITY VEHICLE THAT IS NOT A PASSENGER
   54  AUTOMOBILE AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (D) OF SECTION TWO
   55  HUNDRED EIGHTY F OF THE INTERNAL REVENUE CODE,  DETERMINED  AS  IF  SUCH
   56  SPORT  UTILITY  VEHICLE  WERE  A PASSENGER AUTOMOBILE AS DEFINED IN SUCH
       S. 4610                            19                            A. 6721
    1  PARAGRAPH FIVE. FOR PURPOSES OF SUBPARAGRAPH SIXTEEN  OF  PARAGRAPH  (B)
    2  AND  PARAGRAPH  (K)  OF THIS SUBDIVISION, THE TERMS QUALIFIED RESURGENCE
    3  ZONE PROPERTY AND QUALIFIED NEW YORK LIBERTY ZONE PROPERTY DESCRIBED  IN
    4  PARAGRAPH  TWO  OF  SUBSECTION  B  OF  SECTION FOURTEEN HUNDRED L OF THE
    5  INTERNAL REVENUE CODE SHALL NOT INCLUDE ANY SPORT UTILITY  VEHICLE  THAT
    6  IS NOT A PASSENGER AUTOMOBILE AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION
    7  (D) OF SECTION TWO HUNDRED EIGHTY F OF THE INTERNAL REVENUE CODE.
    8    (P)  UPON  THE  DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (O) OF THIS
    9  SUBDIVISION APPLIES, THE AMOUNT OF ANY GAIN OR LOSS INCLUDIBLE IN ENTIRE
   10  NET INCOME SHALL BE ADJUSTED TO REFLECT THE  INCLUSIONS  AND  EXCLUSIONS
   11  FROM  ENTIRE  NET  INCOME PURSUANT TO SUBPARAGRAPH THIRTEEN OF PARAGRAPH
   12  (A) AND SUBPARAGRAPH SEVENTEEN OF  PARAGRAPH  (B)  OF  THIS  SUBDIVISION
   13  ATTRIBUTABLE TO SUCH PROPERTY.
   14    (Q)  SUBTRACTION  MODIFICATION  FOR COMMUNITY BANKS AND SMALL THRIFTS.
   15  (1) A TAXPAYER THAT IS A QUALIFIED COMMUNITY BANK AS DEFINED IN SUBPARA-
   16  GRAPH TWO OF THIS PARAGRAPH OR A SMALL THRIFT INSTITUTION AS DEFINED  IN
   17  SUBPARAGRAPH  TWO-A  OF  THIS  PARAGRAPH SHALL BE ALLOWED A DEDUCTION IN
   18  COMPUTING ENTIRE NET INCOME EQUAL TO THE AMOUNT COMPUTED UNDER  SUBPARA-
   19  GRAPH THREE OF THIS PARAGRAPH.
   20    (2)  TO  BE  A  QUALIFIED  COMMUNITY BANK, A TAXPAYER MUST SATISFY THE
   21  FOLLOWING CONDITIONS:
   22    (I) IT IS A BANK OR TRUST COMPANY ORGANIZED UNDER OR  SUBJECT  TO  THE
   23  PROVISIONS OF ARTICLE THREE OF THE BANKING LAW OR A COMPARABLE PROVISION
   24  OF THE LAWS OF ANOTHER STATE, OR A NATIONAL BANKING ASSOCIATION.
   25    (II)  THE  AVERAGE  VALUE DURING THE TAXABLE YEAR OF THE ASSETS OF THE
   26  TAXPAYER, OR, IF THE TAXPAYER IS INCLUDED  IN  A  COMBINED  REPORT,  THE
   27  ASSETS  OF  THE  COMBINED  REPORTING GROUP OF THE TAXPAYER UNDER SECTION
   28  11-654.3 OF THIS SUBCHAPTER, MUST NOT EXCEED EIGHT BILLION DOLLARS.
   29    (2-A) TO BE A SMALL THRIFT INSTITUTION, A TAXPAYER  MUST  SATISFY  THE
   30  FOLLOWING CONDITIONS:
   31    (I)  IT  IS  A  SAVINGS BANK, A SAVINGS AND LOAN ASSOCIATION, OR OTHER
   32  SAVINGS INSTITUTION CHARTERED AND SUPERVISED AS SUCH  UNDER  FEDERAL  OR
   33  STATE LAW.
   34    (II)  THE  AVERAGE  VALUE DURING THE TAXABLE YEAR OF THE ASSETS OF THE
   35  TAXPAYER, OR, IF THE TAXPAYER IS INCLUDED  IN  A  COMBINED  REPORT,  THE
   36  ASSETS  OF  THE  COMBINED  REPORTING GROUP OF THE TAXPAYER UNDER SECTION
   37  11-654.3 OF THIS SUBCHAPTER, MUST NOT EXCEED EIGHT BILLION DOLLARS.
   38    (3)(I) THE SUBTRACTION MODIFICATION SHALL BE COMPUTED AS FOLLOWS:
   39    (A) MULTIPLY THE TAXPAYER'S NET INTEREST INCOME FROM LOANS DURING  THE
   40  TAXABLE YEAR BY A FRACTION, THE NUMERATOR OF WHICH IS THE GROSS INTEREST
   41  INCOME DURING THE TAXABLE YEAR FROM QUALIFYING LOANS AND THE DENOMINATOR
   42  OF  WHICH  IS THE GROSS INTEREST INCOME DURING THE TAXABLE YEAR FROM ALL
   43  LOANS.
   44    (B) MULTIPLY THE AMOUNT DETERMINED IN SUBCLAUSE (A) OF THIS CLAUSE  BY
   45  FIFTY PERCENT. THIS PRODUCT IS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER
   46  THIS PARAGRAPH.
   47    (II)(A)  NET  INTEREST  INCOME  FROM  LOANS  SHALL MEAN GROSS INTEREST
   48  INCOME FROM LOANS LESS GROSS INTEREST EXPENSE FROM LOANS. GROSS INTEREST
   49  EXPENSE FROM LOANS IS DETERMINED BY MULTIPLYING GROSS  INTEREST  EXPENSE
   50  BY  A  FRACTION,  THE  NUMERATOR  OF WHICH IS THE AVERAGE TOTAL VALUE OF
   51  LOANS OWNED BY THE THRIFT INSTITUTION OR COMMUNITY BANK DURING THE TAXA-
   52  BLE YEAR AND THE DENOMINATOR OF WHICH IS THE AVERAGE TOTAL ASSETS OF THE
   53  THRIFT INSTITUTION OR COMMUNITY BANK DURING THE TAXABLE YEAR.
   54    (B) MEASUREMENT OF ASSETS.  FOR PURPOSES OF THIS CLAUSE:    (I)  TOTAL
   55  ASSETS  ARE THOSE ASSETS THAT ARE PROPERLY REFLECTED ON A BALANCE SHEET,
       S. 4610                            20                            A. 6721
    1  COMPUTED IN THE SAME MANNER AS IS REQUIRED BY THE BANKING  REGULATOR  OF
    2  THE TAXPAYERS INCLUDED IN THE COMBINED RETURN.
    3    (II)  ASSETS  WILL ONLY BE INCLUDED IF THE INCOME OR EXPENSES OF WHICH
    4  ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN  PROPERLY  REFLECTED  IF  NOT
    5  FULLY  DEPRECIATED  OR EXPENSED, OR DEPRECIATED OR EXPENSED TO A NOMINAL
    6  AMOUNT) IN THE COMPUTATION OF THE TAXPAYER'S ENTIRE NET INCOME  FOR  THE
    7  TAXABLE YEAR. ASSETS WILL NOT INCLUDE DEFERRED TAX ASSETS AND INTANGIBLE
    8  ASSETS IDENTIFIED AS "GOODWILL".
    9    (III)  TANGIBLE  REAL  AND PERSONAL PROPERTY, SUCH AS BUILDINGS, LAND,
   10  MACHINERY, AND EQUIPMENT, SHALL BE VALUED AT COST. LEASED ASSETS WILL BE
   11  VALUED AT THE ANNUAL LEASE PAYMENT MULTIPLIED BY EIGHT. INTANGIBLE PROP-
   12  ERTY, SUCH AS LOANS AND INVESTMENTS,  SHALL  BE  VALUED  AT  BOOK  VALUE
   13  EXCLUSIVE OF RESERVES.
   14    (IV)  AVERAGE  ASSETS  ARE  COMPUTED  USING THE ASSETS MEASURED ON THE
   15  FIRST DAY OF THE TAXABLE YEAR, AND ON THE LAST DAY  OF  EACH  SUBSEQUENT
   16  QUARTER OF THE TAXABLE YEAR OR MONTH OR DAY DURING THE TAXABLE YEAR.
   17    (III)  A QUALIFYING LOAN IS A LOAN THAT MEETS THE CONDITIONS SPECIFIED
   18  IN SUBCLAUSE (A) OF THIS CLAUSE AND SUBCLAUSE (B) OF THIS CLAUSE.
   19    (A) THE LOAN IS ORIGINATED BY THE QUALIFIED COMMUNITY  BANK  OR  SMALL
   20  THRIFT INSTITUTION OR PURCHASED BY THE QUALIFIED COMMUNITY BANK OR SMALL
   21  THRIFT  INSTITUTION IMMEDIATELY AFTER ITS ORIGINATION IN CONNECTION WITH
   22  A COMMITMENT TO PURCHASE MADE BY THE BANK OR THRIFT INSTITUTION PRIOR TO
   23  THE LOAN'S ORIGINATION.
   24    (B) THE LOAN IS A SMALL BUSINESS LOAN OR A RESIDENTIAL MORTGAGE  LOAN,
   25  THE  PRINCIPAL AMOUNT OF WHICH LOAN IS FIVE MILLION DOLLARS OR LESS, AND
   26  EITHER THE BORROWER IS LOCATED IN THIS CITY AS DETERMINED UNDER  SECTION
   27  11-654.2  OF THIS SUBCHAPTER AND THE LOAN IS NOT SECURED BY REAL PROPER-
   28  TY, OR THE LOAN IS SECURED BY REAL PROPERTY LOCATED IN THE CITY.
   29    (C) A LOAN THAT MEETS THE DEFINITION OF A QUALIFYING LOAN IN  A  PRIOR
   30  TAXABLE  YEAR (INCLUDING YEARS PRIOR TO THE EFFECTIVE DATE OF THIS PARA-
   31  GRAPH) REMAINS A QUALIFYING LOAN IN TAXABLE YEARS DURING AND AFTER WHICH
   32  SUCH LOAN IS ACQUIRED BY ANOTHER CORPORATION IN THE TAXPAYER'S  COMBINED
   33  REPORTING GROUP UNDER SECTION 11-654.3 OF THIS SUBCHAPTER.
   34    (R)  A  SMALL  THRIFT  INSTITUTION  OR  A QUALIFIED COMMUNITY BANK, AS
   35  DEFINED IN PARAGRAPH (Q) OF THIS SUBDIVISION, THAT MAINTAINED A  CAPTIVE
   36  REIT  ON  APRIL  FIRST,  TWO  THOUSAND  FOURTEEN  SHALL  UTILIZE  A REIT
   37  SUBTRACTION EQUAL TO ONE HUNDRED SIXTY PERCENT  OF  THE  DIVIDENDS  PAID
   38  DEDUCTIONS ALLOWED TO THAT CAPTIVE REIT FOR THE TAXABLE YEAR FOR FEDERAL
   39  INCOME  TAX PURPOSES AND SHALL NOT BE ALLOWED TO UTILIZE THE SUBTRACTION
   40  MODIFICATION FOR COMMUNITY BANKS AND SMALL THRIFTS UNDER  PARAGRAPH  (Q)
   41  OF  THIS SUBDIVISION OR THE SUBTRACTION MODIFICATION FOR QUALIFIED RESI-
   42  DENTIAL LOAN PORTFOLIOS UNDER PARAGRAPH (S) OF THIS SUBDIVISION  IN  ANY
   43  TAX  YEAR  IN  WHICH SUCH THRIFT INSTITUTION OR COMMUNITY BANK MAINTAINS
   44  THAT CAPTIVE REIT.
   45    (S) SUBTRACTION MODIFICATION FOR QUALIFIED  RESIDENTIAL  LOAN  PORTFO-
   46  LIOS.  (1)(I)  A TAXPAYER THAT IS EITHER A THRIFT INSTITUTION AS DEFINED
   47  IN SUBPARAGRAPH THREE OF THIS PARAGRAPH OR A QUALIFIED COMMUNITY BANK AS
   48  DEFINED IN SUBPARAGRAPH TWO OF PARAGRAPH (Q)  OF  THIS  SUBDIVISION  AND
   49  MAINTAINS  A QUALIFIED RESIDENTIAL LOAN PORTFOLIO AS DEFINED IN SUBPARA-
   50  GRAPH TWO OF THIS PARAGRAPH SHALL BE ALLOWED AS A DEDUCTION IN COMPUTING
   51  ENTIRE NET INCOME THE AMOUNT, IF ANY, BY WHICH (A) THIRTY-TWO PERCENT OF
   52  ITS ENTIRE NET  INCOME  DETERMINED  WITHOUT  REGARD  TO  THIS  PARAGRAPH
   53  EXCEEDS  (B)  THE  AMOUNTS DEDUCTED BY THE TAXPAYER PURSUANT TO SECTIONS
   54  ONE HUNDRED SIXTY-SIX AND  FIVE  HUNDRED  EIGHTY-FIVE  OF  THE  INTERNAL
   55  REVENUE  CODE  LESS  ANY AMOUNTS INCLUDED IN FEDERAL TAXABLE INCOME AS A
   56  RESULT OF A RECOVERY OF A LOAN.
       S. 4610                            21                            A. 6721
    1    (II)(A) IF THE TAXPAYER IS IN A COMBINED REPORT UNDER SECTION 11-654.3
    2  OF THIS SUBCHAPTER, THIS DEDUCTION WILL BE COMPUTED ON A COMBINED BASIS.
    3  IN THAT INSTANCE, THE ENTIRE NET INCOME OF THE COMBINED REPORTING  GROUP
    4  FOR  PURPOSES  OF  THIS PARAGRAPH SHALL BE MULTIPLIED BY A FRACTION, THE
    5  NUMERATOR  OF WHICH IS THE AVERAGE TOTAL ASSETS OF ALL THE THRIFT INSTI-
    6  TUTIONS AND QUALIFIED COMMUNITY BANKS INCLUDED IN  THE  COMBINED  REPORT
    7  AND  THE  DENOMINATOR  OF  WHICH  IS THE AVERAGE TOTAL ASSETS OF ALL THE
    8  CORPORATIONS INCLUDED IN THE COMBINED REPORT.
    9    (B) MEASUREMENT OF ASSETS. FOR PURPOSES OF THIS PARAGRAPH:  (I)  TOTAL
   10  ASSETS  ARE THOSE ASSETS THAT ARE PROPERLY REFLECTED ON A BALANCE SHEET,
   11  COMPUTED IN THE SAME MANNER AS IS REQUIRED BY THE BANKING  REGULATOR  OF
   12  THE TAXPAYERS INCLUDED IN THE COMBINED RETURN.
   13    (II)  ASSETS  WILL ONLY BE INCLUDED IF THE INCOME OR EXPENSES OF WHICH
   14  ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN  PROPERLY  REFLECTED  IF  NOT
   15  FULLY  DEPRECIATED  OR EXPENSED, OR DEPRECIATED OR EXPENSED TO A NOMINAL
   16  AMOUNT) IN THE COMPUTATION OF THE COMBINED GROUP'S ENTIRE NET INCOME FOR
   17  THE TAXABLE YEAR. ASSETS WILL NOT INCLUDE DEFERRED TAX ASSETS AND INTAN-
   18  GIBLE ASSETS IDENTIFIED AS "GOODWILL".
   19    (III) TANGIBLE REAL AND PERSONAL PROPERTY, SUCH  AS  BUILDINGS,  LAND,
   20  MACHINERY,  AND EQUIPMENT SHALL BE VALUED AT COST. LEASED ASSETS WILL BE
   21  VALUED AT THE ANNUAL LEASE PAYMENT MULTIPLIED BY EIGHT. INTANGIBLE PROP-
   22  ERTY, SUCH AS LOANS AND INVESTMENTS,  SHALL  BE  VALUED  AT  BOOK  VALUE
   23  EXCLUSIVE OF RESERVES.
   24    (IV)  INTERCORPORATE  STOCKHOLDINGS  AND  BILLS,  NOTES  AND  ACCOUNTS
   25  RECEIVABLE, AND OTHER INTERCORPORATE  INDEBTEDNESS  BETWEEN  THE  CORPO-
   26  RATIONS INCLUDED IN THE COMBINED REPORT SHALL BE ELIMINATED.
   27    (V) AVERAGE ASSETS ARE COMPUTED USING THE ASSETS MEASURED ON THE FIRST
   28  DAY  OF THE TAXABLE YEAR, AND ON THE LAST DAY OF EACH SUBSEQUENT QUARTER
   29  OF THE TAXABLE YEAR OR MONTH OR DAY DURING THE TAXABLE YEAR.
   30    (2) QUALIFIED RESIDENTIAL LOAN PORTFOLIO. (I) A TAXPAYER  MAINTAINS  A
   31  QUALIFIED  RESIDENTIAL  LOAN  PORTFOLIO IF AT LEAST SIXTY PERCENT OF THE
   32  AMOUNT OF THE TOTAL ASSETS AT THE CLOSE  OF  THE  TAXABLE  YEAR  OF  THE
   33  THRIFT  INSTITUTION  OR  QUALIFIED COMMUNITY BANK CONSISTS OF THE ASSETS
   34  DESCRIBED IN SUBCLAUSES (A) THROUGH (L) OF THIS CLAUSE, WITH THE  APPLI-
   35  CATION OF THE RULE IN THE LAST UNDESIGNATED SUBCLAUSE OF THIS CLAUSE. IF
   36  THE  TAXPAYER  IS  A  MEMBER  OF  A COMBINED GROUP, THE DETERMINATION OF
   37  WHETHER THERE IS A QUALIFIED RESIDENTIAL LOAN PORTFOLIO WILL BE MADE  BY
   38  AGGREGATING THE ASSETS OF THE THRIFT INSTITUTIONS AND QUALIFIED COMMUNI-
   39  TY  BANKS  THAT  ARE  MEMBERS OF THE COMBINED GROUP.   ASSETS: (A) CASH,
   40  WHICH INCLUDES CASH AND CASH EQUIVALENTS INCLUDING  CASH  ITEMS  IN  THE
   41  PROCESS  OF  COLLECTION,  DEPOSITS  WITH  OTHER  FINANCIAL INSTITUTIONS,
   42  INCLUDING CORPORATE CREDIT UNIONS, BALANCES WITH FEDERAL  RESERVE  BANKS
   43  AND  FEDERAL  HOME  LOAN  BANKS,  FEDERAL  FUNDS SOLD, AND CASH AND CASH
   44  EQUIVALENTS ON HAND. CASH SHALL NOT  INCLUDE  ANY  BALANCES  SERVING  AS
   45  COLLATERAL  FOR  SECURITIES LENDING TRANSACTIONS; (B) OBLIGATIONS OF THE
   46  UNITED STATES OR OF A STATE OR POLITICAL SUBDIVISION THEREOF, AND  STOCK
   47  OR OBLIGATIONS OF A CORPORATION WHICH IS AN INSTRUMENTALITY OR A GOVERN-
   48  MENT  SPONSORED  ENTERPRISE  OF THE UNITED STATES OR OF A STATE OR POLI-
   49  TICAL SUBDIVISION THEREOF; (C) LOANS SECURED BY A DEPOSIT OR SHARE OF  A
   50  MEMBER;  (D) LOANS SECURED BY AN INTEREST IN REAL PROPERTY WHICH IS (OR,
   51  FROM THE PROCEEDS OF THE LOAN, WILL BECOME) RESIDENTIAL REAL PROPERTY OR
   52  REAL PROPERTY USED PRIMARILY FOR CHURCH PURPOSES,  LOANS  MADE  FOR  THE
   53  IMPROVEMENT OF RESIDENTIAL REAL PROPERTY OR REAL PROPERTY USED PRIMARILY
   54  FOR CHURCH PURPOSES, PROVIDED THAT FOR PURPOSES OF THIS SUBCLAUSE, RESI-
   55  DENTIAL  REAL  PROPERTY  SHALL INCLUDE SINGLE OR MULTI-FAMILY DWELLINGS,
   56  FACILITIES IN RESIDENTIAL DEVELOPMENTS DEDICATED TO PUBLIC USE OR  PROP-
       S. 4610                            22                            A. 6721
    1  ERTY  USED ON A NONPROFIT BASIS FOR RESIDENTS, AND MOBILE HOMES NOT USED
    2  ON A TRANSIENT BASIS; (E) PROPERTY ACQUIRED THROUGH THE  LIQUIDATION  OF
    3  DEFAULTED LOANS DESCRIBED IN SUBCLAUSE (D) OF THIS CLAUSE; (F) ANY REGU-
    4  LAR  OR RESIDUAL INTEREST IN A REMIC, AS SUCH TERM IS DEFINED IN SECTION
    5  860D OF THE INTERNAL REVENUE CODE, BUT ONLY IN THE PROPORTION WHICH  THE
    6  ASSETS OF SUCH REMIC CONSIST OF PROPERTY DESCRIBED IN ANY OF THE PRECED-
    7  ING  SUBCLAUSES  OF  THIS  CLAUSE, EXCEPT THAT IF NINETY-FIVE PERCENT OR
    8  MORE OF THE ASSETS OF SUCH REMIC ARE ASSETS DESCRIBED IN SUBCLAUSES  (A)
    9  THROUGH (E) OF THIS CLAUSE, THE ENTIRE INTEREST IN THE REMIC SHALL QUAL-
   10  IFY;  (G)  ANY  MORTGAGE-BACKED SECURITY WHICH REPRESENTS OWNERSHIP OF A
   11  FRACTIONAL UNDIVIDED INTEREST IN A TRUST, THE ASSETS  OF  WHICH  CONSIST
   12  PRIMARILY  OF  MORTGAGE  LOANS,  PROVIDED  THAT  THE REAL PROPERTY WHICH
   13  SERVES AS SECURITY FOR THE LOANS IS (OR FROM THE PROCEEDS OF  THE  LOAN,
   14  WILL  BECOME)  THE  TYPE  OF PROPERTY DESCRIBED IN SUBCLAUSE (D) OF THIS
   15  CLAUSE AND ANY COLLATERALIZED  MORTGAGE  OBLIGATION,  THE  SECURITY  FOR
   16  WHICH CONSISTS PRIMARILY OF MORTGAGE LOANS THAT MAINTAIN AS SECURITY THE
   17  TYPE  OF PROPERTY DESCRIBED IN SUBCLAUSE (D) OF THIS CLAUSE; (H) CERTIF-
   18  ICATES OF DEPOSIT IN, OR OBLIGATIONS OF, A CORPORATION ORGANIZED UNDER A
   19  STATE LAW WHICH SPECIFICALLY AUTHORIZES SUCH CORPORATION TO  INSURE  THE
   20  DEPOSITS  OR SHARE ACCOUNTS OF MEMBER ASSOCIATIONS; (I) LOANS SECURED BY
   21  AN INTEREST IN EDUCATIONAL, HEALTH, OR WELFARE INSTITUTIONS  OR  FACILI-
   22  TIES,  INCLUDING  STRUCTURES  DESIGNED OR USED PRIMARILY FOR RESIDENTIAL
   23  PURPOSES FOR STUDENTS, RESIDENTS, AND PERSONS UNDERCARE,  EMPLOYEES,  OR
   24  MEMBERS  OF THE STAFF OF SUCH INSTITUTIONS OR FACILITIES; (J) LOANS MADE
   25  FOR THE PAYMENT OF EXPENSES OF COLLEGE OR UNIVERSITY EDUCATION OR  VOCA-
   26  TIONAL  TRAINING;  (K) PROPERTY USED BY THE TAXPAYER IN SUPPORT OF BUSI-
   27  NESS WHICH CONSISTS PRINCIPALLY OF ACQUIRING THE SAVINGS OF  THE  PUBLIC
   28  AND  INVESTING  IN  LOANS;  AND  (L) LOANS FOR WHICH THE TAXPAYER IS THE
   29  CREDITOR AND WHICH ARE WHOLLY SECURED BY LOANS  DESCRIBED  IN  SUBCLAUSE
   30  (D) OF THIS CLAUSE.
   31    THE  VALUE OF ACCRUED INTEREST RECEIVABLE AND ANY LOSS-SHARING COMMIT-
   32  MENT OR OTHER LOAN GUARANTY BY A GOVERNMENTAL AGENCY WILL BE  CONSIDERED
   33  PART  OF  THE  BASIS  IN THE LOANS TO WHICH THE ACCRUED INTEREST OR LOSS
   34  PROTECTION APPLIES.
   35    (II) AT THE ELECTION OF THE  TAXPAYER,  THE  PERCENTAGE  SPECIFIED  IN
   36  CLAUSE  (I)  OF  THIS  SUBPARAGRAPH SHALL BE APPLIED ON THE BASIS OF THE
   37  AVERAGE ASSETS OUTSTANDING DURING THE TAXABLE YEAR, IN LIEU OF THE CLOSE
   38  OF THE TAXABLE YEAR. THE TAXPAYER CAN ELECT TO COMPUTE AN AVERAGE  USING
   39  THE ASSETS MEASURED ON THE FIRST DAY OF THE TAXABLE YEAR AND ON THE LAST
   40  DAY OF EACH SUBSEQUENT QUARTER, OR MONTH OR DAY DURING THE TAXABLE YEAR.
   41  THIS ELECTION MAY BE MADE ANNUALLY.
   42    (III)  FOR  PURPOSES  OF  SUBCLAUSE (D) OF CLAUSE (I) OF THIS SUBPARA-
   43  GRAPH, IF A MULTIFAMILY STRUCTURE SECURING A LOAN IS USED  IN  PART  FOR
   44  NONRESIDENTIAL  USE  PURPOSES,  THE  ENTIRE LOAN IS DEEMED A RESIDENTIAL
   45  REAL PROPERTY LOAN IF THE PLANNED RESIDENTIAL USE EXCEEDS EIGHTY PERCENT
   46  OF THE PROPERTY'S PLANNED USE (MEASURED, AT THE TAXPAYER'S ELECTION,  BY
   47  USING  SQUARE  FOOTAGE OR GROSS RENTAL REVENUE, AND DETERMINED AS OF THE
   48  TIME THE LOAN IS MADE).
   49    (IV) FOR PURPOSES OF SUBCLAUSE (D) OF CLAUSE (I) OF THIS SUBPARAGRAPH,
   50  LOANS MADE TO FINANCE THE ACQUISITION OR DEVELOPMENT OF  LAND  SHALL  BE
   51  DEEMED  TO  BE LOANS SECURED BY AN INTEREST IN RESIDENTIAL REAL PROPERTY
   52  IF THERE IS A REASONABLE ASSURANCE THAT THE PROPERTY WILL  BECOME  RESI-
   53  DENTIAL  REAL  PROPERTY  WITHIN A PERIOD OF THREE YEARS FROM THE DATE OF
   54  ACQUISITION OF SUCH LAND; BUT THIS SENTENCE  SHALL  NOT  APPLY  FOR  ANY
   55  TAXABLE  YEAR  UNLESS,  WITHIN SUCH THREE YEAR PERIOD, SUCH LAND BECOMES
   56  RESIDENTIAL REAL PROPERTY.  FOR  PURPOSES  OF  DETERMINING  WHETHER  ANY
       S. 4610                            23                            A. 6721
    1  INTEREST  IN A REMIC QUALIFIES UNDER SUBCLAUSE (F) OF CLAUSE (I) OF THIS
    2  SUBPARAGRAPH, ANY REGULAR INTEREST IN ANOTHER REMIC HELD BY  SUCH  REMIC
    3  SHALL  BE  TREATED  AS  A  LOAN DESCRIBED IN A PRECEDING SUBCLAUSE UNDER
    4  PRINCIPLES  SIMILAR  TO THE PRINCIPLE OF SUCH SUBCLAUSE (F), EXCEPT THAT
    5  IF SUCH REMICS ARE PART OF A TIERED STRUCTURE, THEY SHALL BE TREATED  AS
    6  ONE REMIC FOR PURPOSES OF SUCH SUBCLAUSE (F).
    7    (3)  FOR  PURPOSES  OF  THIS  PARAGRAPH,  A  "THRIFT INSTITUTION" IS A
    8  SAVINGS BANK, A SAVINGS AND LOAN ASSOCIATION, OR OTHER SAVINGS  INSTITU-
    9  TION CHARTERED AND SUPERVISED AS SUCH UNDER FEDERAL OR STATE LAW.
   10    (T)  SUBTRACTION MODIFICATION FOR QUALIFIED AFFORDABLE HOUSING AND LOW
   11  INCOME COMMUNITY LOANS.
   12    (1) A TAXPAYER THAT OWNS A  QUALIFYING  LOAN  WITHIN  THE  MEANING  OF
   13  CLAUSE  (III)  OF  SUBPARAGRAPH TWO OF THIS PARAGRAPH SHALL BE ALLOWED A
   14  DEDUCTION IN COMPUTING ENTIRE NET INCOME EQUAL TO  THE  AMOUNT  COMPUTED
   15  UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH.
   16    (2)(I)  THE  DEDUCTION  ALLOWED  IN SUBPARAGRAPH ONE OF THIS PARAGRAPH
   17  SHALL BE EQUAL TO:
   18    (A) IF THE TOTAL AVERAGE VALUE DURING THE TAXABLE YEAR OF  THE  ASSETS
   19  OF  THE  TAXPAYER,  OR IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT,
   20  THE ASSETS OF THE COMBINED REPORTING GROUP OF THE TAXPAYER UNDER SECTION
   21  11-654.3 OF  THIS  SUBCHAPTER,  DOES  NOT  EXCEED  ONE  HUNDRED  BILLION
   22  DOLLARS, THE TAXPAYER'S NET INTEREST INCOME FROM QUALIFYING LOANS, OR
   23    (B)  IF  THE TOTAL AVERAGE VALUE DURING THE TAXABLE YEAR OF THE ASSETS
   24  OF THE TAXPAYER, OR IF THE TAXPAYER IS INCLUDED IN  A  COMBINED  REPORT,
   25  THE ASSETS OF THE COMBINED REPORTING GROUP OF THE TAXPAYER UNDER SECTION
   26  11-654.3  OF THIS SUBCHAPTER, EXCEEDS ONE HUNDRED BILLION DOLLARS BUT IS
   27  LESS THAN ONE HUNDRED FIFTY BILLION DOLLARS, THE TAXPAYER'S NET INTEREST
   28  INCOME FROM QUALIFYING LOANS MULTIPLIED BY A FRACTION, THE NUMERATOR  OF
   29  WHICH IS ONE HUNDRED FIFTY BILLION DOLLARS MINUS THE TOTAL AVERAGE VALUE
   30  DURING THE TAXABLE YEAR OF THE ASSETS OF THE TAXPAYER, OR IF THE TAXPAY-
   31  ER  IS INCLUDED IN A COMBINED REPORT, THE ASSETS OF THE COMBINED REPORT-
   32  ING GROUP OF THE TAXPAYER UNDER SECTION 11-654.3 OF THIS SUBCHAPTER, AND
   33  THE DENOMINATOR OF WHICH IS FIFTY BILLION DOLLARS.
   34    (II)(A) NET INTEREST INCOME  FROM  QUALIFYING  LOANS  SHALL  MEAN  THE
   35  TAXPAYER'S NET INTEREST INCOME FROM LOANS DURING THE TAXABLE YEAR MULTI-
   36  PLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE GROSS INTEREST INCOME
   37  DURING  THE  TAXABLE  YEAR  FROM QUALIFYING LOANS AND THE DENOMINATOR OF
   38  WHICH IS THE GROSS INTEREST INCOME FROM ALL LOANS.
   39    (B) NET INTEREST INCOME FROM LOANS SHALL MEAN  GROSS  INTEREST  INCOME
   40  DURING  THE  TAXABLE  YEAR  FROM  LOANS LESS GROSS INTEREST EXPENSE FROM
   41  LOANS. GROSS INTEREST EXPENSE FROM LOANS IS  DETERMINED  BY  MULTIPLYING
   42  GROSS  INTEREST  EXPENSE  BY  A  FRACTION, THE NUMERATOR OF WHICH IS THE
   43  AVERAGE TOTAL VALUE OF LOANS OWNED BY THE TAXPAYER  DURING  THE  TAXABLE
   44  YEAR  AND  THE  DENOMINATOR  OF WHICH IS THE AVERAGE TOTAL ASSETS OF THE
   45  TAXPAYER FOR THE YEAR.
   46    (C) MEASUREMENT OF ASSETS. FOR PURPOSES OF THIS PARAGRAPH:
   47    (I) TOTAL ASSETS ARE THOSE ASSETS THAT ARE  PROPERLY  REFLECTED  ON  A
   48  BALANCE SHEET, COMPUTED IN THE SAME MANNER AS IS REQUIRED BY THE BANKING
   49  REGULATOR,  IF  APPLICABLE,  OF  THE  TAXPAYERS INCLUDED IN THE COMBINED
   50  RETURN.
   51    (II) ASSETS WILL ONLY BE INCLUDED IF THE INCOME OR EXPENSES  OF  WHICH
   52  ARE  PROPERLY  REFLECTED  (OR  WOULD HAVE BEEN PROPERLY REFLECTED IF NOT
   53  FULLY DEPRECIATED OR EXPENSED, OR DEPRECIATED OR EXPENSED TO  A  NOMINAL
   54  AMOUNT)  IN  THE COMPUTATION OF THE TAXPAYER'S ENTIRE NET INCOME FOR THE
   55  TAXABLE YEAR. ASSETS WILL NOT INCLUDE DEFERRED TAX ASSETS AND INTANGIBLE
   56  ASSETS IDENTIFIED AS "GOODWILL".
       S. 4610                            24                            A. 6721
    1    (III) TANGIBLE REAL AND PERSONAL PROPERTY, SUCH  AS  BUILDINGS,  LAND,
    2  MACHINERY, AND EQUIPMENT, SHALL BE VALUED AT COST. LEASED ASSETS WILL BE
    3  VALUED AT THE ANNUAL LEASE PAYMENT MULTIPLIED BY EIGHT. INTANGIBLE PROP-
    4  ERTY,  SUCH  AS  LOANS  AND  INVESTMENTS,  SHALL BE VALUED AT BOOK VALUE
    5  EXCLUSIVE OF RESERVES.
    6    (IV)  AVERAGE  ASSETS  ARE  COMPUTED  USING THE ASSETS MEASURED ON THE
    7  FIRST DAY OF THE TAXABLE YEAR, AND ON THE LAST DAY  OF  EACH  SUBSEQUENT
    8  QUARTER OF THE TAXABLE YEAR OR MONTH OR DAY DURING THE TAXABLE YEAR.
    9    (III)  A QUALIFYING LOAN IS A LOAN THAT MEETS THE CONDITIONS SPECIFIED
   10  IN SUBCLAUSE (A) THROUGH SUBCLAUSE (E) OF THIS CLAUSE.
   11    (A) THE LOAN IS ORIGINATED BY THE TAXPAYER LENDER OR PURCHASED BY  THE
   12  TAXPAYER  IMMEDIATELY AFTER ITS ORIGINATION IN CONNECTION WITH A COMMIT-
   13  MENT TO PURCHASE MADE BY THE TAXPAYER PRIOR TO THE LOAN'S ORIGINATION.
   14    (B) SATISFIES CONDITIONS OF ITEM (I) OR (II) OR THIS SUBCLAUSE.
   15    (I) THE LOAN IS SECURED BY A HOUSING ACCOMMODATION LOCATED WITHIN  THE
   16  CITY,  WHERE  THERE  ARE RENTAL UNITS IN SUCH HOUSING ACCOMMODATION THAT
   17  ARE QUALIFYING UNITS, WHICH FOR PURPOSES OF THIS SUBCLAUSE, MEANS  UNITS
   18  SUBJECT  TO  RENT  CONTROL, RENT STABILIZATION OR TO A REGULATORY AGREE-
   19  MENT, PROVIDED THAT, EACH SUCH LOAN WILL BE CONSIDERED A QUALIFYING LOAN
   20  FOR PURPOSES OF THIS PARAGRAPH ONLY IN PROPORTION TO A PERCENTAGE  EQUAL
   21  TO  THE  NUMBER  OF  QUALIFYING UNITS DIVIDED BY THE TOTAL NUMBER OF ALL
   22  RESIDENTIAL AND COMMERCIAL UNITS LOCATED ON THE SITE OF THE REAL PROPER-
   23  TY SECURING THE LOAN, AS DETERMINED AS OF THE DATE THE LOAN IS MADE.
   24    (II) TO THE EXTENT NOT INCLUDED IN ITEM (I) OF THIS  SUBCLAUSE,  LOANS
   25  SECURED  BY RESIDENTIAL REAL PROPERTY LOCATED IN A LOW-INCOME COMMUNITY.
   26  FOR PURPOSES OF THIS PARAGRAPH, LOW-INCOME COMMUNITY  AREAS  ARE  CENSUS
   27  TRACTS  WITHIN  THE  CITY IN WHICH THE POVERTY RATE FOR SUCH TRACT IS AT
   28  LEAST TWENTY PERCENT AND THE MEDIAN FAMILY INCOME FOR  SUCH  TRACT  DOES
   29  NOT  EXCEED  EIGHTY  PERCENT  OF METROPOLITAN AREA MEDIAN FAMILY INCOME.
   30  THIS DETERMINATION WILL BE MADE BY REFERENCE TO THE POVERTY  AND  MEDIAN
   31  FAMILY INCOME CENSUS DATA FOR APPLICATION OF SECTION 45D OF THE INTERNAL
   32  REVENUE  CODE OF 1986, AS IN EFFECT ON THE EFFECTIVE DATE OF THE CHAPTER
   33  OF THE LAWS OF TWO THOUSAND FIFTEEN THAT ADDED THIS SUBCHAPTER.
   34    (C) THE LOAN IS NOT TREATED AS A QUALIFYING LOAN IN THE COMPUTATION OF
   35  A SUBTRACTION FROM ENTIRE NET INCOME PURSUANT TO PARAGRAPH (Q)  OF  THIS
   36  SUBDIVISION.
   37    (D) IF THE TAXPAYER APPLIES A SUBTRACTION PURSUANT TO PARAGRAPH (R) OF
   38  THIS SUBDIVISION, THE INTEREST OR NET GAINS FROM THE LOAN ARE NOT RECOG-
   39  NIZED BY A CAPTIVE REIT AS DEFINED IN SECTION 11-601 OF THIS CHAPTER.
   40    (E)  A  LOAN THAT MEETS THE DEFINITION OF A QUALIFYING LOAN IN A PRIOR
   41  TAXABLE YEAR (INCLUDING YEARS PRIOR TO THE EFFECTIVE DATE OF THIS  PARA-
   42  GRAPH) REMAINS A QUALIFYING LOAN IN TAXABLE YEARS DURING AND AFTER WHICH
   43  SUCH  LOAN IS ACQUIRED BY ANOTHER CORPORATION IN THE TAXPAYER'S COMBINED
   44  REPORTING GROUP UNDER SECTION 11-654.3 OF THIS SUBCHAPTER.
   45    (IV) FOR PURPOSES OF THIS PARAGRAPH, THE FOLLOWING TERMS SHALL MEAN:
   46    (A) "HOUSING ACCOMMODATIONS"  SHALL  MEAN  A  MULTIPLE  DWELLING  THAT
   47  CONTAINS  AT  LEAST  FIVE DWELLING UNITS TOGETHER WITH THE LAND ON WHICH
   48  SUCH STRUCTURE IS SITUATED.
   49    (B) "REGULATORY AGREEMENT" SHALL MEAN  A  WRITTEN  AGREEMENT  WITH  OR
   50  APPROVED  BY  ANY  LOCAL,  MUNICIPAL, STATE, FEDERAL OR OTHER GOVERNMENT
   51  AGENCY THAT REQUIRES THE PROVISION OF HOUSING ACCOMMODATIONS  FOR  FAMI-
   52  LIES  AND PERSONS OF LOW OR MODERATE INCOME, AND BINDS THE OWNER OF SUCH
   53  REAL PROPERTY AND ITS SUCCESSORS AND ASSIGNS. A REGULATORY AGREEMENT MAY
   54  INCLUDE SUCH OTHER TERMS AND CONDITIONS AS THE  LOCALITY,  MUNICIPALITY,
   55  STATE, OR FEDERAL GOVERNMENT SHALL DETERMINE.
       S. 4610                            25                            A. 6721
    1    (C) "RENT STABILIZATION" SHALL MEAN, COLLECTIVELY, THE RENT STABILIZA-
    2  TION  LAW  OF  NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE,
    3  AND THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, ALL AS
    4  IN EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF  THE  LAWS  OF  TWO
    5  THOUSAND  FIFTEEN  THAT  ADDED THIS SUBCHAPTER OR AS AMENDED THEREAFTER,
    6  TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING  SUBSTAN-
    7  TIALLY THE SAME SUBJECT MATTER.
    8    9.  (A)  THE  TERM  "CALENDAR  YEAR" MEANS A PERIOD OF TWELVE CALENDAR
    9  MONTHS (OR ANY SHORTER PERIOD BEGINNING ON THE DATE THE TAXPAYER BECOMES
   10  SUBJECT  TO  THE  TAX  IMPOSED  BY  THIS  SUBCHAPTER)  ENDING   ON   THE
   11  THIRTY-FIRST  DAY  OF DECEMBER, PROVIDED THE TAXPAYER KEEPS ITS BOOKS ON
   12  THE BASIS OF SUCH PERIOD OR ON THE BASIS OF ANY PERIOD ENDING ON ANY DAY
   13  OTHER THAN THE LAST DAY OF A CALENDAR MONTH, OR  PROVIDED  THE  TAXPAYER
   14  DOES  NOT  KEEP  BOOKS,  AND  INCLUDES, IN CASE THE TAXPAYER CHANGES THE
   15  PERIOD ON THE BASIS OF WHICH IT KEEPS ITS BOOKS FROM A FISCAL YEAR TO  A
   16  CALENDAR  YEAR, THE PERIOD FROM THE CLOSE OF ITS LAST OLD FISCAL YEAR UP
   17  TO AND INCLUDING THE FOLLOWING DECEMBER THIRTY-FIRST.
   18    (B) THE TERM "FISCAL YEAR" MEANS A PERIOD OF  TWELVE  CALENDAR  MONTHS
   19  (OR  ANY  SHORTER  PERIOD  BEGINNING  ON  THE  DATE THE TAXPAYER BECOMES
   20  SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER) ENDING ON THE LAST DAY OF
   21  ANY MONTH OTHER THAN DECEMBER, PROVIDED THE TAXPAYER KEEPS ITS BOOKS  ON
   22  THE BASIS OF SUCH PERIOD, AND INCLUDES, IN CASE THE TAXPAYER CHANGES THE
   23  PERIOD  ON THE BASIS OF WHICH IT KEEPS ITS BOOKS FROM A CALENDAR YEAR TO
   24  A FISCAL YEAR OR FROM ONE FISCAL YEAR TO ANOTHER FISCAL YEAR, THE PERIOD
   25  FROM THE CLOSE OF ITS LAST OLD CALENDAR OR FISCAL YEAR UP  TO  THE  DATE
   26  DESIGNATED AS THE CLOSE OF ITS NEW FISCAL YEAR.
   27    10.  THE  TERM  "TANGIBLE  PERSONAL PROPERTY" MEANS CORPOREAL PERSONAL
   28  PROPERTY,  SUCH  AS  MACHINERY,  TOOLS,  IMPLEMENTS,  GOODS,  WARES  AND
   29  MERCHANDISE,  AND  DOES  NOT  MEAN  MONEY,  DEPOSITS IN BANKS, SHARES OF
   30  STOCK, BONDS, NOTES, CREDITS OR EVIDENCES OF AN  INTEREST  PROPERTY  AND
   31  EVIDENCES OF DEBT.
   32    11.  THE  TERM "INTERNAL REVENUE CODE" MEANS, UNLESS OTHERWISE SPECIF-
   33  ICALLY STATED IN THIS SUBCHAPTER, THE INTERNAL REVENUE CODE OF 1986,  AS
   34  AMENDED.
   35    12.  THE  TERM  "COMBINABLE CAPTIVE INSURANCE COMPANY" MEANS AN ENTITY
   36  THAT IS TREATED AS AN ASSOCIATION TAXABLE AS  A  CORPORATION  UNDER  THE
   37  INTERNAL  REVENUE  CODE: (A) MORE THAN FIFTY PERCENT OF THE VOTING STOCK
   38  OF WHICH IS OWNED OR CONTROLLED, DIRECTLY OR  INDIRECTLY,  BY  A  SINGLE
   39  ENTITY  THAT IS TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION UNDER
   40  THE INTERNAL REVENUE CODE AND NOT EXEMPT FROM FEDERAL INCOME TAX;
   41    (B) THAT IS LICENSED AS A CAPTIVE INSURANCE COMPANY UNDER THE LAWS  OF
   42  THIS STATE OR ANOTHER JURISDICTION;
   43    (C) WHOSE BUSINESS INCLUDES PROVIDING, DIRECTLY AND INDIRECTLY, INSUR-
   44  ANCE  OR  REINSURANCE COVERING THE RISKS OF ITS PARENT AND/OR MEMBERS OF
   45  ITS AFFILIATED GROUP; AND
   46    (D) FIFTY PERCENT OR LESS OF WHOSE GROSS RECEIPTS FOR THE TAXABLE YEAR
   47  CONSIST OF PREMIUMS FROM  ARRANGEMENTS  THAT  CONSTITUTE  INSURANCE  FOR
   48  FEDERAL INCOME TAX PURPOSES.
   49    FOR  PURPOSES  OF  THIS  SUBDIVISION,  "AFFILIATED GROUP" HAS THE SAME
   50  MEANING AS THAT TERM IS GIVEN IN SECTION FIFTEEN  HUNDRED  FOUR  OF  THE
   51  INTERNAL  REVENUE CODE, EXCEPT THAT THE TERM "COMMON PARENT CORPORATION"
   52  IN THAT SECTION IS DEEMED TO MEAN ANY  PERSON,  AS  DEFINED  IN  SECTION
   53  SEVEN THOUSAND SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE AND REFER-
   54  ENCES  TO  "AT  LEAST EIGHTY PERCENT" IN SECTION FIFTEEN HUNDRED FOUR OF
   55  THE INTERNAL REVENUE CODE ARE TO BE READ AS  "FIFTY  PERCENT  OR  MORE;"
   56  SECTION  FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE IS TO BE READ
       S. 4610                            26                            A. 6721
    1  WITHOUT REGARD TO THE EXCLUSIONS PROVIDED FOR IN SUBSECTION (B) OF  THAT
    2  SECTION;  "PREMIUMS" HAS THE SAME MEANING AS THAT TERM IS GIVEN IN PARA-
    3  GRAPH ONE OF SUBDIVISION (C) OF SECTION FIFTEEN HUNDRED TEN OF  THE  TAX
    4  LAW,  EXCEPT  THAT  IT  INCLUDES CONSIDERATION FOR ANNUITY CONTRACTS AND
    5  EXCLUDES ANY PART OF THE CONSIDERATION  FOR  INSURANCE,  REINSURANCE  OR
    6  ANNUITY  CONTRACTS  THAT DO NOT PROVIDE BONA FIDE INSURANCE, REINSURANCE
    7  OR ANNUITY BENEFITS; AND "GROSS RECEIPTS" INCLUDES THE AMOUNTS  INCLUDED
    8  IN GROSS RECEIPTS FOR PURPOSES OF PARAGRAPH FIFTEEN OF SUBSECTION (C) OF
    9  SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, EXCEPT THAT THOSE
   10  AMOUNTS ALSO INCLUDE ALL PREMIUMS AS DEFINED IN THIS SUBDIVISION.
   11    13.  THE  TERM  "PARTNERSHIP" INCLUDES A SYNDICATE, GROUP, POOL, JOINT
   12  VENTURE, OR OTHER UNINCORPORATED ORGANIZATION, THROUGH OR  BY  MEANS  OF
   13  WHICH  ANY  BUSINESS, FINANCIAL OPERATION, OR VENTURE IS CARRIED ON, AND
   14  WHICH IS NOT A  CORPORATION  AS  DEFINED  IN  SUBDIVISION  ONE  OF  THIS
   15  SECTION, OR A TRUST OR ESTATE THAT IS SEPARATE FROM ITS OWNER UNDER PART
   16  ONE OF SUBCHAPTER J OF CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE
   17  CODE; AND THE TERM "PARTNER" INCLUDES A MEMBER IN SUCH SYNDICATE, GROUP,
   18  POOL, JOINT VENTURE, OR ORGANIZATION.
   19    S  11-653  IMPOSITION  OF TAX; EXEMPTIONS. 1. (A) FOR THE PRIVILEGE OF
   20  DOING BUSINESS, OR OF EMPLOYING CAPITAL, OR OF OWNING OR LEASING PROPER-
   21  TY IN THE CITY IN A CORPORATE OR ORGANIZED CAPACITY, OR  OF  MAINTAINING
   22  AN  OFFICE  IN  THE  CITY,  FOR ALL OR ANY PART OF EACH OF ITS FISCAL OR
   23  CALENDAR YEARS, EVERY DOMESTIC OR  FOREIGN  CORPORATION,  EXCEPT  CORPO-
   24  RATIONS  SPECIFIED  IN  SUBDIVISION FOUR OF THIS SECTION, SHALL ANNUALLY
   25  PAY A TAX, UPON THE BASIS OF ITS BUSINESS INCOME,  OR  UPON  SUCH  OTHER
   26  BASIS  AS  MAY BE APPLICABLE AS HEREINAFTER PROVIDED, FOR SUCH FISCAL OR
   27  CALENDAR YEAR OR PART THEREOF, ON A REPORT WHICH SHALL BE FILED,  EXCEPT
   28  AS  HEREINAFTER  PROVIDED,  ON OR BEFORE THE FIFTEENTH DAY OF MARCH NEXT
   29  SUCCEEDING THE CLOSE OF EACH SUCH YEAR, OR, IN THE CASE  OF  A  TAXPAYER
   30  WHICH  REPORTS  ON  THE  BASIS OF A FISCAL YEAR, WITHIN TWO AND ONE-HALF
   31  MONTHS AFTER THE CLOSE OF SUCH FISCAL YEAR, AND SHALL BE PAID AS HEREIN-
   32  AFTER PROVIDED.
   33    (B) INTENTIONALLY OMITTED.
   34    (C) A CORPORATION IS DOING BUSINESS IN THE CITY IF (1) IT  HAS  ISSUED
   35  CREDIT  CARDS  TO  ONE  THOUSAND  OR  MORE  CUSTOMERS WHO HAVE A MAILING
   36  ADDRESS WITHIN THE CITY AS OF THE LAST DAY OF ITS TAXABLE YEAR,  (2)  IT
   37  HAS  MERCHANT  CUSTOMER CONTRACTS WITH MERCHANTS AND THE TOTAL NUMBER OF
   38  LOCATIONS COVERED  BY  THOSE  CONTRACTS  EQUALS  ONE  THOUSAND  OR  MORE
   39  LOCATIONS  IN  THE  CITY  TO  WHOM THE CORPORATION REMITTED PAYMENTS FOR
   40  CREDIT CARD TRANSACTIONS DURING THE TAXABLE YEAR, OR (3) THE SUM OF  THE
   41  NUMBER OF CUSTOMERS DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH PLUS
   42  THE  NUMBER  OF LOCATIONS COVERED BY ITS CONTRACTS DESCRIBED IN SUBPARA-
   43  GRAPH TWO OF THIS PARAGRAPH EQUALS ONE THOUSAND OR MORE. AS USED IN THIS
   44  SUBDIVISION, THE TERM "CREDIT CARD" INCLUDES BANK,  CREDIT,  TRAVEL  AND
   45  ENTERTAINMENT CARDS.
   46    (D) INTENTIONALLY OMITTED.
   47    (E) INTENTIONALLY OMITTED.
   48    (F)  IF  A PARTNERSHIP IS DOING BUSINESS, EMPLOYING CAPITAL, OWNING OR
   49  LEASING PROPERTY IN THE CITY, OR MAINTAINING AN OFFICE IN THE CITY,  ANY
   50  CORPORATION  THAT  IS  A PARTNER IN SUCH PARTNERSHIP SHALL BE SUBJECT TO
   51  TAX UNDER THIS SUBCHAPTER AS DESCRIBED IN THE REGULATIONS OF THE COMMIS-
   52  SIONER OF FINANCE.
   53    2. A FOREIGN CORPORATION SHALL NOT BE DEEMED  TO  BE  DOING  BUSINESS,
   54  EMPLOYING  CAPITAL, OWNING OR LEASING PROPERTY, OR MAINTAINING AN OFFICE
   55  IN THE CITY, FOR THE PURPOSES OF THIS SUBCHAPTER, BY REASON OF:
       S. 4610                            27                            A. 6721
    1    (A) THE MAINTENANCE OF CASH BALANCES WITH BANKS OR TRUST COMPANIES  IN
    2  THE CITY, OR
    3    (B)  THE  OWNERSHIP OF SHARES OF STOCK OR SECURITIES KEPT IN THE CITY,
    4  IF KEPT IN A SAFE DEPOSIT BOX, SAFE, VAULT OR  OTHER  RECEPTACLE  RENTED
    5  FOR  THE  PURPOSE, OR IF PLEDGED AS COLLATERAL SECURITY, OR IF DEPOSITED
    6  WITH ONE OR MORE BANKS OR TRUST COMPANIES, OR BROKERS WHO ARE MEMBERS OF
    7  A RECOGNIZED SECURITY EXCHANGE, IN SAFEKEEPING OR CUSTODY ACCOUNTS, OR
    8    (C) THE TAKING OF ANY ACTION BY ANY SUCH  BANK  OR  TRUST  COMPANY  OR
    9  BROKER, WHICH IS INCIDENTAL TO THE RENDERING OF SAFEKEEPING OR CUSTODIAN
   10  SERVICE TO SUCH CORPORATION, OR
   11    (D)  THE  MAINTENANCE OF AN OFFICE IN THE CITY BY ONE OR MORE OFFICERS
   12  OR DIRECTORS OF THE CORPORATION WHO ARE NOT EMPLOYEES OF THE CORPORATION
   13  IF THE CORPORATION OTHERWISE IS NOT DOING BUSINESS IN THE CITY, AND DOES
   14  NOT EMPLOY CAPITAL OR OWN OR LEASE PROPERTY IN THE CITY, OR
   15    (E) THE KEEPING OF BOOKS OR RECORDS OF A CORPORATION IN  THE  CITY  IF
   16  SUCH  BOOKS OR RECORDS ARE NOT KEPT BY EMPLOYEES OF SUCH CORPORATION AND
   17  SUCH CORPORATION DOES NOT OTHERWISE DO BUSINESS, EMPLOY CAPITAL, OWN  OR
   18  LEASE PROPERTY OR MAINTAIN AN OFFICE IN THE CITY, OR
   19    (F) ANY COMBINATION OF THE FOREGOING ACTIVITIES.
   20    2-A.  AN  ALIEN  CORPORATION SHALL NOT BE DEEMED TO BE DOING BUSINESS,
   21  EMPLOYING CAPITAL, OWNING OR LEASING PROPERTY, OR MAINTAINING AN  OFFICE
   22  IN  THE  CITY, FOR THE PURPOSES OF THIS SUBCHAPTER, IF ITS ACTIVITIES IN
   23  THE CITY ARE LIMITED SOLELY TO:
   24    (A) INVESTING OR TRADING IN STOCKS AND SECURITIES FOR ITS OWN  ACCOUNT
   25  WITHIN  THE  MEANING OF CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH (2)
   26  OF SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-FOUR  OF  THE  INTERNAL
   27  REVENUE CODE, OR:
   28    (B) INVESTING OR TRADING IN COMMODITIES FOR ITS OWN ACCOUNT WITHIN THE
   29  MEANING  OF  CLAUSE  (II)  OF  SUBPARAGRAPH  (B)  OF  PARAGRAPH  (2)  OF
   30  SUBSECTION (B) OF SECTION  EIGHT  HUNDRED  SIXTY-FOUR  OF  THE  INTERNAL
   31  REVENUE CODE, OR
   32    (C)  ANY COMBINATION OF ACTIVITIES DESCRIBED IN PARAGRAPHS (A) AND (B)
   33  OF THIS SUBDIVISION.
   34    AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF THE INTERNAL  REVENUE
   35  CODE  IS  NOT  TREATED AS A "DOMESTIC CORPORATION" AS DEFINED IN SECTION
   36  SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE  AND  HAS  NO  EFFECTIVELY
   37  CONNECTED  INCOME  FOR  THE TAXABLE YEAR PURSUANT TO CLAUSE THREE OF THE
   38  OPENING PARAGRAPH  OF  SUBDIVISION  EIGHT  OF  SECTION  11-652  OF  THIS
   39  SUBCHAPTER  SHALL  NOT  BE SUBJECT TO TAX UNDER THIS SUBCHAPTER FOR THAT
   40  TAXABLE YEAR. FOR PURPOSES OF THIS SUBCHAPTER, AN ALIEN CORPORATION IS A
   41  CORPORATION ORGANIZED UNDER THE LAWS OF  A  COUNTRY,  OR  ANY  POLITICAL
   42  SUBDIVISION  THEREOF,  OTHER  THAN THE UNITED STATES, OR ORGANIZED UNDER
   43  THE LAWS OF A  POSSESSION,  TERRITORY  OR  COMMONWEALTH  OF  THE  UNITED
   44  STATES.
   45    3. ANY RECEIVER, REFEREE, TRUSTEE, ASSIGNEE OR OTHER FIDUCIARY, OR ANY
   46  OFFICER  OR  AGENT  APPOINTED BY ANY COURT, WHO CONDUCTS THE BUSINESS OF
   47  ANY CORPORATION, SHALL BE SUBJECT TO THE TAX IMPOSED BY THIS  SUBCHAPTER
   48  IN  THE  SAME  MANNER  AND  TO  THE  SAME EXTENT AS IF THE BUSINESS WERE
   49  CONDUCTED BY THE AGENTS OR OFFICERS OF  SUCH  CORPORATION.  A  DISSOLVED
   50  CORPORATION WHICH CONTINUES TO CONDUCT BUSINESS SHALL ALSO BE SUBJECT TO
   51  THE TAX IMPOSED BY THIS SUBCHAPTER.
   52    4. (A) CORPORATIONS SUBJECT TO TAX UNDER CHAPTER ELEVEN OF THIS TITLE,
   53  ANY  TRUST  COMPANY ORGANIZED UNDER A LAW OF THIS STATE ALL OF THE STOCK
   54  OF WHICH IS OWNED BY NOT LESS THAN TWENTY SAVINGS BANKS ORGANIZED  UNDER
   55  A  LAW OF THIS STATE, HOUSING COMPANIES ORGANIZED AND OPERATING PURSUANT
   56  TO THE PROVISIONS OF ARTICLE TWO OF THE  PRIVATE  HOUSING  FINANCE  LAW,
       S. 4610                            28                            A. 6721
    1  HOUSING  DEVELOPMENT FUND COMPANIES ORGANIZED PURSUANT TO THE PROVISIONS
    2  OF ARTICLE ELEVEN OF  THE  PRIVATE  HOUSING  FINANCE  LAW,  CORPORATIONS
    3  DESCRIBED  IN  SECTION  THREE  OF THE TAX LAW, A CORPORATION PRINCIPALLY
    4  ENGAGED  IN THE OPERATION OF MARINE VESSELS WHOSE ACTIVITIES IN THE CITY
    5  ARE LIMITED EXCLUSIVELY TO THE USE OF PROPERTY IN INTERSTATE OR  FOREIGN
    6  COMMERCE,  PROVIDED,  HOWEVER, SUCH A CORPORATION WILL NOT BE SUBJECT TO
    7  TAX UNDER THIS SUBCHAPTER SOLELY BECAUSE IT MAINTAINS AN OFFICE  IN  THE
    8  CITY,  OR  EMPLOYS  CAPITAL  IN THE CITY, IN CONNECTION WITH SUCH USE OF
    9  PROPERTY, A CORPORATION PRINCIPALLY ENGAGED IN THE CONDUCT  OF  A  FERRY
   10  BUSINESS  AND  OPERATING BETWEEN ANY OF THE BOROUGHS OF THE CITY UNDER A
   11  LEASE GRANTED BY THE CITY AND A CORPORATION PRINCIPALLY ENGAGED  IN  THE
   12  CONDUCT  OF AN AVIATION, STEAMBOAT, FERRY OR NAVIGATION BUSINESS, OR TWO
   13  OR MORE OF SUCH BUSINESSES, ALL OF THE CAPITAL STOCK OF WHICH  IS  OWNED
   14  BY  A  MUNICIPAL  CORPORATION OF THIS STATE, SHALL NOT BE SUBJECT TO TAX
   15  UNDER THIS SUBCHAPTER; PROVIDED, HOWEVER, THAT  ANY  CORPORATION,  OTHER
   16  THAN  (1)  A UTILITY CORPORATION SUBJECT TO THE SUPERVISION OF THE STATE
   17  DEPARTMENT OF PUBLIC SERVICE, AND (2) FOR TAXABLE YEARS BEGINNING ON  OR
   18  AFTER  AUGUST  FIRST, TWO THOUSAND TWO, A UTILITY AS DEFINED IN SUBDIVI-
   19  SION SIX OF SECTION 11-1101 OF THIS TITLE, WHICH IS SUBJECT TO TAX UNDER
   20  CHAPTER ELEVEN OF THIS TITLE AS A VENDOR OF UTILITY SERVICES,  SHALL  BE
   21  SUBJECT  TO  TAX UNDER THIS SUBCHAPTER, BUT IN COMPUTING THE TAX IMPOSED
   22  BY THIS SECTION PURSUANT TO THE PROVISIONS OF CLAUSE (I) OF SUBPARAGRAPH
   23  ONE OF PARAGRAPH (E) OF  SUBDIVISION  ONE  OF  SECTION  11-654  OF  THIS
   24  SUBCHAPTER,  BUSINESS INCOME ALLOCATED TO THE CITY PURSUANT TO PARAGRAPH
   25  (A) OF SUBDIVISION THREE  OF  SUCH  SECTION  SHALL  BE  REDUCED  BY  THE
   26  PERCENTAGE  WHICH  SUCH  CORPORATION'S GROSS OPERATING INCOME SUBJECT TO
   27  TAX UNDER CHAPTER ELEVEN OF THIS TITLE IS OF ITS GROSS OPERATING INCOME.
   28    (B) THE TERM "GROSS OPERATING INCOME", WHEN USED IN PARAGRAPH  (A)  OF
   29  THIS  SUBDIVISION, MEANS RECEIPTS RECEIVED IN OR BY REASON OF ANY TRANS-
   30  ACTION HAD AND CONSUMMATED IN THE  CITY,  INCLUDING  CASH,  CREDITS  AND
   31  PROPERTY  OF ANY KIND OR NATURE (WHETHER OR NOT SUCH TRANSACTION IS MADE
   32  FOR PROFIT), WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF THE  COST  OF
   33  THE  PROPERTY SOLD, THE COST OF MATERIALS USED, LABOR OR OTHER SERVICES,
   34  DELIVERY COSTS OR ANY OTHER COSTS WHATSOEVER, INTEREST OR DISCOUNT  PAID
   35  OR ANY OTHER EXPENSES WHATSOEVER.
   36    (C)  IF IT SHALL APPEAR TO THE COMMISSIONER OF FINANCE THAT THE APPLI-
   37  CATION OF THE PROVISO OF PARAGRAPH (A) OF  THIS  SUBDIVISION,  DOES  NOT
   38  FAIRLY  AND  EQUITABLY  REFLECT  THE  PORTION OF THE TAXPAYER'S BUSINESS
   39  INCOME ALLOCABLE TO THE CITY WHICH IS ATTRIBUTABLE TO  ITS  CITY  ACTIV-
   40  ITIES  WHICH  ARE  NOT  TAXABLE  UNDER CHAPTER ELEVEN OF THIS TITLE, THE
   41  COMMISSIONER OF FINANCE MAY PRESCRIBE OTHER MEANS OR METHODS  OF  DETER-
   42  MINING  SUCH  PORTION, INCLUDING THE USE OF THE BOOKS AND RECORDS OF THE
   43  TAXPAYER, IF THE COMMISSIONER OF FINANCE FINDS THAT SUCH MEANS OR  METH-
   44  ODS USED IN KEEPING THEM FAIRLY AND EQUITABLY REFLECT SUCH PORTION.
   45    5. INTENTIONALLY OMITTED.
   46    6. INTENTIONALLY OMITTED.
   47    7.  FOR ANY TAXABLE YEAR OF A REAL ESTATE INVESTMENT TRUST, AS DEFINED
   48  IN SECTION EIGHT HUNDRED FIFTY-SIX OF  THE  INTERNAL  REVENUE  CODE,  IN
   49  WHICH  SUCH  TRUST  IS  SUBJECT TO FEDERAL INCOME TAXATION UNDER SECTION
   50  EIGHT HUNDRED FIFTY-SEVEN OF SUCH CODE, SUCH TRUST SHALL BE SUBJECT TO A
   51  TAX COMPUTED UNDER EITHER CLAUSE (I) OF SUBPARAGRAPH  ONE  OF  PARAGRAPH
   52  (E)  OF  SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER, OR CLAUSE
   53  (IV), WHICHEVER IS GREATER. IN THE CASE OF SUCH A REAL ESTATE INVESTMENT
   54  TRUST, INCLUDING A CAPTIVE REIT AS DEFINED IN  SECTION  11-601  OF  THIS
   55  CHAPTER,  THE  TERM  "ENTIRE  NET  INCOME" MEANS "REAL ESTATE INVESTMENT
   56  TRUST TAXABLE INCOME" AS DEFINED IN PARAGRAPH TWO OF SUBDIVISION (B)  OF
       S. 4610                            29                            A. 6721
    1  SECTION  EIGHT HUNDRED FIFTY-SEVEN (AS MODIFIED BY SECTION EIGHT HUNDRED
    2  FIFTY-EIGHT) OF THE INTERNAL REVENUE CODE PLUS THE AMOUNT TAXABLE  UNDER
    3  PARAGRAPH  THREE OF SUBDIVISION (B) OF SECTION EIGHT HUNDRED FIFTY-SEVEN
    4  OF SUCH CODE, SUBJECT TO THE MODIFICATIONS REQUIRED BY SUBDIVISION EIGHT
    5  OF  SECTION  11-652  OF  THIS  SUBCHAPTER  INCLUDING  THE  MODIFICATIONS
    6  REQUIRED BY PARAGRAPHS (D) AND  (E)  OF  SUBDIVISION  THREE  OF  SECTION
    7  11-654 OF THIS SUBCHAPTER.
    8    8.  FOR ANY TAXABLE YEAR OF A REGULATED INVESTMENT COMPANY, AS DEFINED
    9  IN SECTION EIGHT HUNDRED FIFTY-ONE OF  THE  INTERNAL  REVENUE  CODE,  IN
   10  WHICH  SUCH  COMPANY IS SUBJECT TO FEDERAL INCOME TAXATION UNDER SECTION
   11  EIGHT HUNDRED FIFTY-TWO OF SUCH CODE, SUCH COMPANY SHALL BE SUBJECT TO A
   12  TAX COMPUTED UNDER EITHER CLAUSE ONE OR  FOUR  OF  SUBPARAGRAPH  (A)  OF
   13  PARAGRAPH  E  OF  SUBDIVISION  ONE OF SECTION 11-654 OF THIS SUBCHAPTER,
   14  WHICHEVER IS GREATER. IN THE CASE OF SUCH A REGULATED INVESTMENT  COMPA-
   15  NY,  INCLUDING  A CAPTIVE RIC AS DEFINED IN SECTION 11-601 OF THIS CHAP-
   16  TER, THE TERM "ENTIRE NET  INCOME"  USED  IN  SUBDIVISION  ONE  OF  THIS
   17  SECTION  MEANS  "INVESTMENT  COMPANY TAXABLE INCOME" AS DEFINED IN PARA-
   18  GRAPH TWO OF SUBDIVISION (B) OF  SECTION  EIGHT  HUNDRED  FIFTY-TWO,  AS
   19  MODIFIED  BY  SECTION  EIGHT HUNDRED FIFTY-FIVE, OF THE INTERNAL REVENUE
   20  CODE PLUS THE AMOUNT TAXABLE UNDER PARAGRAPH THREE OF SUBDIVISION (B) OF
   21  SECTION EIGHT HUNDRED FIFTY-TWO OF SUCH CODE SUBJECT  TO  THE  MODIFICA-
   22  TIONS  REQUIRED  BY SUBDIVISION EIGHT OF SECTION 11-652 OF THIS SUBCHAP-
   23  TER, INCLUDING THE MODIFICATION REQUIRED BY PARAGRAPHS (D)  AND  (E)  OF
   24  SUBDIVISION THREE OF SECTION 11-654 OF THIS SUBCHAPTER.
   25    9.  AN  ORGANIZATION  DESCRIBED  IN  PARAGRAPH  TWO  OR TWENTY-FIVE OF
   26  SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE  CODE
   27  SHALL BE EXEMPT FROM ALL TAXES IMPOSED BY THIS SUBCHAPTER.
   28    S 11-654 COMPUTATION OF TAX. 1. (A) INTENTIONALLY OMITTED.
   29    (B) INTENTIONALLY OMITTED.
   30    (C) INTENTIONALLY OMITTED.
   31    (D) INTENTIONALLY OMITTED.
   32    (E)  THE  TAX  IMPOSED  BY  SUBDIVISION  ONE OF SECTION 11-653 OF THIS
   33  SUBCHAPTER SHALL BE, IN THE CASE OF EACH TAXPAYER:
   34    (1) WHICHEVER OF THE FOLLOWING AMOUNTS IS THE GREATEST:
   35    (I) AN AMOUNT COMPUTED ON ITS BUSINESS INCOME OR THE PORTION  OF  SUCH
   36  BUSINESS  INCOME  ALLOCATED  WITHIN  THE  CITY  AS HEREINAFTER PROVIDED,
   37  SUBJECT TO THE APPLICATION OF PARAGRAPHS (J) AND (K) OF THIS SUBDIVISION
   38  AND ANY MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E)  OF  SUBDIVISION
   39  THREE  OF THIS SECTION, AT THE RATE OF (1) NINE PER CENTUM FOR FINANCIAL
   40  CORPORATIONS, AS DEFINED IN THIS CLAUSE, OR (2)  EIGHT  AND  EIGHTY-FIVE
   41  ONE  HUNDREDTHS  PER  CENTUM FOR ALL OTHER CORPORATIONS. FOR PURPOSES OF
   42  THIS CLAUSE, "FINANCIAL CORPORATION" MEANS  A  CORPORATION  OR,  IF  THE
   43  CORPORATION  IS INCLUDED IN A COMBINED GROUP, A COMBINED GROUP, THAT (A)
   44  HAS TOTAL ASSETS REFLECTED ON ITS BALANCE SHEET AT THE END OF ITS  TAXA-
   45  BLE YEAR IN EXCESS OF ONE HUNDRED BILLION DOLLARS, COMPUTED UNDER GENER-
   46  ALLY ACCEPTED ACCOUNTING PRINCIPLES AND (B)(I) ALLOCATES MORE THAN FIFTY
   47  PERCENT  OF  THE  RECEIPTS  INCLUDED  IN THE DENOMINATOR OF ITS RECEIPTS
   48  FRACTION, DETERMINED UNDER SECTION 11-654.2 OF THIS SUBCHAPTER, PURSUANT
   49  TO SUBDIVISION FIVE OF SECTION 11-654.2 OF THIS SUBCHAPTER FOR ITS TAXA-
   50  BLE YEAR, OR (II) IS ITSELF OR IS INCLUDED IN A COMBINED GROUP IN  WHICH
   51  MORE  THAN  FIFTY  PERCENT  OF THE TOTAL ASSETS REFLECTED ON ITS BALANCE
   52  SHEET AT THE END OF ITS TAXABLE YEAR ARE HELD  BY  ONE  OR  MORE  CORPO-
   53  RATIONS  THAT ARE CLASSIFIED AS (A) REGISTERED UNDER STATE LAW AS A BANK
   54  HOLDING COMPANY OR REGISTERED UNDER THE FEDERAL BANK HOLDING COMPANY ACT
   55  OF 1956 (12 U.S.C. S 1841, ET SEQ., AS  AMENDED),  OR  REGISTERED  AS  A
   56  SAVINGS  AND LOAN HOLDING COMPANY UNDER THE FEDERAL NATIONAL HOUSING ACT
       S. 4610                            30                            A. 6721
    1  (12 U.S.C. 1701, AS AMENDED), (B) A NATIONAL BANK ORGANIZED AND EXISTING
    2  AS A NATIONAL  BANK  ASSOCIATION  PURSUANT  TO  THE  PROVISIONS  OF  THE
    3  NATIONAL  BANK  ACT, 12 U.S.C. 21 ET. SEQ., (C) A SAVINGS ASSOCIATION OR
    4  FEDERAL SAVINGS BANK AS DEFINED IN THE FEDERAL DEPOSIT INSURANCE ACT, 12
    5  U.S.C. S 1813(B)(1), (D) A BANK, SAVINGS ASSOCIATION, OR THRIFT INSTITU-
    6  TION INCORPORATED OR ORGANIZED UNDER THE LAWS OF ANY STATE, (E) A CORPO-
    7  RATION ORGANIZED UNDER THE PROVISIONS OF 12 U.S.C. SS 611 TO 631, (F) AN
    8  AGENCY OR BRANCH OR A FOREIGN DEPOSITORY AS DEFINED IN 12 U.S.C. S 3101,
    9  (G)  A  REGISTERED SECURITIES OR COMMODITIES BROKER OR DEALER REGISTERED
   10  AS SUCH BY THE SECURITIES AND EXCHANGE  COMMISSION  OR  THE  COMMODITIES
   11  FUTURES TRADING COMMISSION, WHICH SHALL INCLUDE AN OTC DERIVATIVES DEAL-
   12  ER  AS  DEFINED UNDER REGULATIONS OF THE SECURITIES AND EXCHANGE COMMIS-
   13  SION AT TITLE 17, PART 240, SECTION 3B-12 OF THE CODE OF  FEDERAL  REGU-
   14  LATIONS (17 CFR 240.3B-12), OR (H) ANY CORPORATION WHOSE VOTING STOCK IS
   15  MORE  THAN FIFTY PERCENT OWNED, DIRECTLY OR INDIRECTLY, BY ANY PERSON OR
   16  BUSINESS ENTITY DESCRIBED IN SUBITEMS (A)  THROUGH  (G)  OF  THIS  ITEM,
   17  OTHER  THAN  AN  INSURANCE COMPANY TAXABLE UNDER ARTICLE THIRTY-THREE OF
   18  THE TAX LAW; OR
   19    (II) AN AMOUNT COMPUTED BY MULTIPLYING ITS TOTAL BUSINESS CAPITAL,  OR
   20  THE PORTION THEREOF ALLOCATED WITHIN THE CITY, AS HEREINAFTER PROVIDED,
   21    (A)  EXCEPT  AS  PROVIDED IN SUBCLAUSES (B) AND (C) OF THIS CLAUSE, BY
   22  FIFTEEN ONE-HUNDREDTHS PER CENTUM;
   23    (B) IN THE CASE OF A COOPERATIVE HOUSING CORPORATION AS DEFINED IN THE
   24  INTERNAL REVENUE CODE, BY FOUR ONE-HUNDREDTHS PER CENTUM;
   25    (C) IN THE CASE OF THE PORTION  OF  TOTAL  BUSINESS  CAPITAL  DIRECTLY
   26  ATTRIBUTABLE  TO A CORPORATION THAT IS OR WOULD BE TAXABLE UNDER CHAPTER
   27  ELEVEN OF THIS TITLE (EXCEPT FOR A VENDOR OF UTILITY  SERVICES  THAT  IS
   28  TAXABLE  UNDER BOTH CHAPTER ELEVEN OF THIS TITLE AND THIS SUBCHAPTER) OR
   29  A CORPORATION THAT WOULD HAVE BEEN TAXABLE AS AN  INSURANCE  CORPORATION
   30  UNDER  FORMER  PART IV, TITLE R, CHAPTER FORTY-SIX OF THE ADMINISTRATIVE
   31  CODE OF THE CITY OF NEW YORK AS IN EFFECT ON  JUNE  THIRTIETH,  NINETEEN
   32  HUNDRED  SEVENTY-FOUR,  BY SEVEN AND ONE-HALF ONE-HUNDREDTHS PER CENTUM;
   33  AND
   34    (D) SUBTRACTING TEN THOUSAND DOLLARS FROM THE SUM OF THE AMOUNT OF TAX
   35  COMPUTED PURSUANT TO  SUBCLAUSES  (A),  (B)  AND  (C)  OF  THIS  CLAUSE,
   36  PROVIDED THAT IF SUCH AMOUNT OF TAX IS LESS THAN ZERO IT SHALL BE DEEMED
   37  TO BE ZERO; AND
   38    (E)  PROVIDED THAT IN NO EVENT SHALL THE AMOUNT OF TAX COMPUTED PURSU-
   39  ANT TO SUBCLAUSE (D) OF THIS CLAUSE ON  THE  TAXPAYER'S  TOTAL  BUSINESS
   40  CAPITAL,  OR  THE  PORTION THEREOF ALLOCATED WITHIN THE CITY, EXCEED TEN
   41  MILLION DOLLARS, OR
   42    (III) INTENTIONALLY OMITTED.
   43    (IV) IF NEW YORK CITY RECEIPTS ARE:                  FIXED DOLLAR MINIM
   44                                                         TAX IS:
   45  NOT MORE THAN $100,000                                 $25
   46  MORE THAN $100,000 BUT NOT OVER $250,000               $75
   47  MORE THAN $250,000 BUT NOT OVER $500,000               $175
   48  MORE THAN $500,000 BUT NOT OVER $1,000,000             $500
   49  MORE THAN $1,000,000 BUT NOT OVER $5,000,000           $1,500
   50  MORE THAN $5,000,000 BUT NOT OVER $25,000,000          $3,500
   51  MORE THAN $25,000,000 BUT NOT OVER $50,000,000         $5,000
   52  MORE THAN $50,000,000 BUT NOT OVER $100,000,000        $10,000
   53  MORE THAN $100,000,000 BUT NOT OVER $250,000,000       $20,000
   54  MORE THAN $250,000,000 BUT NOT OVER $500,000,000       $50,000
   55  MORE THAN $500,000,000 BUT NOT OVER $1,000,000,000     $100,000
   56  OVER $1,000,000,000                                    $200,000
       S. 4610                            31                            A. 6721
    1    FOR PURPOSES OF THIS CLAUSE, NEW YORK CITY RECEIPTS ARE  THE  RECEIPTS
    2  COMPUTED  IN ACCORDANCE WITH SECTION 11-654.2 OF THIS SUBCHAPTER FOR THE
    3  TAXABLE YEAR. IF THE TAXABLE YEAR IS LESS THAN TWELVE MONTHS, THE AMOUNT
    4  PRESCRIBED BY THIS CLAUSE SHALL BE REDUCED BY TWENTY-FIVE PERCENT IF THE
    5  PERIOD  FOR WHICH THE TAXPAYER IS SUBJECT TO TAX IS MORE THAN SIX MONTHS
    6  BUT NOT MORE THAN NINE MONTHS AND BY FIFTY PERCENT  IF  THE  PERIOD  FOR
    7  WHICH THE TAXPAYER IS SUBJECT TO TAX IS NOT MORE THAN SIX MONTHS. IF THE
    8  TAXABLE  YEAR  IS  LESS  THAN TWELVE MONTHS, THE AMOUNT OF NEW YORK CITY
    9  RECEIPTS FOR PURPOSES OF THIS  CLAUSE  IS  DETERMINED  BY  DIVIDING  THE
   10  AMOUNT  OF  THE RECEIPTS FOR THE TAXABLE YEAR BY THE NUMBER OF MONTHS IN
   11  THE TAXABLE YEAR AND MULTIPLYING THE RESULT BY TWELVE.
   12    (F) INTENTIONALLY OMITTED.
   13    (G) INTENTIONALLY OMITTED.
   14    (H) INTENTIONALLY OMITTED.
   15    (I) INTENTIONALLY OMITTED.
   16    (J) (1) IF THE AMOUNT OF BUSINESS INCOME ALLOCATED WITHIN THE CITY  AS
   17  HEREINAFTER  PROVIDED  IS  LESS  THAN  ONE  MILLION  DOLLARS, THE AMOUNT
   18  COMPUTED IN CLAUSE (I) OF SUBPARAGRAPH ONE  OF  PARAGRAPH  (E)  OF  THIS
   19  SUBDIVISION  SHALL  BE  AT THE RATE OF SIX AND FIVE-TENTHS PER CENTUM OF
   20  THE AMOUNT OF BUSINESS INCOME ALLOCATED WITHIN THE CITY  AS  HEREINAFTER
   21  PROVIDED, SUBJECT TO ANY MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E)
   22  OF SUBDIVISION THREE OF THIS SECTION;
   23    (2)  SUBJECT TO SUBPARAGRAPH THREE OF THIS PARAGRAPH, IF THE AMOUNT OF
   24  BUSINESS INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED IS ONE
   25  MILLION DOLLARS OR GREATER BUT LESS THAN ONE MILLION FIVE HUNDRED  THOU-
   26  SAND  DOLLARS,  THE AMOUNT COMPUTED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF
   27  PARAGRAPH (E) OF THIS SUBDIVISION SHALL BE AT THE RATE OF  (I)  SIX  AND
   28  FIVE-TENTHS PER CENTUM, PLUS (II) TWO AND THIRTY-FIVE ONE-HUNDREDTHS PER
   29  CENTUM  MULTIPLIED  BY  A  FRACTION  THE NUMERATOR OF WHICH IS ALLOCATED
   30  BUSINESS INCOME LESS ONE MILLION DOLLARS AND THE DENOMINATOR OF WHICH IS
   31  FIVE HUNDRED THOUSAND DOLLARS, OF THE AMOUNT OF  BUSINESS  INCOME  ALLO-
   32  CATED  WITHIN THE CITY AS HEREINAFTER PROVIDED, SUBJECT TO ANY MODIFICA-
   33  TION REQUIRED BY PARAGRAPHS (D) AND (E) OF  SUBDIVISION  THREE  OF  THIS
   34  SECTION;
   35    (3)  PROVIDED,  HOWEVER,  NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF
   36  THE AMOUNT OF BUSINESS INCOME BEFORE ALLOCATION IS TWO  MILLION  DOLLARS
   37  OR GREATER BUT LESS THAN THREE MILLION DOLLARS, THE RATE OF TAX PROVIDED
   38  FOR IN THIS PARAGRAPH SHALL NOT BE LESS THAN (I) SIX AND FIVE-TENTHS PER
   39  CENTUM,  PLUS  (II) TWO AND THIRTY-FIVE ONE-HUNDREDTHS PER CENTUM MULTI-
   40  PLIED BY A FRACTION THE NUMERATOR OF WHICH  IS  BUSINESS  INCOME  BEFORE
   41  ALLOCATION  LESS TWO MILLION DOLLARS AND THE DENOMINATOR OF WHICH IS ONE
   42  MILLION DOLLARS, AND PROVIDED, HOWEVER, NOTWITHSTANDING ANYTHING TO  THE
   43  CONTRARY,  IF  THE  AMOUNT OF BUSINESS INCOME BEFORE ALLOCATION IS THREE
   44  MILLION DOLLARS  OR  GREATER,  THE  RATE  OF  TAX  SHALL  BE  EIGHT  AND
   45  EIGHTY-FIVE  ONE-HUNDREDTHS  PERCENTUM  OR,  IN  THE CASE OF A FINANCIAL
   46  CORPORATION, AS DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE  OF  PARAGRAPH
   47  (E)  OF  SUBDIVISION  ONE  OF  SECTION 11-654, IF THE AMOUNT OF BUSINESS
   48  INCOME BEFORE ALLOCATION IS THREE MILLION DOLLARS OR GREATER THE RATE OF
   49  TAX SHALL BE NINE PER CENTUM.
   50    (K)(1) FOR QUALIFIED NEW YORK MANUFACTURING CORPORATIONS AS DEFINED IN
   51  SUBPARAGRAPH FOUR OF THIS PARAGRAPH, IF THE AMOUNT  OF  BUSINESS  INCOME
   52  ALLOCATED  WITHIN  THE  CITY  AS  HEREINAFTER  PROVIDED IS LESS THAN TEN
   53  MILLION DOLLARS, THE AMOUNT COMPUTED IN CLAUSE (I) OF  SUBPARAGRAPH  ONE
   54  OF  PARAGRAPH  (E)  OF THIS SUBDIVISION SHALL BE AT THE RATE OF FOUR AND
   55  FOUR HUNDRED TWENTY-FIVE ONE THOUSANDTHS PER  CENTUM,  OF  ITS  BUSINESS
   56  INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED, SUBJECT TO ANY
       S. 4610                            32                            A. 6721
    1  MODIFICATION  REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF
    2  THIS SECTION;
    3    (2)  SUBJECT TO SUBPARAGRAPH THREE OF THIS PARAGRAPH FOR QUALIFIED NEW
    4  YORK MANUFACTURING CORPORATIONS AS DEFINED IN SUBPARAGRAPH FOUR OF  THIS
    5  PARAGRAPH, IF THE AMOUNT OF BUSINESS INCOME ALLOCATED WITHIN THE CITY AS
    6  HEREINAFTER  PROVIDED  IS  TEN  MILLION DOLLARS OR GREATER BUT LESS THAN
    7  TWENTY MILLION DOLLARS, THE AMOUNT COMPUTED IN CLAUSE  (I)  OF  SUBPARA-
    8  GRAPH  ONE  OF PARAGRAPH (E) OF THIS SUBDIVISION SHALL BE AT THE RATE OF
    9  (I) FOUR AND FOUR HUNDRED TWENTY-FIVE ONE-THOUSANDTHS PER  CENTUM,  PLUS
   10  (II) FOUR AND FOUR HUNDRED TWENTY-FIVE ONE-THOUSANDTHS PER CENTUM MULTI-
   11  PLIED  BY A FRACTION THE NUMERATOR OF WHICH IS ALLOCATED BUSINESS INCOME
   12  LESS TEN MILLION DOLLARS AND THE DENOMINATOR OF  WHICH  IS  TEN  MILLION
   13  DOLLARS,  OF  ITS BUSINESS INCOME OR THE PORTION OF SUCH BUSINESS INCOME
   14  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    (3) NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF THE AMOUNT  OF  BUSI-
   18  NESS  INCOME  BEFORE ALLOCATION IS TWENTY MILLION DOLLARS OR GREATER BUT
   19  LESS THAN FORTY MILLION DOLLARS, THE RATE OF TAX PROVIDED  FOR  IN  THIS
   20  PARAGRAPH  SHALL  NOT BE LESS THAN (I) FOUR AND FOUR HUNDRED TWENTY-FIVE
   21  ONE THOUSANDTHS PERCENTUM, PLUS (II) FOUR AND FOUR  HUNDRED  TWENTY-FIVE
   22  ONE  THOUSANDTHS  PERCENTUM  MULTIPLIED  BY  A FRACTION THE NUMERATOR OF
   23  WHICH IS BUSINESS INCOME BEFORE ALLOCATION LESS TWENTY  MILLION  DOLLARS
   24  AND  THE  DENOMINATOR  OF WHICH IS TWENTY MILLION DOLLARS, AND PROVIDED,
   25  HOWEVER, NOTWITHSTANDING ANYTHING TO THE  CONTRARY,  IF  THE  AMOUNT  OF
   26  BUSINESS  INCOME  BEFORE ALLOCATION IS FORTY MILLION DOLLARS OR GREATER,
   27  THE RATE OF TAX  SHALL  BE  EIGHT  AND  EIGHTY-FIVE  ONE-HUNDREDTHS  PER
   28  CENTUM.
   29    (4)(I)  AS  USED  IN THIS SUBPARAGRAPH, THE TERM "MANUFACTURING CORPO-
   30  RATION" MEANS A CORPORATION PRINCIPALLY ENGAGED IN THE MANUFACTURING AND
   31  SALE THEREOF OF TANGIBLE PERSONAL PROPERTY; AND THE TERM "MANUFACTURING"
   32  INCLUDES THE PROCESS (INCLUDING THE ASSEMBLY PROCESS) (A) OF WORKING RAW
   33  MATERIALS INTO WARES SUITABLE FOR USE OR (B) WHICH GIVES NEW SHAPES, NEW
   34  QUALITIES OR NEW COMBINATIONS TO MATTER WHICH ALREADY HAS  GONE  THROUGH
   35  SOME  ARTIFICIAL PROCESS, BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND
   36  OTHER SIMILAR EQUIPMENT. MOREOVER, IN THE CASE OF A COMBINED  REPORT,  A
   37  COMBINED  GROUP  SHALL  BE  CONSIDERED A "MANUFACTURING CORPORATION" FOR
   38  PURPOSES OF THIS SUBPARAGRAPH ONLY IF  THE  COMBINED  GROUP  DURING  THE
   39  TAXABLE  YEAR IS PRINCIPALLY ENGAGED IN THE ACTIVITIES SET FORTH IN THIS
   40  PARAGRAPH, OR ANY COMBINATION THEREOF. A TAXPAYER OR, IN THE CASE  OF  A
   41  COMBINED  REPORT,  A  COMBINED  GROUP, SHALL BE "PRINCIPALLY ENGAGED" IN
   42  ACTIVITIES DESCRIBED ABOVE IF, DURING THE TAXABLE YEAR, MORE THAN  FIFTY
   43  PERCENT OF THE GROSS RECEIPTS OF THE TAXPAYER OR COMBINED GROUP, RESPEC-
   44  TIVELY,  ARE  DERIVED  FROM  RECEIPTS FROM THE SALE OF GOODS PRODUCED BY
   45  SUCH ACTIVITIES. IN COMPUTING A COMBINED GROUP'S GROSS RECEIPTS,  INTER-
   46  CORPORATE RECEIPTS SHALL BE ELIMINATED.
   47    (II) A "QUALIFIED NEW YORK MANUFACTURING CORPORATION" IS A MANUFACTUR-
   48  ING  CORPORATION  THAT  HAS  PROPERTY IN THE STATE WHICH IS DESCRIBED IN
   49  SUBPARAGRAPH FIVE OF THIS PARAGRAPH AND EITHER (A) THE ADJUSTED BASIS OF
   50  SUCH PROPERTY FOR FEDERAL INCOME TAX PURPOSES AT THE CLOSE OF THE  TAXA-
   51  BLE  YEAR IS AT LEAST ONE MILLION DOLLARS OR (B) MORE THAN FIFTY PERCEN-
   52  TUM OF ITS REAL AND PERSONAL PROPERTY IS LOCATED IN THE STATE.
   53    (5) FOR PURPOSES OF SUBCLAUSE (A) OF CLAUSE (II) OF SUBPARAGRAPH  FOUR
   54  OF  THIS  PARAGRAPH,  PROPERTY  INCLUDES  TANGIBLE PERSONAL PROPERTY AND
   55  OTHER TANGIBLE PROPERTY, INCLUDING BUILDINGS AND  STRUCTURAL  COMPONENTS
   56  OF  BUILDINGS,  WHICH  ARE:  DEPRECIABLE PURSUANT TO SECTION ONE HUNDRED
       S. 4610                            33                            A. 6721
    1  SIXTY-SEVEN OF THE INTERNAL REVENUE CODE, HAVE A  USEFUL  LIFE  OF  FOUR
    2  YEARS  OR MORE, ARE ACQUIRED BY PURCHASE AS DEFINED IN SUBSECTION (D) OF
    3  SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE  CODE,  HAVE  A
    4  SITUS  IN  THE  STATE  AND  ARE  PRINCIPALLY USED BY THE TAXPAYER IN THE
    5  PRODUCTION OF GOODS BY MANUFACTURING. PROPERTY USED IN THE PRODUCTION OF
    6  GOODS SHALL INCLUDE MACHINERY,  EQUIPMENT  OR  OTHER  TANGIBLE  PROPERTY
    7  WHICH  IS PRINCIPALLY USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY,
    8  EQUIPMENT OR OTHER TANGIBLE PROPERTY USED PRINCIPALLY IN THE  PRODUCTION
    9  OF  GOODS AND SHALL INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERA-
   10  TION, INCLUDING STORAGE OF MATERIAL TO BE USED IN PRODUCTION AND OF  THE
   11  PRODUCTS THAT ARE PRODUCED.
   12    2.  THE  AMOUNT  OF  INVESTMENT  CAPITAL AND BUSINESS CAPITAL SHALL BE
   13  DETERMINED BY TAKING THE AVERAGE VALUE  OF  THE  GROSS  ASSETS  INCLUDED
   14  THEREIN   (LESS   LIABILITIES   DEDUCTIBLE  THEREFROM  PURSUANT  TO  THE
   15  PROVISIONS OF SUBDIVISIONS FOUR  AND  SIX  OF  SECTION  11-652  OF  THIS
   16  SUBCHAPTER),  AND,  IF  THE PERIOD COVERED BY THE REPORT IS OTHER THAN A
   17  PERIOD OF TWELVE CALENDAR MONTHS,  BY  MULTIPLYING  SUCH  VALUE  BY  THE
   18  NUMBER  OF CALENDAR MONTHS OR MAJOR PARTS THEREOF INCLUDED IN SUCH PERI-
   19  OD, AND DIVIDING THE PRODUCT THUS OBTAINED BY TWELVE.  FOR  PURPOSES  OF
   20  THIS  SUBDIVISION,  REAL  PROPERTY  AND  MARKETABLE  SECURITIES SHALL BE
   21  VALUED AT FAIR MARKET VALUE AND THE VALUE  OF  PERSONAL  PROPERTY  OTHER
   22  THAN MARKETABLE SECURITIES SHALL BE THE VALUE THEREOF SHOWN ON THE BOOKS
   23  AND  RECORDS  OF  THE  TAXPAYER  IN  ACCORDANCE  WITH GENERALLY ACCEPTED
   24  ACCOUNTING PRINCIPLES.
   25    3. THE PORTION OF THE BUSINESS INCOME OF A TAXPAYER TO BE ALLOCATED TO
   26  THE CITY SHALL BE DETERMINED AS FOLLOWS:
   27    (A) MULTIPLY ITS BUSINESS INCOME BY A BUSINESS  ALLOCATION  PERCENTAGE
   28  TO BE DETERMINED BY:
   29    (1) ASCERTAINING THE PERCENTAGE WHICH THE AVERAGE VALUE OF THE TAXPAY-
   30  ER'S REAL AND TANGIBLE PERSONAL PROPERTY, WHETHER OWNED OR RENTED TO IT,
   31  WITHIN  THE  CITY  DURING  THE PERIOD COVERED BY ITS REPORT BEARS TO THE
   32  AVERAGE VALUE OF ALL THE TAXPAYER'S REAL AND TANGIBLE PERSONAL PROPERTY,
   33  WHETHER OWNED OR RENTED TO IT, WHEREVER SITUATED DURING SUCH PERIOD. FOR
   34  THE PURPOSE OF THIS SUBPARAGRAPH, THE TERM "VALUE OF THE TAXPAYER'S REAL
   35  AND TANGIBLE PERSONAL PROPERTY" SHALL MEAN THE ADJUSTED  BASES  OF  SUCH
   36  PROPERTIES  FOR  FEDERAL INCOME TAX PURPOSES (EXCEPT THAT IN THE CASE OF
   37  RENTED PROPERTY SUCH VALUE SHALL MEAN THE PRODUCT OF (I) EIGHT AND  (II)
   38  THE GROSS RENTS PAYABLE FOR THE RENTAL OF SUCH PROPERTY DURING THE TAXA-
   39  BLE  YEAR);  PROVIDED,  HOWEVER,  THAT THE TAXPAYER MAY MAKE A ONE-TIME,
   40  REVOCABLE ELECTION, PURSUANT TO REGULATIONS PROMULGATED BY  THE  COMMIS-
   41  SIONER  OF  FINANCE  TO USE FAIR MARKET VALUE AS THE VALUE OF ALL OF ITS
   42  REAL AND TANGIBLE PERSONAL PROPERTY, PROVIDED THAT SUCH ELECTION IS MADE
   43  ON OR BEFORE THE DUE DATE FOR FILING A REPORT UNDER  SECTION  11-655  OF
   44  THIS  SUBCHAPTER  FOR THE TAXPAYER'S FIRST TAXABLE YEAR COMMENCING ON OR
   45  AFTER JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN  AND  PROVIDED  THAT  SUCH
   46  ELECTION  SHALL  NOT APPLY TO ANY TAXABLE YEAR WITH RESPECT TO WHICH THE
   47  TAXPAYER IS INCLUDED ON A COMBINED REPORT UNLESS EACH OF  THE  TAXPAYERS
   48  INCLUDED  ON  SUCH  REPORT  HAS  MADE  SUCH AN ELECTION WHICH REMAINS IN
   49  EFFECT FOR SUCH YEAR OR TO ANY TAXPAYER THAT WAS SUBJECT  TO  TAX  UNDER
   50  SUBCHAPTER  TWO  OF  THIS CHAPTER AND DID NOT HAVE AN ELECTION IN EFFECT
   51  UNDER SUBPARAGRAPH ONE OF PARAGRAPH (A) OF SUBDIVISION THREE OF  SECTION
   52  11-604 OF THIS CHAPTER ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN;
   53    (2)  ASCERTAINING  THE PERCENTAGE DETERMINED UNDER SECTION 11-654.2 OF
   54  THIS SUBCHAPTER;
   55    (3) ASCERTAINING THE PERCENTAGE OF THE TOTAL WAGES, SALARIES AND OTHER
   56  PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED, DURING SUCH PERIOD OF
       S. 4610                            34                            A. 6721
    1  EMPLOYEES WITHIN THE CITY, EXCEPT GENERAL  EXECUTIVE  OFFICERS,  TO  THE
    2  TOTAL WAGES, SALARIES AND OTHER PERSONAL SERVICE COMPENSATION, SIMILARLY
    3  COMPUTED,  DURING SUCH PERIOD OF ALL THE TAXPAYER'S EMPLOYEES WITHIN AND
    4  WITHOUT THE CITY, EXCEPT GENERAL EXECUTIVE OFFICERS; AND
    5    (4)  ADDING  TOGETHER  THE  PERCENTAGES SO DETERMINED AND DIVIDING THE
    6  RESULT BY THE NUMBER OF PERCENTAGES.
    7    (5) INTENTIONALLY OMITTED.
    8    (6) INTENTIONALLY OMITTED.
    9    (7) INTENTIONALLY OMITTED.
   10    (8) INTENTIONALLY OMITTED.
   11    (9) INTENTIONALLY OMITTED.
   12    (10) NOTWITHSTANDING SUBPARAGRAPHS ONE THROUGH FOUR OF THIS PARAGRAPH,
   13  THE BUSINESS ALLOCATION PERCENTAGE, TO THE EXTENT THAT IT IS COMPUTED BY
   14  REFERENCE TO THE PERCENTAGES DETERMINED UNDER SUBPARAGRAPHS ONE, TWO AND
   15  THREE OF THIS PARAGRAPH, SHALL BE COMPUTED IN THE MANNER  SET  FORTH  IN
   16  THIS SUBPARAGRAPH.
   17    (I) INTENTIONALLY OMITTED.
   18    (II) INTENTIONALLY OMITTED.
   19    (III) INTENTIONALLY OMITTED.
   20    (IV) INTENTIONALLY OMITTED.
   21    (V) INTENTIONALLY OMITTED.
   22    (VI) INTENTIONALLY OMITTED.
   23    (VII)  FOR  TAXABLE YEARS BEGINNING IN TWO THOUSAND FIFTEEN, THE BUSI-
   24  NESS ALLOCATION PERCENTAGE SHALL BE DETERMINED BY  ADDING  TOGETHER  THE
   25  FOLLOWING PERCENTAGES:
   26    (A)  THE  PRODUCT  OF  TEN PERCENT AND THE PERCENTAGE DETERMINED UNDER
   27  SUBPARAGRAPH ONE OF THIS PARAGRAPH;
   28    (B) THE PRODUCT OF EIGHTY PERCENT AND THE PERCENTAGE DETERMINED  UNDER
   29  SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND
   30    (C)  THE  PRODUCT  OF  TEN PERCENT AND THE PERCENTAGE DETERMINED UNDER
   31  SUBPARAGRAPH THREE OF THIS PARAGRAPH.
   32    (VIII) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE  BUSI-
   33  NESS  ALLOCATION  PERCENTAGE  SHALL BE DETERMINED BY ADDING TOGETHER THE
   34  FOLLOWING PERCENTAGES:
   35    (A) THE PRODUCT OF SIX AND ONE-HALF PERCENT AND THE PERCENTAGE  DETER-
   36  MINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH;
   37    (B)  THE PRODUCT OF EIGHTY-SEVEN PERCENT AND THE PERCENTAGE DETERMINED
   38  UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND
   39    (C) THE PRODUCT OF SIX AND ONE-HALF PERCENT AND THE PERCENTAGE  DETER-
   40  MINED UNDER SUBPARAGRAPH THREE OF THIS PARAGRAPH.
   41    (IX)  FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SEVENTEEN, THE BUSI-
   42  NESS ALLOCATION PERCENTAGE SHALL BE DETERMINED BY  ADDING  TOGETHER  THE
   43  FOLLOWING PERCENTAGES:
   44    (A)  THE  PRODUCT  OF  THREE  AND  ONE-HALF PERCENT AND THE PERCENTAGE
   45  DETERMINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH;
   46    (B) THE PRODUCT OF NINETY-THREE PERCENT AND THE PERCENTAGE  DETERMINED
   47  UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND
   48    (C)  THE  PRODUCT  OF  THREE  AND  ONE-HALF PERCENT AND THE PERCENTAGE
   49  DETERMINED UNDER SUBPARAGRAPH THREE OF THIS PARAGRAPH.
   50    (X) FOR TAXABLE YEARS BEGINNING  AFTER  TWO  THOUSAND  SEVENTEEN,  THE
   51  BUSINESS  ALLOCATION PERCENTAGE SHALL BE THE PERCENTAGE DETERMINED UNDER
   52  SUBPARAGRAPH TWO OF THIS PARAGRAPH.
   53    (XI) THE COMMISSIONER OF FINANCE SHALL PROMULGATE RULES  NECESSARY  TO
   54  IMPLEMENT  THE  PROVISIONS OF THIS SUBPARAGRAPH UNDER SUCH CIRCUMSTANCES
   55  WHERE ANY OF THE PERCENTAGES TO BE DETERMINED  UNDER  SUBPARAGRAPH  ONE,
       S. 4610                            35                            A. 6721
    1  TWO OR THREE OF THIS PARAGRAPH CANNOT BE DETERMINED BECAUSE THE TAXPAYER
    2  HAS NO PROPERTY, RECEIPTS OR WAGES WITHIN OR WITHOUT THE CITY.
    3    (XII)  NOTWITHSTANDING THE PROVISIONS OF CLAUSES (VIII), (IX), AND (X)
    4  OF THIS SUBPARAGRAPH, FOR TAXABLE YEARS BEGINNING ON  OR  AFTER  JANUARY
    5  FIRST,  TWO THOUSAND EIGHTEEN, A TAXPAYER THAT HAS FIFTY MILLION DOLLARS
    6  OR LESS OF RECEIPTS ALLOCATED TO THE CITY AS  DETERMINED  UNDER  SECTION
    7  11-654.2  OF  THIS  SUBCHAPTER,  OR,  IF  THE  TAXPAYER IS INCLUDED IN A
    8  COMBINED GROUP, A COMBINED GROUP THAT HAS FIFTY MILLION DOLLARS OR  LESS
    9  OF  RECEIPTS  ALLOCATED TO THE CITY AS DETERMINED UNDER SECTION 11-654.2
   10  OF THIS SUBCHAPTER, MAY MAKE A ONE-TIME ELECTION TO DETERMINE ITS  BUSI-
   11  NESS ALLOCATION PERCENTAGE BY ADDING TOGETHER THE FOLLOWING PERCENTAGES:
   12    (A)  THE  PRODUCT  OF  THREE  AND  ONE-HALF PERCENT AND THE PERCENTAGE
   13  DETERMINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH;
   14    (B) THE PRODUCT OF NINETY-THREE PERCENT AND THE PERCENTAGE  DETERMINED
   15  UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND
   16    (C)  THE  PRODUCT  OF  THREE  AND  ONE-HALF PERCENT AND THE PERCENTAGE
   17  DETERMINED UNDER SUBPARAGRAPH THREE OF THIS PARAGRAPH.
   18    THE ELECTION PROVIDED FOR IN THIS CLAUSE MUST BE MADE ON  AN  ORIGINAL
   19  OR  AMENDED  REPORT  FILED PURSUANT TO SECTION 11-655 OF THIS SUBCHAPTER
   20  FOR THE TAXPAYER'S OR, IF THE TAXPAYER IS INCLUDED IN A COMBINED  GROUP,
   21  THE  COMBINED GROUP'S, FIRST TAXABLE YEAR COMMENCING ON OR AFTER JANUARY
   22  FIRST, TWO THOUSAND EIGHTEEN AND SHALL REMAIN IN EFFECT UNTIL REVOKED BY
   23  THE TAXPAYER, OR IF THE TAXPAYER IS INCLUDED IN A  COMBINED  GROUP,  THE
   24  COMBINED  GROUP.  AN  ELECTION  SHALL BE REVOKED UNDER THIS CLAUSE ON AN
   25  ORIGINAL OR AMENDED REPORT FILED PURSUANT  TO  SECTION  11-655  OF  THIS
   26  SUBCHAPTER  FOR  THE  TAXPAYER'S,  OR  IF  THE TAXPAYER IS INCLUDED IN A
   27  COMBINED GROUP, THE COMBINED GROUP'S, FIRST TAXABLE YEAR WITH RESPECT TO
   28  WHICH SUCH REVOCATION IS TO BE EFFECTIVE. IF THE TAXPAYER IS A MEMBER OF
   29  A COMBINED GROUP, AN ELECTION OR REVOCATION BY THE TAXPAYER  UNDER  THIS
   30  CLAUSE SHALL APPLY TO ALL MEMBERS OF THE COMBINED GROUP.
   31    (11) A FOREIGN AIR CARRIER DESCRIBED IN THE FIRST SENTENCE OF SUBPARA-
   32  GRAPH  ONE  OF PARAGRAPH (C-1) OF SUBDIVISION EIGHT OF SECTION 11-652 OF
   33  THIS SUBCHAPTER  SHALL  DETERMINE  ITS  BUSINESS  ALLOCATION  PERCENTAGE
   34  PURSUANT  TO  SUBPARAGRAPHS ONE THROUGH FOUR OF THIS PARAGRAPH, AS MODI-
   35  FIED BY SUBPARAGRAPH TEN OF THIS PARAGRAPH, EXCEPT THAT  THE  NUMERATORS
   36  AND  DENOMINATORS INVOLVED IN SUCH COMPUTATION SHALL EXCLUDE PROPERTY TO
   37  THE EXTENT EMPLOYED IN GENERATING INCOME EXCLUDED FROM ENTIRE NET INCOME
   38  FOR THE TAXABLE YEAR PURSUANT TO PARAGRAPH (C-1) OF SUBDIVISION EIGHT OF
   39  SECTION 11-652 OF THIS SUBCHAPTER, EXCLUDE SUCH RECEIPTS AS ARE EXCLUDED
   40  FROM ENTIRE NET INCOME FOR THE TAXABLE YEAR PURSUANT TO PARAGRAPH  (C-1)
   41  OF  SUBDIVISION  EIGHT OF SECTION 11-652 OF THIS SUBCHAPTER, AND EXCLUDE
   42  WAGES, SALARIES OR OTHER PERSONAL SERVICE COMPENSATION WHICH ARE DIRECT-
   43  LY ATTRIBUTABLE TO THE GENERATION OF INCOME  EXCLUDED  FROM  ENTIRE  NET
   44  INCOME  FOR  THE TAXABLE YEAR PURSUANT TO PARAGRAPH (C-1) OF SUBDIVISION
   45  EIGHT OF SECTION 11-652 OF THIS SUBCHAPTER.
   46    (B) INTENTIONALLY OMITTED.
   47    (C) INTENTIONALLY OMITTED.
   48    (D) IN ANY TAXABLE YEAR WHEN PROPERTY IS SOLD  OR  OTHERWISE  DISPOSED
   49  OF,  WITH  RESPECT  TO  WHICH  A  DEDUCTION HAS BEEN ALLOWED PURSUANT TO
   50  SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (D) OF SUBDIVISION THREE OF SECTION
   51  11-604 OF THIS CHAPTER OR SUBDIVISION (K)  OF  SECTION  11-641  OF  THIS
   52  CHAPTER  IN  ANY  PERIOD  IN WHICH THE TAXPAYER WAS SUBJECT TO TAX UNDER
   53  SUBCHAPTER TWO OF THIS CHAPTER, THE GAIN OR LOSS THEREON  ENTERING  INTO
   54  THE  COMPUTATION  OF  FEDERAL  TAXABLE  INCOME  SHALL  BE DISREGARDED IN
   55  COMPUTING ENTIRE NET INCOME, AND THERE SHALL BE ADDED TO  OR  SUBTRACTED
   56  FROM THE PORTION OF ENTIRE NET INCOME ALLOCATED WITHIN THE CITY THE GAIN
       S. 4610                            36                            A. 6721
    1  OR  LOSS  UPON SUCH SALE OR OTHER DISPOSITION. IN COMPUTING SUCH GAIN OR
    2  LOSS THE BASIS OF THE PROPERTY SOLD OR DISPOSED OF SHALL BE ADJUSTED  TO
    3  REFLECT  THE DEDUCTION ALLOWED WITH RESPECT TO SUCH PROPERTY PURSUANT TO
    4  SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (D) OF SUBDIVISION THREE OF SECTION
    5  11-604  OF THIS CHAPTER. PROVIDED, HOWEVER, THAT NO LOSS SHALL BE RECOG-
    6  NIZED FOR THE PURPOSES OF THIS SUBPARAGRAPH WITH RESPECT TO  A  SALE  OR
    7  OTHER  DISPOSITION  OF PROPERTY TO A PERSON WHOSE ACQUISITION THEREOF IS
    8  NOT A PURCHASE AS DEFINED IN  SUBSECTION  (D)  OF  SECTION  ONE  HUNDRED
    9  SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
   10    (E)  IN  ANY  TAXABLE YEAR WHEN PROPERTY IS SOLD OR OTHERWISE DISPOSED
   11  OF, WITH RESPECT TO WHICH A  DEDUCTION  HAS  BEEN  ALLOWED  PURSUANT  TO
   12  SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (E) OF SUBDIVISION THREE OF SECTION
   13  11-604  OF  THIS  CHAPTER  IN ANY PERIOD THE TAXPAYER WAS SUBJECT TO TAX
   14  UNDER SUBCHAPTER TWO OF THIS CHAPTER, THE GAIN OR LOSS THEREON  ENTERING
   15  INTO  THE  COMPUTATION OF FEDERAL TAXABLE INCOME SHALL BE DISREGARDED IN
   16  COMPUTING ENTIRE NET INCOME, AND THERE SHALL BE ADDED TO  OR  SUBTRACTED
   17  FROM THE PORTION OF ENTIRE NET INCOME ALLOCATED WITHIN THE CITY THE GAIN
   18  OR  LOSS  UPON SUCH SALE OR OTHER DISPOSITION. IN COMPUTING SUCH GAIN OR
   19  LOSS THE BASIS OF THE PROPERTY SOLD OR DISPOSED OF SHALL BE ADJUSTED  TO
   20  REFLECT  THE DEDUCTION ALLOWED WITH RESPECT TO SUCH PROPERTY PURSUANT TO
   21  SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (E) OF SUBDIVISION THREE OF SECTION
   22  11-604 OF THIS CHAPTER.  PROVIDED, HOWEVER, THAT NO LOSS SHALL BE RECOG-
   23  NIZED FOR THE PURPOSES OF THIS SUBPARAGRAPH WITH RESPECT TO  A  SALE  OR
   24  OTHER  DISPOSITION  OF PROPERTY TO A PERSON WHOSE ACQUISITION THEREOF IS
   25  NOT A PURCHASE AS DEFINED IN  SUBSECTION  (D)  OF  SECTION  ONE  HUNDRED
   26  SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
   27    4.  THE  PORTION OF THE BUSINESS CAPITAL OF A TAXPAYER TO BE ALLOCATED
   28  WITHIN THE CITY SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT THEREOF BY
   29  THE BUSINESS ALLOCATION PERCENTAGE DETERMINED AS HEREINABOVE PROVIDED.
   30    4-A. A CORPORATION THAT IS A PARTNER IN A  PARTNERSHIP  SHALL  COMPUTE
   31  TAX  UNDER  THIS  SUBCHAPTER  USING  ANY METHOD REQUIRED OR PERMITTED IN
   32  REGULATIONS OF THE COMMISSIONER OF FINANCE.
   33    5. INTENTIONALLY OMITTED.
   34    6. INTENTIONALLY OMITTED.
   35    7. INTENTIONALLY OMITTED.
   36    8. INTENTIONALLY OMITTED.
   37    9. IF IT SHALL APPEAR TO THE COMMISSIONER OF FINANCE THAT ANY BUSINESS
   38  ALLOCATION PERCENTAGE DETERMINED AS HEREINABOVE PROVIDED DOES NOT  PROP-
   39  ERLY  REFLECT  THE  ACTIVITY,  BUSINESS, INCOME OR CAPITAL OF A TAXPAYER
   40  WITHIN THE CITY, THE COMMISSIONER OF FINANCE SHALL BE AUTHORIZED IN  HIS
   41  OR  HER  DISCRETION  TO  ADJUST IT, OR THE TAXPAYER MAY REQUEST THAT THE
   42  COMMISSIONER OF FINANCE ADJUST IT, BY (A) EXCLUDING ONE OR MORE  OF  THE
   43  FACTORS  THEREIN,  (B)  INCLUDING  ONE  OR  MORE  OTHER FACTORS, SUCH AS
   44  EXPENSES, PURCHASES, CONTRACT VALUES  (MINUS  SUBCONTRACT  VALUES),  (C)
   45  EXCLUDING  ONE  OR  MORE ASSETS IN COMPUTING SUCH ALLOCATION PERCENTAGE,
   46  PROVIDED THE INCOME THEREFROM, IS ALSO EXCLUDED  IN  DETERMINING  ENTIRE
   47  NET  INCOME,  OR (D) ANY OTHER SIMILAR OR DIFFERENT METHOD CALCULATED TO
   48  EFFECT A FAIR AND PROPER ALLOCATION OF THE INCOME AND CAPITAL REASONABLY
   49  ATTRIBUTABLE TO THE CITY.  THE PARTY SEEKING THE ADJUSTMENT  SHALL  BEAR
   50  THE BURDEN OF PROOF TO DEMONSTRATE THAT THE BUSINESS ALLOCATION PERCENT-
   51  AGE  DETERMINED  PURSUANT  TO  THIS  SECTION DOES NOT RESULT IN A PROPER
   52  REFLECTION OF THE TAXPAYER'S INCOME OR CAPITAL WITHIN THE CITY AND  THAT
   53  THE  PROPOSED  ADJUSTMENT  IS APPROPRIATE.   THE COMMISSIONER OF FINANCE
   54  FROM TIME TO TIME SHALL PUBLISH ALL RULINGS OF GENERAL  PUBLIC  INTEREST
   55  WITH RESPECT TO ANY APPLICATION OF THE PROVISIONS OF THIS SUBDIVISION.
   56    10. INTENTIONALLY OMITTED.
       S. 4610                            37                            A. 6721
    1    11. INTENTIONALLY OMITTED.
    2    12. INTENTIONALLY OMITTED.
    3    13.  (A)  IN  ADDITION  TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A
    4  TAXPAYER SHALL BE ALLOWED A CREDIT  AGAINST  THE  TAX  IMPOSED  BY  THIS
    5  SUBCHAPTER  TO  BE  CREDITED OR REFUNDED WITHOUT INTEREST, IN THE MANNER
    6  HEREINAFTER PROVIDED IN THIS SECTION.
    7    (1)(I) WHERE A TAXPAYER SHALL  HAVE  RELOCATED  TO  THE  CITY  FROM  A
    8  LOCATION  OUTSIDE THE STATE, AND BY SUCH RELOCATION SHALL HAVE CREATED A
    9  MINIMUM OF ONE HUNDRED  INDUSTRIAL  OR  COMMERCIAL  EMPLOYMENT  OPPORTU-
   10  NITIES;  AND WHERE SUCH TAXPAYER SHALL HAVE ENTERED INTO A WRITTEN LEASE
   11  FOR THE RELOCATION PREMISES,  THE  TERMS  OF  WHICH  LEASE  PROVIDE  FOR
   12  INCREASED ADDITIONAL PAYMENTS TO THE LANDLORD WHICH ARE BASED SOLELY AND
   13  DIRECTLY  UPON  ANY INCREASE OR ADDITION IN REAL ESTATE TAXES IMPOSED ON
   14  THE LEASED PREMISES, THE TAXPAYER UPON APPROVAL AND CERTIFICATION BY THE
   15  INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD AS HEREINAFTER PROVIDED  SHALL
   16  BE  ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER. THE
   17  AMOUNT OF SUCH CREDIT SHALL BE AN AMOUNT EQUAL TO THE  ANNUAL  INCREASED
   18  PAYMENTS  ACTUALLY MADE BY THE TAXPAYER TO THE LANDLORD WHICH ARE SOLELY
   19  AND DIRECTLY ATTRIBUTABLE TO AN INCREASE OR ADDITION TO THE REAL  ESTATE
   20  TAX  IMPOSED UPON THE LEASED PREMISES. SUCH CREDIT SHALL BE ALLOWED ONLY
   21  TO THE EXTENT THAT THE TAXPAYER HAS NOT OTHERWISE CLAIMED SAID AMOUNT AS
   22  A DEDUCTION AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER.
   23    (II) THE INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD  IN  APPROVING  AND
   24  CERTIFYING  TO  THE  QUALIFICATIONS  OF  THE TAXPAYER TO RECEIVE THE TAX
   25  CREDIT PROVIDED FOR HEREIN SHALL FIRST DETERMINE THAT THE APPLICANT  HAS
   26  MET  THE REQUIREMENTS OF THIS SECTION, AND FURTHER, THAT THE GRANTING OF
   27  THE TAX CREDIT TO THE APPLICANT IS IN THE "PUBLIC INTEREST".  IN  DETER-
   28  MINING  THAT  THE  GRANTING OF THE TAX CREDIT IS IN THE PUBLIC INTEREST,
   29  THE BOARD SHALL MAKE AFFIRMATIVE FINDINGS THAT: THE GRANTING OF THE  TAX
   30  CREDIT  TO  THE  APPLICANT  WILL NOT EFFECT AN UNDUE HARDSHIP ON SIMILAR
   31  TAXPAYERS ALREADY LOCATED WITHIN THE CITY; THE  EXISTENCE  OF  THIS  TAX
   32  INCENTIVE  HAS BEEN INSTRUMENTAL IN BRINGING ABOUT THE RELOCATION OF THE
   33  APPLICANT TO THE CITY; AND THE GRANTING OF THE TAX  CREDIT  WILL  FOSTER
   34  THE ECONOMIC RECOVERY AND ECONOMIC DEVELOPMENT OF THE CITY.
   35    (III)  THE TAX CREDIT, IF APPROVED AND CERTIFIED BY THE INDUSTRIAL AND
   36  COMMERCIAL INCENTIVE BOARD, MUST BE UTILIZED ANNUALLY  BY  THE  TAXPAYER
   37  FOR  THE  LENGTH  OF THE TERM OF THE LEASE OR FOR A PERIOD NOT TO EXCEED
   38  TEN YEARS FROM THE DATE OF RELOCATION WHICHEVER PERIOD IS SHORTER.
   39    (2) WHEN USED IN THIS SUBDIVISION:
   40    (I) "EMPLOYMENT OPPORTUNITY" MEANS THE CREATION OF A FULL  TIME  POSI-
   41  TION  OF GAINFUL EMPLOYMENT FOR AN INDUSTRIAL OR COMMERCIAL EMPLOYEE AND
   42  THE ACTUAL HIRING OF SUCH EMPLOYEE FOR THE SAID POSITION.
   43    (II) "INDUSTRIAL EMPLOYEE" MEANS ONE ENGAGED  IN  THE  MANUFACTURE  OR
   44  ASSEMBLING OF TANGIBLE GOODS OR THE PROCESSING OF RAW MATERIALS.
   45    (III)  "COMMERCIAL  EMPLOYEE" MEANS ONE ENGAGED IN THE BUYING, SELLING
   46  OR OTHERWISE PROVIDING OF GOODS OR  SERVICES  OTHER  THAN  ON  A  RETAIL
   47  BASIS.
   48    (IV)  "RETAIL"  MEANS THE SELLING OR OTHERWISE DISPOSING OR FURNISHING
   49  OF TANGIBLE GOODS OR SERVICES DIRECTLY TO THE ULTIMATE USER OR CONSUMER.
   50    (V) "FULL TIME POSITION" MEANS THE HIRING OF AN INDUSTRIAL OR  COMMER-
   51  CIAL  EMPLOYEE  IN  A POSITION OF GAINFUL EMPLOYMENT WHERE THE NUMBER OF
   52  HOURS WORKED BY SUCH EMPLOYEES IS NOT LESS THAN THIRTY HOURS DURING  ANY
   53  GIVEN WORK WEEK.
   54    (VI)  "INDUSTRIAL  AND  COMMERCIAL  INCENTIVE  BOARD"  MEANS THE BOARD
   55  CREATED PURSUANT TO PART THREE OF SUBCHAPTER TWO OF CHAPTER TWO OF  THIS
   56  TITLE.
       S. 4610                            38                            A. 6721
    1    (B)  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
    2  SHALL BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE  CRED-
    3  ITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE PROVISIONS OF
    4  SECTION 11-677 OF THIS CHAPTER.
    5    14.  (A)  IN  ADDITION  TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A
    6  TAXPAYER SHALL BE ALLOWED A CREDIT  AGAINST  THE  TAX  IMPOSED  BY  THIS
    7  SUBCHAPTER  TO  BE  CREDITED OR REFUNDED WITHOUT INTEREST, IN THE MANNER
    8  HEREINAFTER PROVIDED IN THIS SECTION. THE AMOUNT OF  SUCH  CREDIT  SHALL
    9  BE:
   10    (1)  A MAXIMUM OF THREE HUNDRED DOLLARS FOR EACH COMMERCIAL EMPLOYMENT
   11  OPPORTUNITY AND A MAXIMUM OF FIVE HUNDRED DOLLARS  FOR  EACH  INDUSTRIAL
   12  EMPLOYMENT  OPPORTUNITY  RELOCATED  TO THE CITY FROM AN AREA OUTSIDE THE
   13  STATE. SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO RELOCATES A  MINI-
   14  MUM OF TEN EMPLOYMENT OPPORTUNITIES. THE CREDIT SHALL BE ALLOWED AGAINST
   15  EMPLOYMENT  OPPORTUNITY  RELOCATION COSTS INCURRED BY THE TAXPAYER. SUCH
   16  CREDIT SHALL BE ALLOWED ONLY TO THE EXTENT THAT  THE  TAXPAYER  HAS  NOT
   17  CLAIMED  A  DEDUCTION  FOR  ALLOWABLE  EMPLOYMENT OPPORTUNITY RELOCATION
   18  COSTS. THE CREDIT ALLOWED HEREUNDER MAY BE  TAKEN  BY  THE  TAXPAYER  IN
   19  WHOLE  OR  IN  PART  IN  THE YEAR IN WHICH THE EMPLOYMENT OPPORTUNITY IS
   20  RELOCATED BY SUCH TAXPAYER OR EITHER OF THE TWO  YEARS  SUCCEEDING  SUCH
   21  EVENT, PROVIDED, HOWEVER, NO CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVI-
   22  SION  TO A TAXPAYER FOR INDUSTRIAL EMPLOYMENT OPPORTUNITIES RELOCATED TO
   23  PREMISES (I) THAT ARE WITHIN AN  INDUSTRIAL  BUSINESS  ZONE  ESTABLISHED
   24  PURSUANT  TO  SECTION  22-626  OF THIS CODE AND (II) FOR WHICH A BINDING
   25  CONTRACT TO PURCHASE OR LEASE WAS FIRST ENTERED INTO BY THE TAXPAYER  ON
   26  OR AFTER JULY FIRST, TWO THOUSAND FIVE.
   27    THE COMMISSIONER OF FINANCE IS EMPOWERED TO PROMULGATE RULES AND REGU-
   28  LATIONS AND TO PRESCRIBE THE FORM OF APPLICATION TO BE USED BY A TAXPAY-
   29  ER SEEKING THE CREDIT PROVIDED HEREUNDER.
   30    (2) WHEN USED IN THIS SUBDIVISION:
   31    (I)  "EMPLOYMENT  OPPORTUNITY" MEANS THE CREATION OF A FULL TIME POSI-
   32  TION OF GAINFUL EMPLOYMENT FOR AN INDUSTRIAL OR COMMERCIAL EMPLOYEE  AND
   33  THE ACTUAL HIRING OF SUCH EMPLOYEE FOR THE SAID POSITION.
   34    (II)  "INDUSTRIAL  EMPLOYEE"  MEANS  ONE ENGAGED IN THE MANUFACTURE OR
   35  ASSEMBLING OF TANGIBLE GOODS OR THE PROCESSING OF RAW MATERIALS.
   36    (III) "COMMERCIAL EMPLOYEE" MEANS ONE ENGAGED IN THE  BUYING,  SELLING
   37  OR  OTHERWISE  PROVIDING  OF  GOODS  OR  SERVICES OTHER THAN ON A RETAIL
   38  BASIS.
   39    (IV) "RETAIL" MEANS THE SELLING OR  OTHERWISE  DISPOSING  OF  TANGIBLE
   40  GOODS DIRECTLY TO THE ULTIMATE USER OR CONSUMER.
   41    (V)  "FULL TIME POSITION" MEANS THE HIRING OF AN INDUSTRIAL OR COMMER-
   42  CIAL EMPLOYEE IN A POSITION OF GAINFUL EMPLOYMENT WHERE  THE  NUMBER  OF
   43  HOURS  WORKED  BY SUCH EMPLOYEE IS NOT LESS THAN THIRTY HOURS DURING ANY
   44  GIVEN WORK WEEK.
   45    (VI)  "EMPLOYMENT  OPPORTUNITY  RELOCATION  COSTS"  MEANS  THE   COSTS
   46  INCURRED  BY  THE TAXPAYER IN MOVING FURNITURE, FILES, PAPERS AND OFFICE
   47  EQUIPMENT INTO THE CITY FROM A LOCATION OUTSIDE  THE  STATE;  THE  COSTS
   48  INCURRED BY THE TAXPAYER IN THE MOVING AND INSTALLATION OF MACHINERY AND
   49  EQUIPMENT  INTO THE CITY FROM A LOCATION OUTSIDE THE STATE; THE COSTS OF
   50  INSTALLATION OF TELEPHONES AND OTHER COMMUNICATIONS  EQUIPMENT  REQUIRED
   51  AS  A  RESULT  OF THE RELOCATION TO THE CITY FROM A LOCATION OUTSIDE THE
   52  STATE; THE COST  INCURRED  IN  THE  PURCHASE  OF  OFFICE  FURNITURE  AND
   53  FIXTURES  REQUIRED  AS  A  RESULT  OF  THE RELOCATION TO THE CITY FROM A
   54  LOCATION OUTSIDE THE STATE; AND THE COST OF RENOVATION OF  THE  PREMISES
   55  TO  BE  OCCUPIED  AS A RESULT OF THE RELOCATION; PROVIDED, HOWEVER, THAT
   56  SUCH RENOVATION COSTS SHALL BE ALLOWABLE ONLY TO THE EXTENT THAT THEY DO
       S. 4610                            39                            A. 6721
    1  NOT EXCEED SEVENTY-FIVE CENTS PER SQUARE FOOT OF THE TOTAL AREA UTILIZED
    2  BY THE TAXPAYER IN THE OCCUPIED PREMISES.
    3    (B)  THE  CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR SHALL
    4  BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE CREDITED  OR
    5  REFUNDED  WITHOUT  INTEREST IN ACCORDANCE WITH THE PROVISIONS OF SECTION
    6  11-677 OF THIS CHAPTER.
    7    (C) NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  SUBDIVISION  TO  THE
    8  CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR
    9  BEGINNING  BEFORE  JANUARY  FIRST,  TWO THOUSAND FIFTEEN, THE CREDIT SET
   10  FORTH IN SUBDIVISION FOURTEEN OF SECTION 11-604 OF THIS CHAPTER  FOR  AN
   11  ELIGIBLE EMPLOYMENT RELOCATION, A CREDIT SHALL BE ALLOWED TO THE TAXPAY-
   12  ER UNDER THIS SUBDIVISION FOR ANY TAX YEAR BEGINNING ON OR AFTER JANUARY
   13  FIRST,  TWO  THOUSAND FIFTEEN, IN THE SAME AMOUNT AND TO THE SAME EXTENT
   14  THAT A CREDIT, OR THE UNUSED PORTION THEREOF, WOULD  HAVE  BEEN  ALLOWED
   15  UNDER  SUBDIVISION  FOURTEEN  OF  SECTION  11-604 OF THIS CHAPTER, AS IN
   16  EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, IF SUCH SUBDIVI-
   17  SION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE YEAR.
   18    15. INTENTIONALLY OMITTED.
   19    16. INTENTIONALLY OMITTED.
   20    17. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED  BY  THIS  SECTION,  A
   21  TAXPAYER  THAT HAS OBTAINED THE CERTIFICATIONS REQUIRED BY CHAPTER SIX-B
   22  OF TITLE TWENTY-TWO OF THIS CODE SHALL BE ALLOWED A CREDIT  AGAINST  THE
   23  TAX  IMPOSED  BY  THIS SUBCHAPTER. THE AMOUNT OF THE CREDIT SHALL BE THE
   24  AMOUNT DETERMINED BY MULTIPLYING FIVE HUNDRED DOLLARS OR, IN THE CASE OF
   25  A TAXPAYER THAT HAS OBTAINED PURSUANT TO CHAPTER  SIX-B  OF  SUCH  TITLE
   26  TWENTY-TWO  A CERTIFICATION OF ELIGIBILITY DATED ON OR AFTER JULY FIRST,
   27  NINETEEN HUNDRED NINETY-FIVE, ONE THOUSAND DOLLARS OR, IN THE CASE OF AN
   28  ELIGIBLE BUSINESS THAT HAS OBTAINED PURSUANT TO CHAPTER  SIX-B  OF  SUCH
   29  TITLE  TWENTY-TWO  A CERTIFICATION OF ELIGIBILITY DATED ON OR AFTER JULY
   30  FIRST, TWO THOUSAND, FOR A RELOCATION TO ELIGIBLE PREMISES LOCATED WITH-
   31  IN A REVITALIZATION AREA DEFINED IN SUBDIVISION (N) OF SECTION 22-621 OF
   32  THIS CODE, THREE THOUSAND DOLLARS, BY THE NUMBER OF  ELIGIBLE  AGGREGATE
   33  EMPLOYMENT  SHARES  MAINTAINED  BY  THE TAXPAYER DURING THE TAXABLE YEAR
   34  WITH RESPECT TO PARTICULAR PREMISES TO WHICH THE TAXPAYER HAS RELOCATED;
   35  PROVIDED, HOWEVER, WITH RESPECT TO A RELOCATION FOR WHICH NO APPLICATION
   36  FOR A CERTIFICATE OF ELIGIBILITY IS SUBMITTED PRIOR TO JULY  FIRST,  TWO
   37  THOUSAND  THREE,  TO ELIGIBLE PREMISES THAT ARE NOT WITHIN A REVITALIZA-
   38  TION AREA, IF THE DATE OF SUCH  RELOCATION  AS  DETERMINED  PURSUANT  TO
   39  SUBDIVISION  (J)  OF  SECTION  22-621 OF THIS CODE IS BEFORE JULY FIRST,
   40  NINETEEN HUNDRED NINETY-FIVE, THE AMOUNT TO BE MULTIPLIED BY THE  NUMBER
   41  OF  ELIGIBLE  AGGREGATE EMPLOYMENT SHARES SHALL BE FIVE HUNDRED DOLLARS,
   42  AND WITH RESPECT TO A RELOCATION FOR WHICH NO APPLICATION FOR A  CERTIF-
   43  ICATE  OF  ELIGIBILITY  IS  SUBMITTED  PRIOR TO JULY FIRST, TWO THOUSAND
   44  THREE, TO ELIGIBLE PREMISES THAT ARE WITHIN A  REVITALIZATION  AREA,  IF
   45  THE DATE OF SUCH RELOCATION AS DETERMINED PURSUANT TO SUBDIVISION (J) OF
   46  SUCH  SECTION  IS  BEFORE  JULY FIRST, NINETEEN HUNDRED NINETY-FIVE, THE
   47  AMOUNT TO BE MULTIPLIED BY THE NUMBER OF ELIGIBLE  AGGREGATE  EMPLOYMENT
   48  SHARES SHALL BE FIVE HUNDRED DOLLARS, AND IF THE DATE OF SUCH RELOCATION
   49  AS DETERMINED PURSUANT TO SUBDIVISION (J) OF SUCH SECTION IS ON OR AFTER
   50  JULY  FIRST,  NINETEEN  HUNDRED  NINETY-FIVE, AND BEFORE JULY FIRST, TWO
   51  THOUSAND, ONE THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT NO CREDIT  SHALL
   52  BE  ALLOWED FOR THE RELOCATION OF ANY RETAIL ACTIVITY OR HOTEL SERVICES;
   53  PROVIDED, FURTHER, THAT NO CREDIT SHALL BE ALLOWED UNDER  THIS  SUBDIVI-
   54  SION  TO  ANY  TAXPAYER  THAT HAS ELECTED PURSUANT TO SUBDIVISION (D) OF
   55  SECTION 22-622 OF THIS CODE TO TAKE SUCH CREDIT AGAINST A GROSS RECEIPTS
   56  TAX IMPOSED BY CHAPTER ELEVEN OF THIS TITLE; AND PROVIDED  THAT  IN  THE
       S. 4610                            40                            A. 6721
    1  CASE OF AN ELIGIBLE BUSINESS THAT HAS OBTAINED PURSUANT TO CHAPTER SIX-B
    2  OF SUCH TITLE TWENTY-TWO CERTIFICATIONS OF ELIGIBILITY FOR MORE THAN ONE
    3  RELOCATION,  THE  PORTION  OF  THE  TOTAL  AMOUNT  OF ELIGIBLE AGGREGATE
    4  EMPLOYMENT  SHARES  TO  BE  MULTIPLIED BY THE DOLLAR AMOUNT SPECIFIED IN
    5  THIS SUBDIVISION FOR EACH SUCH CERTIFICATION OF A  RELOCATION  SHALL  BE
    6  THE  NUMBER  OF  TOTAL  ATTRIBUTED  ELIGIBLE AGGREGATE EMPLOYMENT SHARES
    7  DETERMINED WITH RESPECT TO SUCH RELOCATION PURSUANT TO  SUBDIVISION  (O)
    8  OF  SECTION  22-621  OF THIS CODE. FOR PURPOSES OF THIS SUBDIVISION, THE
    9  TERMS "ELIGIBLE AGGREGATE EMPLOYMENT SHARES," "RELOCATE," "RETAIL ACTIV-
   10  ITY" AND "HOTEL SERVICES" SHALL HAVE THE MEANINGS  ASCRIBED  BY  SECTION
   11  22-621 OF THIS CODE.
   12    (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE
   13  AGGREGATE  EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO PARTICULAR PREM-
   14  ISES TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE  FIRST
   15  TAXABLE  YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE
   16  MAINTAINED WITH RESPECT TO SUCH PREMISES  AND  FOR  ANY  OF  THE  TWELVE
   17  SUCCEEDING  TAXABLE  YEARS  DURING  WHICH  ELIGIBLE AGGREGATE EMPLOYMENT
   18  SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES; PROVIDED  THAT  THE
   19  CREDIT  ALLOWED  FOR THE TWELFTH SUCCEEDING TAXABLE YEAR SHALL BE CALCU-
   20  LATED BY MULTIPLYING THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT  SHARES
   21  MAINTAINED WITH RESPECT TO SUCH PREMISES IN THE TWELFTH SUCCEEDING TAXA-
   22  BLE  YEAR  BY THE LESSER OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS
   23  SUCH NUMBER OF DAYS IN THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF
   24  DAYS THE ELIGIBLE BUSINESS MAINTAINED EMPLOYMENT SHARES IN THE  ELIGIBLE
   25  PREMISES  IN THE TAXABLE YEAR OF RELOCATION AND THE DENOMINATOR OF WHICH
   26  IS THE NUMBER OF DAYS IN SUCH TWELFTH  SUCCEEDING  TAXABLE  YEAR  DURING
   27  WHICH  SUCH  ELIGIBLE  AGGREGATE  EMPLOYMENT  SHARES ARE MAINTAINED WITH
   28  RESPECT TO SUCH PREMISES. EXCEPT AS PROVIDED IN PARAGRAPH  (D)  OF  THIS
   29  SUBDIVISION,  IF  THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVI-
   30  SION FOR ANY TAXABLE YEAR EXCEEDS THE TAX IMPOSED  FOR  SUCH  YEAR,  THE
   31  EXCESS MAY BE CARRIED OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING
   32  TAXABLE  YEARS  AND,  TO  THE  EXTENT  NOT PREVIOUSLY DEDUCTIBLE, MAY BE
   33  DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEARS.
   34    (C) THE CREDIT ALLOWABLE UNDER  THIS  SUBDIVISION  SHALL  BE  DEDUCTED
   35  AFTER  THE  CREDIT  ALLOWED BY SUBDIVISION EIGHTEEN OF THIS SECTION, BUT
   36  PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS SECTION.
   37    (D) IN THE CASE OF A TAXPAYER THAT HAS  OBTAINED  A  CERTIFICATION  OF
   38  ELIGIBILITY  PURSUANT  TO CHAPTER SIX-B OF TITLE TWENTY-TWO OF THIS CODE
   39  DATED ON OR AFTER JULY FIRST, TWO THOUSAND FOR A RELOCATION TO  ELIGIBLE
   40  PREMISES  LOCATED  WITHIN THE REVITALIZATION AREA DEFINED IN SUBDIVISION
   41  (N) OF SECTION 22-621 OF THIS  CODE,  THE  CREDITS  ALLOWED  UNDER  THIS
   42  SUBDIVISION,  OR  IN THE CASE OF A TAXPAYER THAT HAS RELOCATED MORE THAN
   43  ONCE, THE PORTION OF SUCH CREDITS ATTRIBUTED TO  SUCH  CERTIFICATION  OF
   44  ELIGIBILITY  PURSUANT  TO PARAGRAPH (A) OF THIS SUBDIVISION, AGAINST THE
   45  TAX IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF SUCH RELOCATION  AND
   46  FOR  THE  FOUR  TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF
   47  SUCH RELOCATION, SHALL BE DEEMED  TO  BE  OVERPAYMENTS  OF  TAX  BY  THE
   48  TAXPAYER  TO  BE  CREDITED  OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE
   49  WITH THE PROVISIONS OF SECTION 11-677 OF THIS CHAPTER. FOR SUCH  TAXABLE
   50  YEARS,  SUCH  CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY
   51  SUCCEEDING TAXABLE YEAR; PROVIDED, HOWEVER, THAT  THIS  PARAGRAPH  SHALL
   52  NOT APPLY TO ANY RELOCATION FOR WHICH AN APPLICATION FOR A CERTIFICATION
   53  OF  ELIGIBILITY  WAS  NOT  SUBMITTED  PRIOR  TO JULY FIRST, TWO THOUSAND
   54  THREE, UNLESS THE DATE OF SUCH RELOCATION IS ON OR AFTER JULY FIRST, TWO
   55  THOUSAND.
       S. 4610                            41                            A. 6721
    1    (E) NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  SUBDIVISION  TO  THE
    2  CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS OBTAINED, PURSUANT TO CHAP-
    3  TER SIX-B OF TITLE TWENTY-TWO OF THIS CODE, A CERTIFICATION OF ELIGIBIL-
    4  ITY  AND HAS RECEIVED, IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST,
    5  TWO  THOUSAND  FIFTEEN, THE CREDIT SET FORTH IN SUBDIVISION SEVENTEEN OF
    6  SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.7 OF THIS  CHAPTER  FOR
    7  THE  RELOCATION OF AN ELIGIBLE BUSINESS, A CREDIT SHALL BE ALLOWED UNDER
    8  THIS SUBDIVISION TO THE TAXPAYER FOR ANY TAXABLE YEAR  BEGINNING  ON  OR
    9  AFTER  JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO THE
   10  SAME EXTENT THAT A CREDIT WOULD  HAVE  BEEN  ALLOWED  UNDER  SUBDIVISION
   11  SEVENTEEN  OF SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.7 OF THIS
   12  CHAPTER, AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO  THOUSAND  FOURTEEN,
   13  IF  SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE
   14  YEAR.
   15    17-A. INTENTIONALLY OMITTED.
   16    17-B. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION,  AN
   17  ELIGIBLE  BUSINESS THAT FIRST ENTERS INTO A BINDING CONTRACT ON OR AFTER
   18  JULY FIRST, TWO THOUSAND FIVE TO PURCHASE OR LEASE ELIGIBLE PREMISES  TO
   19  WHICH  IT  RELOCATES  SHALL BE ALLOWED A ONE-TIME CREDIT AGAINST THE TAX
   20  IMPOSED BY THIS SUBCHAPTER TO BE CREDITED  OR  REFUNDED  IN  THE  MANNER
   21  HEREINAFTER  PROVIDED  IN  THIS  SUBDIVISION.  THE AMOUNT OF SUCH CREDIT
   22  SHALL BE ONE THOUSAND DOLLARS PER FULL-TIME EMPLOYEE; PROVIDED, HOWEVER,
   23  THAT THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED  THE  LESSER  OF  ACTUAL
   24  RELOCATION COSTS OR ONE HUNDRED THOUSAND DOLLARS.
   25    (B)  WHEN USED IN THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE
   26  FOLLOWING MEANINGS:
   27    (1) "ELIGIBLE BUSINESS" MEANS ANY BUSINESS SUBJECT TO TAX  UNDER  THIS
   28  SUBCHAPTER  THAT (I) HAS BEEN CONDUCTING SUBSTANTIAL BUSINESS OPERATIONS
   29  AND ENGAGING PRIMARILY IN INDUSTRIAL AND MANUFACTURING ACTIVITIES AT ONE
   30  OR MORE LOCATIONS WITHIN THE CITY OF NEW YORK OR OUTSIDE  THE  STATE  OF
   31  NEW  YORK  CONTINUOUSLY  DURING  THE TWENTY-FOUR CONSECUTIVE FULL MONTHS
   32  IMMEDIATELY PRECEDING RELOCATION, (II)  HAS  LEASED  THE  PREMISES  FROM
   33  WHICH  IT RELOCATES CONTINUOUSLY DURING THE TWENTY-FOUR CONSECUTIVE FULL
   34  MONTHS IMMEDIATELY PRECEDING RELOCATION, (III) FIRST ENTERS INTO A BIND-
   35  ING CONTRACT ON OR AFTER JULY FIRST, TWO THOUSAND FIVE  TO  PURCHASE  OR
   36  LEASE  ELIGIBLE  PREMISES TO WHICH SUCH BUSINESS WILL RELOCATE, AND (IV)
   37  WILL BE ENGAGED PRIMARILY IN INDUSTRIAL AND MANUFACTURING ACTIVITIES  AT
   38  SUCH ELIGIBLE PREMISES.
   39    (2)  "ELIGIBLE  PREMISES"  MEANS  PREMISES  LOCATED ENTIRELY WITHIN AN
   40  INDUSTRIAL BUSINESS ZONE. FOR ANY ELIGIBLE BUSINESS, AN INDUSTRIAL BUSI-
   41  NESS ZONE TAX CREDIT SHALL NOT BE GRANTED WITH RESPECT TO MORE THAN  ONE
   42  ELIGIBLE PREMISES.
   43    (3) "FULL-TIME EMPLOYEE" MEANS (I) ONE PERSON GAINFULLY EMPLOYED IN AN
   44  ELIGIBLE  PREMISES  BY  AN  ELIGIBLE  BUSINESS WHERE THE NUMBER OF HOURS
   45  REQUIRED TO BE WORKED BY SUCH PERSON IS NOT LESS THAN THIRTY-FIVE  HOURS
   46  PER WEEK; OR (II) TWO PERSONS GAINFULLY EMPLOYED IN AN ELIGIBLE PREMISES
   47  BY  AN ELIGIBLE BUSINESS WHERE THE NUMBER OF HOURS REQUIRED TO BE WORKED
   48  BY EACH SUCH PERSON IS MORE THAN FIFTEEN HOURS PER WEEK  BUT  LESS  THAN
   49  THIRTY-FIVE HOURS PER WEEK.
   50    (4)  "INDUSTRIAL  BUSINESS  ZONE" MEANS AN AREA WITHIN THE CITY OF NEW
   51  YORK ESTABLISHED PURSUANT TO SECTION 22-626 OF THIS CODE.
   52    (5) "INDUSTRIAL BUSINESS ZONE TAX CREDIT" MEANS A CREDIT, AS  PROVIDED
   53  FOR IN THIS SUBDIVISION, AGAINST A TAX IMPOSED UNDER THIS SUBCHAPTER.
   54    (6) "INDUSTRIAL AND MANUFACTURING ACTIVITIES" MEANS ACTIVITIES INVOLV-
   55  ING THE ASSEMBLY OF GOODS TO CREATE A DIFFERENT ARTICLE, OR THE PROCESS-
       S. 4610                            42                            A. 6721
    1  ING,  FABRICATION,  OR PACKAGING OF GOODS.  INDUSTRIAL AND MANUFACTURING
    2  ACTIVITIES SHALL NOT INCLUDE WASTE MANAGEMENT OR UTILITY SERVICES.
    3    (7) "RELOCATION" MEANS THE PHYSICAL RELOCATION OF FURNITURE, FIXTURES,
    4  EQUIPMENT, MACHINERY AND SUPPLIES DIRECTLY TO AN ELIGIBLE PREMISES, FROM
    5  ONE  OR  MORE  LOCATIONS OF AN ELIGIBLE BUSINESS, INCLUDING AT LEAST ONE
    6  LOCATION AT WHICH SUCH BUSINESS CONDUCTS SUBSTANTIAL BUSINESS OPERATIONS
    7  AND ENGAGES PRIMARILY IN INDUSTRIAL AND  MANUFACTURING  ACTIVITIES.  FOR
    8  PURPOSES  OF  THIS  SUBDIVISION, THE DATE OF RELOCATION SHALL BE (I) THE
    9  DATE OF THE COMPLETION OF THE RELOCATION TO  THE  ELIGIBLE  PREMISES  OR
   10  (II) NINETY DAYS FROM THE COMMENCEMENT OF THE RELOCATION TO THE ELIGIBLE
   11  PREMISES, WHICHEVER IS EARLIER.
   12    (8)  "RELOCATION COSTS" MEANS COSTS INCURRED IN THE RELOCATION OF SUCH
   13  FURNITURE, FIXTURES, EQUIPMENT, MACHINERY AND SUPPLIES,  INCLUDING,  BUT
   14  NOT  LIMITED  TO, THE COST OF DISMANTLING AND REASSEMBLING EQUIPMENT AND
   15  THE COST OF FLOOR PREPARATION NECESSARY FOR THE REASSEMBLY OF THE EQUIP-
   16  MENT. RELOCATION COSTS SHALL INCLUDE ONLY SUCH COSTS THAT  ARE  INCURRED
   17  DURING  THE  NINETY-DAY PERIOD IMMEDIATELY FOLLOWING THE COMMENCEMENT OF
   18  THE RELOCATION TO AN  ELIGIBLE  PREMISES.  RELOCATION  COSTS  SHALL  NOT
   19  INCLUDE  COSTS FOR STRUCTURAL OR CAPITAL IMPROVEMENTS OR ITEMS PURCHASED
   20  IN CONNECTION WITH THE RELOCATION.
   21    (C) THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
   22  SHALL  BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE CRED-
   23  ITED OR REFUNDED WITHOUT INTEREST, IN ACCORDANCE WITH THE PROVISIONS  OF
   24  SECTION 11-677 OF THIS CHAPTER.
   25    (D)  THE NUMBER OF FULL-TIME EMPLOYEES FOR THE PURPOSES OF CALCULATING
   26  AN INDUSTRIAL BUSINESS  TAX  CREDIT  SHALL  BE  THE  AVERAGE  NUMBER  OF
   27  FULL-TIME  EMPLOYEES,  CALCULATED  ON  A  WEEKLY  BASIS, EMPLOYED IN THE
   28  ELIGIBLE PREMISES BY THE ELIGIBLE BUSINESS IN THE FIFTY-TWO WEEK  PERIOD
   29  IMMEDIATELY  FOLLOWING  THE EARLIER OF (1) THE DATE OF THE COMPLETION OF
   30  THE RELOCATION  TO  ELIGIBLE  PREMISES  OR  (2)  NINETY  DAYS  FROM  THE
   31  COMMENCEMENT OF THE RELOCATION TO THE ELIGIBLE PREMISES.
   32    (E)  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION MUST BE TAKEN BY THE
   33  TAXPAYER IN THE TAXABLE YEAR IN WHICH SUCH TWELVE MONTH PERIOD  SELECTED
   34  BY THE TAXPAYER ENDS.
   35    (F)  FOR  THE PURPOSES OF CALCULATING ENTIRE NET INCOME IN THE TAXABLE
   36  YEAR THAT AN INDUSTRIAL BUSINESS TAX CREDIT IS ALLOWED, A TAXPAYER  MUST
   37  ADD BACK THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION, TO THE
   38  EXTENT OF ANY RELOCATION COSTS DEDUCTED IN THE CURRENT TAXABLE YEAR OR A
   39  PRIOR TAXABLE YEAR IN CALCULATING FEDERAL TAXABLE INCOME.
   40    (G) THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL NOT BE GRANTED FOR
   41  AN  ELIGIBLE  BUSINESS FOR MORE THAN ONE RELOCATION. NOTWITHSTANDING THE
   42  FOREGOING, AN INDUSTRIAL BUSINESS TAX CREDIT SHALL NOT BE GRANTED IF THE
   43  ELIGIBLE BUSINESS RECEIVES BENEFITS PURSUANT TO CHAPTER SIX-B  OR  SIX-C
   44  OF  TITLE  TWENTY-TWO OF THIS CODE, THROUGH A GRANT PROGRAM ADMINISTERED
   45  BY THE BUSINESS RELOCATION ASSISTANCE CORPORATION, OR  THROUGH  THE  NEW
   46  YORK CITY PRINTERS RELOCATION FUND GRANT.
   47    (H)  THE COMMISSIONER OF FINANCE IS AUTHORIZED TO PROMULGATE RULES AND
   48  REGULATIONS AND TO PRESCRIBE FORMS NECESSARY TO EFFECTUATE THE  PURPOSES
   49  OF THIS SUBDIVISION.
   50    18.  (A)  IF  A CORPORATION IS A PARTNER IN AN UNINCORPORATED BUSINESS
   51  TAXABLE UNDER CHAPTER FIVE OF THIS TITLE, AND IS REQUIRED TO INCLUDE  IN
   52  ENTIRE  NET  INCOME  ITS  DISTRIBUTIVE  SHARE  OF INCOME, GAIN, LOSS AND
   53  DEDUCTIONS OF, OR GUARANTEED PAYMENTS FROM,  SUCH  UNINCORPORATED  BUSI-
   54  NESS, SUCH CORPORATION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
   55  BY  THIS  SUBCHAPTER  EQUAL  TO  THE LESSER OF THE AMOUNTS DETERMINED IN
   56  SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH:
       S. 4610                            43                            A. 6721
    1    (1) THE AMOUNT DETERMINED IN THIS SUBPARAGRAPH IS THE PRODUCT  OF  (I)
    2  THE  SUM  OF  (A)  THE  TAX IMPOSED BY CHAPTER FIVE OF THIS TITLE ON THE
    3  UNINCORPORATED BUSINESS FOR ITS TAXABLE YEAR ENDING WITHIN OR  WITH  THE
    4  TAXABLE  YEAR OF THE CORPORATION AND PAID BY THE UNINCORPORATED BUSINESS
    5  AND  (B) THE AMOUNT OF ANY CREDIT OR CREDITS TAKEN BY THE UNINCORPORATED
    6  BUSINESS UNDER SECTION 11-503 OF THIS TITLE (EXCEPT THE  CREDIT  ALLOWED
    7  BY SUBDIVISION (B) OF SECTION 11-503 OF THIS TITLE) FOR ITS TAXABLE YEAR
    8  ENDING WITHIN OR WITH THE TAXABLE YEAR OF THE CORPORATION, TO THE EXTENT
    9  THAT SUCH CREDITS DO NOT REDUCE SUCH UNINCORPORATED BUSINESS'S TAX BELOW
   10  ZERO,  AND  (II)  A FRACTION, THE NUMERATOR OF WHICH IS THE NET TOTAL OF
   11  THE  CORPORATION'S  DISTRIBUTIVE  SHARE  OF  INCOME,  GAIN,   LOSS   AND
   12  DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, THE UNINCORPORATED BUSINESS
   13  FOR SUCH TAXABLE YEAR, AND THE DENOMINATOR OF WHICH IS THE SUM, FOR SUCH
   14  TAXABLE YEAR, OF THE NET TOTAL DISTRIBUTIVE SHARES OF INCOME, GAIN, LOSS
   15  AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS TO, ALL PARTNERS IN THE UNIN-
   16  CORPORATED  BUSINESS  FOR  WHOM  OR  WHICH SUCH NET TOTAL (AS SEPARATELY
   17  DETERMINED FOR EACH PARTNER) IS GREATER THAN ZERO.
   18    (2) THE AMOUNT DETERMINED IN THIS SUBPARAGRAPH IS THE PRODUCT  OF  (I)
   19  THE  EXCESS OF (A) THE TAX COMPUTED UNDER CLAUSE (I) OF SUBPARAGRAPH ONE
   20  OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION,  WITHOUT  ALLOWANCE
   21  OF  ANY  CREDITS  ALLOWED BY THIS SECTION, OVER (B) THE TAX SO COMPUTED,
   22  DETERMINED AS IF THE CORPORATION HAD NO SUCH DISTRIBUTIVE SHARE OR GUAR-
   23  ANTEED PAYMENTS WITH RESPECT TO THE UNINCORPORATED BUSINESS, AND (II)  A
   24  FRACTION, THE NUMERATOR OF WHICH IS FOUR AND THE DENOMINATOR OF WHICH IS
   25  EIGHT AND EIGHTY-FIVE ONE HUNDREDTHS, PROVIDED HOWEVER, IN THE CASE OF A
   26  TAXPAYER  THAT  IS SUBJECT TO PARAGRAPH (J) OR (K) OF SUBDIVISION ONE OF
   27  THIS SECTION, SUCH DENOMINATOR SHALL BE THE RATE OF TAX AS DETERMINED BY
   28  SUCH PARAGRAPH (J) OR (K) FOR THE TAXABLE YEAR AND,  PROVIDED,  HOWEVER,
   29  THAT  THE  AMOUNTS  COMPUTED  IN SUBCLAUSES (A) AND (B) OF CLAUSE (I) OF
   30  THIS SUBPARAGRAPH SHALL BE COMPUTED WITH THE FOLLOWING MODIFICATIONS:
   31    (A) SUCH AMOUNTS SHALL BE COMPUTED WITHOUT  TAKING  INTO  ACCOUNT  ANY
   32  CARRYFORWARD  OR  CARRYBACK  BY THE PARTNER OF A NET OPERATING LOSS OR A
   33  PRIOR NET OPERATION LOSS CONVERSION SUBTRACTION;
   34    (B) IF, PRIOR TO TAKING INTO ACCOUNT ANY DISTRIBUTIVE SHARE OR GUARAN-
   35  TEED PAYMENTS FROM ANY UNINCORPORATED BUSINESS OR ANY NET OPERATING LOSS
   36  CARRYFORWARD OR CARRYBACK, THE ENTIRE NET INCOME OF THE PARTNER IS  LESS
   37  THAN ZERO, SUCH ENTIRE NET INCOME SHALL BE TREATED AS ZERO; AND
   38    (C)  IF  SUCH  PARTNER'S NET TOTAL DISTRIBUTIVE SHARE OF INCOME, GAIN,
   39  LOSS AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, ANY UNINCORPORATED
   40  BUSINESS IS LESS THAN ZERO, SUCH NET TOTAL SHALL BE TREATED AS ZERO. THE
   41  AMOUNT DETERMINED IN THIS SUBPARAGRAPH SHALL NOT BE LESS THAN ZERO.
   42    (B)(1) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN  PARAGRAPH  (A)  OF
   43  THIS SUBDIVISION, IN THE CASE OF A CORPORATION THAT, BEFORE THE APPLICA-
   44  TION OF THIS SUBDIVISION OR ANY OTHER CREDIT ALLOWED BY THIS SECTION, IS
   45  LIABLE  FOR  THE TAX ON BUSINESS INCOME UNDER CLAUSE (I) OF SUBPARAGRAPH
   46  ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, THE  CREDIT  OR
   47  THE SUM OF THE CREDITS THAT MAY BE TAKEN BY SUCH CORPORATION FOR A TAXA-
   48  BLE  YEAR UNDER THIS SUBDIVISION WITH RESPECT TO AN UNINCORPORATED BUSI-
   49  NESS OR UNINCORPORATED BUSINESSES IN WHICH IT IS  A  PARTNER  SHALL  NOT
   50  EXCEED  THE TAX SO COMPUTED, WITHOUT ALLOWANCE OF ANY CREDITS ALLOWED BY
   51  THIS SECTION, MULTIPLIED BY A FRACTION THE NUMERATOR OF  WHICH  IS  FOUR
   52  AND  THE  DENOMINATOR  OF  WHICH IS EIGHT AND EIGHTY-FIVE ONE-HUNDREDTHS
   53  PROVIDED, HOWEVER, IN THE CASE OF A TAXPAYER THAT IS  SUBJECT  TO  PARA-
   54  GRAPH  (J)  OR  (K) OF SUBDIVISION ONE OF THIS SECTION, SUCH DENOMINATOR
   55  SHALL BE THE RATE OF TAX AS DETERMINED BY SUCH PARAGRAPH (J) OR (K)  FOR
   56  THE  TAXABLE  YEAR.  IF THE CREDIT ALLOWED UNDER THIS SUBDIVISION OR THE
       S. 4610                            44                            A. 6721
    1  SUM OF SUCH CREDITS EXCEEDS THE PRODUCT OF SUCH TAX AND  SUCH  FRACTION,
    2  THE  AMOUNT  OF  THE EXCESS MAY BE CARRIED FORWARD, IN ORDER, TO EACH OF
    3  THE SEVEN IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO  THE  EXTENT  NOT
    4  PREVIOUSLY TAKEN, SHALL BE ALLOWED AS A CREDIT IN EACH OF SUCH YEARS. IN
    5  APPLYING THE PROVISIONS OF THE PRECEDING SENTENCE, THE CREDIT DETERMINED
    6  FOR  THE  TAXABLE  YEAR UNDER PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE
    7  TAKEN BEFORE TAKING ANY CREDIT CARRYFORWARD PURSUANT TO  THIS  PARAGRAPH
    8  AND  THE  CREDIT  CARRYFORWARD ATTRIBUTABLE TO THE EARLIEST TAXABLE YEAR
    9  SHALL BE TAKEN BEFORE TAKING A CREDIT  CARRYFORWARD  ATTRIBUTABLE  TO  A
   10  SUBSEQUENT TAXABLE YEAR.
   11    (2) INTENTIONALLY OMITTED.
   12    (2-A)  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SUBDIVISION TO THE
   13  CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR
   14  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND  FIFTEEN,  THE  CREDIT  SET
   15  FORTH  IN  SUBDIVISION  EIGHTEEN OF SECTION 11-604 OF THIS CHAPTER OR IN
   16  SECTION 11-643.8 OF THIS CHAPTER FOR A TAX PAID UNDER  CHAPTER  FIVE  OF
   17  THIS  TITLE  IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOU-
   18  SAND FIFTEEN, THE TAXPAYER MAY CARRY FORWARD THE UNUSED PORTION OF  SUCH
   19  CREDIT  UNDER THIS SUBDIVISION TO ANY TAXABLE YEAR BEGINNING ON OR AFTER
   20  JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO  THE  SAME
   21  EXTENT,  INCLUDING  THE SAME LIMITATIONS, THAT THE CREDIT, OR THE UNUSED
   22  PORTION THEREOF, WOULD HAVE BEEN ALLOWED TO  BE  CARRIED  FORWARD  UNDER
   23  SUBPARAGRAPH  ONE  OF  PARAGRAPH  (B) OF SUBDIVISION EIGHTEEN OF SECTION
   24  11-604 OF THIS CHAPTER OR PARAGRAPH ONE OF SUBDIVISION  (B)  OF  SECTION
   25  11-643.8  OF  THIS  CHAPTER,  AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO
   26  THOUSAND FOURTEEN, IF SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAY-
   27  ER FOR SUCH TAXABLE YEAR.
   28    (3) NO CREDIT ALLOWED UNDER THIS SUBDIVISION MAY BE TAKEN IN A TAXABLE
   29  YEAR BY A TAXPAYER THAT, IN THE ABSENCE OF SUCH CREDIT, WOULD BE  LIABLE
   30  FOR  THE TAX COMPUTED ON THE BASIS OF BUSINESS CAPITAL UNDER CLAUSE (II)
   31  OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS  SECTION
   32  OR THE FIXED-DOLLAR MINIMUM TAX UNDER CLAUSE (IV) OF SUBPARAGRAPH ONE OF
   33  PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
   34    (C)  FOR  CORPORATIONS THAT FILE A REPORT ON A COMBINED BASIS PURSUANT
   35  TO SECTION 11-654.3 OF THIS  SUBCHAPTER,  THE  CREDIT  ALLOWED  BY  THIS
   36  SUBDIVISION  SHALL BE COMPUTED AS IF THE COMBINED GROUP WERE THE PARTNER
   37  IN EACH UNINCORPORATED BUSINESS FROM WHICH ANY OF THE  MEMBERS  OF  SUCH
   38  GROUP  HAD A DISTRIBUTIVE SHARE OR GUARANTEED PAYMENTS, PROVIDED, HOWEV-
   39  ER, IF MORE THAN ONE MEMBER OF THE COMBINED GROUP IS A  PARTNER  IN  THE
   40  SAME  UNINCORPORATED  BUSINESS, FOR PURPOSES OF THE CALCULATION REQUIRED
   41  IN SUBPARAGRAPH ONE OF PARAGRAPH (A) OF THIS SUBDIVISION, THE  NUMERATOR
   42  OF  THE FRACTION DESCRIBED IN CLAUSE (II) OF SUCH SUBPARAGRAPH ONE SHALL
   43  BE THE SUM OF THE NET TOTAL DISTRIBUTIVE SHARES OF  INCOME,  GAIN,  LOSS
   44  AND  DEDUCTIONS  OF,  AND  GUARANTEED  PAYMENTS FROM, THE UNINCORPORATED
   45  BUSINESS OF ALL OF THE PARTNERS OF THE  UNINCORPORATED  BUSINESS  WITHIN
   46  THE  COMBINED  GROUP  FOR WHICH SUCH NET TOTAL (AS SEPARATELY DETERMINED
   47  FOR EACH PARTNER) IS GREATER THAN ZERO,  AND  THE  DENOMINATOR  OF  SUCH
   48  FRACTION  SHALL  BE  THE  SUM  OF  THE  NET TOTAL DISTRIBUTIVE SHARES OF
   49  INCOME, GAIN, LOSS AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM,  THE
   50  UNINCORPORATED  BUSINESS  OF ALL PARTNERS IN THE UNINCORPORATED BUSINESS
   51  FOR WHOM OR WHICH SUCH NET TOTAL  (AS  SEPARATELY  DETERMINED  FOR  EACH
   52  PARTNER) IS GREATER THAN ZERO.
   53    (D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, THE CREDIT
   54  ALLOWABLE  UNDER  THIS SUBDIVISION SHALL BE TAKEN PRIOR TO THE TAKING OF
   55  ANY OTHER CREDIT ALLOWED BY  THIS  SECTION.  NOTWITHSTANDING  ANY  OTHER
   56  PROVISION  OF THIS SUBCHAPTER, THE APPLICATION OF THIS SUBDIVISION SHALL
       S. 4610                            45                            A. 6721
    1  NOT CHANGE THE BASIS ON WHICH THE TAXPAYER'S TAX IS COMPUTED UNDER PARA-
    2  GRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
    3    19.  LOWER  MANHATTAN RELOCATION AND EMPLOYMENT ASSISTANCE CREDIT. (A)
    4  IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A TAXPAYER THAT
    5  HAS OBTAINED THE CERTIFICATIONS REQUIRED BY CHAPTER SIX-C OF TITLE TWEN-
    6  TY-TWO OF THIS CODE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
    7  THIS SUBCHAPTER. THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED
    8  BY MULTIPLYING THREE THOUSAND DOLLARS BY THE NUMBER OF  ELIGIBLE  AGGRE-
    9  GATE  EMPLOYMENT  SHARES  MAINTAINED  BY THE TAXPAYER DURING THE TAXABLE
   10  YEAR WITH RESPECT TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER  HAS  RELO-
   11  CATED;  PROVIDED, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELO-
   12  CATION OF ANY RETAIL ACTIVITY OR HOTEL SERVICES; PROVIDED, FURTHER, THAT
   13  NO CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION TO ANY  TAXPAYER  THAT
   14  HAS  ELECTED  PURSUANT TO SUBDIVISION (D) OF SECTION 22-624 OF THIS CODE
   15  TO TAKE SUCH CREDIT AGAINST A GROSS RECEIPTS TAX IMPOSED  UNDER  CHAPTER
   16  ELEVEN  OF  THIS  TITLE.  FOR  PURPOSES  OF  THIS SUBDIVISION, THE TERMS
   17  "ELIGIBLE AGGREGATE EMPLOYMENT SHARES," "ELIGIBLE PREMISES," "RELOCATE,"
   18  "RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEANINGS  ASCRIBED
   19  BY SECTION 22-623 OF THIS CODE.
   20    (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE
   21  AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES
   22  TO  WHICH  THE  TAXPAYER  HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE
   23  YEAR OF THE RELOCATION AND FOR ANY  OF  THE  TWELVE  SUCCEEDING  TAXABLE
   24  YEARS  DURING  WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED
   25  WITH RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED  FOR
   26  THE  TWELFTH  SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING
   27  THE NUMBER OF  ELIGIBLE  AGGREGATE  EMPLOYMENT  SHARES  MAINTAINED  WITH
   28  RESPECT  TO  ELIGIBLE PREMISES IN THE TWELFTH SUCCEEDING TAXABLE YEAR BY
   29  THE LESSER OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS  SUCH  NUMBER
   30  OF  DAYS  IN  THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE
   31  TAXPAYER MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE  TAXA-
   32  BLE  YEAR  OF  RELOCATION  AND THE DENOMINATOR OF WHICH IS THE NUMBER OF
   33  DAYS IN SUCH TWELFTH TAXABLE YEAR DURING WHICH SUCH  ELIGIBLE  AGGREGATE
   34  EMPLOYMENT SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES.
   35    (C)  EXCEPT  AS  PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVISION, IF THE
   36  AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE
   37  YEAR  EXCEEDS  THE  TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED
   38  OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO
   39  THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM  THE  TAXPAY-
   40  ER'S TAX FOR SUCH YEARS.
   41    (D)  THE  CREDITS  ALLOWED  UNDER  THIS  SUBDIVISION,  AGAINST THE TAX
   42  IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION  AND  FOR
   43  THE  FOUR  TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH
   44  RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO
   45  BE CREDITED OR  REFUNDED,  WITHOUT  INTEREST,  IN  ACCORDANCE  WITH  THE
   46  PROVISIONS  OF  SECTION  11-677 OF THIS CHAPTER. FOR SUCH TAXABLE YEARS,
   47  SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY SUCCEED-
   48  ING TAXABLE YEAR.
   49    (E) THE CREDIT ALLOWABLE UNDER  THIS  SUBDIVISION  SHALL  BE  DEDUCTED
   50  AFTER THE CREDITS ALLOWED BY SUBDIVISIONS SEVENTEEN AND EIGHTEEN OF THIS
   51  SECTION,  BUT PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS
   52  SECTION.
   53    (F) NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  SUBDIVISION  TO  THE
   54  CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS OBTAINED, PURSUANT TO CHAP-
   55  TER SIX-C OF TITLE TWENTY-TWO OF THIS CODE, A CERTIFICATION OF ELIGIBIL-
   56  ITY  AND HAS RECEIVED, IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST,
       S. 4610                            46                            A. 6721
    1  TWO THOUSAND FIFTEEN, THE CREDIT SET FORTH IN  SUBDIVISION  NINETEEN  OF
    2  SECTION  11-604  OF THIS CHAPTER OR SECTION 11-643.9 OF THIS CHAPTER FOR
    3  THE RELOCATION OF AN ELIGIBLE BUSINESS, A CREDIT SHALL BE ALLOWED  UNDER
    4  THIS  SUBDIVISION  TO  THE TAXPAYER FOR ANY TAXABLE YEAR BEGINNING ON OR
    5  AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO  THE
    6  SAME  EXTENT  THAT  A  CREDIT  WOULD HAVE BEEN ALLOWED UNDER SUBDIVISION
    7  NINETEEN OF SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.9  OF  THIS
    8  CHAPTER,  AS  IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN,
    9  IF SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH  TAXABLE
   10  YEAR.
   11    20. INTENTIONALLY OMITTED.
   12    21.  BIOTECHNOLOGY  CREDIT.  (A)  (1)  A  TAXPAYER THAT IS A QUALIFIED
   13  EMERGING TECHNOLOGY COMPANY, ENGAGES IN BIOTECHNOLOGIES, AND  MEETS  THE
   14  ELIGIBILITY  REQUIREMENTS OF THIS SUBDIVISION, SHALL BE ALLOWED A CREDIT
   15  AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER. THE AMOUNT OF  CREDIT  SHALL
   16  BE  EQUAL  TO  THE  SUM OF THE AMOUNTS SPECIFIED IN SUBPARAGRAPHS THREE,
   17  FOUR AND FIVE OF THIS PARAGRAPH, SUBJECT TO THE LIMITATIONS IN  SUBPARA-
   18  GRAPH SEVEN OF THIS PARAGRAPH AND PARAGRAPH (B) OF THIS SUBDIVISION. FOR
   19  THE  PURPOSES OF THIS SUBDIVISION, "QUALIFIED EMERGING TECHNOLOGY COMPA-
   20  NY" SHALL MEAN A COMPANY LOCATED IN THE CITY: (I) WHOSE PRIMARY PRODUCTS
   21  OR SERVICES ARE CLASSIFIED AS  EMERGING  TECHNOLOGIES  AND  WHOSE  TOTAL
   22  ANNUAL  PRODUCT SALES ARE TEN MILLION DOLLARS OR LESS; OR (II) A COMPANY
   23  THAT HAS RESEARCH AND DEVELOPMENT ACTIVITIES IN THE CITY AND WHOSE RATIO
   24  OF RESEARCH AND DEVELOPMENT FUNDS TO NET SALES  EQUALS  OR  EXCEEDS  THE
   25  AVERAGE RATIO FOR ALL SURVEYED COMPANIES CLASSIFIED AS DETERMINED BY THE
   26  NATIONAL  SCIENCE  FOUNDATION  IN THE MOST RECENT PUBLISHED RESULTS FROM
   27  ITS SURVEY OF INDUSTRY  RESEARCH  AND  DEVELOPMENT,  OR  ANY  COMPARABLE
   28  SUCCESSOR  SURVEY  AS DETERMINED BY THE DEPARTMENT OF FINANCE, AND WHOSE
   29  TOTAL ANNUAL PRODUCT SALES ARE TEN MILLION  DOLLARS  OR  LESS.  FOR  THE
   30  PURPOSES OF THIS SUBDIVISION, THE DEFINITION OF RESEARCH AND DEVELOPMENT
   31  FUNDS  SHALL BE THE SAME AS THAT USED BY THE NATIONAL SCIENCE FOUNDATION
   32  IN THE AFOREMENTIONED SURVEY. FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,
   33  "BIOTECHNOLOGIES"  SHALL  MEAN THE TECHNOLOGIES INVOLVING THE SCIENTIFIC
   34  MANIPULATION OF LIVING ORGANISMS, ESPECIALLY AT THE MOLECULAR AND/OR THE
   35  SUB-MOLECULAR GENETIC LEVEL, TO PRODUCE PRODUCTS CONDUCIVE TO  IMPROVING
   36  THE  LIVES AND HEALTH OF PLANTS, ANIMALS, AND HUMANS; AND THE ASSOCIATED
   37  SCIENTIFIC  RESEARCH,  PHARMACOLOGICAL,  MECHANICAL,  AND  COMPUTATIONAL
   38  APPLICATIONS  AND SERVICES CONNECTED WITH THESE IMPROVEMENTS. ACTIVITIES
   39  INCLUDED WITH SUCH APPLICATIONS AND SERVICES SHALL INCLUDE, BUT  NOT  BE
   40  LIMITED TO, ALTERNATIVE MRNA SPLICING, DNA SEQUENCE AMPLIFICATION, ANTI-
   41  GENETIC  SWITCHING BIOAUGMENTATION, BIOENRICHMENT, BIOREMEDIATION, CHRO-
   42  MOSOME WALKING, CYTOGENETIC ENGINEERING, DNA DIAGNOSIS,  FINGERPRINTING,
   43  AND  SEQUENCING,  ELECTROPORATION,  GENE TRANSLOCATION, GENETIC MAPPING,
   44  SITE-DIRECTED MUTAGENESIS, BIO-TRANSDUCTION, BIO-MECHANICAL  AND  BIO-E-
   45  LECTRICAL ENGINEERING, AND BIO-INFORMATICS.
   46    (2)  AN  ELIGIBLE  TAXPAYER  SHALL  (I)  HAVE NO MORE THAN ONE HUNDRED
   47  FULL-TIME EMPLOYEES, OF WHICH AT LEAST SEVENTY-FIVE PERCENT ARE EMPLOYED
   48  IN THE CITY, (II) HAVE A RATIO OF RESEARCH AND DEVELOPMENT FUNDS TO  NET
   49  SALES,  AS REFERRED TO IN SECTION THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC
   50  AUTHORITIES LAW, WHICH EQUALS OR EXCEEDS SIX PERCENT DURING THE CALENDAR
   51  YEAR ENDING WITH OR WITHIN THE TAXABLE YEAR  FOR  WHICH  THE  CREDIT  IS
   52  CLAIMED, AND (III) HAVE GROSS REVENUES, ALONG WITH THE GROSS REVENUES OF
   53  ITS  "AFFILIATES"  AND  "RELATED  MEMBERS"  NOT EXCEEDING TWENTY MILLION
   54  DOLLARS FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING  THE  CALENDAR  YEAR
   55  ENDING  WITH OR WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
   56  FOR THE PURPOSES OF THIS  SUBDIVISION,  "AFFILIATES"  SHALL  MEAN  THOSE
       S. 4610                            47                            A. 6721
    1  CORPORATIONS  THAT  ARE MEMBERS OF THE SAME AFFILIATED GROUP (AS DEFINED
    2  IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL  REVENUE  CODE)  AS  THE
    3  TAXPAYER.  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,  THE TERM "RELATED
    4  MEMBERS" SHALL MEAN A PERSON, CORPORATION, OR OTHER ENTITY, INCLUDING AN
    5  ENTITY  THAT  IS  TREATED AS A PARTNERSHIP OR OTHER PASS-THROUGH VEHICLE
    6  FOR PURPOSES OF FEDERAL TAXATION, WHETHER SUCH  PERSON,  CORPORATION  OR
    7  ENTITY IS A TAXPAYER OR NOT, WHERE ONE SUCH PERSON, CORPORATION OR ENTI-
    8  TY,  OR  SET  OF  RELATED PERSONS, CORPORATIONS OR ENTITIES, DIRECTLY OR
    9  INDIRECTLY OWNS OR CONTROLS A CONTROLLING INTEREST  IN  ANOTHER  ENTITY.
   10  SUCH  ENTITY  OR ENTITIES MAY INCLUDE ALL TAXPAYERS UNDER CHAPTERS FIVE,
   11  ELEVEN AND SEVENTEEN OF THIS TITLE, AND THIS SUBCHAPTER AND  SUBCHAPTERS
   12  TWO AND THREE OF THIS CHAPTER. A CONTROLLING INTEREST SHALL MEAN, IN THE
   13  CASE  OF  A  CORPORATION,  EITHER  THIRTY  PERCENT  OR MORE OF THE TOTAL
   14  COMBINED VOTING POWER OF ALL CLASSES OF STOCK OF  SUCH  CORPORATION,  OR
   15  THIRTY PERCENT OR MORE OF THE CAPITAL, PROFITS OR BENEFICIAL INTEREST IN
   16  SUCH VOTING STOCK OF SUCH CORPORATION; AND IN THE CASE OF A PARTNERSHIP,
   17  ASSOCIATION,  TRUST OR OTHER ENTITY, THIRTY PERCENT OR MORE OF THE CAPI-
   18  TAL, PROFITS OR BENEFICIAL INTEREST IN  SUCH  PARTNERSHIP,  ASSOCIATION,
   19  TRUST OR OTHER ENTITY.
   20    (3)  AN  ELIGIBLE  TAXPAYER SHALL BE ALLOWED A CREDIT FOR EIGHTEEN PER
   21  CENTUM OF THE COST OR OTHER BASIS FOR FEDERAL  INCOME  TAX  PURPOSES  OF
   22  RESEARCH  AND  DEVELOPMENT  PROPERTY THAT IS ACQUIRED BY THE TAXPAYER BY
   23  PURCHASE  AS  DEFINED  IN  SUBSECTION  (D)  OF   SECTION   ONE   HUNDRED
   24  SEVENTY-NINE  OF  THE INTERNAL REVENUE CODE AND PLACED IN SERVICE DURING
   25  THE CALENDAR YEAR THAT ENDS WITH OR WITHIN THE TAXABLE  YEAR  FOR  WHICH
   26  THE  CREDIT  IS  CLAIMED.    PROVIDED, HOWEVER, FOR THE PURPOSES OF THIS
   27  PARAGRAPH ONLY, AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR  SUCH
   28  PERCENTAGE  OF  THE  (I)  COST  OR  OTHER  BASIS  FOR FEDERAL INCOME TAX
   29  PURPOSES FOR PROPERTY USED IN THE TESTING OR INSPECTION OF MATERIALS AND
   30  PRODUCTS, (II) THE COSTS OR EXPENSES ASSOCIATED WITH QUALITY CONTROL  OF
   31  THE  RESEARCH AND DEVELOPMENT, (III) FEES FOR USE OF SOPHISTICATED TECH-
   32  NOLOGY FACILITIES AND PROCESSES, AND (IV) FEES  FOR  THE  PRODUCTION  OR
   33  EVENTUAL  COMMERCIAL  DISTRIBUTION  OF  MATERIALS AND PRODUCTS RESULTING
   34  FROM THE ACTIVITIES OF AN ELIGIBLE TAXPAYER AS LONG AS  SUCH  ACTIVITIES
   35  FALL  UNDER  ACTIVITIES RELATING TO BIOTECHNOLOGIES. THE COSTS, EXPENSES
   36  AND OTHER AMOUNTS FOR WHICH A CREDIT IS ALLOWED AND CLAIMED  UNDER  THIS
   37  PARAGRAPH  SHALL  NOT  BE  USED  IN  THE CALCULATION OF ANY OTHER CREDIT
   38  ALLOWED UNDER THIS SUBCHAPTER. FOR THE  PURPOSES  OF  THIS  SUBDIVISION,
   39  "RESEARCH AND DEVELOPMENT PROPERTY" SHALL MEAN PROPERTY THAT IS USED FOR
   40  PURPOSES  OF  RESEARCH AND DEVELOPMENT IN THE EXPERIMENTAL OR LABORATORY
   41  SENSE. SUCH PURPOSES SHALL NOT BE DEEMED TO INCLUDE THE ORDINARY TESTING
   42  OR INSPECTION OF MATERIALS OR PRODUCTS FOR QUALITY  CONTROL,  EFFICIENCY
   43  SURVEYS,  MANAGEMENT STUDIES, CONSUMER SURVEYS, ADVERTISING, PROMOTIONS,
   44  OR RESEARCH IN CONNECTION WITH LITERARY, HISTORICAL OR SIMILAR PROJECTS.
   45    (4) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR NINE PER CENTUM
   46  OF QUALIFIED RESEARCH EXPENSES PAID OR INCURRED BY THE TAXPAYER  IN  THE
   47  CALENDAR  YEAR  THAT  ENDS WITH OR WITHIN THE TAXABLE YEAR FOR WHICH THE
   48  CREDIT IS CLAIMED. FOR THE  PURPOSES  OF  THIS  SUBDIVISION,  "QUALIFIED
   49  RESEARCH EXPENSES" SHALL MEAN EXPENSES ASSOCIATED WITH IN-HOUSE RESEARCH
   50  AND  PROCESSES,  AND  COSTS  ASSOCIATED  WITH  THE  DISSEMINATION OF THE
   51  RESULTS OF THE PRODUCTS THAT DIRECTLY  RESULT  FROM  SUCH  RESEARCH  AND
   52  DEVELOPMENT  ACTIVITIES;  PROVIDED,  HOWEVER,  THAT SUCH COSTS SHALL NOT
   53  INCLUDE ADVERTISING OR PROMOTION THROUGH MEDIA. IN ADDITION, COSTS ASSO-
   54  CIATED WITH THE PREPARATION OF PATENT APPLICATIONS,  PATENT  APPLICATION
   55  FILING FEES, PATENT RESEARCH FEES, PATENT EXAMINATIONS FEES, PATENT POST
   56  ALLOWANCE  FEES, PATENT MAINTENANCE FEES, AND GRANT APPLICATION EXPENSES
       S. 4610                            48                            A. 6721
    1  AND FEES SHALL QUALIFY AS QUALIFIED RESEARCH EXPENSES. IN NO CASE  SHALL
    2  THE  CREDIT  ALLOWED UNDER THIS SUBPARAGRAPH APPLY TO EXPENSES FOR LITI-
    3  GATION OR  THE  CHALLENGE  OF  ANOTHER  ENTITY'S  INTELLECTUAL  PROPERTY
    4  RIGHTS, OR FOR CONTRACT EXPENSES INVOLVING OUTSIDE PAID CONSULTANTS.
    5    (5)  AN  ELIGIBLE  TAXPAYER  SHALL  BE  ALLOWED A CREDIT FOR QUALIFIED
    6  HIGH-TECHNOLOGY TRAINING EXPENDITURES AS DESCRIBED IN THIS  SUBPARAGRAPH
    7  PAID OR INCURRED BY THE TAXPAYER DURING THE CALENDAR YEAR THAT ENDS WITH
    8  OR WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
    9    (I)  THE AMOUNT OF CREDIT SHALL BE ONE HUNDRED PERCENT OF THE TRAINING
   10  EXPENSES DESCRIBED IN CLAUSE (III) OF THIS SUBPARAGRAPH,  SUBJECT  TO  A
   11  LIMITATION OF NO MORE THAN FOUR THOUSAND DOLLARS PER EMPLOYEE PER CALEN-
   12  DAR YEAR FOR SUCH TRAINING EXPENSES.
   13    (II)  QUALIFIED  HIGH-TECHNOLOGY  TRAINING  SHALL  INCLUDE A COURSE OR
   14  COURSES TAKEN AND SATISFACTORILY COMPLETED BY AN EMPLOYEE OF THE TAXPAY-
   15  ER AT AN ACCREDITED, DEGREE GRANTING POST-SECONDARY COLLEGE OR UNIVERSI-
   16  TY IN THE CITY THAT (A) DIRECTLY RELATES  TO  BIOTECHNOLOGY  ACTIVITIES,
   17  AND  (B)  IS INTENDED TO UPGRADE, RETRAIN OR IMPROVE THE PRODUCTIVITY OR
   18  THEORETICAL AWARENESS OF  THE  EMPLOYEE.  SUCH  COURSE  OR  COURSES  MAY
   19  INCLUDE,  BUT  ARE  NOT  LIMITED TO, INSTRUCTION OR RESEARCH RELATING TO
   20  TECHNIQUES, META, MACRO, OR  MICRO-THEORETICAL  OR  PRACTICAL  KNOWLEDGE
   21  BASES OR FRONTIERS, OR ETHICAL CONCERNS RELATED TO SUCH ACTIVITIES. SUCH
   22  COURSE  OR  COURSES  SHALL  NOT  INCLUDE  CLASSES  IN THE DISCIPLINES OF
   23  MANAGEMENT, ACCOUNTING OR THE LAW OR ANY CLASS DESIGNED TO  FULFILL  THE
   24  DISCIPLINE  SPECIFIC  REQUIREMENTS OF A DEGREE PROGRAM AT THE ASSOCIATE,
   25  BACCALAUREATE, GRADUATE OR  PROFESSIONAL  LEVEL  OF  THESE  DISCIPLINES.
   26  SATISFACTORY  COMPLETION  OF  A COURSE OR COURSES SHALL MEAN THE EARNING
   27  AND GRANTING OF CREDIT OR EQUIVALENT UNIT,  WITH  THE  ATTAINMENT  OF  A
   28  GRADE OF "B" OR HIGHER IN A GRADUATE LEVEL COURSE OR COURSES, A GRADE OF
   29  "C"  OR HIGHER IN AN UNDERGRADUATE LEVEL COURSE OR COURSES, OR A SIMILAR
   30  MEASURE OF COMPETENCY FOR A COURSE THAT IS NOT MEASURED ACCORDING  TO  A
   31  STANDARD GRADE FORMULA.
   32    (III)  QUALIFIED  HIGH-TECHNOLOGY  TRAINING EXPENDITURES SHALL INCLUDE
   33  EXPENSES FOR TUITION AND MANDATORY FEES, SOFTWARE REQUIRED BY THE INSTI-
   34  TUTION, FEES FOR TEXTBOOKS OR OTHER LITERATURE REQUIRED BY THE  INSTITU-
   35  TION  OFFERING  THE COURSE OR COURSES, MINUS APPLICABLE SCHOLARSHIPS AND
   36  TUITION OR FEE WAIVERS NOT GRANTED BY THE TAXPAYER OR ANY AFFILIATES  OF
   37  THE  TAXPAYER,  THAT  ARE  PAID OR REIMBURSED BY THE TAXPAYER. QUALIFIED
   38  HIGH-TECHNOLOGY EXPENDITURES DO NOT INCLUDE  ROOM  AND  BOARD,  COMPUTER
   39  HARDWARE OR SOFTWARE NOT SPECIFICALLY ASSIGNED FOR SUCH COURSE OR COURS-
   40  ES,  LATE-CHARGES,  FINES  OR MEMBERSHIP DUES AND SIMILAR EXPENSES. SUCH
   41  QUALIFIED EXPENDITURES SHALL NOT BE ELIGIBLE FOR THE CREDIT PROVIDED  BY
   42  THIS SECTION UNLESS THE EMPLOYEE FOR WHOM THE EXPENDITURES ARE DISBURSED
   43  IS CONTINUOUSLY EMPLOYED BY THE TAXPAYER IN A FULL-TIME, FULL-YEAR POSI-
   44  TION  PRIMARILY  LOCATED  AT  A QUALIFIED SITE DURING THE PERIOD OF SUCH
   45  COURSEWORK AND LASTING THROUGH AT LEAST ONE HUNDRED  EIGHTY  DAYS  AFTER
   46  THE  SATISFACTORY  COMPLETION  OF  THE QUALIFYING COURSE-WORK. QUALIFIED
   47  HIGH-TECHNOLOGY TRAINING EXPENDITURES SHALL  NOT  INCLUDE  EXPENSES  FOR
   48  IN-HOUSE  OR SHARED TRAINING OUTSIDE OF A CITY HIGHER EDUCATION INSTITU-
   49  TION OR THE USE OF  CONSULTANTS  OUTSIDE  OF  CREDIT  GRANTING  COURSES,
   50  WHETHER SUCH CONSULTANTS FUNCTION INSIDE OF SUCH HIGHER EDUCATION INSTI-
   51  TUTION OR NOT.
   52    (IV)  IF  A  TAXPAYER  RELOCATES  FROM  AN ACADEMIC BUSINESS INCUBATOR
   53  FACILITY PARTNERED WITH AN ACCREDITED POST-SECONDARY EDUCATION  INSTITU-
   54  TION  LOCATED WITHIN THE CITY, WHICH PROVIDES SPACE AND BUSINESS SUPPORT
   55  SERVICES TO TAXPAYERS, TO ANOTHER SITE,  THE  CREDIT  PROVIDED  IN  THIS
   56  SUBDIVISION  SHALL  BE ALLOWED FOR ALL EXPENDITURES REFERENCED IN CLAUSE
       S. 4610                            49                            A. 6721
    1  (III) OF THIS SUBPARAGRAPH PAID OR INCURRED IN THE TWO PRECEDING  CALEN-
    2  DAR  YEARS  THAT  THE TAXPAYER WAS LOCATED IN SUCH AN INCUBATOR FACILITY
    3  FOR EMPLOYEES OF THE TAXPAYER WHO  ALSO  RELOCATE  FROM  SAID  INCUBATOR
    4  FACILITY TO SUCH CITY SITE AND ARE EMPLOYED AND PRIMARILY LOCATED BY THE
    5  TAXPAYER  IN  THE  CITY.    SUCH EXPENDITURES IN THE TWO PRECEDING YEARS
    6  SHALL BE ADDED TO  THE  AMOUNTS  OTHERWISE  QUALIFYING  FOR  THE  CREDIT
    7  PROVIDED  BY THIS SUBDIVISION THAT WERE PAID OR INCURRED IN THE CALENDAR
    8  YEAR THAT THE TAXPAYER RELOCATES FROM SUCH A FACILITY. SUCH EXPENDITURES
    9  SHALL INCLUDE EXPENSES PAID FOR AN ELIGIBLE EMPLOYEE WHO IS A FULL-TIME,
   10  FULL-YEAR EMPLOYEE OF SAID TAXPAYER DURING THE CALENDAR  YEAR  THAT  THE
   11  TAXPAYER  RELOCATED  FROM AN INCUBATOR FACILITY NOTWITHSTANDING (A) THAT
   12  SUCH EMPLOYEE WAS EMPLOYED FULL OR PART-TIME AS AN OFFICER, STAFF-PERSON
   13  OR PAID INTERN OF THE TAXPAYER WHEN SUCH TAXPAYER WAS  LOCATED  AT  SUCH
   14  INCUBATOR  FACILITY  OR  (B)  THAT  SUCH  EMPLOYEE  WAS NOT CONTINUOUSLY
   15  EMPLOYED WHEN SUCH TAXPAYER WAS LOCATED AT THE INCUBATOR FACILITY DURING
   16  THE ONE HUNDRED EIGHTY DAY PERIOD REFERRED TO IN CLAUSE  (III)  OF  THIS
   17  SUBPARAGRAPH, PROVIDED SUCH EMPLOYEE RECEIVED WAGES OR EQUIVALENT INCOME
   18  FOR  AT  LEAST  SEVEN  HUNDRED  FIFTY HOURS DURING ANY TWENTY-FOUR MONTH
   19  PERIOD WHEN THE TAXPAYER WAS LOCATED AT  THE  INCUBATOR  FACILITY.  SUCH
   20  EXPENDITURES  SHALL  INCLUDE  PAYMENTS  MADE  TO SUCH EMPLOYEE AFTER THE
   21  TAXPAYER HAS RELOCATED FROM THE INCUBATOR FACILITY FOR QUALIFIED EXPEND-
   22  ITURES IF SUCH PAYMENTS ARE MADE TO REIMBURSE AN EMPLOYEE  FOR  EXPENDI-
   23  TURES  PAID  BY THE EMPLOYEE DURING SUCH TWO PRECEDING YEARS. THE CREDIT
   24  PROVIDED UNDER THIS PARAGRAPH SHALL BE ALLOWED IN ANY TAXABLE YEAR  THAT
   25  THE TAXPAYER QUALIFIES AS AN ELIGIBLE TAXPAYER.
   26    (V)  FOR  PURPOSES  OF THIS SUBDIVISION THE TERM "ACADEMIC YEAR" SHALL
   27  MEAN THE ANNUAL PERIOD  OF  SESSIONS  OF  A  POST-SECONDARY  COLLEGE  OR
   28  UNIVERSITY.
   29    (VI) FOR THE PURPOSES OF THIS SUBDIVISION THE TERM "ACADEMIC INCUBATOR
   30  FACILITY"  SHALL  MEAN  A  FACILITY  PROVIDING LOW-COST SPACE, TECHNICAL
   31  ASSISTANCE, SUPPORT SERVICES AND  EDUCATIONAL  OPPORTUNITIES,  INCLUDING
   32  BUT  NOT  LIMITED  TO  CENTRAL  SERVICES  PROVIDED BY THE MANAGER OF THE
   33  FACILITY TO THE TENANTS OF THE FACILITY, TO AN  ENTITY  LOCATED  IN  THE
   34  CITY.  SUCH  ENTITY'S  PRIMARY  ACTIVITY MUST BE IN BIOTECHNOLOGIES, AND
   35  SUCH ENTITY MUST BE IN THE FORMATIVE STAGE OF DEVELOPMENT. THE  ACADEMIC
   36  INCUBATOR  FACILITY  AND  THE  ENTITY  MUST  ACT  IN PARTNERSHIP WITH AN
   37  ACCREDITED POST-SECONDARY COLLEGE OR UNIVERSITY LOCATED IN THE CITY.  AN
   38  ACADEMIC  INCUBATOR FACILITY'S MISSION SHALL BE TO PROMOTE JOB CREATION,
   39  ENTREPRENEURSHIP, TECHNOLOGY TRANSFER, AND PROVIDE SUPPORT  SERVICES  TO
   40  INCUBATOR  TENANTS,  INCLUDING,  BUT  NOT LIMITED TO, BUSINESS PLANNING,
   41  MANAGEMENT  ASSISTANCE,  FINANCIAL-PACKAGING,  LINKAGES   TO   FINANCING
   42  SERVICES, AND COORDINATING WITH OTHER SOURCES OF ASSISTANCE.
   43    (6)  AN ELIGIBLE TAXPAYER MAY CLAIM CREDITS UNDER THIS SUBDIVISION FOR
   44  THREE CONSECUTIVE YEARS. IN NO CASE SHALL THE  CREDIT  ALLOWED  BY  THIS
   45  SUBDIVISION  TO A TAXPAYER EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS PER
   46  CALENDAR YEAR FOR ELIGIBLE EXPENDITURES MADE DURING SUCH CALENDAR YEAR.
   47    (7) THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
   48  SHALL  NOT  REDUCE  THE  TAX  DUE  FOR SUCH YEAR TO LESS THAN THE AMOUNT
   49  PRESCRIBED IN CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI-
   50  VISION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT  OF  CREDIT
   51  ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
   52  SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN  SUCH  TAXABLE  YEAR
   53  SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
   54  ACCORDANCE WITH THE  PROVISIONS  OF  SECTION  11-677  OF  THIS  CHAPTER;
   55  PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE PROVISIONS OF SECTION 11-679
   56  OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON.
       S. 4610                            50                            A. 6721
    1    (8)  THE  CREDIT  ALLOWED UNDER THIS SUBDIVISION SHALL ONLY BE ALLOWED
    2  FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN.
    3    (B)  (1) THE PERCENTAGE OF THE CREDIT ALLOWED TO A TAXPAYER UNDER THIS
    4  SUBDIVISION IN ANY CALENDAR YEAR SHALL BE:
    5    (I) IF THE AVERAGE NUMBER OF  INDIVIDUALS  EMPLOYED  FULL  TIME  BY  A
    6  TAXPAYER  IN  THE CITY DURING THE CALENDAR YEAR THAT ENDS WITH OR WITHIN
    7  THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS AT LEAST ONE HUNDRED
    8  FIVE PERCENT  OF  THE  TAXPAYER'S  BASE  YEAR  EMPLOYMENT,  ONE  HUNDRED
    9  PERCENT,  EXCEPT  THAT  IN  NO  CASE SHALL THE CREDIT ALLOWED UNDER THIS
   10  CLAUSE EXCEED TWO HUNDRED FIFTY  THOUSAND  DOLLARS  PER  CALENDAR  YEAR.
   11  PROVIDED,  HOWEVER, THE INCREASE IN BASE YEAR EMPLOYMENT SHALL NOT APPLY
   12  TO A TAXPAYER ALLOWED A CREDIT UNDER  THIS  SUBDIVISION  THAT  WAS,  (A)
   13  LOCATED OUTSIDE OF THE CITY, (B) NOT DOING BUSINESS, OR (C) DID NOT HAVE
   14  ANY  EMPLOYEES,  IN THE YEAR PRECEDING THE FIRST YEAR THAT THE CREDIT IS
   15  CLAIMED. ANY SUCH TAXPAYER SHALL BE ELIGIBLE FOR ONE HUNDRED PERCENT  OF
   16  THE  CREDIT  FOR  THE  FIRST  CALENDAR YEAR THAT ENDS WITH OR WITHIN THE
   17  TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED, PROVIDED THAT SUCH TAXPAY-
   18  ER LOCATES IN THE CITY, BEGINS DOING  BUSINESS  IN  THE  CITY  OR  HIRES
   19  EMPLOYEES  IN THE CITY DURING SUCH CALENDAR YEAR AND IS OTHERWISE ELIGI-
   20  BLE FOR THE CREDIT PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION.
   21    (II) IF THE AVERAGE NUMBER OF INDIVIDUALS  EMPLOYED  FULL  TIME  BY  A
   22  TAXPAYER  IN  THE CITY DURING THE CALENDAR YEAR THAT ENDS WITH OR WITHIN
   23  THE TAXABLE YEAR FOR WHICH THE  CREDIT  IS  CLAIMED  IS  LESS  THAN  ONE
   24  HUNDRED  FIVE  PERCENT  OF  THE  TAXPAYER'S  BASE YEAR EMPLOYMENT, FIFTY
   25  PERCENT, EXCEPT THAT IN NO CASE SHALL  THE  CREDIT  ALLOWED  UNDER  THIS
   26  CLAUSE  EXCEED  ONE  HUNDRED  TWENTY-FIVE  THOUSAND DOLLARS PER CALENDAR
   27  YEAR. IN THE CASE OF AN ENTITY LOCATED IN THE CITY RECEIVING  SPACE  AND
   28  BUSINESS  SUPPORT  SERVICES  BY  AN  ACADEMIC INCUBATOR FACILITY, IF THE
   29  AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL TIME BY SUCH ENTITY  IN  THE
   30  CITY  DURING  THE  CALENDAR  YEAR IN WHICH THE CREDIT ALLOWED UNDER THIS
   31  SUBDIVISION IS CLAIMED IS LESS THAN ONE  HUNDRED  FIVE  PERCENT  OF  THE
   32  TAXPAYER'S BASE YEAR EMPLOYMENT, THE CREDIT SHALL BE ZERO.
   33    (2) FOR THE PURPOSES OF THIS SUBDIVISION, "BASE YEAR EMPLOYMENT" MEANS
   34  THE  AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN
   35  THE CITY IN THE YEAR PRECEDING THE FIRST CALENDAR YEAR THAT ENDS WITH OR
   36  WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
   37    (3) FOR THE PURPOSES OF THIS SUBDIVISION, AVERAGE NUMBER  OF  INDIVID-
   38  UALS  EMPLOYED  FULL-TIME SHALL BE COMPUTED BY ADDING THE NUMBER OF SUCH
   39  INDIVIDUALS EMPLOYED BY THE TAXPAYER AT THE END OF EACH  QUARTER  DURING
   40  EACH  CALENDAR  YEAR  OR OTHER APPLICABLE PERIOD AND DIVIDING THE SUM SO
   41  OBTAINED BY THE NUMBER OF SUCH QUARTERS OCCURRING WITHIN  SUCH  CALENDAR
   42  YEAR OR OTHER APPLICABLE PERIOD.
   43    (4)  NOTWITHSTANDING ANYTHING CONTAINED IN THIS SECTION TO THE CONTRA-
   44  RY, THE CREDIT PROVIDED BY THIS SUBDIVISION SHALL BE ALLOWED AGAINST THE
   45  TAXES AUTHORIZED BY THIS CHAPTER FOR THE TAXABLE YEAR AFTER REDUCTION BY
   46  ALL OTHER CREDITS PERMITTED BY THIS CHAPTER.
   47    (C) NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  SUBDIVISION  TO  THE
   48  CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR
   49  BEGINNING  BEFORE  JANUARY  FIRST,  TWO THOUSAND FIFTEEN, THE CREDIT SET
   50  FORTH IN SUBDIVISION TWENTY-ONE OF SECTION 11-604 OF THIS CHAPTER FOR AN
   51  ELIGIBLE ACQUISITION OF PROPERTY AND/OR  EXPENSE  PAID  OR  INCURRED,  A
   52  CREDIT  SHALL  BE ALLOWED TO THE TAXPAYER UNDER THIS SUBDIVISION FOR ANY
   53  TAX YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO  THOUSAND  FIFTEEN  IN
   54  THE  SAME  AMOUNT  AND  TO THE SAME EXTENT THAT A CREDIT WOULD HAVE BEEN
   55  ALLOWED UNDER SUBDIVISION TWENTY-ONE OF SECTION 11-604 OF THIS  CHAPTER,
       S. 4610                            51                            A. 6721
    1  AS  IN  EFFECT  ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, IF SUCH
    2  SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE YEAR.
    3    S  11-654.1  NET  OPERATING  LOSS. 1. IN COMPUTING THE BUSINESS INCOME
    4  SUBJECT TO TAX, TAXPAYERS SHALL BE ALLOWED BOTH A  PRIOR  NET  OPERATING
    5  LOSS  CONVERSION SUBTRACTION UNDER SUBDIVISION TWO OF THIS SECTION AND A
    6  NET OPERATING LOSS DEDUCTION UNDER SUBDIVISION THREE  OF  THIS  SECTION.
    7  THE  PRIOR  NET  OPERATING  LOSS  CONVERSION  SUBTRACTION COMPUTED UNDER
    8  SUBDIVISION TWO OF THIS SECTION SHALL BE APPLIED AGAINST BUSINESS INCOME
    9  BEFORE THE NET OPERATING LOSS DEDUCTION COMPUTED UNDER SUBDIVISION THREE
   10  OF THIS SECTION.
   11    2. PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION.  (A)  DEFINITIONS.
   12  (1)  "BASE YEAR" MEANS THE LAST TAXABLE YEAR BEGINNING ON OR AFTER JANU-
   13  ARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO  THOUSAND
   14  FIFTEEN.
   15    (2)  "UNABSORBED  NET  OPERATING LOSS" MEANS THE UNABSORBED PORTION OF
   16  NET OPERATING LOSS AS CALCULATED  UNDER  PARAGRAPH  (F)  OF  SUBDIVISION
   17  EIGHT  OF SECTION 11-602 OF THIS CHAPTER OR SUBDIVISION (K-1) OF SECTION
   18  11-641 OF THIS CHAPTER, AS SUCH SECTIONS  WERE  IN  EFFECT  ON  DECEMBER
   19  THIRTY-FIRST, TWO THOUSAND FOURTEEN, THAT WAS NOT DEDUCTIBLE IN PREVIOUS
   20  TAXABLE YEARS AND WAS ELIGIBLE FOR CARRYOVER ON THE LAST DAY OF THE BASE
   21  YEAR  SUBJECT  TO  THE  LIMITATIONS  FOR  DEDUCTION UNDER SUCH SECTIONS,
   22  INCLUDING ANY NET OPERATING LOSS SUSTAINED BY THE  TAXPAYER  DURING  THE
   23  BASE YEAR.
   24    (3)  "BASE YEAR BAP" MEANS THE TAXPAYER'S BUSINESS ALLOCATION PERCENT-
   25  AGE AS CALCULATED UNDER PARAGRAPH (A) OF SUBDIVISION  THREE  OF  SECTION
   26  11-604  OF  THIS CHAPTER FOR THE BASE YEAR, OR THE TAXPAYER'S ALLOCATION
   27  PERCENTAGE AS CALCULATED  UNDER  SECTION  11-642  OF  THIS  CHAPTER  FOR
   28  PURPOSES  OF  CALCULATING  ENTIRE  NET INCOME FOR THE BASE YEAR, AS SUCH
   29  SECTIONS WERE IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN.
   30    (4) "BASE YEAR TAX RATE" MEANS THE TAXPAYER'S TAX RATE  FOR  THE  BASE
   31  YEAR  AS  APPLIED  TO ENTIRE NET INCOME AND CALCULATED UNDER SUBDIVISION
   32  ONE OF SECTION 11-604 OF THIS CHAPTER  OR  SUBDIVISION  (A)  OF  SECTION
   33  11-643.5  OF THIS CHAPTER, AS SUCH PROVISIONS WERE IN EFFECT ON DECEMBER
   34  THIRTY-FIRST, TWO THOUSAND FOURTEEN.
   35    (B) THE PRIOR NET  OPERATING  LOSS  CONVERSION  SUBTRACTION  SHALL  BE
   36  CALCULATED AS FOLLOWS:
   37    (1) THE TAXPAYER SHALL FIRST CALCULATE THE TAX VALUE OF ITS UNABSORBED
   38  NET  OPERATING LOSS FOR THE BASE YEAR. THE VALUE IS EQUAL TO THE PRODUCT
   39  OF (I) THE AMOUNT OF THE TAXPAYER'S UNABSORBED NET OPERATING LOSS,  (II)
   40  THE  TAXPAYER'S  BASE  YEAR  BAP, AND (III) THE TAXPAYER'S BASE YEAR TAX
   41  RATE.
   42    (2) THE PRODUCT DETERMINED UNDER SUBPARAGRAPH ONE  OF  THIS  PARAGRAPH
   43  SHALL THEN BE DIVIDED BY EIGHT AND EIGHTY-FIVE ONE HUNDREDTHS PER CENTUM
   44  OR,  IN THE CASE OF A FINANCIAL CORPORATION, AS DEFINED IN CLAUSE (I) OF
   45  SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF  SECTION  11-654
   46  OF  THIS  SUBCHAPTER,  THE  PRODUCT DETERMINED UNDER SUBPARAGRAPH ONE OF
   47  THIS PARAGRAPH SHALL THEN BE DIVIDED BY NINE  PER  CENTUM.  THIS  RESULT
   48  SHALL   EQUAL   THE  TAXPAYER'S  PRIOR  NET  OPERATING  LOSS  CONVERSION
   49  SUBTRACTION POOL.
   50    (3) THE TAXPAYER'S PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION FOR
   51  THE TAXABLE YEAR SHALL EQUAL ONE-TENTH OF ITS PRIOR NET  OPERATING  LOSS
   52  CONVERSION SUBTRACTION POOL, PLUS ANY AMOUNT OF UNUSED PRIOR NET OPERAT-
   53  ING LOSS CONVERSION SUBTRACTION FROM PRECEDING TAXABLE YEARS.
   54    (4)  IN  LIEU  OF  THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION
   55  DESCRIBED IN SUBPARAGRAPH THREE OF THIS PARAGRAPH, IF  THE  TAXPAYER  SO
   56  ELECTS,  THE  TAXPAYER'S PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION
       S. 4610                            52                            A. 6721
    1  FOR ITS TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO  THOUSAND
    2  FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN SHALL EQUAL, IN
    3  EACH  YEAR,  NOT  MORE  THAN  ONE-HALF  OF  ITS PRIOR NET OPERATING LOSS
    4  CONVERSION  SUBTRACTION POOL UNTIL THE POOL IS EXHAUSTED. IF THE POOL IS
    5  NOT EXHAUSTED AT THE END OF SUCH TIME PERIOD, THE REMAINDER OF THE  POOL
    6  SHALL  BE  FORFEITED. THE TAXPAYER SHALL MAKE SUCH ELECTION, WHICH SHALL
    7  BE REVOCABLE, ON ITS FIRST RETURN FOR THE TAX YEAR BEGINNING ON OR AFTER
    8  JANUARY FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST, TWO  THOU-
    9  SAND  SIXTEEN BY THE DUE DATE FOR SUCH RETURN (DETERMINED WITH REGARD TO
   10  EXTENSIONS).
   11    (C) (1) WHERE A TAXPAYER WAS  PROPERLY  INCLUDED  OR  REQUIRED  TO  BE
   12  INCLUDED  IN  A  COMBINED  REPORT  FOR THE BASE YEAR PURSUANT TO SECTION
   13  11-605 OF THIS CHAPTER OR A COMBINED RETURN FOR THE BASE  YEAR  PURSUANT
   14  TO  SECTION  11-646  OF THIS CHAPTER, AS SUCH SECTIONS WERE IN EFFECT ON
   15  DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, AND  THE  MEMBERS  OF  THE
   16  COMBINED  GROUP  FOR  THE  BASE  YEAR ARE THE SAME AS THE MEMBERS OF THE
   17  COMBINED GROUP FOR THE TAXABLE  YEAR  IMMEDIATELY  SUCCEEDING  THE  BASE
   18  YEAR,  THE  COMBINED  GROUP SHALL CALCULATE ITS PRIOR NET OPERATING LOSS
   19  CONVERSION SUBTRACTION POOL USING THE COMBINED GROUP'S TOTAL  UNABSORBED
   20  NET OPERATING LOSS, BASE YEAR BAP, AND BASE YEAR TAX RATE.
   21    (2)  IF  A  COMBINED  GROUP INCLUDES ADDITIONAL MEMBERS IN THE TAXABLE
   22  YEAR IMMEDIATELY SUCCEEDING THE BASE YEAR THAT WERE NOT INCLUDED IN  THE
   23  COMBINED  GROUP  DURING THE BASE YEAR, EACH BASE YEAR COMBINED GROUP AND
   24  EACH TAXPAYER THAT FILED SEPARATELY FOR THE BASE YEAR BUT IS INCLUDED IN
   25  THE COMBINED GROUP IN THE TAXABLE YEAR SUCCEEDING THE  BASE  YEAR  SHALL
   26  CALCULATE  ITS PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION POOL, AND
   27  THE SUM OF THE POOLS SHALL BE THE  COMBINED  PRIOR  NET  OPERATING  LOSS
   28  CONVERSION SUBTRACTION POOL OF THE COMBINED GROUP.
   29    (3)  IF  A TAXPAYER WAS PROPERLY INCLUDED IN A COMBINED REPORT FOR THE
   30  BASE YEAR AND FILES A SEPARATE REPORT FOR  A  SUBSEQUENT  TAXABLE  YEAR,
   31  THEN  THE  AMOUNT  OF  REMAINING  PRIOR  NET  OPERATING  LOSS CONVERSION
   32  SUBTRACTION ALLOWED TO THE TAXPAYER FILING SUCH SEPARATE REPORT SHALL BE
   33  PROPORTIONATE TO THE AMOUNT THAT SUCH TAXPAYER CONTRIBUTED TO THE  PRIOR
   34  NET  OPERATING LOSS CONVERSION SUBTRACTION POOL ON A COMBINED BASIS, AND
   35  THE REMAINING PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION ALLOWED TO
   36  THE REMAINING MEMBERS OF THE COMBINED GROUP SHALL BE REDUCED  ACCORDING-
   37  LY.
   38    (4)  IF  A  TAXPAYER  FILED A SEPARATE REPORT FOR THE BASE YEAR AND IS
   39  PROPERLY INCLUDED IN A COMBINED REPORT FOR A  SUBSEQUENT  TAXABLE  YEAR,
   40  THEN  THE  PRIOR  NET  OPERATING LOSS CONVERSION SUBTRACTION POOL OF THE
   41  COMBINED GROUP SHALL BE INCREASED BY THE AMOUNT OF THE  REMAINING  PRIOR
   42  NET OPERATING LOSS CONVERSION SUBTRACTION ALLOWED TO THE TAXPAYER AT THE
   43  TIME THE TAXPAYER IS PROPERLY INCLUDED IN THE COMBINED GROUP.
   44    (D) THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION MAY BE USED TO
   45  REDUCE  THE TAXPAYER'S TAX ON ALLOCATED BUSINESS INCOME TO THE HIGHER OF
   46  THE TAX ON BUSINESS CAPITAL UNDER CLAUSE   (II) OF SUBPARAGRAPH  ONE  OF
   47  PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER OR
   48  THE  FIXED DOLLAR MINIMUM UNDER CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARA-
   49  GRAPH (E) OF SUBDIVISION ONE  OF  SECTION  11-654  OF  THIS  SUBCHAPTER.
   50  UNLESS  THE  TAXPAYER HAS MADE THE ELECTION PROVIDED FOR IN SUBPARAGRAPH
   51  FOUR OF PARAGRAPH (B) OF THIS SUBDIVISION, ANY AMOUNT  OF  UNUSED  PRIOR
   52  NET  OPERATING LOSS CONVERSION SUBTRACTION SHALL BE CARRIED FORWARD TO A
   53  SUBSEQUENT TAX YEAR OR SUBSEQUENT TAX YEARS UNTIL THE PRIOR NET  OPERAT-
   54  ING  LOSS  CONVERSION  SUBTRACTION  POOL IS EXHAUSTED, BUT FOR NO LONGER
   55  THAN TWENTY TAXABLE YEARS OR THE TAXABLE  YEAR  BEGINNING  ON  OR  AFTER
   56  JANUARY  FIRST,  TWO  THOUSAND THIRTY-FIVE BUT BEFORE JANUARY FIRST, TWO
       S. 4610                            53                            A. 6721
    1  THOUSAND THIRTY-SIX, WHICHEVER COMES FIRST. SUCH AMOUNT CARRIED  FORWARD
    2  SHALL  NOT BE SUBJECT TO THE ONE-TENTH LIMITATION FOR THE SUBSEQUENT TAX
    3  YEAR OR YEARS UNDER SUBPARAGRAPH THREE OF PARAGRAPH (B) OF THIS SUBDIVI-
    4  SION. HOWEVER, IF THE TAXPAYER ELECTS TO COMPUTE ITS PRIOR NET OPERATING
    5  LOSS  CONVERSION  SUBTRACTION PURSUANT TO SUBPARAGRAPH FOUR OF PARAGRAPH
    6  (B) OF THIS SUBDIVISION, THE TAXPAYER SHALL NOT CARRY FORWARD ANY UNUSED
    7  AMOUNT OF SUCH PRIOR NET OPERATING LOSS CONVERSION  SUBTRACTION  TO  ANY
    8  TAX YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN.
    9    3.  IN COMPUTING BUSINESS INCOME, A NET OPERATING LOSS DEDUCTION SHALL
   10  BE ALLOWED. A NET OPERATING LOSS DEDUCTION SHALL BE THE  AMOUNT  OF  NET
   11  OPERATING LOSS OR LOSSES FROM ONE OR MORE TAXABLE YEARS THAT ARE CARRIED
   12  FORWARD  OR  CARRIED  BACK TO A PARTICULAR TAXABLE YEAR. A NET OPERATING
   13  LOSS SHALL BE THE AMOUNT OF A BUSINESS LOSS INCURRED IN A PARTICULAR TAX
   14  YEAR MULTIPLIED BY THE BUSINESS ALLOCATION PERCENTAGE FOR THAT  YEAR  AS
   15  DETERMINED UNDER SUBDIVISION THREE OF SECTION 11-654 OF THIS SUBCHAPTER.
   16  THE  MAXIMUM  NET  OPERATING LOSS DEDUCTION THAT IS ALLOWED IN A TAXABLE
   17  YEAR SHALL BE THE AMOUNT THAT REDUCES THE TAXPAYER'S  TAX  ON  ALLOCATED
   18  BUSINESS  INCOME  TO  THE  HIGHER  OF  THE TAX ON BUSINESS CAPITAL UNDER
   19  CLAUSE (II) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION  ONE  OF
   20  SECTION  11-654  OF  THIS  SUBCHAPTER OR THE FIXED DOLLAR MINIMUM AMOUNT
   21  UNDER CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH  (E)  OF  SUBDIVISION
   22  ONE  OF  SECTION  11-654  OF  THIS SUBCHAPTER.   SUCH NET OPERATING LOSS
   23  DEDUCTION AND NET OPERATING LOSS SHALL BE DETERMINED IN ACCORDANCE  WITH
   24  THE FOLLOWING:
   25    (A)  SUCH  NET  OPERATING  LOSS  DEDUCTION SHALL NOT BE LIMITED TO THE
   26  AMOUNT ALLOWED UNDER SECTION ONE HUNDRED  SEVENTY-TWO  OF  THE  INTERNAL
   27  REVENUE  CODE OR THE AMOUNT THAT WOULD HAVE BEEN ALLOWED IF THE TAXPAYER
   28  DID NOT HAVE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTER-
   29  NAL REVENUE CODE IN EFFECT FOR THE APPLICABLE TAX YEAR.
   30    (B) SUCH NET OPERATING LOSS DEDUCTION SHALL NOT INCLUDE ANY NET  OPER-
   31  ATING  LOSS  INCURRED DURING ANY TAXABLE YEAR BEGINNING PRIOR TO JANUARY
   32  FIRST, TWO THOUSAND FIFTEEN, OR DURING ANY TAXABLE  YEAR  IN  WHICH  THE
   33  TAXPAYER WAS NOT SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER.
   34    (C) A TAXPAYER THAT FILES AS PART OF A FEDERAL CONSOLIDATED RETURN BUT
   35  ON  A  SEPARATE  BASIS FOR PURPOSES OF THIS SUBCHAPTER SHALL COMPUTE ITS
   36  DEDUCTION AND LOSS AS IF IT WERE FILING ON A SEPARATE BASIS FOR  FEDERAL
   37  INCOME TAX PURPOSES.
   38    (D)  A  NET  OPERATING  LOSS  MAY  BE CARRIED BACK THREE TAXABLE YEARS
   39  PRECEDING THE TAXABLE YEAR OF THE  LOSS  EXCEPT  THAT  NO  LOSS  MAY  BE
   40  CARRIED BACK TO A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOU-
   41  SAND  FIFTEEN.  THE  LOSS  FIRST SHALL BE CARRIED TO THE EARLIEST OF THE
   42  THREE TAXABLE YEARS PRECEDING THE TAXABLE YEAR OF THE LOSS. IF IT IS NOT
   43  ENTIRELY USED IN THAT YEAR, IT SHALL BE CARRIED TO  THE  SECOND  TAXABLE
   44  YEAR  PRECEDING  THE  TAXABLE YEAR OF THE LOSS, AND ANY REMAINING AMOUNT
   45  SHALL BE CARRIED TO THE TAXABLE YEAR IMMEDIATELY PRECEDING  THE  TAXABLE
   46  YEAR  OF  THE  LOSS.  ANY  UNUSED  AMOUNT  OF LOSS THEN REMAINING MAY BE
   47  CARRIED FORWARD FOR AS MANY AS TWENTY TAXABLE YEARS FOLLOWING THE  TAXA-
   48  BLE  YEAR  OF THE LOSS. LOSSES CARRIED FORWARD ARE CARRIED FORWARD FIRST
   49  TO THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE TAXABLE YEAR OF THE  LOSS,
   50  THEN  TO THE SECOND TAXABLE YEAR FOLLOWING THE TAXABLE YEAR OF THE LOSS,
   51  AND THEN TO THE NEXT IMMEDIATELY SUBSEQUENT TAXABLE YEAR OR YEARS  UNTIL
   52  THE  LOSS IS USED UP OR THE TWENTIETH TAXABLE YEAR FOLLOWING THE TAXABLE
   53  YEAR OF THE LOSS, WHICHEVER COMES FIRST.
   54    (E) SUCH NET OPERATING LOSS DEDUCTION SHALL NOT INCLUDE ANY NET  OPER-
   55  ATING  LOSS  INCURRED  DURING  ANY TAXABLE YEAR COMMENCING AFTER JANUARY
   56  FIRST, TWO THOUSAND FIFTEEN IF THE TAXPAYER WAS  SUBJECT  TO  TAX  UNDER
       S. 4610                            54                            A. 6721
    1  SUBCHAPTER TWO OR THREE OF THIS CHAPTER IN THAT YEAR; PROVIDED, HOWEVER,
    2  ANY  YEAR  COMMENCING AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN THAT THE
    3  TAXPAYER WAS SUBJECT TO TAX UNDER SUBCHAPTER TWO OR THREE OF THIS  CHAP-
    4  TER  IN  THAT  YEAR  MUST  BE  TREATED AS A TAXABLE YEAR FOR PURPOSES OF
    5  DETERMINING THE NUMBER OF TAXABLE YEARS TO WHICH A  NET  OPERATING  LOSS
    6  MAY BE CARRIED FORWARD.
    7    (F)  WHERE  THERE  ARE  TWO OR MORE ALLOCATED NET OPERATING LOSSES, OR
    8  PORTIONS THEREOF, CARRIED BACK OR CARRIED FORWARD TO BE DEDUCTED IN  ONE
    9  PARTICULAR  TAX  YEAR FROM ALLOCATED BUSINESS INCOME, THE EARLIEST ALLO-
   10  CATED LOSS INCURRED MUST BE APPLIED FIRST.
   11    (G) A TAXPAYER MAY ELECT TO WAIVE THE  ENTIRE  CARRYBACK  PERIOD  WITH
   12  RESPECT  TO  A  NET  OPERATING  LOSS.  SUCH ELECTION MUST BE MADE ON THE
   13  TAXPAYER'S ORIGINAL TIMELY  FILED  RETURN  (DETERMINED  WITH  REGARD  TO
   14  EXTENSIONS) FOR THE TAXABLE YEAR OF THE NET OPERATING LOSS FOR WHICH THE
   15  ELECTION  IS  TO  BE  IN  EFFECT. ONCE AN ELECTION IS MADE FOR A TAXABLE
   16  YEAR, IT SHALL BE IRREVOCABLE FOR THAT TAXABLE YEAR. A SEPARATE ELECTION
   17  MUST BE MADE FOR EACH TAXABLE YEAR OF THE LOSS. THIS ELECTION APPLIES TO
   18  ALL MEMBERS OF A COMBINED GROUP.
   19    S 11-654.2 RECEIPTS ALLOCATION. 1. THE PERCENTAGE OF RECEIPTS  OF  THE
   20  TAXPAYER TO BE ALLOCATED TO THE CITY FOR PURPOSES OF SUBPARAGRAPH TWO OF
   21  PARAGRAPH  (A) OF SUBDIVISION THREE OF SECTION 11-654 OF THIS SUBCHAPTER
   22  SHALL BE EQUAL TO THE RECEIPTS  FRACTION  DETERMINED  PURSUANT  TO  THIS
   23  SECTION.  THE  RECEIPTS  FRACTION IS A FRACTION, DETERMINED BY INCLUDING
   24  ONLY THOSE RECEIPTS, NET INCOME, NET GAINS, AND OTHER ITEMS DESCRIBED IN
   25  THIS SECTION THAT ARE INCLUDED IN  THE  COMPUTATION  OF  THE  TAXPAYER'S
   26  BUSINESS  INCOME (DETERMINED WITHOUT REGARD TO THE MODIFICATION PROVIDED
   27  IN SUBPARAGRAPH FOURTEEN  OF  PARAGRAPH  (A)  OF  SUBDIVISION  EIGHT  OF
   28  SECTION  11-652  OF THIS SUBCHAPTER) FOR THE TAXABLE YEAR. THE NUMERATOR
   29  OF THE RECEIPTS FRACTION SHALL BE EQUAL TO THE SUM OF  ALL  THE  AMOUNTS
   30  REQUIRED  TO  BE INCLUDED IN THE NUMERATOR PURSUANT TO THE PROVISIONS OF
   31  THIS SECTION AND THE DENOMINATOR OF THE RECEIPTS FRACTION SHALL BE EQUAL
   32  TO THE SUM OF ALL THE AMOUNTS REQUIRED TO BE INCLUDED IN THE DENOMINATOR
   33  PURSUANT TO THE PROVISIONS OF THIS SECTION.
   34    2. (A) RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY  WHERE  SHIP-
   35  MENTS ARE MADE TO POINTS WITHIN THE CITY OR THE DESTINATION OF THE PROP-
   36  ERTY  IS  A  POINT WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF
   37  THE RECEIPTS FRACTION. RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY
   38  WHERE SHIPMENTS ARE MADE TO POINTS WITHIN AND WITHOUT THE  CITY  OR  THE
   39  DESTINATION  IS  WITHIN  AND  WITHOUT  THE CITY SHALL BE INCLUDED IN THE
   40  DENOMINATOR OF THE RECEIPTS FRACTION.
   41    (B) RECEIPTS FROM SALES OF ELECTRICITY DELIVERED TO POINTS WITHIN  THE
   42  CITY  SHALL  BE  INCLUDED  IN  THE  NUMERATOR  OF THE RECEIPTS FRACTION.
   43  RECEIPTS FROM SALES OF ELECTRICITY DELIVERED TO POINTS WITHIN AND  WITH-
   44  OUT  THE CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC-
   45  TION.
   46    (C) RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY AND  ELECTRICITY
   47  THAT  ARE  TRADED  AS  COMMODITIES AS THE TERM "COMMODITY" IS DEFINED IN
   48  SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE, SHALL BE
   49  INCLUDED IN THE RECEIPTS FRACTION  IN  ACCORDANCE  WITH  CLAUSE  (I)  OF
   50  SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SUBDIVISION FIVE OF THIS SECTION.
   51    (D)  NET  GAINS  (NOT  LESS THAN ZERO) FROM THE SALES OF REAL PROPERTY
   52  LOCATED WITHIN THE CITY SHALL  BE  INCLUDED  IN  THE  NUMERATOR  OF  THE
   53  RECEIPTS FRACTION. NET GAINS (NOT LESS THAN ZERO) FROM THE SALES OF REAL
   54  PROPERTY  LOCATED  WITHIN  AND WITHOUT THE CITY SHALL BE INCLUDED IN THE
   55  DENOMINATOR OF THE RECEIPTS FRACTION.
       S. 4610                            55                            A. 6721
    1    3. (A) RECEIPTS FROM RENTALS OF REAL AND  TANGIBLE  PERSONAL  PROPERTY
    2  LOCATED  WITHIN  THE  CITY  SHALL  BE  INCLUDED  IN THE NUMERATOR OF THE
    3  RECEIPTS FRACTION.  RECEIPTS FROM RENTALS OF REAL AND TANGIBLE  PERSONAL
    4  PROPERTY  LOCATED  WITHIN  AND WITHOUT THE CITY SHALL BE INCLUDED IN THE
    5  DENOMINATOR OF THE RECEIPTS FRACTION.
    6    (B)  RECEIPTS OF ROYALTIES FROM THE USE OF PATENTS, COPYRIGHTS, TRADE-
    7  MARKS, AND SIMILAR INTANGIBLE PERSONAL PROPERTY WITHIN THE CITY SHALL BE
    8  INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS  OF  ROYAL-
    9  TIES FROM THE USE OF PATENTS, COPYRIGHTS, TRADEMARKS, AND SIMILAR INTAN-
   10  GIBLE PERSONAL PROPERTY WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN
   11  THE  DENOMINATOR  OF  THE RECEIPTS FRACTION. A PATENT, COPYRIGHT, TRADE-
   12  MARK, OR SIMILAR INTANGIBLE PERSONAL PROPERTY IS USED WITHIN THE CITY TO
   13  THE EXTENT THAT THE ACTIVITIES THEREUNDER  ARE  CARRIED  ON  WITHIN  THE
   14  CITY.
   15    (C)  RECEIPTS  FROM  THE  SALES OF RIGHTS FOR CLOSED-CIRCUIT AND CABLE
   16  TELEVISION TRANSMISSIONS OF AN EVENT (OTHER THAN EVENTS OCCURRING  ON  A
   17  REGULARLY  SCHEDULED  BASIS) TAKING PLACE WITHIN THE CITY AS A RESULT OF
   18  THE RENDITION OF SERVICES BY EMPLOYEES OF THE CORPORATION, AS  ATHLETES,
   19  ENTERTAINERS  OR  PERFORMING ARTISTS, SHALL BE INCLUDED IN THE NUMERATOR
   20  OF THE RECEIPTS FRACTION TO THE EXTENT THAT SUCH RECEIPTS ARE  ATTRIBUT-
   21  ABLE  TO  SUCH  TRANSMISSIONS  RECEIVED  OR  EXHIBITED  WITHIN THE CITY.
   22  RECEIPTS FROM ALL SALES OF RIGHTS FOR  CLOSED-CIRCUIT  AND  CABLE  TELE-
   23  VISION TRANSMISSIONS OF AN EVENT (OTHER THAN EVENTS OCCURRING ON A REGU-
   24  LARLY  SCHEDULED  BASIS)  SHALL  BE  INCLUDED  IN THE DENOMINATOR OF THE
   25  RECEIPTS FRACTION.
   26    4. (A) FOR PURPOSES OF DETERMINING THE RECEIPTS  FRACTION  UNDER  THIS
   27  SECTION,  THE  TERM  "DIGITAL PRODUCT" MEANS ANY PROPERTY OR SERVICE, OR
   28  COMBINATION THEREOF, OF  WHATEVER  NATURE  DELIVERED  TO  THE  PURCHASER
   29  THROUGH  THE  USE  OF  WIRE, CABLE, FIBER-OPTIC, LASER, MICROWAVE, RADIO
   30  WAVE, SATELLITE OR SIMILAR SUCCESSOR MEDIA, OR ANY COMBINATION  THEREOF.
   31  DIGITAL  PRODUCT  INCLUDES,  BUT IS NOT LIMITED TO, AN AUDIO WORK, AUDI-
   32  OVISUAL WORK, VISUAL WORK, BOOK OR LITERARY WORK,  GRAPHIC  WORK,  GAME,
   33  INFORMATION  OR  ENTERTAINMENT  SERVICE, STORAGE OF DIGITAL PRODUCTS AND
   34  COMPUTER SOFTWARE BY WHATEVER MEANS DELIVERED. THE TERM  "DELIVERED  TO"
   35  INCLUDES  FURNISHED  OR  PROVIDED  TO  OR ACCESSED BY. A DIGITAL PRODUCT
   36  SHALL NOT INCLUDE LEGAL, MEDICAL, ACCOUNTING,  ARCHITECTURAL,  RESEARCH,
   37  ANALYTICAL, ENGINEERING OR CONSULTING SERVICES PROVIDED BY THE TAXPAYER.
   38    (B)  RECEIPTS  FROM THE SALE OF, LICENSE TO USE, OR GRANTING OF REMOTE
   39  ACCESS TO DIGITAL PRODUCTS WITHIN THE CITY, DETERMINED ACCORDING TO  THE
   40  HIERARCHY  OF  METHODS  SET  FORTH  IN SUBPARAGRAPHS ONE THROUGH FOUR OF
   41  PARAGRAPH (C) OF THIS SUBDIVISION, SHALL BE INCLUDED IN THE NUMERATOR OF
   42  THE RECEIPTS FRACTION. RECEIPTS FROM THE SALE OF,  LICENSE  TO  USE,  OR
   43  GRANTING  OF  REMOTE  ACCESS  TO DIGITAL PRODUCTS WITHIN AND WITHOUT THE
   44  CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.  THE
   45  TAXPAYER  MUST  EXERCISE  DUE  DILIGENCE  UNDER EACH METHOD DESCRIBED IN
   46  PARAGRAPH (C) OF THIS SUBDIVISION BEFORE REJECTING IT AND PROCEEDING  TO
   47  THE  NEXT  METHOD  IN  THE HIERARCHY, AND MUST BASE ITS DETERMINATION ON
   48  INFORMATION KNOWN TO THE TAXPAYER OR INFORMATION THAT WOULD BE KNOWN  TO
   49  THE TAXPAYER UPON REASONABLE INQUIRY. IF THE RECEIPT FOR A DIGITAL PROD-
   50  UCT IS COMPRISED OF A COMBINATION OF PROPERTY AND SERVICES, IT CANNOT BE
   51  DIVIDED  INTO  SEPARATE  COMPONENTS  AND  SHALL  BE CONSIDERED TO BE ONE
   52  RECEIPT REGARDLESS OF  WHETHER  IT  IS  SEPARATELY  STATED  FOR  BILLING
   53  PURPOSES. THE ENTIRE RECEIPT MUST BE ALLOCATED BY THIS HIERARCHY.
   54    (C)  THE  HIERARCHY OF SOURCING METHODS IS AS FOLLOWS: (1) THE CUSTOM-
   55  ER'S PRIMARY USE LOCATION OF THE DIGITAL PRODUCT; (2) THE LOCATION WHERE
   56  THE DIGITAL PRODUCT IS RECEIVED BY THE CUSTOMER, OR  IS  RECEIVED  BY  A
       S. 4610                            56                            A. 6721
    1  PERSON DESIGNATED FOR RECEIPT BY THE CUSTOMER; (3) THE RECEIPTS FRACTION
    2  DETERMINED  PURSUANT  TO THIS SUBDIVISION FOR THE PRECEDING TAXABLE YEAR
    3  FOR SUCH DIGITAL PRODUCT; OR (4) THE RECEIPTS FRACTION  IN  THE  CURRENT
    4  TAXABLE  YEAR  FOR  THOSE DIGITAL PRODUCTS THAT CAN BE SOURCED USING THE
    5  HIERARCHY OF SOURCING METHODS IN SUBPARAGRAPHS ONE AND TWO OF THIS PARA-
    6  GRAPH.
    7    5.  (A) A FINANCIAL INSTRUMENT IS A  "NONQUALIFIED  FINANCIAL  INSTRU-
    8  MENT"  IF IT IS NOT A QUALIFIED FINANCIAL INSTRUMENT. A QUALIFIED FINAN-
    9  CIAL INSTRUMENT MEANS A FINANCIAL INSTRUMENT THAT IS OF A TYPE DESCRIBED
   10  IN ANY OF CLAUSE (I), (II),  (III),  (IV),  (VII),  (VIII)  OR  (IX)  OF
   11  SUBPARAGRAPH TWO OF THIS PARAGRAPH AND THAT HAS BEEN MARKED TO MARKET IN
   12  THE  TAXABLE  YEAR  BY THE TAXPAYER UNDER SECTION 475 OR SECTION 1256 OF
   13  THE INTERNAL REVENUE CODE. FURTHER, IF THE TAXPAYER HAS IN  THE  TAXABLE
   14  YEAR  MARKED  TO  MARKET A FINANCIAL INSTRUMENT OF THE TYPE DESCRIBED IN
   15  ANY OF CLAUSE (I), (II), (III), (IV), (VII), (VIII) OR (IX) OF  SUBPARA-
   16  GRAPH  TWO  OF THIS PARAGRAPH, THEN ANY FINANCIAL INSTRUMENT WITHIN THAT
   17  TYPE DESCRIBED IN THE ABOVE SPECIFIED CLAUSE OR  CLAUSES  THAT  HAS  NOT
   18  BEEN  MARKED TO MARKET BY THE TAXPAYER UNDER SECTION 475 OR SECTION 1256
   19  OF THE INTERNAL REVENUE CODE IS A QUALIFIED FINANCIAL INSTRUMENT IN  THE
   20  TAXABLE  YEAR.   NOTWITHSTANDING THE TWO PRECEDING SENTENCES, (I) A LOAN
   21  SECURED BY REAL PROPERTY SHALL NOT BE A QUALIFIED FINANCIAL  INSTRUMENT,
   22  (II)  IF  THE ONLY LOANS THAT ARE MARKED TO MARKET BY THE TAXPAYER UNDER
   23  SECTION 475 OR SECTION 1256 OF  THE  INTERNAL  REVENUE  CODE  ARE  LOANS
   24  SECURED  BY  REAL  PROPERTY,  THEN NO LOANS SHALL BE QUALIFIED FINANCIAL
   25  INSTRUMENTS, AND (III) STOCK THAT IS INVESTMENT CAPITAL  AS  DEFINED  IN
   26  PARAGRAPH  (A)  OF  SUBDIVISION  4  OF SECTION 11-652 OF THIS SUBCHAPTER
   27  SHALL NOT BE A QUALIFIED  FINANCIAL  INSTRUMENT.  IF  A  CORPORATION  IS
   28  INCLUDED  IN  A  COMBINED  REPORT, THE DEFINITION OF QUALIFIED FINANCIAL
   29  INSTRUMENT SHALL BE DETERMINED ON A COMBINED BASIS.
   30    (1) IN DETERMINING THE INCLUSION OF RECEIPTS AND NET GAINS FROM QUALI-
   31  FIED FINANCIAL INSTRUMENTS IN THE RECEIPTS FRACTION, TAXPAYERS MAY ELECT
   32  TO USE THE FIXED PERCENTAGE METHOD DESCRIBED IN  THIS  SUBPARAGRAPH  FOR
   33  QUALIFIED FINANCIAL INSTRUMENTS. THE ELECTION IS IRREVOCABLE, APPLIES TO
   34  ALL QUALIFIED FINANCIAL INSTRUMENTS, AND MUST BE MADE ON AN ANNUAL BASIS
   35  ON  THE TAXPAYER'S ORIGINAL, TIMELY FILED RETURN (DETERMINED WITH REGARD
   36  TO EXTENSIONS).  IF THE TAXPAYER ELECTS  THE  FIXED  PERCENTAGE  METHOD,
   37  THEN  ALL  INCOME, GAIN OR LOSS, INCLUDING MARKED TO MARKET NET GAINS AS
   38  DEFINED IN CLAUSE (X) OF SUBPARAGRAPH TWO OF THIS PARAGRAPH, FROM QUALI-
   39  FIED FINANCIAL INSTRUMENTS CONSTITUTE BUSINESS INCOME, GAIN OR LOSS.  IF
   40  THE  TAXPAYER  DOES  NOT  ELECT TO USE THE FIXED PERCENTAGE METHOD, THEN
   41  RECEIPTS AND NET GAINS ARE INCLUDED IN THE RECEIPTS FRACTION IN  ACCORD-
   42  ANCE  WITH THE CUSTOMER SOURCING METHOD DESCRIBED IN SUBPARAGRAPH TWO OF
   43  THIS PARAGRAPH. UNDER THE FIXED PERCENTAGE METHOD, EIGHT PERCENT OF  ALL
   44  NET  INCOME  (NOT  LESS  THAN ZERO) FROM QUALIFIED FINANCIAL INSTRUMENTS
   45  SHALL BE INCLUDED IN THE NUMERATOR OF THE  RECEIPTS  FRACTION.  ALL  NET
   46  INCOME  (NOT  LESS THAN ZERO) FROM QUALIFIED FINANCIAL INSTRUMENTS SHALL
   47  BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
   48    (2) RECEIPTS AND NET GAINS FROM QUALIFIED  FINANCIAL  INSTRUMENTS,  IN
   49  CASES WHERE THE TAXPAYER DID NOT ELECT TO USE THE FIXED PERCENTAGE METH-
   50  OD  DESCRIBED  IN SUBPARAGRAPH ONE OF THIS PARAGRAPH, AND FROM NONQUALI-
   51  FIED FINANCIAL INSTRUMENTS SHALL BE INCLUDED IN THE RECEIPTS FRACTION IN
   52  ACCORDANCE WITH THIS SUBPARAGRAPH. FOR PURPOSES OF  THIS  PARAGRAPH,  AN
   53  INDIVIDUAL IS DEEMED TO BE LOCATED WITHIN THE CITY IF HIS OR HER BILLING
   54  ADDRESS  IS  WITHIN  THE CITY. A BUSINESS ENTITY IS DEEMED TO BE LOCATED
   55  WITHIN THE CITY IF ITS COMMERCIAL DOMICILE IS LOCATED WITHIN THE CITY.
       S. 4610                            57                            A. 6721
    1    (I)(A) RECEIPTS CONSTITUTING INTEREST FROM LOANS SECURED BY REAL PROP-
    2  ERTY LOCATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR  OF  THE
    3  RECEIPTS  FRACTION. RECEIPTS CONSTITUTING INTEREST FROM LOANS SECURED BY
    4  REAL PROPERTY LOCATED WITHIN AND WITHOUT THE CITY SHALL BE  INCLUDED  IN
    5  THE DENOMINATOR OF THE RECEIPTS FRACTION.
    6    (B)  RECEIPTS  CONSTITUTING  INTEREST  FROM  LOANS NOT SECURED BY REAL
    7  PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION  IF
    8  THE BORROWER IS LOCATED WITHIN THE CITY.  RECEIPTS CONSTITUTING INTEREST
    9  FROM LOANS NOT SECURED BY REAL PROPERTY, WHETHER THE BORROWER IS LOCATED
   10  WITHIN  OR WITHOUT THE CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE
   11  RECEIPTS FRACTION.
   12    (C) NET GAINS (NOT LESS THAN ZERO) FROM SALES OF LOANS SECURED BY REAL
   13  PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION  AS
   14  PROVIDED  IN  THIS  SUBCLAUSE. THE AMOUNT OF NET GAINS FROM THE SALES OF
   15  LOANS SECURED BY REAL PROPERTY INCLUDED IN THE NUMERATOR OF THE RECEIPTS
   16  FRACTION SHALL BE DETERMINED BY MULTIPLYING THE NET GAINS BY A FRACTION,
   17  THE NUMERATOR OF WHICH SHALL BE THE AMOUNT OF GROSS PROCEEDS FROM  SALES
   18  OF LOANS SECURED BY REAL PROPERTY LOCATED WITHIN THE CITY AND THE DENOM-
   19  INATOR  OF WHICH SHALL BE THE GROSS PROCEEDS FROM SALES OF LOANS SECURED
   20  BY REAL PROPERTY LOCATED WITHIN AND WITHOUT THE CITY.    GROSS  PROCEEDS
   21  SHALL  BE DETERMINED AFTER THE DEDUCTION OF ANY COST INCURRED TO ACQUIRE
   22  THE LOANS BUT SHALL NOT BE LESS THAN ZERO.  NET  GAINS  (NOT  LESS  THAN
   23  ZERO)  FROM  SALES  OF LOANS SECURED BY REAL PROPERTY LOCATED WITHIN AND
   24  WITHOUT THE CITY SHALL BE INCLUDED IN THE DENOMINATOR  OF  THE  RECEIPTS
   25  FRACTION.
   26    (D)  NET GAINS (NOT LESS THAN ZERO) FROM SALES OF LOANS NOT SECURED BY
   27  REAL PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE  RECEIPTS  FRAC-
   28  TION  AS  PROVIDED  IN  THIS SUBCLAUSE. THE AMOUNT OF NET GAINS FROM THE
   29  SALES OF LOANS NOT SECURED BY REAL PROPERTY INCLUDED IN THE NUMERATOR OF
   30  THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLYING THE  NET  GAINS
   31  BY  A  FRACTION,  THE  NUMERATOR  OF  WHICH SHALL BE THE AMOUNT OF GROSS
   32  PROCEEDS FROM SALES OF LOANS NOT SECURED BY REAL PROPERTY TO  PURCHASERS
   33  LOCATED WITHIN THE CITY AND THE DENOMINATOR OF WHICH SHALL BE THE AMOUNT
   34  OF  GROSS  PROCEEDS  FROM SALES OF LOANS NOT SECURED BY REAL PROPERTY TO
   35  PURCHASERS LOCATED WITHIN AND WITHOUT THE CITY. GROSS PROCEEDS SHALL  BE
   36  DETERMINED AFTER THE DEDUCTION OF ANY COST INCURRED TO ACQUIRE THE LOANS
   37  BUT  SHALL  NOT  BE  LESS THAN ZERO. NET GAINS (NOT LESS THAN ZERO) FROM
   38  SALES OF LOANS NOT SECURED BY REAL PROPERTY SHALL  BE  INCLUDED  IN  THE
   39  DENOMINATOR OF THE RECEIPTS FRACTION.
   40    (E)  FOR PURPOSES OF THIS SUBDIVISION, A LOAN IS SECURED BY REAL PROP-
   41  ERTY IF FIFTY PERCENT OR MORE OF THE VALUE OF  THE  COLLATERAL  USED  TO
   42  SECURE  THE  LOAN,  WHEN  VALUED AT FAIR MARKET VALUE AS OF THE TIME THE
   43  LOAN WAS ENTERED INTO, CONSISTS OF REAL PROPERTY.
   44    (II) FEDERAL, STATE, AND MUNICIPAL DEBT. RECEIPTS CONSTITUTING  INTER-
   45  EST  AND  NET  GAINS FROM SALES OF DEBT INSTRUMENTS ISSUED BY THE UNITED
   46  STATES, ANY STATE, OR POLITICAL SUBDIVISION OF  A  STATE  SHALL  NOT  BE
   47  INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION.  RECEIPTS CONSTITUT-
   48  ING  INTEREST  AND  NET  GAINS  (NOT  LESS THAN ZERO) FROM SALES OF DEBT
   49  INSTRUMENTS ISSUED BY THE UNITED STATES AND THE STATE OF NEW YORK OR ITS
   50  POLITICAL SUBDIVISIONS, INCLUDING THE CITY, SHALL  BE  INCLUDED  IN  THE
   51  DENOMINATOR  OF  THE  RECEIPTS  FRACTION.  FIFTY PERCENT OF THE RECEIPTS
   52  CONSTITUTING INTEREST AND NET GAINS (NOT LESS THAN ZERO) FROM  SALES  OF
   53  DEBT  INSTRUMENTS ISSUED BY OTHER STATES OR THEIR POLITICAL SUBDIVISIONS
   54  SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
   55    (III) ASSET BACKED SECURITIES AND OTHER GOVERNMENT AGENCY DEBT.  EIGHT
   56  PERCENT  OF  THE  INTEREST  INCOME FROM ASSET BACKED SECURITIES OR OTHER
       S. 4610                            58                            A. 6721
    1  SECURITIES ISSUED BY GOVERNMENT AGENCIES, INCLUDING BUT NOT  LIMITED  TO
    2  SECURITIES  ISSUED  BY  THE  GOVERNMENT  NATIONAL  MORTGAGE  ASSOCIATION
    3  (GNMA), THE FEDERAL NATIONAL MORTGAGE ASSOCIATION  (FNMA),  THE  FEDERAL
    4  HOME  LOAN  MORTGAGE CORPORATION (FHLMC), OR THE SMALL BUSINESS ADMINIS-
    5  TRATION, OR EIGHT PERCENT OF THE INTEREST INCOME FROM ASSET BACKED SECU-
    6  RITIES ISSUED BY OTHER ENTITIES SHALL BE INCLUDED IN  THE  NUMERATOR  OF
    7  THE  RECEIPTS  FRACTION.  EIGHT  PERCENT OF THE NET GAINS (NOT LESS THAN
    8  ZERO) FROM (A) SALES OF ASSET  BACKED  SECURITIES  OR  OTHER  SECURITIES
    9  ISSUED  BY  GOVERNMENT AGENCIES, INCLUDING BUT NOT LIMITED TO SECURITIES
   10  ISSUED BY GNMA, FNMA, FHLMC, OR THE SMALL  BUSINESS  ADMINISTRATION,  OR
   11  (B)  SALES  OF  OTHER  ASSET  BACKED  SECURITIES THAT ARE SOLD THROUGH A
   12  REGISTERED SECURITIES BROKER OR DEALER OR THROUGH A  LICENSED  EXCHANGE,
   13  SHALL  BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. THE AMOUNT
   14  OF NET GAINS (NOT LESS THAN ZERO) FROM SALES OF OTHER ASSET BACKED SECU-
   15  RITIES NOT REFERENCED IN SUBCLAUSE (A) OR (B) OF THIS CLAUSE INCLUDED IN
   16  THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED BY  MULTIPLY-
   17  ING  SUCH  NET  GAINS BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE
   18  AMOUNT OF GROSS PROCEEDS FROM SUCH SALES TO PURCHASERS  LOCATED  IN  THE
   19  CITY  AND THE DENOMINATOR OF WHICH SHALL BE THE AMOUNT OF GROSS PROCEEDS
   20  FROM SUCH SALES TO PURCHASERS  LOCATED  WITHIN  AND  WITHOUT  THE  CITY.
   21  RECEIPTS  CONSTITUTING  INTEREST INCOME FROM ASSET BACKED SECURITIES AND
   22  OTHER SECURITIES REFERENCED IN THIS CLAUSE AND NET GAINS (NOT LESS  THAN
   23  ZERO)  FROM SALES OF ASSET BACKED SECURITIES AND OTHER SECURITIES REFER-
   24  ENCED IN THIS CLAUSE  SHALL  BE  INCLUDED  IN  THE  DENOMINATOR  OF  THE
   25  RECEIPTS   FRACTION.  GROSS  PROCEEDS  SHALL  BE  DETERMINED  AFTER  THE
   26  DEDUCTION OF ANY COST TO ACQUIRE THE SECURITIES BUT SHALL  NOT  BE  LESS
   27  THAN ZERO.
   28    (IV)  RECEIPTS  CONSTITUTING  INTEREST  FROM  CORPORATE BONDS SHALL BE
   29  INCLUDED IN THE NUMERATOR OF THE RECEIPTS  FRACTION  IF  THE  COMMERCIAL
   30  DOMICILE OF THE ISSUING CORPORATION IS WITHIN THE CITY. EIGHT PERCENT OF
   31  THE  NET  GAINS  (NOT LESS THAN ZERO) FROM SALES OF CORPORATE BONDS SOLD
   32  THROUGH A REGISTERED SECURITIES BROKER OR DEALER OR THROUGH  A  LICENSED
   33  EXCHANGE  SHALL  BE  INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION.
   34  THE AMOUNT OF NET GAINS (NOT LESS THAN ZERO) FROM OTHER SALES OF  CORPO-
   35  RATE  BONDS  INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE
   36  DETERMINED BY MULTIPLYING SUCH NET GAINS BY A FRACTION, THE NUMERATOR OF
   37  WHICH IS THE AMOUNT OF GROSS PROCEEDS  FROM  SUCH  SALES  TO  PURCHASERS
   38  LOCATED  WITHIN  THE  CITY AND THE DENOMINATOR OF WHICH IS THE AMOUNT OF
   39  GROSS PROCEEDS FROM SALES TO PURCHASERS LOCATED WITHIN AND  WITHOUT  THE
   40  CITY.  RECEIPTS  CONSTITUTING INTEREST FROM CORPORATE BONDS, WHETHER THE
   41  ISSUING CORPORATION'S COMMERCIAL DOMICILE IS WITHIN OR WITHOUT THE CITY,
   42  AND NET GAINS (NOT LESS THAN ZERO) FROM  SALES  OF  CORPORATE  BONDS  TO
   43  PURCHASERS  WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE DENOMI-
   44  NATOR OF THE RECEIPTS FRACTION. GROSS PROCEEDS SHALL BE DETERMINED AFTER
   45  THE DEDUCTION OF ANY COST TO ACQUIRE THE BONDS BUT  SHALL  NOT  BE  LESS
   46  THAN ZERO.
   47    (V)  EIGHT  PERCENT  OF  NET INTEREST INCOME (NOT LESS THAN ZERO) FROM
   48  REVERSE REPURCHASE AGREEMENTS AND SECURITIES BORROWING AGREEMENTS  SHALL
   49  BE  INCLUDED  IN  THE  NUMERATOR  OF THE RECEIPTS FRACTION. NET INTEREST
   50  INCOME (NOT LESS THAN ZERO) FROM REVERSE REPURCHASE AGREEMENTS AND SECU-
   51  RITIES BORROWING AGREEMENTS SHALL BE INCLUDED IN THE DENOMINATOR OF  THE
   52  RECEIPTS  FRACTION.  NET  INTEREST INCOME FROM REVERSE REPURCHASE AGREE-
   53  MENTS AND  SECURITIES  BORROWING  AGREEMENTS  SHALL  BE  DETERMINED  FOR
   54  PURPOSES OF THIS SUBDIVISION AFTER THE DEDUCTION OF THE INTEREST EXPENSE
   55  FROM  THE TAXPAYER'S REPURCHASE AGREEMENTS AND SECURITIES LENDING AGREE-
   56  MENTS BUT SHALL NOT BE LESS THAN ZERO. FOR THIS CALCULATION, THE  AMOUNT
       S. 4610                            59                            A. 6721
    1  OF  SUCH  INTEREST EXPENSE SHALL BE THE INTEREST EXPENSE ASSOCIATED WITH
    2  THE SUM OF THE VALUE OF THE TAXPAYER'S REPURCHASE AGREEMENTS WHERE IT IS
    3  THE SELLER/BORROWER PLUS THE VALUE OF THE TAXPAYER'S SECURITIES  LENDING
    4  AGREEMENTS  WHERE  IT  IS  THE  SECURITIES  LENDER, PROVIDED SUCH SUM IS
    5  LIMITED TO THE SUM OF THE VALUE OF  THE  TAXPAYER'S  REVERSE  REPURCHASE
    6  AGREEMENTS  WHERE  IT  IS  THE  PURCHASER/LENDER  PLUS  THE VALUE OF THE
    7  TAXPAYER'S SECURITIES LENDING AGREEMENTS  WHERE  IT  IS  THE  SECURITIES
    8  BORROWER.
    9    (VI)  EIGHT  PERCENT  OF  THE  NET  INTEREST (NOT LESS THAN ZERO) FROM
   10  FEDERAL FUNDS SHALL BE INCLUDED IN THE NUMERATOR OF THE  RECEIPTS  FRAC-
   11  TION.  THE NET INTEREST (NOT LESS THAN ZERO) FROM FEDERAL FUNDS SHALL BE
   12  INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. NET INTEREST  FROM
   13  FEDERAL  FUNDS  SHALL  BE DETERMINED AFTER DEDUCTION OF INTEREST EXPENSE
   14  FROM FEDERAL FUNDS.
   15    (VII) DIVIDENDS FROM STOCK, NET GAINS (NOT LESS THAN ZERO) FROM  SALES
   16  OF  STOCK  AND  NET GAINS (NOT LESS THAN ZERO) FROM SALES OF PARTNERSHIP
   17  INTERESTS SHALL NOT BE INCLUDED IN EITHER THE NUMERATOR  OR  DENOMINATOR
   18  OF  THE  RECEIPTS FRACTION UNLESS THE COMMISSIONER OF FINANCE DETERMINES
   19  PURSUANT TO SUBDIVISION ELEVEN OF THIS SECTION THAT  INCLUSION  OF  SUCH
   20  DIVIDENDS  AND  NET  GAINS (NOT LESS THAN ZERO) IS NECESSARY TO PROPERLY
   21  REFLECT THE BUSINESS INCOME OR CAPITAL OF THE TAXPAYER.
   22    (VIII)(A) RECEIPTS CONSTITUTING INTEREST FROM OTHER FINANCIAL  INSTRU-
   23  MENTS SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IF THE
   24  PAYOR  IS  LOCATED  WITHIN THE CITY. RECEIPTS CONSTITUTING INTEREST FROM
   25  OTHER FINANCIAL INSTRUMENTS, WHETHER THE PAYOR IS WITHIN OR WITHOUT  THE
   26  CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
   27    (B)  NET  GAINS  (NOT  LESS  THAN  ZERO) FROM SALES OF OTHER FINANCIAL
   28  INSTRUMENTS AND OTHER INCOME (NOT LESS THAN ZERO) FROM  OTHER  FINANCIAL
   29  INSTRUMENTS  WHERE  THE  PURCHASER  OR  PAYOR IS LOCATED WITHIN THE CITY
   30  SHALL BE INCLUDED IN THE NUMERATOR OF THE  RECEIPTS  FRACTION,  PROVIDED
   31  THAT,  IF  THE  PURCHASER  OR PAYOR IS A REGISTERED SECURITIES BROKER OR
   32  DEALER OR THE TRANSACTION IS MADE  THROUGH  A  LICENSED  EXCHANGE,  THEN
   33  EIGHT PERCENT OF THE NET GAINS (NOT LESS THAN ZERO) OR OTHER INCOME (NOT
   34  LESS THAN ZERO) SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC-
   35  TION.  NET  GAINS  (NOT  LESS  THAN  ZERO) FROM SALES OF OTHER FINANCIAL
   36  INSTRUMENTS AND OTHER INCOME (NOT LESS THAN ZERO) FROM  OTHER  FINANCIAL
   37  INSTRUMENTS  SHALL  BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC-
   38  TION.
   39    (IX) NET INCOME (NOT LESS THAN ZERO) FROM SALES  OF  PHYSICAL  COMMOD-
   40  ITIES  SHALL  BE  INCLUDED  IN THE NUMERATOR OF THE RECEIPTS FRACTION AS
   41  PROVIDED IN THIS CLAUSE.  THE AMOUNT OF NET INCOME FROM SALES  OF  PHYS-
   42  ICAL  COMMODITIES  INCLUDED  IN  THE  NUMERATOR OF THE RECEIPTS FRACTION
   43  SHALL BE DETERMINED BY MULTIPLYING THE NET INCOME FROM SALES OF PHYSICAL
   44  COMMODITIES BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE AMOUNT OF
   45  RECEIPTS FROM SALES OF PHYSICAL COMMODITIES ACTUALLY DELIVERED TO POINTS
   46  WITHIN THE CITY OR, IF THERE IS  NO  ACTUAL  DELIVERY  OF  THE  PHYSICAL
   47  COMMODITY, SOLD TO PURCHASERS LOCATED WITHIN THE CITY, AND THE DENOMINA-
   48  TOR  OF  WHICH  SHALL  BE  THE AMOUNT OF RECEIPTS FROM SALES OF PHYSICAL
   49  COMMODITIES ACTUALLY DELIVERED TO POINTS WITHIN AND WITHOUT THE CITY OR,
   50  IF THERE IS NO ACTUAL  DELIVERY  OF  THE  PHYSICAL  COMMODITY,  SOLD  TO
   51  PURCHASERS  LOCATED  WITHIN  AND  WITHOUT THE CITY. NET INCOME (NOT LESS
   52  THAN ZERO) FROM SALES OF PHYSICAL COMMODITIES SHALL BE INCLUDED  IN  THE
   53  DENOMINATOR  OF  THE  RECEIPTS FRACTION. NET INCOME (NOT LESS THAN ZERO)
   54  FROM SALES  OF  PHYSICAL  COMMODITIES  SHALL  BE  DETERMINED  AFTER  THE
   55  DEDUCTION OF THE COST TO ACQUIRE OR PRODUCE THE PHYSICAL COMMODITIES.
       S. 4610                            60                            A. 6721
    1    (X)(A) FOR PURPOSES OF THIS SUBDIVISION, "MARKED TO MARKET" MEANS THAT
    2  A  FINANCIAL  INSTRUMENT  IS, UNDER SECTION FOUR HUNDRED SEVENTY-FIVE OR
    3  SECTION TWELVE HUNDRED FIFTY-SIX OF THE INTERNAL REVENUE  CODE,  TREATED
    4  BY  THE  TAXPAYER AS SOLD FOR ITS FAIR MARKET VALUE ON THE LAST BUSINESS
    5  DAY  OF  THE  TAXPAYER'S TAXABLE YEAR.   "MARKED TO MARKET GAIN OR LOSS"
    6  MEANS THE GAIN OR LOSS RECOGNIZED BY THE  TAXPAYER  UNDER  SECTION  FOUR
    7  HUNDRED SEVENTY-FIVE OR SECTION TWELVE HUNDRED FIFTY-SIX OF THE INTERNAL
    8  REVENUE CODE BECAUSE THE FINANCIAL INSTRUMENT IS TREATED AS SOLD FOR ITS
    9  FAIR  MARKET  VALUE  ON  THE LAST BUSINESS DAY OF THE TAXPAYER'S TAXABLE
   10  YEAR.
   11    (B) THE AMOUNT OF MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM
   12  EACH TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET  INCLUDED  IN
   13  THE  NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLY-
   14  ING THE MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM  SUCH  TYPE
   15  OF  FINANCIAL  INSTRUMENT BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE
   16  THE NUMERATOR OF THE RECEIPTS FRACTION FOR NET GAINS FROM THAT  TYPE  OF
   17  FINANCIAL  INSTRUMENT  DETERMINED  UNDER  THE  APPLICABLE CLAUSE OF THIS
   18  SUBPARAGRAPH AND THE DENOMINATOR OF WHICH SHALL BE  THE  DENOMINATOR  OF
   19  THE  RECEIPTS FRACTION FOR NET GAINS FROM THAT TYPE OF FINANCIAL INSTRU-
   20  MENT DETERMINED UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH. MARKED
   21  TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM FINANCIAL INSTRUMENTS  FOR
   22  WHICH THE NUMERATOR OF THE RECEIPTS FRACTION FOR NET GAINS IS DETERMINED
   23  UNDER THE IMMEDIATELY PRECEDING SENTENCE SHALL BE INCLUDED IN THE DENOM-
   24  INATOR OF THE RECEIPTS FRACTION.
   25    (C)  IF  THE  TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET IS
   26  NOT OTHERWISE SOURCED BY THE TAXPAYER UNDER THIS SUBPARAGRAPH, OR IF THE
   27  TAXPAYER HAS A NET LOSS FROM THE SALES OF THAT TYPE OF FINANCIAL INSTRU-
   28  MENT UNDER THE APPLICABLE CLAUSE OF THIS  SUBPARAGRAPH,  THE  AMOUNT  OF
   29  MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM THAT TYPE OF FINAN-
   30  CIAL INSTRUMENT INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL
   31  BE  DETERMINED  BY  MULTIPLYING  THE MARKED TO MARKET NET GAINS (BUT NOT
   32  LESS THAN ZERO) FROM THAT TYPE OF FINANCIAL INSTRUMENT  BY  A  FRACTION,
   33  THE  NUMERATOR  OF  WHICH  SHALL  BE  THE  SUM OF THE AMOUNT OF RECEIPTS
   34  INCLUDED IN THE NUMERATOR OF THE RECEIPTS  FRACTION  UNDER  CLAUSES  (I)
   35  THROUGH  (IX) OF THIS SUBPARAGRAPH AND SUBCLAUSE (B) OF THIS CLAUSE, AND
   36  THE DENOMINATOR OF WHICH SHALL BE THE SUM  OF  THE  AMOUNT  OF  RECEIPTS
   37  INCLUDED  IN  THE DENOMINATOR OF THE RECEIPTS FRACTION UNDER CLAUSES (I)
   38  THROUGH (IX) OF THIS SUBPARAGRAPH AND  SUBCLAUSE  (B)  OF  THIS  CLAUSE.
   39  MARKED  TO MARKET NET GAINS (NOT LESS THAN ZERO) FOR WHICH THE AMOUNT TO
   40  BE INCLUDED IN THE NUMERATOR OF  THE  RECEIPTS  FRACTION  IS  DETERMINED
   41  UNDER THE IMMEDIATELY PRECEDING SENTENCE SHALL BE INCLUDED IN THE DENOM-
   42  INATOR OF THE RECEIPTS FRACTION.
   43    (B)  RECEIPTS OF A REGISTERED SECURITIES BROKER OR DEALER FROM SECURI-
   44  TIES OR COMMODITIES BROKER OR DEALER ACTIVITIES DESCRIBED IN THIS  PARA-
   45  GRAPH  SHALL  BE  DEEMED TO BE GENERATED WITHIN THE CITY AS DESCRIBED IN
   46  SUBPARAGRAPHS ONE THROUGH EIGHT OF THIS PARAGRAPH.  RECEIPTS  FROM  SUCH
   47  ACTIVITIES  GENERATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR
   48  OF THE RECEIPTS FRACTION. RECEIPTS FROM SUCH ACTIVITIES GENERATED WITHIN
   49  AND WITHOUT THE CITY  SHALL  BE  INCLUDED  IN  THE  DENOMINATOR  OF  THE
   50  RECEIPTS FRACTION. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "SECURI-
   51  TIES"  SHALL HAVE THE SAME MEANING AS IN PARAGRAPH TWO OF SUBSECTION (C)
   52  OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL  REVENUE  CODE  AND
   53  THE  TERM  "COMMODITIES" SHALL HAVE THE SAME MEANING AS IN PARAGRAPH TWO
   54  OF SUBSECTION (E) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF  THE  INTERNAL
   55  REVENUE CODE.
       S. 4610                            61                            A. 6721
    1    (1)  RECEIPTS  CONSTITUTING  BROKERAGE  COMMISSIONS  DERIVED  FROM THE
    2  EXECUTION OF SECURITIES OR COMMODITIES PURCHASE OR SALES ORDERS FOR  THE
    3  ACCOUNTS OF CUSTOMERS SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY IF
    4  THE  MAILING  ADDRESS IN THE RECORDS OF THE TAXPAYER OF THE CUSTOMER WHO
    5  IS RESPONSIBLE FOR PAYING SUCH COMMISSIONS IS WITHIN THE CITY.
    6    (2)  RECEIPTS CONSTITUTING MARGIN INTEREST EARNED ON BEHALF OF BROKER-
    7  AGE ACCOUNTS SHALL BE DEEMED TO BE GENERATED  WITHIN  THE  CITY  IF  THE
    8  MAILING  ADDRESS  IN  THE RECORDS OF THE TAXPAYER OF THE CUSTOMER WHO IS
    9  RESPONSIBLE FOR PAYING SUCH MARGIN INTEREST IS WITHIN THE CITY.
   10    (3) (I) RECEIPTS CONSTITUTING FEES EARNED BY THE TAXPAYER FOR ADVISORY
   11  SERVICES TO A CUSTOMER IN CONNECTION WITH THE UNDERWRITING OF SECURITIES
   12  FOR SUCH CUSTOMER (SUCH CUSTOMER BEING THE ENTITY THAT IS  CONTEMPLATING
   13  ISSUING  OR  IS  ISSUING  SECURITIES) OR FEES EARNED BY THE TAXPAYER FOR
   14  MANAGING AN UNDERWRITING SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY
   15  IF THE MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF  SUCH  CUSTOMER
   16  WHO IS RESPONSIBLE FOR PAYING SUCH FEES IS WITHIN THE CITY.
   17    (II)  RECEIPTS  CONSTITUTING  THE PRIMARY SPREAD OF SELLING CONCESSION
   18  FROM UNDERWRITTEN SECURITIES SHALL BE DEEMED TO BE GENERATED WITHIN  THE
   19  CITY IF THE CUSTOMER IS LOCATED WITHIN THE CITY.
   20    (III) THE TERM "PRIMARY SPREAD" MEANS THE DIFFERENCE BETWEEN THE PRICE
   21  PAID  BY THE TAXPAYER TO THE ISSUER OF THE SECURITIES BEING MARKETED AND
   22  THE PRICE RECEIVED FROM THE SUBSEQUENT SALE OF THE UNDERWRITTEN  SECURI-
   23  TIES  AT  THE INITIAL PUBLIC OFFERING PRICE, LESS ANY SELLING CONCESSION
   24  AND ANY FEES PAID TO THE TAXPAYER FOR ADVISORY SERVICES OR ANY MANAGER'S
   25  FEES, IF SUCH FEES ARE NOT PAID BY THE CUSTOMER TO  THE  TAXPAYER  SEPA-
   26  RATELY.  THE TERM "PUBLIC OFFERING PRICE" MEANS THE PRICE AGREED UPON BY
   27  THE TAXPAYER AND THE ISSUER AT WHICH THE SECURITIES ARE TO BE OFFERED TO
   28  THE PUBLIC. THE TERM "SELLING CONCESSION" MEANS THE AMOUNT PAID  TO  THE
   29  TAXPAYER  FOR  PARTICIPATING IN THE UNDERWRITING OF A SECURITY WHERE THE
   30  TAXPAYER IS NOT THE LEAD UNDERWRITER.
   31    (4) RECEIPTS CONSTITUTING ACCOUNT MAINTENANCE FEES SHALL BE DEEMED  TO
   32  BE  GENERATED  WITHIN  THE CITY IF THE MAILING ADDRESS IN THE RECORDS OF
   33  THE TAXPAYER OF THE CUSTOMER WHO IS RESPONSIBLE FOR PAYING SUCH  ACCOUNT
   34  MAINTENANCE FEES IS WITHIN THE CITY.
   35    (5)  RECEIPTS  CONSTITUTING  FEES FOR MANAGEMENT OR ADVISORY SERVICES,
   36  INCLUDING FEES FOR ADVISORY SERVICES IN RELATION TO MERGER  OR  ACQUISI-
   37  TION ACTIVITIES, BUT EXCLUDING FEES PAID FOR SERVICES DESCRIBED IN PARA-
   38  GRAPH  (D)  OF  THIS SUBDIVISION, SHALL BE DEEMED TO BE GENERATED WITHIN
   39  THE CITY IF THE MAILING ADDRESS IN THE RECORDS OF THE  TAXPAYER  OF  THE
   40  CUSTOMER WHO IS RESPONSIBLE FOR PAYING SUCH FEES IS WITHIN THE CITY.
   41    (6) RECEIPTS CONSTITUTING INTEREST EARNED BY THE TAXPAYER ON LOANS AND
   42  ADVANCES  MADE  BY  THE  TAXPAYER  TO  A CORPORATION AFFILIATED WITH THE
   43  TAXPAYER BUT WITH WHICH THE TAXPAYER IS NOT  PERMITTED  OR  REQUIRED  TO
   44  FILE  A  COMBINED REPORT PURSUANT TO SECTION 11-654.3 OF THIS SUBCHAPTER
   45  SHALL BE DEEMED TO ARISE FROM SERVICES PERFORMED AT THE PRINCIPAL  PLACE
   46  OF BUSINESS OF SUCH AFFILIATED CORPORATION.
   47    (7) IF THE TAXPAYER RECEIVES ANY OF THE RECEIPTS ENUMERATED IN SUBPAR-
   48  AGRAPHS  ONE  THROUGH FOUR OF THIS PARAGRAPH AS A RESULT OF A SECURITIES
   49  CORRESPONDENT RELATIONSHIP SUCH TAXPAYER  HAS  WITH  ANOTHER  BROKER  OR
   50  DEALER  WITH  THE  TAXPAYER  ACTING IN THIS RELATIONSHIP AS THE CLEARING
   51  FIRM, SUCH RECEIPTS SHALL BE DEEMED TO BE GENERATED WITHIN THE  CITY  TO
   52  THE  EXTENT  SET FORTH IN EACH OF SUCH SUBPARAGRAPHS. THE AMOUNT OF SUCH
   53  RECEIPTS SHALL EXCLUDE THE AMOUNT THE TAXPAYER IS REQUIRED TO PAY TO THE
   54  CORRESPONDENT FIRM FOR SUCH CORRESPONDENT RELATIONSHIP. IF THE  TAXPAYER
   55  RECEIVES  ANY  OF  THE  RECEIPTS ENUMERATED IN SUBPARAGRAPHS ONE THROUGH
   56  FOUR OF THIS  PARAGRAPH  AS  A  RESULT  OF  A  SECURITIES  CORRESPONDENT
       S. 4610                            62                            A. 6721
    1  RELATIONSHIP  SUCH  TAXPAYER  HAS WITH ANOTHER BROKER OR DEALER WITH THE
    2  TAXPAYER ACTING IN THIS  RELATIONSHIP  AS  THE  INTRODUCING  FIRM,  SUCH
    3  RECEIPTS  SHALL  BE DEEMED TO BE GENERATED WITHIN THE CITY TO THE EXTENT
    4  SET FORTH IN EACH OF SUCH SUBPARAGRAPHS.
    5    (8) IF, FOR THE PURPOSES OF SUBPARAGRAPH ONE, SUBPARAGRAPH TWO, CLAUSE
    6  (I)  OF  SUBPARAGRAPH  THREE, SUBPARAGRAPH FOUR, OR SUBPARAGRAPH FIVE OF
    7  THIS PARAGRAPH, THE TAXPAYER IS UNABLE FROM ITS RECORDS TO DETERMINE THE
    8  MAILING ADDRESS OF THE CUSTOMER, EIGHT PERCENT OF THE RECEIPTS SHALL  BE
    9  INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION.
   10    (C)  RECEIPTS  RELATING TO THE BANK, CREDIT, TRAVEL, AND ENTERTAINMENT
   11  CARD ACTIVITIES DESCRIBED IN THIS PARAGRAPH SHALL BE DEEMED TO BE GENER-
   12  ATED WITHIN THE CITY AS DESCRIBED IN SUBPARAGRAPHS ONE THROUGH  FOUR  OF
   13  THIS PARAGRAPH.  RECEIPTS FROM SUCH ACTIVITIES GENERATED WITHIN THE CITY
   14  SHALL  BE  INCLUDED  IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS
   15  FROM SUCH ACTIVITIES GENERATED WITHIN AND  WITHOUT  THE  CITY  SHALL  BE
   16  INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
   17    (1)  RECEIPTS  CONSTITUTING  INTEREST,  AND  FEES AND PENALTIES IN THE
   18  NATURE OF INTEREST, FROM BANK, CREDIT,  TRAVEL  AND  ENTERTAINMENT  CARD
   19  RECEIVABLES SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY IF THE MAIL-
   20  ING  ADDRESS OF THE CARD HOLDER IN THE RECORDS OF THE TAXPAYER IS WITHIN
   21  THE CITY;
   22    (2) RECEIPTS FROM SERVICE CHARGES AND FEES FROM SUCH  CARDS  SHALL  BE
   23  DEEMED  TO  BE  GENERATED  WITHIN THE CITY IF THE MAILING ADDRESS OF THE
   24  CARD HOLDER IN THE RECORDS OF THE TAXPAYER IS WITHIN THE CITY;
   25    (3) RECEIPTS FROM MERCHANT DISCOUNTS SHALL BE DEEMED TO  BE  GENERATED
   26  WITHIN  THE CITY IF THE MERCHANT IS LOCATED WITHIN THE CITY. IN THE CASE
   27  OF A MERCHANT WITH LOCATIONS BOTH WITHIN  AND  WITHOUT  THE  CITY,  ONLY
   28  RECEIPTS  FROM  MERCHANT  DISCOUNTS  ATTRIBUTABLE  TO  SALES  MADE  FROM
   29  LOCATIONS WITHIN THE CITY  ARE  ALLOCATED  TO  THE  CITY.  IT  SHALL  BE
   30  PRESUMED  THAT  THE  LOCATION  OF  THE  MERCHANT  IS  THE ADDRESS OF THE
   31  MERCHANT SHOWN ON THE INVOICE SUBMITTED BY THE MERCHANT TO THE TAXPAYER;
   32  AND
   33    (4) RECEIPTS FROM CREDIT CARD AUTHORIZATION PROCESSING,  AND  CLEARING
   34  AND  SETTLEMENT  PROCESSING RECEIVED BY A CREDIT CARD PROCESSOR SHALL BE
   35  DEEMED TO BE GENERATED WITHIN THE CITY IF THE LOCATION WHERE THE  CREDIT
   36  CARD  PROCESSOR'S  CUSTOMER ACCESSES THE CREDIT CARD PROCESSOR'S NETWORK
   37  IS LOCATED WITHIN THE CITY. THE AMOUNT OF ALL OTHER RECEIPTS RECEIVED BY
   38  A CREDIT CARD PROCESSOR NOT SPECIFICALLY ADDRESSED IN  SUBDIVISIONS  ONE
   39  THROUGH  NINE  OR SUBDIVISION TWELVE OF THIS SECTION DEEMED TO BE GENER-
   40  ATED WITHIN THE CITY SHALL BE DETERMINED BY MULTIPLYING THE TOTAL AMOUNT
   41  OF SUCH OTHER RECEIPTS BY THE AVERAGE OF (I) EIGHT PERCENT AND (II)  THE
   42  PERCENT  OF  NEW  YORK  CITY ACCESS POINTS. THE PERCENT OF NEW YORK CITY
   43  ACCESS POINTS SHALL BE THE NUMBER OF LOCATIONS IN  NEW  YORK  CITY  FROM
   44  WHICH  THE  CREDIT  CARD  PROCESSOR'S  CUSTOMERS  ACCESS THE CREDIT CARD
   45  PROCESSOR'S NETWORK DIVIDED BY THE TOTAL  NUMBER  OF  LOCATIONS  IN  THE
   46  UNITED  STATES  WHERE  THE  CREDIT CARD PROCESSOR'S CUSTOMERS ACCESS THE
   47  CREDIT CARD PROCESSOR'S NETWORK.
   48    (D) RECEIPTS RECEIVED FROM AN INVESTMENT COMPANY ARISING FROM THE SALE
   49  OF MANAGEMENT, ADMINISTRATION OR DISTRIBUTION SERVICES TO  SUCH  INVEST-
   50  MENT  COMPANY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC-
   51  TION. THE PORTION OF SUCH RECEIPTS INCLUDED  IN  THE  NUMERATOR  OF  THE
   52  RECEIPTS  FRACTION (SUCH PORTION REFERRED TO HEREIN AS THE NEW YORK CITY
   53  PORTION) SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH.
   54    (1) THE NEW YORK CITY PORTION SHALL BE THE PRODUCT  OF  THE  TOTAL  OF
   55  SUCH RECEIPTS FROM THE SALE OF SUCH SERVICES AND A FRACTION. THE NUMERA-
   56  TOR  OF  THAT  FRACTION  SHALL BE THE SUM OF THE MONTHLY PERCENTAGES (AS
       S. 4610                            63                            A. 6721
    1  DEFINED HEREINAFTER) DETERMINED FOR EACH MONTH OF THE INVESTMENT  COMPA-
    2  NY'S  TAXABLE  YEAR  FOR  FEDERAL INCOME TAX PURPOSES WHICH TAXABLE YEAR
    3  ENDS WITHIN THE TAXABLE YEAR OF THE TAXPAYER (BUT  EXCLUDING  ANY  MONTH
    4  DURING  WHICH  THE  INVESTMENT  COMPANY  HAD NO OUTSTANDING SHARES). THE
    5  MONTHLY PERCENTAGE FOR EACH SUCH MONTH SHALL BE DETERMINED  BY  DIVIDING
    6  THE  NUMBER  OF  SHARES  IN THE INVESTMENT COMPANY THAT ARE OWNED ON THE
    7  LAST DAY OF THE MONTH BY SHAREHOLDERS THAT ARE LOCATED IN  THE  CITY  BY
    8  THE TOTAL NUMBER OF SHARES IN THE INVESTMENT COMPANY OUTSTANDING ON THAT
    9  DATE. THE DENOMINATOR OF THE FRACTION SHALL BE THE NUMBER OF SUCH MONTH-
   10  LY PERCENTAGES.
   11    (2)(I)  FOR PURPOSES OF THIS PARAGRAPH, AN INDIVIDUAL, ESTATE OR TRUST
   12  SHALL BE DEEMED TO BE LOCATED WITHIN THE CITY IF HIS, HER OR ITS MAILING
   13  ADDRESS IN THE RECORDS OF THE INVESTMENT COMPANY IS LOCATED  WITHIN  THE
   14  CITY.  A  BUSINESS ENTITY IS DEEMED TO BE LOCATED WITHIN THE CITY IF ITS
   15  COMMERCIAL DOMICILE IS LOCATED WITHIN THE CITY.
   16    (II) FOR PURPOSES OF THIS PARAGRAPH,  THE  TERM  "INVESTMENT  COMPANY"
   17  MEANS  A  REGULATED  INVESTMENT  COMPANY,  AS  DEFINED  IN SECTION EIGHT
   18  HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE,  AND  A  PARTNERSHIP  TO
   19  WHICH SUBSECTION (A) OF SECTION SEVEN THOUSAND SEVEN HUNDRED FOUR OF THE
   20  INTERNAL   REVENUE  CODE  APPLIES  (BY  VIRTUE  OF  PARAGRAPH  THREE  OF
   21  SUBSECTION (C) OF SECTION SEVEN THOUSAND  SEVEN  HUNDRED  FOUR  OF  SUCH
   22  CODE) AND THAT MEETS THE REQUIREMENTS OF SUBSECTION (B) OF SECTION EIGHT
   23  HUNDRED  FIFTY-ONE OF SUCH CODE. THE PRECEDING SENTENCE SHALL BE APPLIED
   24  TO THE TAXABLE YEAR FOR FEDERAL INCOME  TAX  PURPOSES  OF  THE  BUSINESS
   25  ENTITY  THAT  IS  ASSERTED TO CONSTITUTE AN INVESTMENT COMPANY THAT ENDS
   26  WITHIN THE TAXABLE YEAR OF THE TAXPAYER.
   27    (III) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "RECEIPTS RECEIVED FROM
   28  AN INVESTMENT  COMPANY"  INCLUDES  AMOUNTS  RECEIVED  DIRECTLY  FROM  AN
   29  INVESTMENT  COMPANY AS WELL AS AMOUNTS RECEIVED FROM THE SHAREHOLDERS IN
   30  SUCH INVESTMENT COMPANY, IN THEIR CAPACITY AS SUCH.
   31    (IV) FOR PURPOSES OF THIS PARAGRAPH, THE  TERM  "MANAGEMENT  SERVICES"
   32  MEANS  THE  RENDERING  OF  INVESTMENT  ADVICE  TO AN INVESTMENT COMPANY,
   33  MAKING DETERMINATIONS AS TO WHEN SALES AND PURCHASES OF  SECURITIES  ARE
   34  TO  BE  MADE  ON  BEHALF  OF  AN  INVESTMENT  COMPANY, OR THE SELLING OR
   35  PURCHASING OF SECURITIES CONSTITUTING ASSETS OF AN  INVESTMENT  COMPANY,
   36  AND  RELATED  ACTIVITIES, BUT ONLY WHERE SUCH ACTIVITY OR ACTIVITIES ARE
   37  PERFORMED PURSUANT TO A CONTRACT WITH  THE  INVESTMENT  COMPANY  ENTERED
   38  INTO  PURSUANT  TO  SUBSECTION  (A)  OF  SECTION  FIFTEEN OF THE FEDERAL
   39  INVESTMENT COMPANY ACT OF NINETEEN HUNDRED FORTY, AS AMENDED.
   40    (V) FOR PURPOSES OF THIS PARAGRAPH, THE TERM  "DISTRIBUTION  SERVICES"
   41  MEANS  THE SERVICES OF ADVERTISING, SERVICING INVESTOR ACCOUNTS (INCLUD-
   42  ING REDEMPTIONS), MARKETING SHARES OR SELLING SHARES  OF  AN  INVESTMENT
   43  COMPANY,  BUT,  IN  THE CASE OF ADVERTISING, SERVICING INVESTOR ACCOUNTS
   44  (INCLUDING REDEMPTIONS) OR MARKETING SHARES, ONLY WHERE SUCH SERVICE  IS
   45  PERFORMED BY A PERSON WHO IS (OR WAS, IN THE CASE OF A CLOSED END COMPA-
   46  NY)  ALSO  ENGAGED IN THE SERVICE OF SELLING SUCH SHARES. IN THE CASE OF
   47  AN OPEN END COMPANY, SUCH SERVICE OF SELLING SHARES  MUST  BE  PERFORMED
   48  PURSUANT  TO  A  CONTRACT  ENTERED  INTO  PURSUANT  TO SUBSECTION (B) OF
   49  SECTION FIFTEEN OF  THE  FEDERAL  INVESTMENT  COMPANY  ACT  OF  NINETEEN
   50  HUNDRED FORTY, AS AMENDED.
   51    (VI)   FOR  PURPOSES  OF  THIS  PARAGRAPH,  THE  TERM  "ADMINISTRATION
   52  SERVICES" INCLUDES CLERICAL, ACCOUNTING, BOOKKEEPING,  DATA  PROCESSING,
   53  INTERNAL  AUDITING,  LEGAL  AND TAX SERVICES PERFORMED FOR AN INVESTMENT
   54  COMPANY BUT ONLY IF THE PROVIDER OF SUCH SERVICE OR SERVICES DURING  THE
   55  TAXABLE  YEAR  IN  WHICH  SUCH  SERVICE  OR SERVICES ARE SOLD ALSO SELLS
       S. 4610                            64                            A. 6721
    1  MANAGEMENT OR DISTRIBUTION SERVICES, AS  DEFINED  HEREINABOVE,  TO  SUCH
    2  INVESTMENT COMPANY.
    3    (E) FOR PURPOSES OF THIS SUBDIVISION, A TAXPAYER SHALL USE THE FOLLOW-
    4  ING HIERARCHY TO DETERMINE THE COMMERCIAL DOMICILE OF A BUSINESS ENTITY,
    5  BASED ON THE INFORMATION KNOWN TO THE TAXPAYER OR INFORMATION THAT WOULD
    6  BE KNOWN UPON REASONABLE INQUIRY: (1) THE SEAT OF MANAGEMENT AND CONTROL
    7  OF  THE  BUSINESS  ENTITY;  AND  (2) THE BILLING ADDRESS OF THE BUSINESS
    8  ENTITY IN THE TAXPAYER'S RECORDS. THE TAXPAYER MUST EXERCISE  DUE  DILI-
    9  GENCE BEFORE REJECTING THE FIRST METHOD IN THIS HIERARCHY AND PROCEEDING
   10  TO THE NEXT METHOD.
   11    (F)  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "REGISTERED SECURITIES
   12  BROKER OR DEALER" MEANS A BROKER OR DEALER REGISTERED  AS  SUCH  BY  THE
   13  SECURITIES  AND  EXCHANGE COMMISSION OR A BROKER OR DEALER REGISTERED AS
   14  SUCH BY THE COMMODITIES FUTURES TRADING COMMISSION, AND SHALL INCLUDE AN
   15  OTC DERIVATIVES DEALER AS DEFINED UNDER REGULATIONS  OF  THE  SECURITIES
   16  AND EXCHANGE COMMISSION AT TITLE 17, PART 240, SECTION 3B-12 OF THE CODE
   17  OF FEDERAL REGULATIONS (17 CFR 240.3B-12).
   18    6. RECEIPTS FROM THE CONDUCT OF A RAILROAD BUSINESS (INCLUDING SURFACE
   19  RAILROAD,  WHETHER  OR  NOT OPERATED BY STEAM, SUBWAY RAILROAD, ELEVATED
   20  RAILROAD, PALACE CAR OR SLEEPING CAR BUSINESS) OR  A  TRUCKING  BUSINESS
   21  SHALL  BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS FOLLOWS.
   22  THE AMOUNT OF RECEIPTS FROM THE CONDUCT OF  A  RAILROAD  BUSINESS  OR  A
   23  TRUCKING  BUSINESS  INCLUDED  IN  THE NUMERATOR OF THE RECEIPTS FRACTION
   24  SHALL BE DETERMINED BY MULTIPLYING THE  AMOUNT  OF  RECEIPTS  FROM  SUCH
   25  BUSINESS  BY  A  FRACTION,  THE NUMERATOR OF WHICH SHALL BE THE MILES IN
   26  SUCH BUSINESS WITHIN THE CITY DURING THE PERIOD COVERED BY  THE  TAXPAY-
   27  ER'S  REPORT  AND  THE  DENOMINATOR  OF WHICH SHALL BE THE MILES IN SUCH
   28  BUSINESS WITHIN AND WITHOUT THE CITY DURING SUCH PERIOD.  RECEIPTS  FROM
   29  THE  CONDUCT  OF  THE  RAILROAD BUSINESS OR A TRUCKING BUSINESS SHALL BE
   30  INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
   31    7. (A) RECEIPTS OF A TAXPAYER ACTING AS PRINCIPAL FROM THE ACTIVITY OF
   32  AIR FREIGHT FORWARDING AND LIKE INDIRECT AIR  CARRIER  RECEIPTS  ARISING
   33  FROM  SUCH  ACTIVITY  SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS
   34  FRACTION AS FOLLOWS: ONE HUNDRED PERCENT OF SUCH RECEIPTS  IF  BOTH  THE
   35  PICKUP  AND  DELIVERY  ASSOCIATED WITH SUCH RECEIPTS ARE MADE WITHIN THE
   36  CITY AND FIFTY PERCENT OF SUCH RECEIPTS IF EITHER THE PICKUP OR DELIVERY
   37  ASSOCIATED WITH SUCH RECEIPTS IS MADE WITHIN THIS CITY.  SUCH  RECEIPTS,
   38  WHETHER THE PICKUP OR DELIVERY ASSOCIATED WITH THE RECEIPTS IS WITHIN OR
   39  WITHOUT  THE  CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS
   40  FRACTION.
   41    (B)(1)(I) THE PORTION OF RECEIPTS OF A TAXPAYER FROM AVIATION SERVICES
   42  (OTHER THAN SERVICES DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, BUT
   43  INCLUDING THE RECEIPTS OF A  QUALIFIED  AIR  FREIGHT  FORWARDER)  TO  BE
   44  INCLUDED  IN  THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED
   45  BY MULTIPLYING ITS RECEIPTS FROM SUCH AVIATION SERVICES BY A  PERCENTAGE
   46  WHICH IS EQUAL TO THE ARITHMETIC AVERAGE OF THE FOLLOWING THREE PERCENT-
   47  AGES:
   48    (A)  THE  PERCENTAGE  DETERMINED BY DIVIDING THE AIRCRAFT ARRIVALS AND
   49  DEPARTURES WITHIN THE CITY BY THE TAXPAYER DURING THE PERIOD COVERED  BY
   50  ITS  REPORT  BY  THE  TOTAL  AIRCRAFT ARRIVALS AND DEPARTURES WITHIN AND
   51  WITHOUT THE CITY DURING SUCH PERIOD;  PROVIDED,  HOWEVER,  ARRIVALS  AND
   52  DEPARTURES  SOLELY FOR MAINTENANCE OR REPAIR, REFUELING (WHERE NO DEBAR-
   53  KATION OR EMBARKATION OF TRAFFIC OCCURS),  ARRIVALS  AND  DEPARTURES  OF
   54  FERRY  AND  PERSONNEL TRAINING FLIGHTS OR ARRIVALS AND DEPARTURES IN THE
   55  EVENT OF EMERGENCY SITUATIONS SHALL NOT BE INCLUDED  IN  COMPUTING  SUCH
   56  ARRIVAL AND DEPARTURE PERCENTAGE; PROVIDED, FURTHER, THE COMMISSIONER OF
       S. 4610                            65                            A. 6721
    1  FINANCE  MAY  ALSO  EXEMPT  FROM  SUCH  PERCENTAGE AIRCRAFT ARRIVALS AND
    2  DEPARTURES OF ALL NON-REVENUE FLIGHTS INCLUDING  FLIGHTS  INVOLVING  THE
    3  TRANSPORTATION  OF OFFICERS OR EMPLOYEES RECEIVING AIR TRANSPORTATION TO
    4  PERFORM MAINTENANCE OR REPAIR SERVICES OR WHERE SUCH OFFICERS OR EMPLOY-
    5  EES  ARE  TRANSPORTED  IN CONJUNCTION WITH AN EMERGENCY SITUATION OR THE
    6  INVESTIGATION OF AN AIR DISASTER (OTHER THAN  ON  A  SCHEDULED  FLIGHT);
    7  PROVIDED,  HOWEVER, THAT ARRIVALS AND DEPARTURES OF FLIGHTS TRANSPORTING
    8  OFFICERS AND EMPLOYEES RECEIVING AIR TRANSPORTATION FOR  PURPOSES  OTHER
    9  THAN  SPECIFIED ABOVE (WITHOUT REGARD TO REMUNERATION) SHALL BE INCLUDED
   10  IN COMPUTING SUCH ARRIVAL AND DEPARTURE PERCENTAGE;
   11    (B) THE PERCENTAGE DETERMINED BY DIVIDING THE REVENUE TONS HANDLED  BY
   12  THE TAXPAYER AT AIRPORTS WITHIN THE CITY DURING SUCH PERIOD BY THE TOTAL
   13  REVENUE  TONS  HANDLED  BY  IT  AT  AIRPORTS WITHIN AND WITHOUT THE CITY
   14  DURING SUCH PERIOD; AND
   15    (C) THE PERCENTAGE DETERMINED BY DIVIDING THE  TAXPAYER'S  ORIGINATING
   16  REVENUE WITHIN THE CITY FOR SUCH PERIOD BY ITS TOTAL ORIGINATING REVENUE
   17  WITHIN AND WITHOUT THE CITY FOR SUCH PERIOD.
   18    (II)  AS USED HEREIN THE TERM "AIRCRAFT ARRIVALS AND DEPARTURES" MEANS
   19  THE NUMBER OF LANDINGS AND TAKEOFFS OF THE AIRCRAFT OF THE TAXPAYER  AND
   20  THE NUMBER OF AIR PICKUPS AND DELIVERIES BY THE AIRCRAFT OF SUCH TAXPAY-
   21  ER;  THE  TERM  "ORIGINATING REVENUE" MEANS REVENUE TO THE TAXPAYER FROM
   22  THE TRANSPORTATION OF REVENUE  PASSENGERS  AND  REVENUE  PROPERTY  FIRST
   23  RECEIVED  BY THE TAXPAYER EITHER AS ORIGINATING OR CONNECTING TRAFFIC AT
   24  AIRPORTS; AND  THE  TERM  "REVENUE  TONS  HANDLED  BY  THE  TAXPAYER  AT
   25  AIRPORTS" MEANS THE WEIGHT IN TONS OF REVENUE PASSENGERS (AT TWO HUNDRED
   26  POUNDS  PER PASSENGER) AND REVENUE CARGO FIRST RECEIVED EITHER AS ORIGI-
   27  NATING OR CONNECTING TRAFFIC OR FINALLY DISCHARGED BY  THE  TAXPAYER  AT
   28  AIRPORTS.
   29    (2)  ALL  SUCH RECEIPTS OF A TAXPAYER FROM AVIATION SERVICES DESCRIBED
   30  IN THIS PARAGRAPH SHALL BE INCLUDED IN THE DENOMINATOR OF  THE  RECEIPTS
   31  FRACTION.
   32    (3) A CORPORATION IS A QUALIFIED AIR FREIGHT FORWARDER WITH RESPECT TO
   33  ANOTHER CORPORATION:
   34    (I)  IF  IT  OWNS OR CONTROLS EITHER DIRECTLY OR INDIRECTLY ALL OF THE
   35  CAPITAL STOCK OF SUCH OTHER CORPORATION, OR IF ALL OF ITS CAPITAL  STOCK
   36  IS  OWNED  OR  CONTROLLED  EITHER  DIRECTLY  OR INDIRECTLY BY SUCH OTHER
   37  CORPORATION, OR IF ALL OF THE CAPITAL  STOCK  OF  BOTH  CORPORATIONS  IS
   38  OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY THE SAME INTERESTS;
   39    (II)  IF  IT  IS  PRINCIPALLY  ENGAGED  IN THE BUSINESS OF AIR FREIGHT
   40  FORWARDING; AND
   41    (III) IF ITS AIR FREIGHT FORWARDING BUSINESS IS CARRIED ON PRINCIPALLY
   42  WITH THE AIRLINE OR AIRLINES OPERATED BY SUCH OTHER CORPORATION.
   43    8. (A) THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING IN  NEWSPAPERS
   44  OR  PERIODICALS INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL
   45  BE DETERMINED BY MULTIPLYING THE TOTAL OF SUCH RECEIPTS BY  A  FRACTION,
   46  THE NUMERATOR OF WHICH SHALL BE THE NUMBER OF NEWSPAPERS AND PERIODICALS
   47  DELIVERED  TO  POINTS WITHIN THE CITY AND THE DENOMINATOR OF WHICH SHALL
   48  BE THE NUMBER OF NEWSPAPERS AND PERIODICALS DELIVERED TO  POINTS  WITHIN
   49  AND WITHOUT THE CITY. THE TOTAL OF SUCH RECEIPTS FROM SALES OF ADVERTIS-
   50  ING IN NEWSPAPERS OR PERIODICALS SHALL BE INCLUDED IN THE DENOMINATOR OF
   51  THE RECEIPTS FRACTION.
   52    (B)  THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING ON TELEVISION OR
   53  RADIO INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETER-
   54  MINED BY MULTIPLYING THE TOTAL OF  SUCH  RECEIPTS  BY  A  FRACTION,  THE
   55  NUMERATOR  OF  WHICH  SHALL BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN
   56  THE CITY AND THE DENOMINATOR OF WHICH SHALL BE THE NUMBER OF VIEWERS  OR
       S. 4610                            66                            A. 6721
    1  LISTENERS  WITHIN AND WITHOUT THE CITY.  THE TOTAL OF SUCH RECEIPTS FROM
    2  SALES OF ADVERTISING ON TELEVISION OR RADIO SHALL  BE  INCLUDED  IN  THE
    3  DENOMINATOR OF THE RECEIPTS FRACTION.
    4    (C)  THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING NOT DESCRIBED IN
    5  PARAGRAPH (A) OR (B) OF THIS SUBDIVISION THAT IS FURNISHED, PROVIDED  OR
    6  DELIVERED  TO,  OR ACCESSED BY THE VIEWER OR LISTENER THROUGH THE USE OF
    7  WIRE, CABLE, FIBER-OPTIC, LASER, MICROWAVE,  RADIO  WAVE,  SATELLITE  OR
    8  SIMILAR  SUCCESSOR  MEDIA  OR  ANY  COMBINATION THEREOF, INCLUDED IN THE
    9  NUMERATOR OF THE RECEIPTS FRACTION SHALL BE  DETERMINED  BY  MULTIPLYING
   10  THE  TOTAL  OF SUCH RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH SHALL
   11  BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN THE CITY AND THE  DENOMINA-
   12  TOR  OF  WHICH  SHALL  BE  THE NUMBER OF VIEWERS OR LISTENERS WITHIN AND
   13  WITHOUT THE CITY. THE TOTAL OF SUCH RECEIPTS FROM SALES  OF  ADVERTISING
   14  DESCRIBED  IN THIS PARAGRAPH SHALL BE INCLUDED IN THE DENOMINATOR OF THE
   15  RECEIPTS FRACTION.
   16    9. RECEIPTS FROM THE TRANSPORTATION OR  TRANSMISSION  OF  GAS  THROUGH
   17  PIPES  SHALL  BE  INCLUDED  IN THE NUMERATOR OF THE RECEIPTS FRACTION AS
   18  FOLLOWS. THE AMOUNT OF RECEIPTS FROM THE TRANSPORTATION OR  TRANSMISSION
   19  OF  GAS THROUGH PIPES INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION
   20  SHALL BE DETERMINED BY MULTIPLYING THE TOTAL AMOUNT OF SUCH RECEIPTS  BY
   21  A  FRACTION,  THE NUMERATOR OF WHICH SHALL BE THE TAXPAYER'S TRANSPORTA-
   22  TION UNITS WITHIN THE CITY AND THE DENOMINATOR OF  WHICH  SHALL  BE  THE
   23  TAXPAYER'S TRANSPORTATION UNITS WITHIN AND WITHOUT THE CITY. A TRANSPOR-
   24  TATION  UNIT  IS  THE  TRANSPORTATION  OF  ONE  CUBIC FOOT OF GAS OVER A
   25  DISTANCE OF ONE MILE.  THE TOTAL AMOUNT OF RECEIPTS FROM THE TRANSPORTA-
   26  TION OR TRANSMISSION OF GAS THROUGH  PIPES  SHALL  BE  INCLUDED  IN  THE
   27  DENOMINATOR OF THE RECEIPTS FRACTION.
   28    10.  (A)  RECEIPTS  FROM  SERVICES  NOT  ADDRESSED IN SUBDIVISIONS ONE
   29  THROUGH NINE OR SUBDIVISION TWELVE OF THIS SECTION  AND  OTHER  BUSINESS
   30  RECEIPTS  NOT  ADDRESSED  IN  SUCH SUBDIVISIONS SHALL BE INCLUDED IN THE
   31  NUMERATOR OF THE RECEIPTS FRACTION IF THE LOCATION OF  THE  CUSTOMER  IS
   32  WITHIN  THE  CITY.  SUCH  RECEIPTS FROM CUSTOMERS WITHIN AND WITHOUT THE
   33  CITY SHALL BE INCLUDED IN THE  DENOMINATOR  OF  THE  RECEIPTS  FRACTION.
   34  WHETHER THE RECEIPTS ARE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC-
   35  TION SHALL BE DETERMINED ACCORDING TO THE HIERARCHY OF METHODS SET FORTH
   36  IN  PARAGRAPH  (B)  OF THIS SUBDIVISION.  THE TAXPAYER MUST EXERCISE DUE
   37  DILIGENCE UNDER EACH METHOD DESCRIBED IN SUCH PARAGRAPH BEFORE REJECTING
   38  IT AND PROCEEDING TO THE NEXT METHOD IN THE HIERARCHY, AND MUST BASE ITS
   39  DETERMINATION ON INFORMATION KNOWN TO THE TAXPAYER OR  INFORMATION  THAT
   40  WOULD BE KNOWN TO THE TAXPAYER UPON REASONABLE INQUIRY.
   41    (B)  THE  HIERARCHY  OF  METHODS  IS  AS FOLLOWS:   (1) THE BENEFIT IS
   42  RECEIVED IN THE CITY; (2) DELIVERY DESTINATION; (3) THE  RECEIPTS  FRAC-
   43  TION  FOR  SUCH  RECEIPTS  WITHIN  THE  CITY DETERMINED PURSUANT TO THIS
   44  SUBDIVISION FOR THE PRECEDING TAXABLE YEAR; OR (4) THE RECEIPTS FRACTION
   45  IN THE CURRENT TAXABLE YEAR DETERMINED PURSUANT TO THIS SUBDIVISION  FOR
   46  THOSE RECEIPTS THAT CAN BE SOURCED USING THE HIERARCHY OF SOURCING METH-
   47  ODS IN SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH.
   48    11.  IF IT SHALL APPEAR THAT THE RECEIPTS FRACTION DETERMINED PURSUANT
   49  TO THIS SECTION DOES NOT RESULT IN A PROPER REFLECTION OF THE TAXPAYER'S
   50  BUSINESS INCOME OR CAPITAL WITHIN THE CITY, THE COMMISSIONER OF  FINANCE
   51  IS AUTHORIZED IN HIS OR HER DISCRETION TO ADJUST IT, OR THE TAXPAYER MAY
   52  REQUEST THAT THE COMMISSIONER OF FINANCE ADJUST IT, BY (A) EXCLUDING ONE
   53  OR  MORE  ITEMS  IN  SUCH DETERMINATION, (B) INCLUDING ONE OR MORE OTHER
   54  ITEMS IN SUCH DETERMINATION, OR (C) ANY OTHER SIMILAR OR DIFFERENT METH-
   55  OD CALCULATED TO EFFECT A FAIR AND PROPER  ALLOCATION  OF  THE  BUSINESS
   56  INCOME  AND CAPITAL REASONABLY ATTRIBUTED TO THE CITY. THE PARTY SEEKING
       S. 4610                            67                            A. 6721
    1  THE ADJUSTMENT SHALL BEAR THE BURDEN OF PROOF TO  DEMONSTRATE  THAT  THE
    2  RECEIPTS FRACTION DETERMINED PURSUANT TO THIS SECTION DOES NOT RESULT IN
    3  A  PROPER REFLECTION OF THE TAXPAYER'S BUSINESS INCOME OR CAPITAL WITHIN
    4  THE CITY AND THAT THE PROPOSED ADJUSTMENT IS APPROPRIATE.
    5    12.  RECEIPTS  FROM  THE OPERATION OF VESSELS SHALL BE INCLUDED IN THE
    6  NUMERATOR OF THE RECEIPTS FRACTION AS FOLLOWS. THE  AMOUNT  OF  RECEIPTS
    7  FROM  THE OPERATION OF VESSELS INCLUDED IN THE NUMERATOR OF THE RECEIPTS
    8  FRACTION SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT OF SUCH  RECEIPTS
    9  BY  A  FRACTION, THE NUMERATOR OF WHICH SHALL BE THE AGGREGATE NUMBER OF
   10  WORKING DAYS OF THE VESSELS OWNED OR LEASED BY THE TAXPAYER IN  TERRITO-
   11  RIAL  WATERS  OF  THE  CITY  DURING THE PERIOD COVERED BY THE TAXPAYER'S
   12  REPORT AND THE DENOMINATOR OF WHICH SHALL BE  THE  AGGREGATE  NUMBER  OF
   13  WORKING  DAYS OF ALL VESSELS OWNED OR LEASED BY THE TAXPAYER DURING SUCH
   14  PERIOD. RECEIPTS FROM THE OPERATION OF VESSELS SHALL BE INCLUDED IN  THE
   15  DENOMINATOR OF THE RECEIPTS FRACTION.
   16    S 11-654.3 COMBINED REPORTS. 1. (A) THE TAX ON A COMBINED REPORT SHALL
   17  BE THE HIGHEST OF (1) THE COMBINED BUSINESS INCOME MULTIPLIED BY THE TAX
   18  RATE  SPECIFIED  IN  CLAUSE  (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF
   19  SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER; (2)  THE  COMBINED
   20  CAPITAL  MULTIPLIED BY THE TAX RATE SPECIFIED IN CLAUSE (II) OF SUBPARA-
   21  GRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 OF  THIS
   22  SUBCHAPTER, BUT NOT EXCEEDING THE LIMITATION PROVIDED FOR IN SUCH CLAUSE
   23  (II); OR (3) THE FIXED DOLLAR MINIMUM THAT IS ATTRIBUTABLE TO THE DESIG-
   24  NATED  AGENT  OF  THE COMBINED GROUP. IN ADDITION, THE TAX ON A COMBINED
   25  REPORT SHALL INCLUDE THE FIXED DOLLAR MINIMUM TAX  SPECIFIED  IN  CLAUSE
   26  (IV)  OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION
   27  11-654 OF THIS SUBCHAPTER FOR EACH MEMBER OF THE COMBINED  GROUP,  OTHER
   28  THAN THE DESIGNATED AGENT, THAT IS A TAXPAYER.
   29    (B)  THE  COMBINED  BUSINESS INCOME BASE IS THE AMOUNT OF THE COMBINED
   30  BUSINESS INCOME OF THE COMBINED GROUP THAT IS  ALLOCATED  TO  THE  CITY,
   31  REDUCED  BY  ANY PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION AND ANY
   32  NET OPERATING LOSS DEDUCTION FOR THE COMBINED GROUP. THE COMBINED  CAPI-
   33  TAL  BASE  IS  THE  AMOUNT OF THE COMBINED CAPITAL OF THE COMBINED GROUP
   34  THAT IS ALLOCATED TO THE CITY.
   35    2. (A) EXCEPT AS PROVIDED IN PARAGRAPH (C) OF  THIS  SUBDIVISION,  ANY
   36  TAXPAYER  (1)  WHICH OWNS OR CONTROLS EITHER DIRECTLY OR INDIRECTLY MORE
   37  THAN FIFTY PERCENT OF THE VOTING POWER OF THE CAPITAL STOCK  OF  ONE  OR
   38  MORE  OTHER  CORPORATIONS,  OR (2) MORE THAN FIFTY PERCENT OF THE VOTING
   39  POWER OF THE CAPITAL STOCK  OF  WHICH  IS  OWNED  OR  CONTROLLED  EITHER
   40  DIRECTLY  OR  INDIRECTLY  BY ONE OR MORE OTHER CORPORATIONS, OR (3) MORE
   41  THAN FIFTY PERCENT OF THE VOTING POWER OF THE CAPITAL STOCK OF WHICH AND
   42  THE CAPITAL STOCK OF  ONE  OR  MORE  OTHER  CORPORATIONS,  IS  OWNED  OR
   43  CONTROLLED,  DIRECTLY OR INDIRECTLY, BY THE SAME INTERESTS, AND (4) THAT
   44  IS ENGAGED IN A UNITARY BUSINESS WITH  THOSE  CORPORATIONS  (HEREINAFTER
   45  REFERRED  TO  AS  "RELATED  CORPORATIONS"), SHALL MAKE A COMBINED REPORT
   46  WITH THOSE OTHER CORPORATIONS.
   47    (B) A CORPORATION REQUIRED TO MAKE A COMBINED REPORT WITHIN THE  MEAN-
   48  ING  OF THIS SECTION SHALL ALSO INCLUDE (1) A CAPTIVE REIT AND A CAPTIVE
   49  RIC; (2) A COMBINABLE CAPTIVE INSURANCE COMPANY; AND (3) AN ALIEN CORPO-
   50  RATION THAT SATISFIES THE CONDITIONS IN PARAGRAPH (A) OF  THIS  SUBDIVI-
   51  SION  IF  (I)  UNDER  ANY  PROVISION  OF THE INTERNAL REVENUE CODE, THAT
   52  CORPORATION IS TREATED AS A "DOMESTIC CORPORATION" AS DEFINED IN SECTION
   53  SEVEN THOUSAND SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE,  OR  (II)
   54  IT  HAS  EFFECTIVELY  CONNECTED  INCOME FOR THE TAXABLE YEAR PURSUANT TO
   55  CLAUSE (III) OF THE OPENING PARAGRAPH OF SUBDIVISION  EIGHT  OF  SECTION
   56  11-652 OF THIS SUBCHAPTER.
       S. 4610                            68                            A. 6721
    1    (C)  A  CORPORATION  REQUIRED  OR  PERMITTED TO MAKE A COMBINED REPORT
    2  UNDER THIS SECTION DOES NOT INCLUDE (1) A CORPORATION  THAT  IS  TAXABLE
    3  UNDER  A TAX IMPOSED BY SUBCHAPTER TWO OR THREE OF THIS CHAPTER OR CHAP-
    4  TER ELEVEN OF THIS TITLE (EXCEPT FOR A VENDOR OF UTILITY  SERVICES  THAT
    5  IS TAXABLE UNDER BOTH CHAPTER ELEVEN OF THIS TITLE AND THIS SUBCHAPTER),
    6  OR  WOULD  BE  TAXABLE UNDER A TAX IMPOSED BY SUBCHAPTER TWO OR THREE OF
    7  THIS CHAPTER OR CHAPTER ELEVEN OF THIS TITLE (EXCEPT  FOR  A  VENDOR  OF
    8  UTILITY SERVICES THAT IS TAXABLE UNDER BOTH CHAPTER ELEVEN OF THIS TITLE
    9  AND  THIS SUBCHAPTER), OR WOULD HAVE BEEN TAXABLE AS AN INSURANCE CORPO-
   10  RATION UNDER THE FORMER PART IV,  TITLE  R,  CHAPTER  FORTY-SIX  OF  THE
   11  ADMINISTRATIVE  CODE  AS  IN  EFFECT ON JUNE THIRTIETH, NINETEEN HUNDRED
   12  SEVENTY-FOUR; (2) A REIT THAT IS NOT A CAPTIVE REIT, AND A RIC  THAT  IS
   13  NOT  A CAPTIVE RIC; OR (3) AN ALIEN CORPORATION THAT UNDER ANY PROVISION
   14  OF THE INTERNAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC  CORPORATION"
   15  AS  DEFINED IN SECTION SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE AND
   16  HAS NO EFFECTIVELY CONNECTED INCOME FOR THE  TAXABLE  YEAR  PURSUANT  TO
   17  CLAUSE  (III)  OF  THE OPENING PARAGRAPH OF SUBDIVISION EIGHT OF SECTION
   18  11-652 OF THIS SUBCHAPTER.  IF A CORPORATION IS  SUBJECT  TO  TAX  UNDER
   19  THIS SUBCHAPTER SOLELY AS A RESULT OF ITS OWNERSHIP OF A LIMITED PARTNER
   20  INTEREST  IN  A  LIMITED  PARTNERSHIP  THAT IS DOING BUSINESS, EMPLOYING
   21  CAPITAL, OWNING OR LEASING PROPERTY, OR MAINTAINING AN  OFFICE  IN  THIS
   22  CITY,  AND NONE OF THE CORPORATION'S RELATED CORPORATIONS ARE SUBJECT TO
   23  TAX UNDER THIS SUBCHAPTER, SUCH CORPORATION SHALL  NOT  BE  REQUIRED  OR
   24  PERMITTED TO FILE A COMBINED REPORT UNDER THIS SECTION WITH SUCH RELATED
   25  CORPORATIONS.
   26    (D)  A  COMBINED  REPORT SHALL BE FILED BY THE DESIGNATED AGENT OF THE
   27  COMBINED GROUP AS DETERMINED UNDER SUBDIVISION SEVEN OF THIS SECTION.
   28    3. (A) SUBJECT TO THE PROVISIONS OF PARAGRAPH (C) OF  SUBDIVISION  TWO
   29  OF THIS SECTION, A TAXPAYER MAY ELECT TO TREAT AS ITS COMBINED GROUP ALL
   30  CORPORATIONS THAT MEET THE OWNERSHIP REQUIREMENTS DESCRIBED IN PARAGRAPH
   31  (A)  OF  SUBDIVISION TWO OF THIS SECTION (SUCH CORPORATIONS COLLECTIVELY
   32  REFERRED TO IN THIS SUBDIVISION AS THE "COMMONLY OWNED GROUP"). IF  THAT
   33  ELECTION  IS MADE, THE COMMONLY OWNED GROUP SHALL CALCULATE THE COMBINED
   34  BUSINESS INCOME, COMBINED BUSINESS CAPITAL,  AND  FIXED  DOLLAR  MINIMUM
   35  AMOUNT  OF ALL MEMBERS OF THE GROUP IN ACCORDANCE WITH PARAGRAPH FOUR OF
   36  THIS SUBDIVISION, WHETHER OR NOT THAT BUSINESS INCOME OR BUSINESS  CAPI-
   37  TAL IS FROM A SINGLE UNITARY BUSINESS.
   38    (B)  THE ELECTION UNDER THIS SUBDIVISION SHALL BE MADE ON AN ORIGINAL,
   39  TIMELY FILED RETURN  (DETERMINED  WITH  REGARD  TO  EXTENSIONS)  OF  THE
   40  COMBINED  GROUP.  ANY CORPORATION ENTERING A COMMONLY OWNED GROUP SUBSE-
   41  QUENT TO THE YEAR OF ELECTION SHALL BE INCLUDED IN  THE  COMBINED  GROUP
   42  AND  IS  CONSIDERED TO HAVE WAIVED ANY OBJECTION TO ITS INCLUSION IN THE
   43  COMBINED GROUP.
   44    (C) THE ELECTION SHALL BE IRREVOCABLE, AND BINDING FOR AND  APPLICABLE
   45  TO  THE  TAXABLE  YEAR FOR WHICH IT IS MADE AND FOR THE NEXT SIX TAXABLE
   46  YEARS. THE ELECTION WILL AUTOMATICALLY  BE  RENEWED  FOR  ANOTHER  SEVEN
   47  TAXABLE YEARS AFTER IT HAS BEEN IN EFFECT FOR SEVEN TAXABLE YEARS UNLESS
   48  IT  IS  AFFIRMATIVELY  REVOKED.  THE  REVOCATION  SHALL  BE  MADE  ON AN
   49  ORIGINAL, TIMELY FILED RETURN (DETERMINED WITH REGARD TO EXTENSIONS) FOR
   50  THE FIRST TAXABLE YEAR AFTER THE COMPLETION OF A SEVEN YEAR  PERIOD  FOR
   51  WHICH  AN ELECTION UNDER THIS SUBDIVISION WAS IN PLACE. IN THE CASE OF A
   52  REVOCATION, A NEW ELECTION UNDER THIS SUBDIVISION SHALL NOT BE PERMITTED
   53  IN ANY OF THE IMMEDIATELY FOLLOWING THREE TAXABLE YEARS. IN  DETERMINING
   54  THE  SEVEN  AND  THREE  YEAR  PERIODS DESCRIBED IN THIS PARAGRAPH, SHORT
   55  TAXABLE YEARS SHALL NOT BE CONSIDERED OR COUNTED.
       S. 4610                            69                            A. 6721
    1    4. (A) IN COMPUTING THE TAX BASES FOR A COMBINED REPORT, THE  COMBINED
    2  GROUP  SHALL  GENERALLY  BE  TREATED  AS A SINGLE CORPORATION, EXCEPT AS
    3  OTHERWISE PROVIDED, AND SUBJECT TO ANY REGULATIONS OR GUIDANCE ISSUED BY
    4  THE COMMISSIONER OF FINANCE OR THE DEPARTMENT OF FINANCE.
    5    (B)(1) IN COMPUTING COMBINED BUSINESS INCOME, ALL INTERCORPORATE DIVI-
    6  DENDS  SHALL  BE  ELIMINATED,  AND ALL OTHER INTERCORPORATE TRANSACTIONS
    7  SHALL BE DEFERRED IN A MANNER SIMILAR  TO  THE  UNITED  STATES  TREASURY
    8  DEPARTMENT  REGULATIONS  RELATING  TO  INTERCOMPANY  TRANSACTIONS  UNDER
    9  SECTION FIFTEEN HUNDRED TWO OF THE INTERNAL REVENUE CODE.
   10    (2) IN COMPUTING COMBINED CAPITAL, ALL  INTERCORPORATE  STOCKHOLDINGS,
   11  INTERCORPORATE  BILLS,  INTERCORPORATE  NOTES  RECEIVABLE  AND  PAYABLE,
   12  INTERCORPORATE ACCOUNTS RECEIVABLE AND PAYABLE, AND OTHER INTERCORPORATE
   13  INDEBTEDNESS, SHALL BE ELIMINATED.
   14    (C) QUALIFICATION FOR  CREDITS,  INCLUDING  ANY  LIMITATIONS  THEREON,
   15  SHALL  BE  DETERMINED SEPARATELY FOR EACH OF THE MEMBERS OF THE COMBINED
   16  GROUP, AND SHALL NOT BE DETERMINED ON A COMBINED GROUP BASIS, EXCEPT  AS
   17  OTHERWISE  PROVIDED.   HOWEVER, THE CREDITS SHALL BE APPLIED AGAINST THE
   18  COMBINED TAX OF THE GROUP. TO THE EXTENT THAT  A  PROVISION  OF  SECTION
   19  11-654  OF  THIS  SUBCHAPTER,  OR  ANY  OTHER APPLICABLE SECTION OF THIS
   20  SUBCHAPTER,  LIMITS  A  CREDIT  TO  THE  FIXED  DOLLAR  MINIMUM   AMOUNT
   21  PRESCRIBED IN CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI-
   22  VISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER, SUCH FIXED DOLLAR MINI-
   23  MUM AMOUNT SHALL BE THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE
   24  TO THE DESIGNATED AGENT OF THE COMBINED GROUP.
   25    (D)(1)  A  NET  OPERATING  LOSS  DEDUCTION IS ALLOWED IN COMPUTING THE
   26  COMBINED BUSINESS INCOME BASE. SUCH DEDUCTION MAY REDUCE THE TAX ON  THE
   27  COMBINED  BUSINESS  INCOME BASE TO THE HIGHER OF THE TAX ON THE COMBINED
   28  CAPITAL OR THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE  TO  THE
   29  DESIGNATED  AGENT  OF THE COMBINED GROUP.  A COMBINED NET OPERATING LOSS
   30  DEDUCTION IS EQUAL TO THE AMOUNT OF COMBINED NET OPERATING LOSS OR LOSS-
   31  ES FROM ONE OR MORE TAXABLE YEARS THAT ARE CARRIED  FORWARD  OR  CARRIED
   32  BACK  TO A PARTICULAR TAXABLE YEAR. A COMBINED NET OPERATING LOSS IS THE
   33  COMBINED BUSINESS LOSS INCURRED IN A PARTICULAR TAXABLE YEAR  MULTIPLIED
   34  BY  THE COMBINED BUSINESS ALLOCATION PERCENTAGE FOR THAT YEAR DETERMINED
   35  AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION.
   36    (2) THE COMBINED NET OPERATING LOSS DEDUCTION AND COMBINED NET OPERAT-
   37  ING LOSS ARE ALSO SUBJECT TO THE PROVISIONS CONTAINED IN PARAGRAPHS  (A)
   38  THROUGH (G) OF SUBDIVISION THREE OF SECTION 11-654.1 OF THIS SUBCHAPTER.
   39    (3)  IN THE CASE OF A CORPORATION THAT FILES A COMBINED REPORT, EITHER
   40  IN THE YEAR THE NET OPERATING LOSS IS INCURRED OR IN THE YEAR IN WHICH A
   41  DEDUCTION IS CLAIMED ON ACCOUNT OF THE LOSS, THE COMBINED NET  OPERATING
   42  LOSS DEDUCTION IS DETERMINED AS IF THE COMBINED GROUP IS A SINGLE CORPO-
   43  RATION  AND,  TO THE EXTENT POSSIBLE AND NOT OTHERWISE INCONSISTENT WITH
   44  THIS SUBDIVISION, IS SUBJECT TO THE SAME LIMITATIONS  THAT  WOULD  APPLY
   45  FOR  FEDERAL INCOME TAX PURPOSES UNDER THE INTERNAL REVENUE CODE AND THE
   46  CODE OF FEDERAL REGULATIONS AS IF SUCH CORPORATION HAD  FILED  FOR  SUCH
   47  TAXABLE  YEAR  A  CONSOLIDATED  FEDERAL  INCOME TAX RETURN WITH THE SAME
   48  CORPORATIONS INCLUDED IN THE COMBINED REPORT. IF A CORPORATION  FILES  A
   49  COMBINED  REPORT,  REGARDLESS  OF  WHETHER IT FILED A SEPARATE RETURN OR
   50  CONSOLIDATED RETURN FOR FEDERAL INCOME TAX PURPOSES, THE  NET  OPERATING
   51  LOSS  AND  NET  OPERATING  LOSS DEDUCTION FOR THE COMBINED GROUP MUST BE
   52  COMPUTED AS IF THE CORPORATION HAD FILED A CONSOLIDATED RETURN  FOR  THE
   53  SAME CORPORATIONS FOR FEDERAL INCOME TAX PURPOSES.
   54    (4)  IN GENERAL, ANY NET OPERATING LOSS CARRYOVER FROM A YEAR IN WHICH
   55  A COMBINED REPORT WAS FILED SHALL BE BASED ON THE COMBINED NET OPERATING
   56  LOSS OF THE GROUP OF CORPORATIONS FILING SUCH REPORT. THE PORTION OF THE
       S. 4610                            70                            A. 6721
    1  COMBINED LOSS ATTRIBUTABLE TO ANY MEMBER OF THE GROUP THAT FILES A SEPA-
    2  RATE REPORT FOR A SUCCEEDING TAXABLE YEAR WILL BE AN AMOUNT BEARING  THE
    3  SAME  RELATION  TO  THE  COMBINED LOSS AS THE NET OPERATING LOSS OF SUCH
    4  CORPORATION  BEARS TO THE TOTAL NET OPERATING LOSS OF ALL MEMBERS OF THE
    5  GROUP HAVING SUCH LOSSES TO THE EXTENT THAT THEY ARE TAKEN INTO  ACCOUNT
    6  IN COMPUTING THE COMBINED NET OPERATING LOSS.
    7    (D-1)  A PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION IS ALLOWED IN
    8  COMPUTING THE COMBINED BUSINESS INCOME BASE, AS PROVIDED IN SUBDIVISIONS
    9  ONE AND TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER. SUCH SUBTRACTION MAY
   10  REDUCE THE TAX ON COMBINED BUSINESS INCOME TO THE HIGHER OF THE  TAX  ON
   11  COMBINED CAPITAL OR THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE
   12  TO THE DESIGNATED AGENT OF THE COMBINED GROUP.
   13    (E)(I)  ANY  ELECTION  MADE  PURSUANT  TO PARAGRAPH (B) OF SUBDIVISION
   14  FIVE, PARAGRAPHS (B) AND (C) OF SUBDIVISION FIVE-A OF SECTION 11-652  OF
   15  THIS  SUBCHAPTER,  AND  PARAGRAPH  (G)  OF  SUBDIVISION THREE OF SECTION
   16  11-654.1 OF THIS SUBCHAPTER SHALL APPLY TO ALL MEMBERS OF  THE  COMBINED
   17  GROUP.
   18    (II)  THE DETERMINATION OF WHETHER OR NOT THE LIMITATION ON INVESTMENT
   19  INCOME PROVIDED IN SUBPARAGRAPH (III) OF PARAGRAPH  (A)  OF  SUBDIVISION
   20  FIVE OF SECTION 11-652 OF THIS SUBCHAPTER TO THE COMBINED GROUP SHALL BE
   21  BASED ON THE INVESTMENT INCOME OF THE COMBINED GROUP, DETERMINED WITHOUT
   22  REGARD  TO  INTEREST  EXPENSES  ATTRIBUTABLE  TO  INVESTMENT  CAPITAL OR
   23  INVESTMENT INCOME, AND THE ENTIRE NET INCOME OF THE COMBINED GROUP.
   24    (F)(1) IN THE CASE OF A CAPTIVE REIT OR  CAPTIVE  RIC  REQUIRED  UNDER
   25  THIS  SECTION  TO  BE  INCLUDED  IN A COMBINED REPORT, ENTIRE NET INCOME
   26  SHALL BE COMPUTED AS REQUIRED UNDER SUBDIVISION SEVEN (IN THE CASE OF  A
   27  CAPTIVE  REIT)  OR  SUBDIVISION  EIGHT (IN THE CASE OF A CAPTIVE RIC) OF
   28  SECTION 11-653 OF THIS SUBCHAPTER.  HOWEVER,  THE  DEDUCTION  UNDER  THE
   29  INTERNAL  REVENUE CODE FOR DIVIDENDS PAID BY THE CAPTIVE REIT OR CAPTIVE
   30  RIC TO ANY MEMBER OF THE AFFILIATED GROUP THAT INCLUDES THE  CORPORATION
   31  THAT  DIRECTLY OR INDIRECTLY OWNS OVER FIFTY PERCENT OF THE VOTING STOCK
   32  OF THE CAPTIVE REIT OR CAPTIVE RIC SHALL NOT BE ALLOWED.   FOR  PURPOSES
   33  OF  THIS  SUBPARAGRAPH,  THE  TERM  "AFFILIATED GROUP" MEANS "AFFILIATED
   34  GROUP" AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVEN-
   35  UE CODE, BUT WITHOUT REGARD TO THE EXCEPTIONS PROVIDED FOR IN SUBSECTION
   36  (B) OF THAT SECTION.
   37    (2) IN THE CASE OF A COMBINABLE  CAPTIVE  INSURANCE  COMPANY  REQUIRED
   38  UNDER  THIS  SECTION  TO  BE  INCLUDED  IN A COMBINED REPORT, ENTIRE NET
   39  INCOME SHALL BE COMPUTED AS REQUIRED BY  SUBDIVISION  EIGHT  OF  SECTION
   40  11-652 OF THIS SUBCHAPTER.
   41    (G) IF MORE THAN ONE MEMBER OF A COMBINED GROUP IS ELIGIBLE FOR ANY OF
   42  THE MODIFICATIONS DESCRIBED IN PARAGRAPHS (Q), (R) OR (S) OF SUBDIVISION
   43  EIGHT  OF  SECTION  11-652  OF  THIS  SUBCHAPTER,  ALL SUCH MEMBERS MUST
   44  UTILIZE THE SAME MODIFICATION.
   45    5. (A)  IN  DETERMINING  THE  BUSINESS  ALLOCATION  PERCENTAGE  FOR  A
   46  COMBINED  REPORT, THE RECEIPTS, NET INCOME, NET GAINS AND OTHER ITEMS OF
   47  EACH MEMBER OF THE COMBINED GROUP, WHETHER OR NOT THEY ARE  A  TAXPAYER,
   48  ARE  INCLUDED  AND  INTERCORPORATE RECEIPTS, INCOME AND GAINS ARE ELIMI-
   49  NATED. RECEIPTS, NET INCOME, NET GAINS AND OTHER ITEMS ARE SOURCED,  AND
   50  THE AMOUNTS ALLOWED IN THE RECEIPTS FRACTION ARE DETERMINED, AS PROVIDED
   51  IN SECTION 11-654.2 OF THIS SUBCHAPTER.
   52    (B)  AN  ELECTION  MADE  TO  ALLOCATE INCOME AND GAINS FROM QUALIFYING
   53  FINANCIAL INSTRUMENTS PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH  (A)  OF
   54  SUBDIVISION  FIVE  OF SECTION 11-654.2 OF THIS SUBCHAPTER SHALL APPLY TO
   55  ALL MEMBERS OF THE COMBINED GROUP.
       S. 4610                            71                            A. 6721
    1    6. EVERY MEMBER OF THE COMBINED GROUP THAT IS  SUBJECT  TO  TAX  UNDER
    2  THIS  ARTICLE  SHALL  BE  JOINTLY  AND  SEVERALLY LIABLE FOR THE TAX DUE
    3  PURSUANT TO A COMBINED REPORT.
    4    7.  EACH  COMBINED  GROUP  SHALL  APPOINT  A  DESIGNATED AGENT FOR THE
    5  COMBINED GROUP, WHICH SHALL BE A TAXPAYER. ONLY THE DESIGNATED AGENT MAY
    6  ACT ON BEHALF OF THE MEMBERS OF THE COMBINED GROUP FOR MATTERS  RELATING
    7  TO THE COMBINED REPORT.
    8    S  11-655  REPORTS.  1.  EVERY CORPORATION HAVING AN OFFICER, AGENT OR
    9  REPRESENTATIVE WITHIN THE  CITY,  SHALL  ANNUALLY  ON  OR  BEFORE  MARCH
   10  FIFTEENTH,  TRANSMIT  TO  THE COMMISSIONER OF FINANCE A REPORT IN A FORM
   11  PRESCRIBED BY THE COMMISSIONER OF FINANCE  (EXCEPT  THAT  A  CORPORATION
   12  WHICH  REPORTS  ON  THE BASIS OF A FISCAL YEAR SHALL TRANSMIT ITS REPORT
   13  WITHIN TWO AND ONE-HALF MONTHS AFTER  THE  CLOSE  OF  ITS  FISCAL  YEAR)
   14  SETTING  FORTH  SUCH  INFORMATION  AS  THE  COMMISSIONER  OF FINANCE MAY
   15  PRESCRIBE, AND EVERY TAXPAYER WHICH CEASES TO DO BUSINESS IN THE CITY OR
   16  TO BE SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER  SHALL  TRANSMIT  TO
   17  THE COMMISSIONER OF FINANCE A REPORT ON THE DATE OF SUCH CESSATION OR AT
   18  SUCH OTHER TIME AS THE COMMISSIONER OF FINANCE MAY REQUIRE COVERING EACH
   19  YEAR OR PERIOD FOR WHICH NO REPORT WAS THERETOFORE FILED. EVERY TAXPAYER
   20  SHALL ALSO TRANSMIT SUCH OTHER REPORTS AND SUCH FACTS AND INFORMATION AS
   21  THE  COMMISSIONER  OF  FINANCE MAY REQUIRE IN THE ADMINISTRATION OF THIS
   22  SUBCHAPTER. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION
   23  OF TIME FOR FILING REPORTS WHENEVER GOOD CAUSE EXISTS.
   24    AN AUTOMATIC EXTENSION OF SIX MONTHS FOR  THE  FILING  OF  ITS  ANNUAL
   25  REPORT  SHALL  BE ALLOWED ANY TAXPAYER IF, WITHIN THE TIME PRESCRIBED BY
   26  THE PRECEDING PARAGRAPH, WHICHEVER IS APPLICABLE,  SUCH  TAXPAYER  FILES
   27  WITH  THE  COMMISSIONER  OF FINANCE AN APPLICATION FOR EXTENSION IN SUCH
   28  FORM AS THE COMMISSIONER OF FINANCE MAY PRESCRIBE BY REGULATION AND PAYS
   29  ON OR BEFORE THE DATE OF SUCH FILING THE AMOUNT  PROPERLY  ESTIMATED  AS
   30  ITS TAX.
   31    2.  EVERY  REPORT  SHALL  HAVE  ANNEXED THERETO A CERTIFICATION BY THE
   32  PRESIDENT,  VICE-PRESIDENT,  TREASURER,   ASSISTANT   TREASURER,   CHIEF
   33  ACCOUNTING OFFICER OR ANOTHER OFFICER OF THE TAXPAYER DULY AUTHORIZED SO
   34  TO  ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED THEREIN ARE TRUE. IN
   35  THE CASE OF AN ASSOCIATION, WITHIN THE MEANING  OF  PARAGRAPH  THREE  OF
   36  SECTION (A) OF SECTION SEVENTY-SEVEN HUNDRED ONE OF THE INTERNAL REVENUE
   37  CODE,  A  PUBLICLY-TRADED  PARTNERSHIP  TREATED  AS  A  CORPORATION  FOR
   38  PURPOSES OF THE INTERNAL REVENUE CODE PURSUANT TO SECTION  SEVENTY-SEVEN
   39  HUNDRED FOUR THEREOF AND ANY BUSINESS CONDUCTED BY A TRUSTEE OR TRUSTEES
   40  WHEREIN  INTEREST  OR  OWNERSHIP  IS  EVIDENCED BY CERTIFICATES OR OTHER
   41  WRITTEN INSTRUMENTS, SUCH CERTIFICATION SHALL BE MADE BY ANY PERSON DULY
   42  AUTHORIZED SO TO ACT ON  BEHALF  OF  SUCH  ASSOCIATION,  PUBLICLY-TRADED
   43  PARTNERSHIP OR BUSINESS. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON
   44  A  CERTIFICATION  OF  THE REPORT SHALL BE PRIMA FACIE EVIDENCE THAT SUCH
   45  INDIVIDUAL IS AUTHORIZED TO SIGN AND CERTIFY THE REPORT ON BEHALF OF THE
   46  CORPORATION. BLANK FORMS OF REPORTS SHALL BE FURNISHED  BY  THE  COMMIS-
   47  SIONER  OF  FINANCE,  ON APPLICATION, BUT FAILURE TO SECURE SUCH A BLANK
   48  SHALL NOT RELEASE ANY CORPORATION FROM  THE  OBLIGATION  OF  MAKING  ANY
   49  REPORT REQUIRED BY THIS SUBCHAPTER.
   50    2-A.  THE  COMMISSIONER  OF  FINANCE  MAY  PRESCRIBE  REGULATIONS  AND
   51  INSTRUCTIONS REQUIRING RETURNS OF INFORMATION TO BE MADE  AND  FILED  IN
   52  CONJUNCTION  WITH  THE  REPORTS  REQUIRED  TO  BE FILED PURSUANT TO THIS
   53  SECTION, RELATING TO PAYMENTS MADE TO SHAREHOLDERS OWNING,  DIRECTLY  OR
   54  INDIRECTLY, INDIVIDUALLY OR IN THE AGGREGATE, MORE THAN FIFTY PERCENT OF
   55  THE ISSUED CAPITAL STOCK OF THE TAXPAYER, WHERE SUCH PAYMENTS ARE TREAT-
       S. 4610                            72                            A. 6721
    1  ED  AS  PAYMENTS  OF  INTEREST  IN  THE COMPUTATION OF ENTIRE NET INCOME
    2  REPORTED ON SUCH REPORTS.
    3    3.  IF THE AMOUNT OF TAXABLE INCOME OR OTHER BASIS OF TAX FOR ANY YEAR
    4  OF ANY TAXPAYER AS RETURNED TO THE UNITED STATES TREASURY DEPARTMENT  OR
    5  THE  NEW  YORK  STATE COMMISSIONER OF TAXATION AND FINANCE IS CHANGED OR
    6  CORRECTED BY THE COMMISSIONER OF INTERNAL REVENUE OR  OTHER  OFFICER  OF
    7  THE  UNITED  STATES  OR  THE NEW YORK STATE COMMISSIONER OF TAXATION AND
    8  FINANCE OR OTHER COMPETENT AUTHORITY, OR  WHERE  A  RENEGOTIATION  OF  A
    9  CONTRACT  OR SUBCONTRACT WITH THE UNITED STATES OR THE STATE OF NEW YORK
   10  RESULTS IN A CHANGE IN TAXABLE INCOME OR OTHER BASIS OF TAX, OR WHERE  A
   11  RECOVERY  OF A WAR LOSS RESULTS IN A COMPUTATION OR RECOMPUTATION OF ANY
   12  TAX IMPOSED BY THE UNITED STATES OR THE STATE  OF  NEW  YORK,  OR  IF  A
   13  TAXPAYER,  PURSUANT TO SUBSECTION (D) OF SECTION SIXTY-TWO HUNDRED THIR-
   14  TEEN OF THE INTERNAL REVENUE CODE, EXECUTES A NOTICE OF  WAIVER  OF  THE
   15  RESTRICTIONS PROVIDED IN SUBSECTION (A) OF SAID SECTION, OR IF A TAXPAY-
   16  ER, PURSUANT TO SUBSECTION (F) OF SECTION ONE THOUSAND EIGHTY-ONE OF THE
   17  TAX  LAW,  EXECUTES  A  NOTICE OF WAIVER OF THE RESTRICTIONS PROVIDED IN
   18  SUBSECTION (C) OF SAID SECTION, SUCH TAXPAYER SHALL REPORT SUCH  CHANGED
   19  OR  CORRECTED  TAXABLE  INCOME  OR OTHER BASIS OF TAX, OR THE RESULTS OF
   20  SUCH RENEGOTIATION, OR  SUCH  COMPUTATION,  OR  RECOMPUTATION,  OR  SUCH
   21  EXECUTION OF SUCH NOTICE OF WAIVER AND THE CHANGES OR CORRECTIONS OF THE
   22  TAXPAYER'S  FEDERAL  OR  NEW YORK STATE TAXABLE INCOME OR OTHER BASIS OF
   23  TAX ON WHICH IT IS BASED, WITHIN NINETY  DAYS  (OR  ONE  HUNDRED  TWENTY
   24  DAYS,  IN  THE  CASE  OF  A TAXPAYER MAKING A COMBINED REPORT UNDER THIS
   25  SUBCHAPTER FOR SUCH YEAR) AFTER SUCH EXECUTION  OR  THE  FINAL  DETERMI-
   26  NATION  OF  SUCH CHANGE OR CORRECTION OR RENEGOTIATION, OR SUCH COMPUTA-
   27  TION, OR RECOMPUTATION, OR AS REQUIRED BY THE COMMISSIONER  OF  FINANCE,
   28  AND SHALL CONCEDE THE ACCURACY OF SUCH DETERMINATION OR STATE WHEREIN IT
   29  IS  ERRONEOUS.  THE  ALLOWANCE OF A TENTATIVE CARRYBACK ADJUSTMENT BASED
   30  UPON A NET OPERATING LOSS CARRYBACK OR NET CAPITAL LOSS CARRYBACK PURSU-
   31  ANT TO SECTION SIXTY-FOUR HUNDRED ELEVEN OF THE  INTERNAL  REVENUE  CODE
   32  SHALL  BE TREATED AS A FINAL DETERMINATION FOR PURPOSES OF THIS SUBDIVI-
   33  SION. ANY TAXPAYER FILING AN AMENDED RETURN WITH SUCH  DEPARTMENT  SHALL
   34  ALSO FILE WITHIN NINETY DAYS (OR ONE HUNDRED TWENTY DAYS, IN THE CASE OF
   35  A TAXPAYER MAKING A COMBINED REPORT UNDER THIS SUBCHAPTER FOR SUCH YEAR)
   36  THEREAFTER AN AMENDED REPORT WITH THE COMMISSIONER OF FINANCE.
   37    4.  THE  PROVISIONS OF SECTION 11-654.3 OF THIS SUBCHAPTER SHALL APPLY
   38  TO COMBINED REPORTS.
   39    5. IN CASE IT SHALL APPEAR TO THE COMMISSIONER  OF  FINANCE  THAT  ANY
   40  AGREEMENT,  UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN THE TAXPAYER AND
   41  ANY OTHER CORPORATION OR ANY PERSON OR FIRM, WHEREBY THE ACTIVITY, BUSI-
   42  NESS, INCOME OR CAPITAL OF THE TAXPAYER WITHIN THE CITY IS IMPROPERLY OR
   43  INACCURATELY REFLECTED, THE COMMISSIONER OF FINANCE  IS  AUTHORIZED  AND
   44  EMPOWERED,  IN ITS DISCRETION AND IN SUCH MANNER AS IT MAY DETERMINE, TO
   45  ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPITAL, AND TO ELIMINATE  ASSETS
   46  IN  COMPUTING  ANY  ALLOCATION  PERCENTAGE PROVIDED ONLY THAT ANY INCOME
   47  DIRECTLY TRACEABLE THERETO BE ALSO EXCLUDED FROM ENTIRE NET  INCOME,  SO
   48  AS  EQUITABLY  TO DETERMINE THE TAX. WHERE (A) ANY TAXPAYER CONDUCTS ITS
   49  ACTIVITY OR BUSINESS UNDER ANY AGREEMENT, ARRANGEMENT  OR  UNDERSTANDING
   50  IN  SUCH  MANNER AS EITHER DIRECTLY OR INDIRECTLY TO BENEFIT ITS MEMBERS
   51  OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR  PERSONS  DIRECTLY  OR
   52  INDIRECTLY INTERESTED IN SUCH ACTIVITY OR BUSINESS, BY ENTERING INTO ANY
   53  TRANSACTION AT MORE OR LESS THAN A FAIR PRICE WHICH, BUT FOR SUCH AGREE-
   54  MENT,  ARRANGEMENT  OR  UNDERSTANDING,  MIGHT HAVE BEEN PAID OR RECEIVED
   55  THEREFOR, OR (B) ANY TAXPAYER, A SUBSTANTIAL PORTION  OF  WHOSE  CAPITAL
   56  STOCK  IS  OWNED  EITHER  DIRECTLY OR INDIRECTLY BY ANOTHER CORPORATION,
       S. 4610                            73                            A. 6721
    1  ENTERS INTO ANY TRANSACTION WITH SUCH OTHER CORPORATION ON SUCH TERMS AS
    2  TO CREATE AN IMPROPER LOSS OR NET INCOME, THE  COMMISSIONER  OF  FINANCE
    3  MAY  INCLUDE  IN THE ENTIRE NET INCOME OF THE TAXPAYER THE FAIR PROFITS,
    4  WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, THE TAXPAY-
    5  ER  MIGHT  HAVE  DERIVED FROM SUCH TRANSACTION. WHERE ANY TAXPAYER OWNS,
    6  DIRECTLY OR INDIRECTLY, MORE THAN FIFTY PERCENT OF THE CAPITAL STOCK  OF
    7  ANOTHER  CORPORATION  SUBJECT TO TAX UNDER SECTION FIFTEEN HUNDRED TWO-A
    8  OF THE TAX LAW AND FIFTY PERCENT OR LESS OF WHOSE GROSS RECEIPTS FOR THE
    9  TAXABLE YEAR CONSIST  OF  PREMIUMS,  THE  COMMISSIONER  OF  FINANCE  MAY
   10  INCLUDE  IN  THE ENTIRE NET INCOME OF THE TAXPAYER, AS A DEEMED DISTRIB-
   11  UTION, THE AMOUNT OF THE NET INCOME OF THE OTHER CORPORATION THAT IS  IN
   12  EXCESS OF ITS NET PREMIUM INCOME.
   13    6.  AN ACTION MAY BE BROUGHT AT ANY TIME BY THE CORPORATION COUNSEL AT
   14  THE INSTANCE OF THE COMMISSIONER OF FINANCE  TO  COMPEL  THE  FILING  OF
   15  REPORTS DUE UNDER THIS SUBCHAPTER.
   16    7. REPORTS SHALL BE PRESERVED FOR FIVE YEARS, AND THEREAFTER UNTIL THE
   17  COMMISSIONER OF FINANCE ORDERS THEM TO BE DESTROYED.
   18    8.  WHERE  THE  NEW  YORK  STATE  COMMISSIONER OF TAXATION AND FINANCE
   19  CHANGES OR CORRECTS A TAXPAYER'S SALES AND COMPENSATING USE TAX  LIABIL-
   20  ITY  WITH  RESPECT  TO THE PURCHASE OR USE OF ITEMS FOR WHICH A SALES OR
   21  COMPENSATING USE TAX CREDIT AGAINST THE TAX IMPOSED BY  THIS  SUBCHAPTER
   22  WAS  CLAIMED, THE TAXPAYER SHALL REPORT SUCH CHANGE OR CORRECTION TO THE
   23  COMMISSIONER OF FINANCE WITHIN NINETY DAYS OF THE FINAL DETERMINATION OF
   24  SUCH CHANGE OR  CORRECTION,  OR  AS  REQUIRED  BY  THE  COMMISSIONER  OF
   25  FINANCE,  AND  SHALL CONCEDE THE ACCURACY OF SUCH DETERMINATION OR STATE
   26  WHEREIN IT IS ERRONEOUS. ANY TAXPAYER FILING AN AMENDED RETURN OR REPORT
   27  RELATING TO THE PURCHASE OR USE OF SUCH ITEMS  SHALL  ALSO  FILE  WITHIN
   28  NINETY  DAYS THEREAFTER A COPY OF SUCH AMENDED RETURN OR REPORT WITH THE
   29  COMMISSIONER OF FINANCE.
   30    S 11-656 PAYMENT AND LIEN OF TAX. 1. TO THE EXTENT THE TAX IMPOSED  BY
   31  SECTION  11-653  OF  THIS SUBCHAPTER SHALL NOT HAVE BEEN PREVIOUSLY PAID
   32  PURSUANT TO SECTION 11-658 OF THIS SUBCHAPTER:
   33    (A) SUCH TAX, OR THE BALANCE THEREOF, SHALL BE PAYABLE TO THE  COMMIS-
   34  SIONER  OF  FINANCE  IN  FULL  AT  THE TIME THE REPORT IS REQUIRED TO BE
   35  FILED; AND
   36    (B) SUCH TAX, OR THE BALANCE THEREOF, IMPOSED ON  ANY  TAXPAYER  WHICH
   37  CEASES TO DO BUSINESS IN THE CITY OR TO BE SUBJECT TO THE TAX IMPOSED BY
   38  THIS  SUBCHAPTER  SHALL BE PAYABLE TO THE COMMISSIONER OF FINANCE AT THE
   39  TIME THE REPORT IS REQUIRED TO BE FILED; ALL OTHER  TAXES  OF  ANY  SUCH
   40  TAXPAYER,  WHICH  PURSUANT  TO  THE FOREGOING PROVISIONS OF THIS SECTION
   41  WOULD OTHERWISE BE  PAYABLE  SUBSEQUENT  TO  THE  TIME  SUCH  REPORT  IS
   42  REQUIRED TO BE FILED, SHALL NEVERTHELESS BE PAYABLE AT SUCH TIME.
   43    IF  THE TAXPAYER, WITHIN THE TIME PRESCRIBED BY SECTION 11-655 OF THIS
   44  SUBCHAPTER, SHALL HAVE APPLIED FOR AN AUTOMATIC  EXTENSION  OF  TIME  TO
   45  FILE  ITS  ANNUAL  REPORT  AND  SHALL  HAVE  PAID TO THE COMMISSIONER OF
   46  FINANCE ON OR BEFORE THE DATE SUCH APPLICATION IS FILED AN AMOUNT  PROP-
   47  ERLY  ESTIMATED  AS PROVIDED BY SAID SECTION, THE ONLY AMOUNT PAYABLE IN
   48  ADDITION TO THE TAX SHALL BE INTEREST AT THE UNDERPAYMENT  RATE  SET  BY
   49  THE  COMMISSIONER OF FINANCE PURSUANT TO SECTION 11-687 OF THIS CHAPTER,
   50  OR, IF NO RATE IS SET, AT THE RATE OF SEVEN  AND  ONE-HALF  PERCENT  PER
   51  ANNUM  UPON  THE AMOUNT BY WHICH THE TAX, OR THE PORTION THEREOF PAYABLE
   52  ON OR BEFORE THE DATE THE REPORT WAS REQUIRED TO BE FILED,  EXCEEDS  THE
   53  AMOUNT SO PAID. FOR PURPOSES OF THE PRECEDING SENTENCE:
   54    (1)  AN  AMOUNT  SO  PAID  SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS
   55  EITHER: (I) NOT LESS THAN NINETY PERCENT OF THE TAX  AS  FINALLY  DETER-
   56  MINED,  OR (II) NOT LESS THAN THE TAX SHOWN ON THE TAXPAYER'S REPORT FOR
       S. 4610                            74                            A. 6721
    1  THE PRECEDING TAXABLE YEAR, IF SUCH PRECEDING YEAR WAS A TAXABLE YEAR OF
    2  TWELVE MONTHS; AND
    3    (2) THE TIME WHEN A REPORT IS REQUIRED TO BE FILED SHALL BE DETERMINED
    4  WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH REPORT.
    5    2.  THE  COMMISSIONER  OF  FINANCE MAY GRANT A REASONABLE EXTENSION OF
    6  TIME FOR PAYMENT OF ANY TAX IMPOSED BY THIS SUBCHAPTER UNDER SUCH CONDI-
    7  TIONS AS THE COMMISSIONER OF FINANCE DEEMS JUST AND PROPER.
    8    3. INTENTIONALLY OMITTED.
    9    S 11-657 DECLARATION OF ESTIMATED TAX. 1. EVERY  TAXPAYER  SUBJECT  TO
   10  THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER SHALL MAKE A DECLA-
   11  RATION OF ITS ESTIMATED TAX FOR THE CURRENT PRIVILEGE PERIOD, CONTAINING
   12  SUCH  INFORMATION  AS THE COMMISSIONER OF FINANCE MAY PRESCRIBE BY REGU-
   13  LATIONS OR  INSTRUCTIONS,  IF  SUCH  ESTIMATED  TAX  CAN  REASONABLY  BE
   14  EXPECTED TO EXCEED ONE THOUSAND DOLLARS.
   15    2.  THE  TERM  "ESTIMATED TAX" MEANS THE AMOUNT WHICH A TAXPAYER ESTI-
   16  MATES TO BE THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER FOR THE
   17  CURRENT PRIVILEGE PERIOD, LESS THE AMOUNT WHICH IT ESTIMATES TO  BE  THE
   18  SUM OF ANY CREDITS ALLOWABLE AGAINST THE TAX.
   19    3.  IN THE CASE OF A TAXPAYER WHICH REPORTS ON THE BASIS OF A CALENDAR
   20  YEAR, A DECLARATION OF ESTIMATED TAX SHALL BE FILED ON  OR  BEFORE  JUNE
   21  FIFTEENTH  OF  THE CURRENT PRIVILEGE PERIOD, EXCEPT THAT IF THE REQUIRE-
   22  MENTS OF SUBDIVISION ONE OF THIS SECTION ARE FIRST MET:
   23    (A) AFTER MAY THIRTY-FIRST AND BEFORE SEPTEMBER FIRST OF SUCH  CURRENT
   24  PRIVILEGE  PERIOD, THE DECLARATION SHALL BE FILED ON OR BEFORE SEPTEMBER
   25  FIFTEENTH; OR
   26    (B) AFTER AUGUST  THIRTY-FIRST  AND  BEFORE  DECEMBER  FIRST  OF  SUCH
   27  CURRENT  PRIVILEGE  PERIOD,  THE DECLARATION SHALL BE FILED ON OR BEFORE
   28  DECEMBER FIFTEENTH.
   29    4. A TAXPAYER MAY AMEND A DECLARATION UNDER REGULATIONS OF THE COMMIS-
   30  SIONER OF FINANCE.
   31    5. IF, ON OR BEFORE FEBRUARY FIFTEENTH OF THE SUCCEEDING YEAR  IN  THE
   32  CASE  OF  A  TAXPAYER  WHICH  REPORTS ON THE BASIS OF A CALENDAR YEAR, A
   33  TAXPAYER FILES ITS REPORT FOR THE YEAR  FOR  WHICH  THE  DECLARATION  IS
   34  REQUIRED,  AND PAYS THEREWITH THE BALANCE, IF ANY, OF THE FULL AMOUNT OF
   35  THE TAX SHOWN TO BE DUE ON THE REPORT:
   36    (A) SUCH REPORT SHALL BE CONSIDERED AS ITS DECLARATION IF NO  DECLARA-
   37  TION  IS  REQUIRED  TO  BE  FILED DURING THE CALENDAR OR FISCAL YEAR FOR
   38  WHICH THE TAX WAS IMPOSED, BUT IS OTHERWISE REQUIRED TO BE FILED  ON  OR
   39  BEFORE DECEMBER FIFTEENTH PURSUANT TO SUBDIVISION THREE OF THIS SECTION;
   40  AND
   41    (B)  SUCH  REPORT  SHALL  BE  CONSIDERED AS THE AMENDMENT PERMITTED BY
   42  SUBDIVISION FOUR OF THIS SECTION TO  BE  FILED  ON  OR  BEFORE  DECEMBER
   43  FIFTEENTH  IF  THE TAX SHOWN ON THE REPORT IS GREATER THAN THE ESTIMATED
   44  TAX SHOWN ON A DECLARATION PREVIOUSLY MADE.
   45    6. THIS SECTION SHALL APPLY TO  PRIVILEGE  PERIODS  OF  TWELVE  MONTHS
   46  OTHER  THAN  A  CALENDAR  YEAR BY THE SUBSTITUTION OF THE MONTHS OF SUCH
   47  FISCAL YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN THIS SECTION.
   48    7. IF THE PRIVILEGE PERIOD FOR WHICH  A  TAX  IS  IMPOSED  BY  SECTION
   49  11-653  OF  THIS  SUBCHAPTER  IS LESS THAN TWELVE MONTHS, EVERY TAXPAYER
   50  REQUIRED TO MAKE A DECLARATION OF ESTIMATED TAX FOR SUCH PRIVILEGE PERI-
   51  OD SHALL MAKE SUCH A DECLARATION IN ACCORDANCE WITH REGULATIONS  OF  THE
   52  COMMISSIONER OF FINANCE.
   53    8.  THE  COMMISSIONER  OF  FINANCE MAY GRANT A REASONABLE EXTENSION OF
   54  TIME, NOT TO EXCEED THREE MONTHS, FOR  THE  FILING  OF  ANY  DECLARATION
   55  REQUIRED  PURSUANT  TO  THIS SECTION, ON SUCH TERMS AND CONDITIONS AS IT
   56  MAY REQUIRE.
       S. 4610                            75                            A. 6721
    1    S 11-658 PAYMENTS ON ACCOUNT  OF  ESTIMATED  TAX.  1.  EVERY  TAXPAYER
    2  SUBJECT  TO  THE  TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER SHALL
    3  PAY WITH THE REPORT REQUIRED TO BE FILED  FOR  THE  PRECEDING  PRIVILEGE
    4  PERIOD,  IF  ANY,  OR  WITH AN APPLICATION FOR EXTENSION OF THE TIME AND
    5  FILING  SUCH  REPORT,  AN  AMOUNT EQUAL TO TWENTY-FIVE PER CENTUM OF THE
    6  PRECEDING YEAR'S TAX IF SUCH PRECEDING YEAR'S TAX EXCEEDED ONE  THOUSAND
    7  DOLLARS.
    8    2.  THE  ESTIMATED  TAX  WITH  RESPECT TO WHICH A DECLARATION FOR SUCH
    9  PRIVILEGE PERIOD IS REQUIRED SHALL BE PAID, IN THE CASE  OF  A  TAXPAYER
   10  WHICH REPORTS ON THE BASIS OF A CALENDAR YEAR, AS FOLLOWS:
   11    (A) IF THE DECLARATION IS FILED ON OR BEFORE JUNE FIFTEENTH, THE ESTI-
   12  MATED TAX SHOWN THEREON, AFTER APPLYING THERETO THE AMOUNT, IF ANY, PAID
   13  DURING  THE  SAME  PRIVILEGE  PERIOD PURSUANT TO SUBDIVISION ONE OF THIS
   14  SECTION, SHALL BE PAID IN THREE EQUAL INSTALLMENTS. ONE OF SUCH INSTALL-
   15  MENTS SHALL BE PAID AT THE TIME OF THE FILING OF  THE  DECLARATION,  ONE
   16  SHALL  BE  PAID  ON  THE  FOLLOWING  SEPTEMBER FIFTEENTH, AND ONE ON THE
   17  FOLLOWING DECEMBER FIFTEENTH.
   18    (B) IF THE DECLARATION IS FILED AFTER JUNE  FIFTEENTH  AND  NOT  AFTER
   19  SEPTEMBER  FIFTEENTH OF SUCH PRIVILEGE PERIOD, AND IS NOT REQUIRED TO BE
   20  FILED ON OR BEFORE JUNE FIFTEENTH OF  SUCH  PERIOD,  THE  ESTIMATED  TAX
   21  SHOWN  ON  SUCH  DECLARATION, AFTER APPLYING THERETO THE AMOUNT, IF ANY,
   22  PAID DURING THE SAME PRIVILEGE PERIOD PURSUANT  TO  SUBDIVISION  ONE  OF
   23  THIS  SECTION,  SHALL  BE  PAID  IN  TWO EQUAL INSTALLMENTS. ONE OF SUCH
   24  INSTALLMENTS SHALL BE PAID AT THE TIME OF THE FILING OF THE  DECLARATION
   25  AND ONE SHALL BE PAID ON THE FOLLOWING DECEMBER FIFTEENTH.
   26    (C)  IF  THE  DECLARATION  IS  FILED AFTER SEPTEMBER FIFTEENTH OF SUCH
   27  PRIVILEGE PERIOD, AND IS NOT REQUIRED TO BE FILED ON OR BEFORE SEPTEMBER
   28  FIFTEENTH OF SUCH PRIVILEGE PERIOD, THE  ESTIMATED  TAX  SHOWN  ON  SUCH
   29  DECLARATION,  AFTER APPLYING THERETO THE AMOUNT, IF ANY, PAID IN RESPECT
   30  TO SUCH PRIVILEGE PERIOD PURSUANT TO SUBDIVISION ONE  OF  THIS  SECTION,
   31  SHALL BE PAID IN FULL AT THE TIME OF THE FILING OF THE DECLARATION.
   32    (D) IF THE DECLARATION IS FILED AFTER THE TIME PRESCRIBED THEREFOR, OR
   33  AFTER  THE  EXPIRATION OF ANY EXTENSION OF TIME THEREFOR, PARAGRAPHS (B)
   34  AND (C) OF THIS SUBDIVISION SHALL NOT APPLY, AND THERE SHALL BE PAID  AT
   35  THE  TIME OF SUCH FILING ALL INSTALLMENTS OF ESTIMATED TAX PAYABLE AT OR
   36  BEFORE SUCH TIME, AND THE REMAINING INSTALLMENTS SHALL BE  PAID  AT  THE
   37  TIMES  AT WHICH, AND IN THE AMOUNTS IN WHICH, THEY WOULD HAVE BEEN PAYA-
   38  BLE IF THE DECLARATION HAD BEEN FILED WHEN DUE.
   39    3. IF ANY AMENDMENT OF A DECLARATION IS FILED, THE REMAINING  INSTALL-
   40  MENTS,  IF ANY, SHALL BE RATABLY INCREASED OR DECREASED (AS THE CASE MAY
   41  BE) TO REFLECT ANY INCREASE OR DECREASE IN THE ESTIMATED TAX  BY  REASON
   42  OF  SUCH  AMENDMENT,  AND  IF  ANY  AMENDMENT  IS  MADE  AFTER SEPTEMBER
   43  FIFTEENTH OF THE PRIVILEGE PERIOD, ANY INCREASE IN THE ESTIMATED TAX  BY
   44  REASON THEREOF SHALL BE PAID AT THE TIME OF MAKING SUCH AMENDMENT.
   45    4.  ANY AMOUNT PAID SHALL BE APPLIED AFTER PAYMENT AS A FIRST INSTALL-
   46  MENT AGAINST THE ESTIMATED TAX OF THE TAXPAYER FOR THE CURRENT PRIVILEGE
   47  PERIOD SHOWN ON THE DECLARATION REQUIRED TO BE FILED PURSUANT TO SECTION
   48  11-657 OF THIS SUBCHAPTER OR, IF NO  DECLARATION  OF  ESTIMATED  TAX  IS
   49  REQUIRED  TO BE FILED BY THE TAXPAYER PURSUANT TO SUCH SECTION, ANY SUCH
   50  AMOUNT SHALL BE CONSIDERED A PAYMENT ON ACCOUNT OF THE TAX SHOWN ON  THE
   51  REPORT REQUIRED TO BE FILED BY THE TAXPAYER FOR SUCH PRIVILEGE PERIOD.
   52    5. NOTWITHSTANDING THE PROVISIONS OF SECTION 11-679 OF THIS CHAPTER OR
   53  OF  SECTION  THREE-A  OF  THE  GENERAL  MUNICIPAL LAW, IF AN AMOUNT PAID
   54  PURSUANT TO SUBDIVISION ONE OF THIS SECTION EXCEEDS THE TAX SHOWN ON THE
   55  REPORT REQUIRED TO BE FILED BY THE TAXPAYER  FOR  THE  PRIVILEGE  PERIOD
   56  DURING  WHICH THE AMOUNT WAS PAID, INTEREST SHALL BE ALLOWED AND PAID ON
       S. 4610                            76                            A. 6721
    1  THE AMOUNT BY WHICH THE AMOUNT SO  PAID  PURSUANT  TO  SUCH  SUBDIVISION
    2  EXCEEDS  SUCH  TAX,  AT  THE OVERPAYMENT RATE SET BY THE COMMISSIONER OF
    3  FINANCE PURSUANT TO SECTION 11-687 OF THIS CHAPTER, OR, IF  NO  RATE  IS
    4  SET,  AT  THE RATE OF FOUR PERCENT PER ANNUM FROM THE DATE OF PAYMENT OF
    5  THE AMOUNT SO PAID PURSUANT TO SUCH SUBDIVISION TO THE FIFTEENTH DAY  OF
    6  THE  THIRD  MONTH FOLLOWING THE CLOSE OF THE PRIVILEGE PERIOD, PROVIDED,
    7  HOWEVER, THAT NO INTEREST SHALL BE ALLOWED OR PAID UNDER  THIS  SUBDIVI-
    8  SION  IF  THE AMOUNT THEREOF IS LESS THAN ONE DOLLAR OR IF SUCH INTEREST
    9  BECOMES PAYABLE SOLELY BECAUSE OF A CARRYBACK OF A NET OPERATING LOSS IN
   10  A SUBSEQUENT PRIVILEGE PERIOD.
   11    6. AS USED IN THIS SECTION, "THE PRECEDING YEAR'S TAX" MEANS  THE  TAX
   12  IMPOSED  UPON  THE TAXPAYER BY SECTION 11-653 OF THIS SUBCHAPTER FOR THE
   13  PRECEDING CALENDAR OR FISCAL YEAR, OR, FOR  PURPOSES  OF  COMPUTING  THE
   14  FIRST  INSTALLMENT  OF  ESTIMATED TAX WHEN AN APPLICATION HAS BEEN FILED
   15  FOR EXTENSION OF THE TIME FOR FILING THE REPORT REQUIRED TO BE FILED FOR
   16  SUCH PRECEDING CALENDAR OR FISCAL YEAR, THE  AMOUNT  PROPERLY  ESTIMATED
   17  PURSUANT  TO  SECTION  11-657 OF THIS SUBCHAPTER AS THE TAX IMPOSED UPON
   18  THE TAXPAYER FOR SUCH CALENDAR OR FISCAL YEAR.
   19    7. THIS SECTION SHALL APPLY TO A PRIVILEGE PERIOD OF LESS THAN  TWELVE
   20  MONTHS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSIONER OF FINANCE.
   21    8.  THE PROVISIONS OF THIS SECTION SHALL APPLY TO PRIVILEGE PERIODS OF
   22  TWELVE MONTHS OTHER THAN A CALENDAR YEAR  BY  THE  SUBSTITUTION  OF  THE
   23  MONTHS  OF  SUCH  FISCAL  YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN
   24  SUCH PROVISIONS.
   25    9. THE COMMISSIONER OF FINANCE MAY GRANT  A  REASONABLE  EXTENSION  OF
   26  TIME,  NOT TO EXCEED SIX MONTHS, FOR PAYMENT OF ANY INSTALLMENT OF ESTI-
   27  MATED TAX REQUIRED PURSUANT TO THIS SECTION, ON SUCH  TERMS  AND  CONDI-
   28  TIONS  AS THE COMMISSIONER OF FINANCE MAY REQUIRE INCLUDING THE FURNISH-
   29  ING OF A BOND OR OTHER  SECURITY  BY  THE  TAXPAYER  IN  AN  AMOUNT  NOT
   30  EXCEEDING  TWICE  THE AMOUNT FOR WHICH ANY EXTENSION OF TIME FOR PAYMENT
   31  IS GRANTED, PROVIDED, HOWEVER, THAT INTEREST AT  THE  UNDERPAYMENT  RATE
   32  SET  BY  THE  COMMISSIONER OF FINANCE PURSUANT TO SECTION 11-687 OF THIS
   33  SUBCHAPTER, OR, IF NO RATE IS SET, AT THE RATE  OF  SEVEN  AND  ONE-HALF
   34  PERCENT  PER  ANNUM FOR THE PERIOD OF THE EXTENSION SHALL BE CHARGED AND
   35  COLLECTED ON THE AMOUNT FOR WHICH ANY EXTENSION OF TIME FOR  PAYMENT  IS
   36  GRANTED UNDER THIS SUBDIVISION.
   37    10. A TAXPAYER MAY ELECT TO PAY ANY INSTALLMENT OF ESTIMATED TAX PRIOR
   38  TO THE DATE PRESCRIBED IN THIS SECTION FOR PAYMENT THEREOF.
   39    11. INTENTIONALLY OMITTED.
   40    S  11-659 COLLECTION OF TAXES. EVERY FOREIGN CORPORATION (OTHER THAN A
   41  MONEYED CORPORATION) SUBJECT  TO  THE  PROVISIONS  OF  THIS  SUBCHAPTER,
   42  EXCEPT  A  CORPORATION  HAVING  AUTHORITY  TO  DO  BUSINESS BY VIRTUE OF
   43  SECTION THIRTEEN HUNDRED FIVE OF THE  BUSINESS  CORPORATION  LAW,  SHALL
   44  FILE  IN  THE  DEPARTMENT  OF  STATE A CERTIFICATE OF DESIGNATION IN ITS
   45  CORPORATE NAME, SIGNED AND ACKNOWLEDGED BY ITS PRESIDENT OR A  VICE-PRE-
   46  SIDENT  OR  ITS SECRETARY OR TREASURER, UNDER ITS CORPORATE SEAL, DESIG-
   47  NATING THE SECRETARY OF STATE AS ITS AGENT  UPON  WHOM  PROCESS  IN  ANY
   48  ACTION  PROVIDED FOR BY THIS SUBCHAPTER MAY BE SERVED WITHIN THIS STATE,
   49  AND SETTING FORTH AN ADDRESS TO WHICH THE SECRETARY OF STATE SHALL  MAIL
   50  A  COPY  OF ANY SUCH PROCESS AGAINST THE CORPORATION WHICH MAY BE SERVED
   51  UPON THE SECRETARY OF STATE. IN CASE ANY  SUCH  CORPORATION  SHALL  HAVE
   52  FAILED  TO  FILE  SUCH CERTIFICATE OF DESIGNATION, IT SHALL BE DEEMED TO
   53  HAVE DESIGNATED THE SECRETARY OF STATE AS ITS AGENT UPON WHOM SUCH PROC-
   54  ESS AGAINST IT MAY BE SERVED; AND UNTIL  A  CERTIFICATE  OF  DESIGNATION
   55  SHALL  HAVE  BEEN FILED THE CORPORATION SHALL BE DEEMED TO HAVE DIRECTED
   56  THE SECRETARY OF STATE TO MAIL COPIES OF PROCESS SERVED UPON HIM OR  HER
       S. 4610                            77                            A. 6721
    1  TO  THE  CORPORATION  AT ITS LAST KNOWN OFFICE ADDRESS WITHIN OR WITHOUT
    2  THE STATE. WHEN A CERTIFICATE OF DESIGNATION  HAS  BEEN  FILED  BY  SUCH
    3  CORPORATION  THE  SECRETARY OF STATE SHALL MAIL COPIES OF PROCESS THERE-
    4  AFTER  SERVED  UPON  THE  SECRETARY OF STATE TO THE ADDRESS SET FORTH IN
    5  SUCH CERTIFICATE. ANY SUCH CORPORATION, FROM TIME TO  TIME,  MAY  CHANGE
    6  THE  ADDRESS  TO WHICH THE SECRETARY OF STATE IS DIRECTED TO MAIL COPIES
    7  OF PROCESS, BY FILING A CERTIFICATE TO THAT EFFECT EXECUTED, SIGNED  AND
    8  ACKNOWLEDGED  IN  LIKE  MANNER AS A CERTIFICATE OF DESIGNATION AS HEREIN
    9  PROVIDED. SERVICE OF PROCESS UPON  ANY  SUCH  CORPORATION  OR  UPON  ANY
   10  CORPORATION  HAVING  A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION EIGHT
   11  HUNDRED FIVE OF THE LIMITED LIABILITY COMPANY LAW OR HAVING AUTHORITY TO
   12  DO BUSINESS BY VIRTUE OF SECTION THIRTEEN HUNDRED FIVE OF  THE  BUSINESS
   13  CORPORATION  LAW,  IN  ANY  ACTION COMMENCED AT ANY TIME PURSUANT TO THE
   14  PROVISIONS OF THIS SUBCHAPTER, MAY BE MADE  BY  EITHER:  (A)  PERSONALLY
   15  DELIVERING  TO  AND LEAVING WITH THE SECRETARY OF STATE, A DEPUTY SECRE-
   16  TARY OF STATE OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO
   17  RECEIVE SUCH SERVICE DUPLICATE COPIES  THEREOF  AT  THE  OFFICE  OF  THE
   18  DEPARTMENT  OF STATE IN THE CITY OF ALBANY, IN WHICH EVENT THE SECRETARY
   19  OF STATE  SHALL  FORTHWITH  SEND  BY  REGISTERED  MAIL,  RETURN  RECEIPT
   20  REQUESTED,  ONE  OF SUCH COPIES TO THE CORPORATION AT THE ADDRESS DESIG-
   21  NATED BY IT OR AT ITS LAST KNOWN OFFICE ADDRESS WITHIN  OR  WITHOUT  THE
   22  STATE, OR (B) PERSONALLY DELIVERING TO AND LEAVING WITH THE SECRETARY OF
   23  STATE,  A DEPUTY SECRETARY OF STATE OR WITH ANY PERSON AUTHORIZED BY THE
   24  SECRETARY OF STATE TO RECEIVE SUCH SERVICE, A COPY THEREOF AT THE OFFICE
   25  OF THE DEPARTMENT OF STATE IN THE CITY OF ALBANY  AND  BY  DELIVERING  A
   26  COPY  THEREOF TO, AND LEAVING SUCH COPY WITH, THE PRESIDENT, VICE-PRESI-
   27  DENT, SECRETARY, ASSISTANT SECRETARY, TREASURER, ASSISTANT TREASURER, OR
   28  CASHIER OF SUCH CORPORATION, OR  THE  OFFICER  PERFORMING  CORRESPONDING
   29  FUNCTIONS  UNDER  ANOTHER  NAME, OR A DIRECTOR OR MANAGING AGENT OF SUCH
   30  CORPORATION, PERSONALLY WITHOUT THE  STATE.    PROOF  OF  SUCH  PERSONAL
   31  SERVICE  WITHOUT THE STATE SHALL BE FILED WITH THE CLERK OF THE COURT IN
   32  WHICH THE ACTION IS PENDING WITHIN THIRTY DAYS AFTER SUCH  SERVICE,  AND
   33  SUCH SERVICE SHALL BE COMPLETE TEN DAYS AFTER PROOF THEREOF IS FILED.
   34    S 11-660 LIMITATIONS OF TIME. THE PROVISIONS OF THE CIVIL PRACTICE LAW
   35  AND  RULES  RELATIVE  TO THE LIMITATION OF TIME ENFORCING A CIVIL REMEDY
   36  SHALL NOT APPLY TO ANY PROCEEDING OR ACTION  TAKEN  TO  LEVY,  APPRAISE,
   37  ASSESS,  DETERMINE  OR  ENFORCE  THE  COLLECTION  OF  ANY TAX OR PENALTY
   38  PRESCRIBED BY THIS SUBCHAPTER, PROVIDED, HOWEVER, THAT AS TO REAL ESTATE
   39  IN THE HANDS OF PERSONS WHO ARE OWNERS THEREOF WHO WOULD  BE  PURCHASERS
   40  IN  GOOD  FAITH  BUT  FOR SUCH TAX OR PENALTY AND AS TO THE LIEN ON REAL
   41  ESTATE OF MORTGAGES HELD BY PERSONS WHO WOULD BE HOLDERS THEREOF IN GOOD
   42  FAITH BUT FOR SUCH TAX OR PENALTY, ALL SUCH TAXES  AND  PENALTIES  SHALL
   43  CEASE  TO  BE  A  LIEN ON SUCH REAL ESTATE AS AGAINST SUCH PURCHASERS OR
   44  HOLDERS AFTER THE EXPIRATION OF TEN  YEARS  FROM  THE  DATE  SUCH  TAXES
   45  BECAME  DUE  AND  PAYABLE. THE LIMITATIONS HEREIN PROVIDED FOR SHALL NOT
   46  APPLY TO ANY TRANSFER FROM A CORPORATION TO A PERSON OR CORPORATION WITH
   47  INTENT TO AVOID PAYMENT OF ANY TAXES, OR  WHERE  WITH  LIKE  INTENT  THE
   48  TRANSFER  IS  MADE  TO  A GRANTEE CORPORATION, OR ANY SUBSEQUENT GRANTEE
   49  CORPORATION, CONTROLLED BY SUCH GRANTOR OR WHICH HAS  ANY  COMMUNITY  OF
   50  INTEREST WITH IT, EITHER THROUGH STOCK OWNERSHIP OR OTHERWISE.
   51    S  2.  Subparagraph  (A)  of paragraph 2 of subdivision (f) of section
   52  11-508 of the administrative code of the city of New York, as  added  by
   53  chapter 485 of the laws of 1994, is amended to read as follows:
   54    (A)  In the case of an issuer or obligor subject to tax under subchap-
   55  ter two OR THREE-A of chapter six of this title, or subject to tax as  a
   56  utility  corporation  under  chapter  eleven of this title, the issuer's
       S. 4610                            78                            A. 6721
    1  allocation percentage shall be the percentage of the appropriate measure
    2  (as defined hereinafter) which is required to be  allocated  within  the
    3  city on the report or reports, if any, required of the issuer or obligor
    4  under  chapter  six  or eleven of this title for the preceding year. The
    5  appropriate measure referred to in the preceding sentence shall  be:  in
    6  the case of an issuer or obligor subject to subchapter two OR THREE-A of
    7  chapter  six of this title, entire capital; and in the case of an issuer
    8  or obligor subject to chapter eleven of this title as a  utility  corpo-
    9  ration, gross income.
   10    S  3.  The  administrative  code of the city of New York is amended by
   11  adding a new section 11-602.1 to read as follows:
   12    S 11-602.1 APPLICATION OF THIS SUBCHAPTER. 1. FOR TAXABLE YEARS BEGIN-
   13  NING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN,  THE  TAX  IMPOSED
   14  UNDER  THIS SUBCHAPTER SHALL ONLY APPLY TO A CORPORATION THAT (A) HAS AN
   15  ELECTION IN EFFECT UNDER SUBSECTION  (A)  OF  SECTION  THIRTEEN  HUNDRED
   16  SIXTY-TWO  OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (B) IS A
   17  QUALIFIED SUBCHAPTER S SUBSIDIARY WITHIN THE MEANING OF PARAGRAPH  THREE
   18  OF  SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL
   19  REVENUE CODE OF 1986, AS AMENDED.
   20    2. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
   21  FIFTEEN, THE TAX IMPOSED UNDER THIS SUBCHAPTER  SHALL  NOT  APPLY  TO  A
   22  CORPORATION  THAT  IS  NOT  DESCRIBED IN SUBDIVISION ONE OF THIS SECTION
   23  EXCEPT TO THE EXTENT PROVIDED IN SUBCHAPTER THREE-A OF THIS CHAPTER.
   24    3. CROSS-REFERENCE. FOR THE TAXATION  OF  CORPORATIONS  THAT  ARE  NOT
   25  DESCRIBED  IN  SUBDIVISION  ONE OF THIS SECTION, THAT WERE TAXABLE UNDER
   26  THIS SUBCHAPTER FOR TAX YEARS BEGINNING BEFORE JANUARY FIRST, TWO  THOU-
   27  SAND FIFTEEN, SEE SUBCHAPTER THREE-A OF THIS CHAPTER.
   28    S  4.  Subdivision (a) of section 11-639 of the administrative code of
   29  the city of New York is amended to read as follows:
   30    (a) (1) For the privilege of doing business in the city in a corporate
   31  or organized capacity, a tax, computed  under  section  11-643  of  this
   32  part,  is  hereby annually imposed on every banking corporation for each
   33  of its taxable years, or any part thereof, beginning on or after January
   34  first, nineteen hundred seventy-three  AND  BEFORE  JANUARY  FIRST,  TWO
   35  THOUSAND FIFTEEN.
   36    (2)  FOR THE PRIVILEGE OF DOING BUSINESS IN THE CITY IN A CORPORATE OR
   37  ORGANIZED CAPACITY, A TAX, COMPUTED UNDER SECTION 11-643 OF  THIS  PART,
   38  IS HEREBY ANNUALLY IMPOSED ON EVERY BANKING CORPORATION FOR EACH TAXABLE
   39  YEAR,  OR  ANY  PART  THEREOF, COMMENCING ON OR AFTER JANUARY FIRST, TWO
   40  THOUSAND FIFTEEN, WHERE SUCH BANKING CORPORATION (I) HAS AN ELECTION  IN
   41  EFFECT UNDER SUBSECTION (A) OF SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE
   42  INTERNAL  REVENUE  CODE  OF  1986,  AS  AMENDED,  OR (II) IS A QUALIFIED
   43  SUBCHAPTER S  SUBSIDIARY  WITHIN  THE  MEANING  OF  PARAGRAPH  THREE  OF
   44  SUBSECTION  (B)  OF  SECTION  THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL
   45  REVENUE CODE OF 1986, AS AMENDED.
   46    S 5. Section 11-639 of the administrative code of the city of New York
   47  is amended by adding a new subdivision (d) to read as follows:
   48    (D) CROSS-REFERENCE. FOR THE TAXATION OF  CORPORATIONS  THAT  ARE  NOT
   49  DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION, THAT WERE
   50  TAXABLE  UNDER  THIS  SUBCHAPTER  FOR TAX YEARS BEGINNING BEFORE JANUARY
   51  FIRST, TWO THOUSAND FIFTEEN, SEE SUBCHAPTER THREE-A OF THIS CHAPTER.
   52    S 6. Paragraph 2 of subdivision (b) of section 11-641 of the  adminis-
   53  trative  code  of the city of New York, as amended by chapter 525 of the
   54  laws of 1988, is amended to read as follows:
   55    (2) taxes on or measured by income or profits paid or  accrued  within
   56  the  taxable  year to the United States, or any of its possessions or to
       S. 4610                            79                            A. 6721
    1  any foreign country and taxes imposed under article nine, nine-A,  thir-
    2  teen-A   or  thirty-two  of  the  tax  law  AS  IN  EFFECT  ON  DECEMBER
    3  THIRTY-FIRST, TWO THOUSAND FOURTEEN and any tax imposed under this  part
    4  or subchapter two OR THREE-A of this chapter;
    5    S  7.  Subdivision  1  and  paragraph  (a) of subdivision 2 of section
    6  11-671 of the administrative code of the city of New York are amended to
    7  read as follows:
    8    1. General. The provisions of  this  subchapter  shall  apply  to  the
    9  administration  of  and the procedures with respect to the taxes imposed
   10  by subchapters two, three, THREE-A and four of this chapter.
   11    (a) the term "named  subchapters"  means  subchapters  two,  three  OR
   12  THREE-A and four of this chapter;
   13    S  8.  Paragraph  (a)  of subdivision 5 and subdivisions 7, 8 and 9 of
   14  section 11-672 of the administrative code of the city of New York, para-
   15  graph (a) of subdivision 5 as amended by chapter  525  of  the  laws  of
   16  1988,  and  paragraph  (b) of subdivision 9 as amended by chapter 808 of
   17  the laws of 1992, are amended to read as follows:
   18    (a) If the taxpayer fails to comply with subchapter two [or], three OR
   19  THREE-A of this chapter in not reporting a change or correction or rene-
   20  gotiation,  or  computation  or  recomputation  of  tax,  increasing  or
   21  decreasing  its  federal  or  New York state taxable income, alternative
   22  minimum taxable income or other basis of tax as reported on its  federal
   23  or  New  York  state  income  tax return or in not reporting a change or
   24  correction or renegotiation, or computation  or  recomputation  of  tax,
   25  which  is  treated  in  the  same  manner as if it were a deficiency for
   26  federal or New York state income  tax  purposes  or  in  not  filing  an
   27  amended  return  or in not reporting the execution of a notice of waiver
   28  executed pursuant to subsection (d) of section six thousand two  hundred
   29  thirteen  of the internal revenue code or pursuant to subdivision (f) of
   30  section one thousand eighty-one of the tax law, instead of the mode  and
   31  time  of assessment provided for in subdivision two of this section, the
   32  commissioner  of  finance  may  assess  a  deficiency  based  upon  such
   33  increased  or decreased federal or New York state taxable income, alter-
   34  native minimum taxable income or other basis of tax by  mailing  to  the
   35  taxpayer  a  notice  of  additional tax due specifying the amount of the
   36  deficiency, and such deficiency, together with the  interest,  additions
   37  to  tax and penalties stated in such notice, shall be deemed assessed on
   38  the date such notice is mailed unless within thirty days after the mail-
   39  ing of such notice a report of the federal or New York state  change  or
   40  correction  or renegotiation, or computation or recomputation of tax, or
   41  an amended return, where such return  was  required  by  subchapter  two
   42  [or],  three  OR  THREE-A,  is  filed accompanied by a statement showing
   43  wherein such federal or New York state determination and such notice  of
   44  additional tax due are erroneous.
   45    7.  Two  or  more  corporations.  In  case  of a combined return under
   46  subchapter two OR THREE-A or  a  consolidated  return  under  subchapter
   47  three  of  two  or  more  corporations,  the commissioner of finance may
   48  determine a deficiency of tax  under  subchapter  two  [or  subchapter],
   49  three OR THREE-A of this chapter with respect to the entire tax due upon
   50  such  return  against  any  taxpayer  included therein. In the case of a
   51  taxpayer which might have been included in such a return under  subchap-
   52  ter  two  [or subchapter], three OR THREE-A of this chapter when the tax
   53  was originally reported, the commissioner of  finance  may  determine  a
   54  deficiency  of  tax  under subchapter two [or], three OR THREE-A of this
   55  chapter against such taxpayer and  against  any  other  taxpayers  which
   56  might have been included in such a return.
       S. 4610                            80                            A. 6721
    1    8.  Deficiency  defined.  For the purposes of this subchapter, a defi-
    2  ciency means the amount of the tax imposed by the named subchapters,  or
    3  any  of  them, less: (a) the amount shown as the tax upon the taxpayer's
    4  return (whether the return was made or the tax computed by it or by  the
    5  commissioner  of  finance), and less (b) the amounts previously assessed
    6  (or collected without assessment) as  a  deficiency  and  plus  (c)  the
    7  amount  of  any  rebates.  For  the  purpose of this definition, the tax
    8  imposed by subchapter two [or], three OR THREE-A of this chapter and the
    9  tax shown on the return shall both be determined without regard  to  any
   10  payment  of  estimated  tax; and a rebate means so much of an abatement,
   11  credit, refund or other repayment (whether or not erroneous) as was made
   12  on the ground that the amounts entering into the definition of  a  defi-
   13  ciency showed a balance in favor of the taxpayer.
   14    9.  Exception where change or correction of sales and compensating use
   15  tax liability is not reported.
   16    (a) If a taxpayer fails to comply with subchapter two  OR  THREE-A  of
   17  this  chapter  in  not reporting a change or correction of its sales and
   18  compensating use tax liability or in not filing a  copy  of  an  amended
   19  return  or report relating to its sales and compensating use tax liabil-
   20  ity, instead of the mode and time of assessment provided for in subdivi-
   21  sion two of this section, the commissioner of finance may assess a defi-
   22  ciency based upon such changed or corrected sales and  compensating  use
   23  tax  liability,  as same relates to credits claimed under subchapter two
   24  OR THREE-A of this chapter, by mailing to the taxpayer a notice of addi-
   25  tional tax due specifying the amount of the deficiency, and  such  defi-
   26  ciency, together with the interest, additions to tax and penalties stat-
   27  ed  in  such notice, shall be deemed assessed on the date such notice is
   28  mailed unless within thirty days after the  mailing  of  such  notice  a
   29  report  of the state change or correction or a copy of an amended return
   30  or report, where such copy was required by subchapter two OR THREE-A, is
   31  filed accompanied by a statement showing  wherein  such  state  determi-
   32  nation and such notice of additional tax due are erroneous.
   33    (b)  Such notice shall not be considered as a notice of deficiency for
   34  the purposes of this section, subdivision six of section 11-678  (limit-
   35  ing  credits  or refunds after petition to the tax appeals tribunal), or
   36  subdivision two of section 11-680 (authorizing the filing of a  petition
   37  with  the  tax  appeals  tribunal  based on a notice of deficiency), nor
   38  shall such assessment or the collection thereof  be  prohibited  by  the
   39  provisions of subdivision three of this section.
   40    (c)  If  the  taxpayer has terminated its existence, a notice of addi-
   41  tional tax due may be mailed to its last known address in or out of  the
   42  city,  and such notice shall be sufficient for purposes of this subchap-
   43  ter. If the commissioner of finance has received notice that a person is
   44  acting for the taxpayer in a fiduciary capacity, a copy of  such  notice
   45  shall also be mailed to the fiduciary named in such notice.
   46    S 9. Subdivisions 1 and 3 of section 11-673 of the administrative code
   47  of the city of New York, the first undesignated paragraph of subdivision
   48  1  as amended by chapter 808 of the laws of 1992, are amended to read as
   49  follows:
   50    1. Assessment date. The amount of tax which a return shows to be  due,
   51  or the amount of tax which a return would have shown to be due but for a
   52  mathematical error, shall be deemed to be assessed on the date of filing
   53  of the return (including any amended return showing an increase of tax).
   54  If  a notice of deficiency has been mailed, the amount of the deficiency
   55  shall be deemed to be assessed on the date specified in subdivision  two
   56  of  section  11-672  of this subchapter if no petition is both served on
       S. 4610                            81                            A. 6721
    1  the commissioner of finance and filed with the tax appeals tribunal,  or
    2  if a petition is so served and filed, then upon the date when a decision
    3  of  the  tax  appeals tribunal establishing the amount of the deficiency
    4  becomes  final.  If  a  report  or  an  amended return filed pursuant to
    5  subchapter two [or], three OR THREE-A of this chapter concedes the accu-
    6  racy of a federal or New York state adjustment or change  or  correction
    7  or  renegotiation or computation or recomputation of tax, any deficiency
    8  in tax under subchapter two [or],  three  OR  THREE-A  of  this  chapter
    9  resulting therefrom shall be deemed to be assessed on the date of filing
   10  such  report  or  amended  return,  and  such assessment shall be timely
   11  notwithstanding section 11-674 of this chapter.
   12    If a report filed pursuant to subchapter two OR THREE-A of this  chap-
   13  ter  concedes  the accuracy of a state change or correction of sales and
   14  compensating use tax liability, any deficiency in tax  under  subchapter
   15  two  OR  THREE-A  of  this  chapter  resulting therefrom shall be deemed
   16  assessed on the date of filing such report, and such assessment shall be
   17  timely notwithstanding section 11-674 of this chapter.
   18    If a notice of additional tax due, as prescribed in  subdivision  five
   19  of  section  11-672  of this chapter, has been mailed, the amount of the
   20  deficiency shall be deemed to be assessed on the date specified in  such
   21  subdivision unless within thirty days after the mailing of such notice a
   22  report  of  the  federal  or  New  York  state  adjustment  or change or
   23  correction or renegotiation or computation or recomputation of  tax,  or
   24  an  amended  return,  where  such  return was required by subchapter two
   25  [or], three OR THREE-A of this chapter, is filed accompanied by a state-
   26  ment showing wherein such federal or New York  state  determination  and
   27  such notice of additional tax due are erroneous.
   28    If  a  notice of additional tax due, as prescribed in subdivision nine
   29  of section 11-672 of this subchapter, has been mailed, the amount of the
   30  deficiency shall be deemed to be assessed on the date specified in  such
   31  subdivision unless within thirty days after the mailing of such notice a
   32  report of the state change or correction, or a copy of an amended return
   33  or  report, where such copy was required by subchapter two OR THREE-A of
   34  this chapter, is filed accompanied by a statement showing  wherein  such
   35  state determination and such notice of additional tax due are erroneous.
   36    Any  amount  paid  as a tax or in respect of a tax, other than amounts
   37  paid as estimated tax, shall be deemed to be assessed upon the  date  of
   38  receipt of payment notwithstanding any other provisions.
   39    3.  Estimated  tax. No unpaid amount of estimated tax under subchapter
   40  two [or], three OR THREE-A of this chapter shall be assessed.
   41    S 10. Subdivisions 3 and 4 of section  11-674  of  the  administrative
   42  code  of the city of New York, subparagraph 3 of paragraph (a) and para-
   43  graph (c) of subdivision 3 as amended by chapter 525 of the laws of 1988
   44  and paragraph (d) of subdivision 3 as amended by local law number 57  of
   45  the city of New York for the year 2001, are amended to read as follows:
   46    3. Exceptions.
   47    (a) Assessment at any time. The tax may be assessed at any time if:
   48    (1) no return is filed,
   49    (2) a false or fraudulent return is filed with intent to evade tax,
   50    (3) in the case of the tax imposed under subchapter two [or], three OR
   51  THREE-A  of this chapter, the taxpayer fails to file a report or amended
   52  return required thereunder, in respect of an  increase  or  decrease  in
   53  federal  or  New  York state taxable income, alternative minimum taxable
   54  income or other basis of tax or federal or New York  state  tax,  or  in
   55  respect  of a change or correction or renegotiation or in respect of the
   56  execution of a notice of waiver report of which is required  thereunder,
       S. 4610                            82                            A. 6721
    1  or  computation  or  recomputation  of tax, which is treated in the same
    2  manner as if it were a deficiency for federal or New York  state  income
    3  tax purposes, or
    4    (4)  in the case of the tax imposed under subchapter two OR THREE-A of
    5  this chapter, the taxpayer fails to file a report or amended  return  or
    6  report  required  thereunder,  in  respect  of a change or correction of
    7  sales and compensating use tax liability, relating to  the  purchase  or
    8  use  of  items  for which a sales or compensating use tax credit against
    9  the tax imposed by subchapter two OR THREE-A was claimed.
   10    (b) Extension by agreement. Where, before the expiration of  the  time
   11  prescribed  in  this section for the assessment of tax, both the commis-
   12  sioner of finance and the taxpayer have  consented  in  writing  to  its
   13  assessment after such time, the tax may be assessed at any time prior to
   14  the  expiration of the period agreed upon. The period so agreed upon may
   15  be extended by subsequent agreements in writing made before the  expira-
   16  tion of the period previously agreed upon.
   17    (c)  Report  of federal or New York state change or correction. In the
   18  case of the tax imposed under subchapter two [or], three OR  THREE-A  of
   19  this  chapter, if the taxpayer files a report or amended return required
   20  thereunder, in respect of an increase or decrease in federal or New York
   21  state taxable income, alternative minimum taxable income or other  basis
   22  of  tax  or  federal or New York state tax, or in respect of a change or
   23  correction or renegotiation, or in respect of the execution of a  notice
   24  of  waiver  report  of  which  is required thereunder, or computation or
   25  recomputation of tax, which is treated in the same manner as if it  were
   26  a  deficiency  for  federal  or  New York state income tax purposes, the
   27  assessment (if not deemed to have been  made  upon  the  filing  of  the
   28  report or amended return) may be made at any time within two years after
   29  such  report  or amended return was filed. The amount of such assessment
   30  of tax shall not exceed the amount of the increase in city tax attribut-
   31  able to such federal or New York state change or correction or renegoti-
   32  ation, or computation or recomputation of tax. The  provisions  of  this
   33  paragraph shall not affect the time within which or the amount for which
   34  an assessment may otherwise be made.
   35    (d)  Deficiency  attributable  to  carry  back. If a deficiency of tax
   36  under subchapter two OR THREE-A of this chapter is attributable  to  the
   37  application  to taxpayer of a net operating loss carry back or a capital
   38  loss carry back, it may be assessed at any time that  a  deficiency  for
   39  the taxable year of the loss may be assessed.
   40    (e) Recovery of erroneous refund. An erroneous refund shall be consid-
   41  ered  an  underpayment  of  tax on the date made, and an assessment of a
   42  deficiency arising out of an erroneous refund may be made  at  any  time
   43  within  two years from the making of the refund, except that the assess-
   44  ment may be made within five years from the making of the refund  if  it
   45  appears that any part of the refund was induced by fraud or misrepresen-
   46  tation of a material fact.
   47    (f)  Request  for  prompt assessment. The tax shall be assessed within
   48  eighteen months after written request therefor (made after the return is
   49  filed) by the taxpayer or by a fiduciary representing the taxpayer,  but
   50  not  more  than three years after the return was filed, except as other-
   51  wise provided in this subdivision and subdivision four. This subdivision
   52  shall not apply unless:
   53    (1) (A) such written request notifies the commissioner of finance that
   54  the taxpayer contemplates dissolution at or  before  the  expiration  of
   55  such  eighteen-month  period, (B) the dissolution is in good faith begun
       S. 4610                            83                            A. 6721
    1  before the expiration of such eighteen-month period, (C) the dissolution
    2  is completed;
    3    (2) (A) such written request notifies the commissioner of finance that
    4  a  dissolution  has in good faith been begun, and (B) the dissolution is
    5  completed; or
    6    (3) a dissolution has been completed at the time such written  request
    7  is made.
    8    (g)  Change  of  the allocation of taxpayer's income or capital.  [No]
    9  (1) WITH REGARD TO TAXABLE YEARS BEGINNING  BEFORE  JANUARY  FIRST,  TWO
   10  THOUSAND  FIFTEEN, NO change of the allocation of income or capital upon
   11  which the taxpayer's return (or any  additional  assessment)  was  based
   12  shall  be  made where an assessment of tax is made during the additional
   13  period of limitation under subparagraph three or four of paragraph  (a),
   14  or  under  paragraph  (c), (d) or (i); and where any such assessment has
   15  been made, or where a notice  of  deficiency  has  been  mailed  to  the
   16  taxpayer  on the basis of any such proposed assessment, no change of the
   17  allocation of income or capital shall be made in  a  proceeding  on  the
   18  taxpayer's  claim  for  refund  of  such assessment or on the taxpayer's
   19  petition for redetermination of such deficiency.
   20    (2) WITH REGARD TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST,
   21  TWO  THOUSAND  FIFTEEN, NO CHANGE OF THE ALLOCATION OF INCOME OR CAPITAL
   22  UPON WHICH THE TAXPAYER'S RETURN  (OR  ANY  ADDITIONAL  ASSESSMENT)  WAS
   23  BASED  SHALL BE MADE WHERE AN ASSESSMENT OF TAX IS MADE DURING THE ADDI-
   24  TIONAL PERIOD OF LIMITATION UNDER SUBPARAGRAPH THREE OR  FOUR  OF  PARA-
   25  GRAPH  (A) OR UNDER PARAGRAPH (C), (D) OR (I), EXCEPT TO THE EXTENT SUCH
   26  ASSESSMENT IS BASED ON AN INCREASE OR DECREASE IN NEW YORK STATE TAXABLE
   27  INCOME OR OTHER BASIS OF TAX OR NEW  YORK  STATE  TAX,  OR  BASED  ON  A
   28  CHANGE, CORRECTION OR RENEGOTIATION OF TAX, OR BASED ON THE EXECUTION OF
   29  A  NOTICE  OF WAIVER REPORT WHICH IS REQUIRED THEREUNDER, OR COMPUTATION
   30  OR RECOMPUTATION OF TAX, WHICH IS TREATED IN THE SAME MANNER  AS  IF  IT
   31  WERE  A DEFICIENCY FOR NEW YORK STATE INCOME TAX PURPOSES; AND WHERE ANY
   32  SUCH ASSESSMENT HAS BEEN MADE, OR WHERE A NOTICE OF DEFICIENCY HAS  BEEN
   33  MAILED  TO THE TAXPAYER ON THE BASIS OF ANY SUCH PROPOSED ASSESSMENT, NO
   34  CHANGE OF THE ALLOCATION OF  INCOME  OR  CAPITAL  SHALL  BE  MADE  IN  A
   35  PROCEEDING  ON  THE TAXPAYER'S CLAIM FOR REFUND OF SUCH ASSESSMENT OR ON
   36  THE TAXPAYER'S PETITION FOR REDETERMINATION OF SUCH  DEFICIENCY,  EXCEPT
   37  TO THE EXTENT SUCH ASSESSMENT IS BASED ON AN INCREASE OR DECREASE IN NEW
   38  YORK  STATE  TAXABLE INCOME OR OTHER BASIS OF TAX OR NEW YORK STATE TAX,
   39  OR BASED ON A CHANGE OR CORRECTION OR RENEGOTIATION OF TAX, OR BASED  ON
   40  THE EXECUTION OF A NOTICE OF WAIVER REPORT WHICH IS REQUIRED THEREUNDER,
   41  OR  COMPUTATION  OR  RECOMPUTATION  OF TAX, WHICH IS TREATED IN THE SAME
   42  MANNER AS IF IT WERE AN  OVERPAYMENT  FOR  NEW  YORK  STATE  INCOME  TAX
   43  PURPOSES.
   44    (h)  Report  concerning  waste  treatment  facility. Under the circum-
   45  stances described in subparagraph three of paragraph (g) of  subdivision
   46  eight  of  section  11-602  of  this chapter OR IN SUBPARAGRAPH THREE OF
   47  PARAGRAPH (G) OF SUBDIVISION EIGHT OF SECTION 11-652  OF  THIS  CHAPTER,
   48  the  tax  may  be  assessed  within  three years after the filing of the
   49  report containing the information required by such paragraph.
   50    (i) Report of changed or corrected  sales  and  compensating  use  tax
   51  liability.  In the case of a tax imposed under subchapter two OR THREE-A
   52  of this chapter, if the taxpayer files a report  or  amended  return  or
   53  report  required  thereunder,  in  respect  of a change or correction of
   54  sales and compensating use tax liability, the assessment (if not  deemed
   55  to have been made upon the filing of the report) may be made at any time
   56  within  two  years  after  such  report  or amended return or report was
       S. 4610                            84                            A. 6721
    1  filed. The amount of such assessment of tax shall not exceed the  amount
    2  of  the  increase  in  city  tax  attributable  to  such state change or
    3  correction.  The provisions of this paragraph shall not affect the  time
    4  within  which  or  the  amount  for which an assessment may otherwise be
    5  made.
    6    4. Omission of income on return. The tax may be assessed at  any  time
    7  within  six  years  after  the return was filed if a taxpayer omits from
    8  gross income required to be reported on a return under any of the  named
    9  subchapters  an amount properly includable therein which is in excess of
   10  twenty-five per centum of the amount  of  gross  income  stated  in  the
   11  return.
   12    For the purposes of this subdivision:
   13    (a)  the term "gross income" means gross income for federal income tax
   14  purposes as reportable on a return under subchapter two  OR  THREE-A  of
   15  this  chapter  and  "gross  earnings",  "gross income," "gross operating
   16  income" and "gross direct premiums less return premiums," as those terms
   17  are used in whichever of the named subchapters is applicable;
   18    (b) there shall not be taken into account any amount which is  omitted
   19  in  the return if such amount is disclosed in the return, or in a state-
   20  ment attached to the return, in a manner adequate to apprise the commis-
   21  sioner of finance of the nature and amount of such item.
   22    S 11. Subdivisions 2 and 5 of section  11-675  of  the  administrative
   23  code  of  the  city  of  New York, subdivision 5 as amended by local law
   24  number 57 of the city of New York for the year 2001, are amended to read
   25  as follows:
   26    2. Exception as to estimated tax. This section shall not apply to  any
   27  failure to pay estimated tax under subchapter two [or subchapter], three
   28  OR THREE-A of this chapter.
   29    5.  Tax  reduced  by carry back. If the amount of tax under subchapter
   30  two OR THREE-A for any taxable year is reduced by reason of a  carryback
   31  of  a  net operating loss or a capital loss, such reduction in tax shall
   32  not affect the computation of interest under this section for the period
   33  ending with the filing date for the taxable year in which the net  oper-
   34  ating  loss or capital loss arises. Such filing date shall be determined
   35  without regard to extensions of time to file.
   36    S 12. Subdivision 3 of section 11-676 of the  administrative  code  of
   37  the  city of New York, as amended by chapter 201 of the laws of 2009, is
   38  amended to read as follows:
   39    3. Failure to file declaration or underpayment of  estimated  tax.  If
   40  any taxpayer fails to file a declaration of estimated tax under subchap-
   41  ter  two  [or], three OR THREE-A of this chapter, or fails to pay all or
   42  any part of an amount which is applied as an  installment  against  such
   43  estimated  tax, it shall be deemed to have made an underpayment of esti-
   44  mated tax. There shall be added to the  tax  for  the  taxable  year  an
   45  amount  at  the  underpayment  rate  set  by the commissioner of finance
   46  pursuant to section 11-687 of this subchapter, or, if no rate is set, at
   47  the rate of seven and one-half percent per annum upon the amount of  the
   48  underpayment  for  the  period  of  the  underpayment but not beyond the
   49  fifteenth day of the third month following  the  close  of  the  taxable
   50  year.  The  amount  of  the  underpayment  shall be, with respect to any
   51  installment of estimated tax computed on  the  basis  of  the  preceding
   52  year's  tax,  the  excess  of  the  amount  required to be paid over the
   53  amount, if any, paid on or before  the  last  day  prescribed  for  such
   54  payment  or, with respect to any other installment of estimated tax, the
   55  excess of the amount of the installment which would be  required  to  be
   56  paid  if the estimated tax were equal to ninety percent of the tax shown
       S. 4610                            85                            A. 6721
    1  on the return for the taxable year (or if no return  was  filed,  ninety
    2  percent  of  the  tax  for  such  year)  over the amount, if any, of the
    3  installment paid on or before the last day prescribed for such  payment.
    4  In  any case in which there would be no underpayment if "eighty percent"
    5  were substituted for "ninety percent" each  place  it  appears  in  this
    6  subdivision,  the  addition  to  the  tax shall be equal to seventy-five
    7  percent of the amount otherwise determined.  No  underpayment  shall  be
    8  deemed  to  exist with respect to a declaration or installment otherwise
    9  due on or after the termination of existence of the taxpayer.
   10    S 13. The opening paragraph of subdivision 4 of section 11-676 of  the
   11  administrative  code  of  the  city  of  New  York is amended to read as
   12  follows:
   13    The addition to tax under subdivision three with respect to any under-
   14  payment of any amount which is applied as an installment  against  esti-
   15  mated  tax  under  subchapter two [or], three OR THREE-A of this chapter
   16  shall not be imposed if the total amount of all  payments  of  estimated
   17  tax  made  on  or before the last date prescribed for the payment of any
   18  such amount equals or exceeds the amount which would have been  required
   19  to be paid on or before such date if the estimated tax were whichever of
   20  the following is the least:
   21    S  14.  Subdivision 13 of section 11-676 of the administrative code of
   22  the city of New York, as added by chapter 525 of the laws  of  1988,  is
   23  amended to read as follows:
   24    13. Failure to file report of information relating to certain interest
   25  payments.  In case of failure to file the report of information required
   26  under EITHER subdivision two-a of section  11-605  of  this  chapter  OR
   27  SUBDIVISION  TWO-A OF SECTION 11-655 OF THIS CHAPTER, unless it is shown
   28  that such failure is due to reasonable cause  and  not  due  to  willful
   29  neglect,  there  shall  be  added  to  the tax a penalty of five hundred
   30  dollars.
   31    S 15. Subdivision 2 of section 11-677 of the  administrative  code  of
   32  the city of New York is amended to read as follows:
   33    2.  Credits  against  estimated  tax.  The commissioner of finance may
   34  prescribe regulations providing for the crediting against the  estimated
   35  tax  under subchapter two [or], three OR THREE-A of this chapter for any
   36  taxable year of the amount determined to be an overpayment of tax  under
   37  any  such subchapter for a preceding taxable year. If any overpayment of
   38  tax is so claimed as a credit against estimated tax for  the  succeeding
   39  taxable  year,  such  amount shall be considered as a payment of the tax
   40  under subchapter two [or], three OR THREE-A  of  this  chapter  for  the
   41  succeeding  taxable  year  (whether  or  not  claimed as a credit in the
   42  declaration of estimated tax for such succeeding taxable year),  and  no
   43  claim  for credit or refund of such overpayment shall be allowed for the
   44  taxable year for which the overpayment arises.
   45    S 16. Subdivisions 3, 4, 9 and 11 of section 11-678 of the administra-
   46  tive code of the city of New York, subdivision 3 as amended  by  chapter
   47  241 of the laws of 1989 and subdivision 4 as amended by local law number
   48  57  of  the  city  of New York for the year 2001, are amended to read as
   49  follows:
   50    3. Notice of change or correction of federal or New York state  income
   51  or other basis of tax. If a taxpayer is required by subchapter two [or],
   52  three  OR  THREE-A of this chapter to file a report or amended return in
   53  respect of (a) a decrease or increase in federal or New York state taxa-
   54  ble income, alternative minimum taxable income or other basis of tax  or
   55  federal or New York state tax, (b) a federal or New York state change or
   56  correction  or  renegotiation,  or  computation or recomputation of tax,
       S. 4610                            86                            A. 6721
    1  which is treated in the same manner as if it  were  an  overpayment  for
    2  federal  or  New  York  state  income  tax purposes, claim for credit or
    3  refund of any resulting overpayment of tax shall be filed by the taxpay-
    4  er  within  two  years  from  the time such report or amended return was
    5  required to be filed with the commissioner of finance. If the report  or
    6  amended return required by subchapter two [or], three OR THREE-A of this
    7  chapter  is not filed within the ninety day period therein specified, no
    8  interest shall be payable on any claim for credit or refund of the over-
    9  payment attributable  to  the  federal  or  New  York  state  change  or
   10  correction. The amount of such credit or refund:
   11    (c)  shall,  (I) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
   12  THOUSAND FIFTEEN, be computed without change of the allocation of income
   13  or capital upon which the taxpayer's return (or any  additional  assess-
   14  ment) was based, and, (II) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
   15  ARY FIRST, TWO THOUSAND FIFTEEN, BE COMPUTED WITHOUT CHANGE OF THE ALLO-
   16  CATION  OF  INCOME  OR  CAPITAL UPON WHICH THE TAXPAYER'S RETURN (OR ANY
   17  ADDITIONAL ASSESSMENT) WAS BASED TO THE EXTENT THAT THE CLAIM FOR REFUND
   18  ARISES FROM A DECREASE OR INCREASE IN FEDERAL TAXABLE  INCOME  OR  OTHER
   19  BASIS OF TAX OR FEDERAL TAX, OR FROM A FEDERAL CHANGE, CORRECTION, RENE-
   20  GOTIATION,  COMPUTATION OR RECOMPUTATION OF TAX, WHICH IS TREATED IN THE
   21  SAME MANNER AS  IF  IT  WERE  AN  OVERPAYMENT  FOR  FEDERAL  INCOME  TAX
   22  PURPOSES, AND
   23    (d)  shall  not exceed the amount of the reduction in tax attributable
   24  to such decrease or increase  in  federal  or  New  York  state  taxable
   25  income,  alternative  minimum  taxable  income  or other basis of tax or
   26  federal or New York state tax or to  such  federal  or  New  York  state
   27  change  or  correction or renegotiation, or computation or recomputation
   28  of tax.
   29    This subdivision shall not affect the time within which or the  amount
   30  for  which  a  claim  for  credit or refund may be filed apart from this
   31  subdivision.
   32    4. Overpayment attributable to net operating loss carry back or  capi-
   33  tal loss carry back. A claim for credit or refund of so much of an over-
   34  payment  under subchapter two OR THREE-A of this chapter as is attribut-
   35  able to the application to the taxpayer of a net  operating  loss  carry
   36  back or a capital loss carry back shall be filed within three years from
   37  the time the return was due (including extensions thereof) for the taxa-
   38  ble year of the loss, or within the period prescribed in subdivision two
   39  in  respect  of  such  taxable  year, or within the period prescribed in
   40  subdivision three, where applicable, in respect to the taxable  year  to
   41  which  the net operating loss or capital loss is carried back, whichever
   42  expires the latest. Where such claim for credit or refund is filed after
   43  the expiration of the period prescribed in subdivision one or in  subdi-
   44  vision two where applicable, in respect to the taxable year to which the
   45  net  operating  loss or capital loss is carried back, the amount of such
   46  credit or refund shall be computed without change of the  allocation  of
   47  income  or  capital  upon which the taxpayer's return (or any additional
   48  assessment) was based.
   49    9. Prepaid tax. For purposes of this section,  any  tax  paid  by  the
   50  taxpayer  before  the last day prescribed for its payment (including any
   51  amount paid by the taxpayer as estimated tax for a taxable  year)  shall
   52  be  deemed  to  have  been  paid by it on the fifteenth day of the third
   53  month following the close of the taxable year the income of which is the
   54  basis for tax under subchapter two [or], three OR THREE-A of this  chap-
   55  ter,  or  on  the last day prescribed in part one of subchapter three or
   56  subchapter four for the filing of a final return for such taxable  year,
       S. 4610                            87                            A. 6721
    1  or portion thereof, determined in all cases without regard to any exten-
    2  sion of time granted the taxpayer.
    3    11.  Notice  of change or correction of sales and compensating use tax
    4  liability. (a) If a taxpayer is required by subchapter two OR THREE-A of
    5  this chapter to file a report or amended return in respect of  a  change
    6  or correction of its sales and compensating use tax liability, claim for
    7  credit  or  refund of any resulting overpayment of tax shall be filed by
    8  the taxpayer within two years from  the  time  such  report  or  amended
    9  return  was  required  to be filed with the commissioner of finance. The
   10  amount of such credit or refund shall be computed without change of  the
   11  allocation of income or capital upon which the taxpayer's return (or any
   12  additional assessment) was based, and shall not exceed the amount of the
   13  reduction  in tax attributable to such change or correction of sales and
   14  compensating use tax liability.
   15    (b) This subdivision shall not affect the time  within  which  or  the
   16  amount  for  which  a claim for credit or refund may be filed apart from
   17  this subdivision.
   18    S 17. Subdivisions 4 and 6 of section  11-679  of  the  administrative
   19  code  of  the  city  of  New York, subdivision 4 as amended by local law
   20  number 57 of the city of New York for the year 2001 and subdivision 6 as
   21  amended by chapter 241 of the laws of  1989,  are  amended  to  read  as
   22  follows:
   23    4. Refund of tax caused by carryback. For purposes of this section, if
   24  any  overpayment  of  tax  imposed  by subchapter two OR THREE-A of this
   25  chapter results from a carryback of a net operating loss or a net  capi-
   26  tal  loss,  such overpayment shall be deemed not to have been made prior
   27  to the filing date for the taxable year in which such net operating loss
   28  or net capital loss arises. Such filing date shall be determined without
   29  regard to extensions of time to file. For purposes of subdivision  three
   30  of  this section any overpayment described herein shall be treated as an
   31  overpayment for the loss year and such subdivision shall be applied with
   32  respect to such overpayment by treating the return for the loss year  as
   33  not  filed  before  claim  for such overpayment is filed. The term "loss
   34  year" means the taxable year in which such loss arises.
   35    6. Cross reference. For provision with respect to interest after fail-
   36  ure to file a report of federal or New York state change  or  correction
   37  or  amended  return  under  subchapter  two  [or], three OR THREE-A, see
   38  subdivision three of section 11-678 of this subchapter.
   39    S 18. Paragraph (d) of subdivision 4 of section 11-680 of the adminis-
   40  trative code of the city of New York, as amended by chapter 808  of  the
   41  laws of 1992, is amended to read as follows:
   42    (d)  Restriction  on  further  notices  of deficiency. If the taxpayer
   43  files a petition with the tax appeals tribunal under  this  section,  no
   44  notice  of deficiency under section 11-672 of this subchapter may there-
   45  after be issued by the commissioner of  finance  for  the  same  taxable
   46  year, except in case of fraud or with respect to an increase or decrease
   47  in federal or New York state taxable income, alternative minimum taxable
   48  income  or  other  basis  of  tax  or federal or New York state tax or a
   49  federal or New York state change  or  correction  or  renegotiation,  or
   50  computation or recomputation of tax, which is treated in the same manner
   51  as  if  it  were  a  deficiency for federal or New York state income tax
   52  purposes, required to be reported under subchapter two  [or],  three  OR
   53  THREE-A  of this chapter or with respect to a state change or correction
   54  of sales and compensating use tax  liability  required  to  be  reported
   55  under subchapter two OR THREE-A of this chapter.
       S. 4610                            88                            A. 6721
    1    S 19. Paragraph (c) of subdivision 5 of section 11-680 of the adminis-
    2  trative  code  of the city of New York, as amended by chapter 808 of the
    3  laws of 1992, is amended to read as follows:
    4    (c)  whether the petitioner is liable for any increase in a deficiency
    5  where such increase is asserted initially after a notice  of  deficiency
    6  was mailed and a petition under this section filed, unless such increase
    7  in deficiency is the result of an increase or decrease in federal or New
    8  York  state  taxable income, alternative minimum taxable income or other
    9  basis of tax or federal or New York state tax or a federal or  New  York
   10  state  change or correction or renegotiation, or computation or recompu-
   11  tation of tax, which is treated in the same manner as if it were a defi-
   12  ciency for federal or New York state income tax purposes, required to be
   13  reported under subchapter two [or], three OR THREE-A  of  this  chapter,
   14  and  of which increase, decrease, change or correction or renegotiation,
   15  or computation or recomputation, the  commissioner  of  finance  had  no
   16  notice  at  the time he or she mailed the notice of deficiency or unless
   17  such increase in deficiency is the result of a change or  correction  of
   18  sales  and  compensating use tax liability required to be reported under
   19  subchapter two OR THREE-A of  this  chapter,  and  of  which  change  or
   20  correction  the  commissioner of finance had no notice at the time he or
   21  she mailed the notice of deficiency; and
   22    S 20. Paragraph (a) of subdivision 5 of section 11-687 of the adminis-
   23  trative code of the city of New York, as amended by chapter 201  of  the
   24  laws of 2009, is amended to read as follows:
   25    (a) Authority to set interest rates. The commissioner of finance shall
   26  set the overpayment and underpayment rates of interest to be paid pursu-
   27  ant  to sections 11-606, 11-608, 11-645, 11-647, 11-656, 11-658, 11-675,
   28  11-676, and 11-679 of this chapter, but if no  such  rate  or  rates  of
   29  interest are set, such overpayment rate shall be deemed to be set at six
   30  percent  per  annum and such underpayment rate shall be deemed to be set
   31  at seven and one-half percent per annum. Such overpayment and  underpay-
   32  ment rates shall be the rates prescribed in paragraph (b) of this subdi-
   33  vision  but  the underpayment rate shall not be less than seven and one-
   34  half percent per annum. Any  such  rates  set  by  the  commissioner  of
   35  finance  shall  apply  to taxes, or any portion thereof, which remain or
   36  become due or overpaid on or after the date on which such  rates  become
   37  effective  and  shall  apply  only  with respect to interest computed or
   38  computable for periods or portions of periods occurring  in  the  period
   39  during which such rates are in effect.
   40    S  21.  Subdivision  7 of section 11-688 of the administrative code of
   41  the city of New York, as added by section 22 of part M of chapter 686 of
   42  the laws of 2003, is amended to read as follows:
   43    7. Notwithstanding anything in subdivision one of  this  section,  the
   44  commissioner  of  finance  may  disclose  to  a taxpayer or a taxpayer's
   45  related member, as defined in paragraph  (n)  of  subdivision  eight  of
   46  section  11-602, PARAGRAPH (N) OF SUBDIVISION EIGHT OF SECTION 11-652 or
   47  paragraph one of subdivision (q) of  section  11-641  of  this  chapter,
   48  information  relating  to any royalty paid, incurred or received by such
   49  taxpayer or related member to or from the other, including the treatment
   50  of such payments by the taxpayer or the related member in any report  or
   51  return transmitted to the commissioner of finance under this title.
   52    S 22. Paragraph 4 of subdivision (f) of section 11-704 of the adminis-
   53  trative  code  of the city of New York, as amended by chapter 831 of the
   54  laws of 1992, is amended to read as follows:
   55    (4) No tenant shall be authorized to receive a reduction in base  rent
   56  subject to tax under the provisions of this subdivision, until the prem-
       S. 4610                            89                            A. 6721
    1  ises  with respect to which it is claiming a reduction in base rent meet
    2  the requirements in the definition of eligible premises and until it has
    3  obtained a certification of eligibility from  the  mayor  or  an  agency
    4  designated  by  the mayor, and an annual certification from the mayor or
    5  an agency designated by the mayor as to the number of eligible aggregate
    6  employment shares maintained  by  such  tenant  which  may  qualify  for
    7  obtaining  a  base rent reduction for the tenant's tax year. Any written
    8  documentation submitted to the mayor or such agency or agencies in order
    9  to obtain any such certification shall be deemed  a  written  instrument
   10  for  purposes  of  section 175.00 of the penal law. Application fees for
   11  such certifications shall be determined by the mayor or such  agency  or
   12  agencies. No certification of eligibility shall be issued to an eligible
   13  business  on  or  after  July first, nineteen hundred ninety-nine unless
   14  such business meets the requirements of either subparagraph (a)  or  (b)
   15  below:
   16    (a)  (1)  prior  to  such  date such business has purchased, leased or
   17  entered into a contract to purchase or lease particular  premises  or  a
   18  parcel  on which will be constructed such premises or already owned such
   19  premises or parcel;
   20    (2) prior to such date improvements have been commenced on such  prem-
   21  ises or parcel which improvements will meet the requirements of subdivi-
   22  sion  (e)  of  section  22-621 of this code relating to expenditures for
   23  improvements;
   24    (3) prior to such date such business submits a preliminary application
   25  for a certification of eligibility to such mayor or such agency or agen-
   26  cies with respect to a proposed relocation to such particular  premises;
   27  and
   28    (4) such business relocates to such particular premises not later than
   29  thirty-six  months  or, in a case in which the expenditures made for the
   30  improvements specified in clause two of this subparagraph are in  excess
   31  of  fifty  million  dollars  within  seventy-two months from the date of
   32  submission of such preliminary application; or
   33    (b) (1) not later than June thirtieth, two thousand two, such business
   34  has purchased, leased or entered into a contract to  purchase  or  lease
   35  particular  premises wholly contained in a building in which at least an
   36  aggregate of forty per centum  or  two  hundred  thousand  square  feet,
   37  whichever is less, of the nonresidential floor area of such building has
   38  been  purchased or leased by a business or businesses which meet or will
   39  meet the requirements of subparagraph (a) of this paragraph with respect
   40  to such floor area and which are or will become certified as eligible to
   41  receive a credit under section 22-622 of this code with respect to  such
   42  floor area;
   43    (2)  not  later  than  June thirtieth, two thousand two, such business
   44  submits a preliminary application for a certification of eligibility  to
   45  such  mayor  or such agency or agencies with respect to a proposed relo-
   46  cation to such particular premises; and
   47    (3) not later than June thirtieth, two  thousand  two,  such  business
   48  relocates to such particular premises.
   49    Any  tenant subject to a tax imposed under chapter five, or subchapter
   50  two [or], three OR THREE-A of chapter six, of  this  title  obtaining  a
   51  certification  of  eligibility  pursuant  to  subdivision (b) of section
   52  22-622 of the code shall be deemed to have obtained the certification of
   53  eligibility required by this paragraph.
   54    S 23. Subdivision (a) and the opening paragraph of subdivision (o)  of
   55  section  22-621  of  the  administrative  code  of the city of New York,
   56  subdivision (a) as amended by chapter 149 of the laws of  1999  and  the
       S. 4610                            90                            A. 6721
    1  opening paragraph of subdivision (o) as added by chapter 143 of the laws
    2  of 2004, are amended to read as follows:
    3    (a)  "Eligible  Business."  Any  person subject to a tax imposed under
    4  chapter five, or subchapter two [or], three OR THREE-A of  chapter  six,
    5  or  chapter  eleven,  of  title  eleven  of the code, that: (1) has been
    6  conducting substantial business  operations  at  one  or  more  business
    7  locations  outside  the  eligible  area  for the twenty-four consecutive
    8  months immediately preceding the taxable year during which such eligible
    9  business relocates as defined in subdivision (j) of  this  section;  and
   10  (2)  on or after May twenty-seventh, nineteen hundred eighty-seven relo-
   11  cates as defined in subdivision (j) of this section all or part of  such
   12  business  operations; and (3) either (i) on or after May twenty-seventh,
   13  nineteen hundred eighty-seven first enters into a contract  to  purchase
   14  or  lease  the  premises to which it relocates as defined in subdivision
   15  (j) of this section, or a parcel on which will be constructed such prem-
   16  ises, or (ii) as of May twenty-seventh,  nineteen  hundred  eighty-seven
   17  owns  such parcel or premises and has not prior to such date made appli-
   18  cation for benefits pursuant to part four of subchapter two  of  chapter
   19  two of title eleven of the code.
   20    "Total attributed eligible aggregate employment shares" means, for any
   21  relocation,  the  sum  of  the  number  of eligible aggregate employment
   22  shares apportioned to such relocation pursuant to paragraph one of  this
   23  subdivision,  less  any  excess  shares  determined with respect to such
   24  relocation pursuant to paragraph  two  of  this  subdivision,  plus  any
   25  excess  shares attributed to such relocation pursuant to paragraph three
   26  of this subdivision. Except as provided in paragraph four of this subdi-
   27  vision, any eligible aggregate employment shares that are attributed  to
   28  a  relocation to particular premises pursuant to paragraph three of this
   29  subdivision shall be treated as  eligible  aggregate  employment  shares
   30  that  are  maintained with respect to such premises and shall be subject
   31  to all provisions of this  chapter  and  the  provisions  for  a  credit
   32  against  a  tax imposed under chapter five or subchapter two [or], three
   33  OR THREE-A of chapter six or chapter eleven of title eleven of the  code
   34  as such provisions pertain to such relocation.
   35    S 24. Subdivisions (a) and (d) of section 22-622 of the administrative
   36  code of the city of New York, subdivision (a) as amended and subdivision
   37  (d)  as added by chapter 149 of the laws of 1999, are amended to read as
   38  follows:
   39    (a) An eligible business that relocates as defined in subdivision  (j)
   40  of  section  22-621  of  the  code  shall be allowed to receive a credit
   41  against a tax imposed by chapter five, or subchapter two [or], three  OR
   42  THREE-A  of chapter six, or chapter eleven, of title eleven of the code,
   43  as described in subdivision (i) of section 11-503, subdivision seventeen
   44  of section 11-604, SUBDIVISION  SEVENTEEN  OF  SECTION  11-654,  section
   45  11-643.7 and section 11-1105.2 of the code, and a reduction in base rent
   46  subject  to  tax  as described in subdivision f of section 11-704 of the
   47  code, provided, however, notwithstanding any other provision of  law  to
   48  the  contrary,  no  such credit shall be allowed against the tax imposed
   49  under such chapter eleven for a relocation taking place prior to January
   50  first, nineteen hundred ninety-nine.
   51    (d) An eligible business other than a utility company subject  to  the
   52  supervision  of the department of public service shall not be authorized
   53  to receive a credit against the gross receipts tax imposed under chapter
   54  eleven of title eleven of the code, unless such eligible business elects
   55  to take the credit authorized by this section against the tax imposed by
   56  such chapter on an application filed with respect  to  the  first  relo-
       S. 4610                            91                            A. 6721
    1  cation  of  such  business  that  qualifies  or  will qualify under this
    2  section, with the mayor or the agency designated by such mayor  pursuant
    3  to  subdivision  (b)  of  this  section. The election authorized by this
    4  subdivision  may  not  be  withdrawn  after the issuance of such certif-
    5  ication of eligibility. No  taxpayer  that  has  previously  received  a
    6  certification  of  eligibility  to  receive  such credit against any tax
    7  imposed by chapter five or subchapter two  [or],  three  OR  THREE-A  of
    8  chapter six of title eleven of the code may make the election authorized
    9  by  this  subdivision.  No  taxpayer that makes the election provided in
   10  this subdivision shall be authorized to take such credit against any tax
   11  imposed by chapter five or subchapter two  [or],  three  OR  THREE-A  of
   12  chapter six of title eleven of the code.
   13    S 25. Subdivisions (a) and (l) of section 22-623 of the administrative
   14  code of the city of New York, subdivision (a) as added by chapter 143 of
   15  the laws of 2004 and subdivision (l) as added by section 10 of part E of
   16  chapter 2 of the laws of 2005, are amended to read as follows:
   17    (a)  "Eligible  business"  means  any  person subject to a tax imposed
   18  under chapter five, or subchapter two [or], three OR THREE-A of  chapter
   19  six, or chapter eleven, of title eleven of the code, that:
   20    (1) has been conducting substantial business operations at one or more
   21  business  locations  outside  the  city  of New York for the twenty-four
   22  consecutive months immediately preceding the taxable year  during  which
   23  such  eligible  business relocates as defined in subdivision (j) of this
   24  section but has not maintained employment shares at premises in the city
   25  of New York at any time during the period beginning January  first,  two
   26  thousand two and ending on the date it enters into a lease or a contract
   27  to purchase the premises that will qualify as eligible premises pursuant
   28  to this chapter; and
   29    (2) on or after July first, two thousand three relocates as defined in
   30  subdivision (j) of this section all or part of such business operations.
   31    (l)  "Special  eligible  business"  means  any person subject to a tax
   32  imposed under chapter five, or subchapter two [or], three OR THREE-A  of
   33  chapter  six,  or chapter eleven, of title eleven of the code, that: (1)
   34  has been conducting substantial business operations at one or more busi-
   35  ness locations outside the city of New York for the twenty-four  consec-
   36  utive  months  immediately  preceding the taxable year during which such
   37  eligible business relocates as defined in  subdivision  (m);  (2)  main-
   38  tained  employment  shares  at  premises in Manhattan in the city of New
   39  York at some time during the period beginning January first,  two  thou-
   40  sand two, and ending on the date it enters into a lease or a contract to
   41  purchase the premises that will qualify as eligible premises pursuant to
   42  this  section,  and  (3)  on or after June thirtieth, two thousand five,
   43  relocates as defined in subdivision (m) of this section all or  part  of
   44  such business operations.
   45    S 26. Subdivisions (a) and (d) of section 22-624 of the administrative
   46  code  of  the city of New York, subdivision (a) as amended by section 11
   47  of part E of chapter 2 of the  laws  of  2005  and  subdivision  (d)  as
   48  amended  by  section  12 of part E of chapter 2 of the laws of 2005, are
   49  amended to read as follows:
   50    (a) An eligible business that relocates as defined in subdivision  (j)
   51  of  section  22-623  of this chapter or a special eligible business that
   52  relocates as defined in subdivision (m) of section 22-623 of this  chap-
   53  ter  shall be allowed to receive a credit against a tax imposed by chap-
   54  ter five, or subchapter two [or], three OR THREE-A of  chapter  six,  or
   55  chapter eleven, of title eleven of the code, as described in subdivision
   56  (l)  of section 11-503, subdivision nineteen of section 11-604, SUBDIVI-
       S. 4610                            92                            A. 6721
    1  SION NINETEEN OF SECTION 11-654, section 11-643.9 or  section  11-1105.3
    2  of the code.
    3    (d)  An  eligible  business  or special eligible business other than a
    4  utility company subject to the supervision of the department  of  public
    5  service  shall  not  be authorized to receive a credit against the gross
    6  receipts tax imposed under chapter eleven of title eleven  of  the  code
    7  unless  such  eligible  business  or special eligible business elects to
    8  take the credit authorized by this section against the  tax  imposed  by
    9  such  chapter  on  its  application  filed  with the mayor or the agency
   10  designated by such mayor pursuant to subdivision (b)  of  this  section.
   11  The  election  authorized by this subdivision may not be withdrawn after
   12  the issuance of such certification of eligibility. No taxpayer that  has
   13  previously received a certification of eligibility to receive such cred-
   14  it against any tax imposed by chapter five or subchapter two [or], three
   15  OR  THREE-A  of  chapter  six  of  title eleven of the code may make the
   16  election authorized by this subdivision.  No  taxpayer  that  makes  the
   17  election  provided  in this subdivision shall be authorized to take such
   18  credit against any tax imposed by chapter five or subchapter  two  [or],
   19  three OR THREE-A of chapter six of title eleven of the code.
   20    S  27. No addition to tax under subdivision 3 of section 11-676 of the
   21  administrative code of the city  of  New  York  shall  be  imposed  with
   22  respect  to  declarations  or  payments  of estimated tax required under
   23  sections 11-657 and 11-658 of the administrative code of the city of New
   24  York for declarations otherwise required to be filed and payments other-
   25  wise required to be made, by reason of section one of this act, prior to
   26  or on June 15, 2015, on the  condition  that  the  taxpayer  files  such
   27  declarations  and  makes  such  payments  no  later  than the first date
   28  following June 15, 2015 on which an  installment  of  estimated  tax  is
   29  required  to  be  paid,  together  with  all other such declarations and
   30  payments then due.
   31    S 28. Severability clause. If any clause, sentence, paragraph,  subdi-
   32  vision,  section  or  part of this act shall be adjudged by any court of
   33  competent jurisdiction to be invalid, such judgment  shall  not  affect,
   34  impair,  or  invalidate  the remainder thereof, but shall be confined in
   35  its operation to the clause, sentence, paragraph,  subdivision,  section
   36  or part thereof directly involved in the controversy in which such judg-
   37  ment shall have been rendered. It is hereby declared to be the intent of
   38  the  legislature  that  this  act  would  have been enacted even if such
   39  invalid provisions had not been included herein.
   40    S 29. This act shall take effect immediately and shall apply to  taxa-
   41  ble years beginning on or after January 1, 2015.
   42                                   PART E
   43    Section  1. Chapter 567 of the laws of 2010 relating to establishing a
   44  special commission on compensation, and providing for their  powers  and
   45  duties;  and  to  provide periodic salary increases to state officers is
   46  REPEALED.
   47    S 2. 1. On the first of June of every fourth year, commencing June  1,
   48  2015,  there  shall be established a commission on legislative, judicial
   49  and executive compensation to examine, evaluate and make recommendations
   50  with respect to adequate levels of compensation and non-salary  benefits
   51  for  members  of  the legislature, judges and justices of the state-paid
   52  courts of the unified court system,  statewide  elected  officials,  and
   53  those state officers referred to in section 169 of the executive law.
       S. 4610                            93                            A. 6721
    1    2.  (a) In accordance with the provisions of this section, the commis-
    2  sion shall examine: (1) the prevailing adequacy of pay levels and  other
    3  non-salary  benefits  received  by members of the legislature, statewide
    4  elected officials, and those state officers referred to in  section  169
    5  of the executive law; and
    6    (2)  the  prevailing  adequacy  of  pay levels and non-salary benefits
    7  received by the judges and justices of  the  state-paid  courts  of  the
    8  unified  court  system and housing judges of the civil court of the city
    9  of New York and determine whether any of such pay levels warrant adjust-
   10  ment; and
   11    (b) The commission shall determine whether: (1) for any  of  the  four
   12  years commencing on the first of April of such years, following the year
   13  in  which  the  commission  is  established, the annual salaries for the
   14  judges and justices of the state-paid courts of the unified court system
   15  and housing judges of the civil court of the city of New York warrant an
   16  increase; and
   17    (2) on the first of January after the  November  general  election  at
   18  which members of the state legislature are elected following the year in
   19  which the commission is established, and on the first of January follow-
   20  ing  the  next such election, the like annual salaries and allowances of
   21  members of the legislature, and salaries of statewide elected  officials
   22  and  state  officers  referred  to  in  section 169 of the executive law
   23  warrant an increase.
   24    3. In discharging its responsibilities under subdivision two  of  this
   25  section,  the commission shall take into account all appropriate factors
   26  including, but not limited to: the overall economic  climate;  rates  of
   27  inflation; changes in public-sector spending; the levels of compensation
   28  and  non-salary  benefits  received  by  executive  branch officials and
   29  legislators of other states and of the federal government; the levels of
   30  compensation  and  non-salary  benefits  received  by  professionals  in
   31  government,  academia  and  private  and  nonprofit  enterprise; and the
   32  state's ability to fund increases in compensation and  non-salary  bene-
   33  fits.
   34    S  3. 1. The commission shall consist of seven members to be appointed
   35  as follows: three shall be appointed  by  the  governor;  one  shall  be
   36  appointed  by  the  temporary  president  of  the  senate;  one shall be
   37  appointed by the speaker of the assembly; and two shall be appointed  by
   38  the  chief  judge  of the state, one of whom shall serve as chair of the
   39  commission.  With regard to any matters regarding legislative or  execu-
   40  tive  compensation,  the chair shall preside but not vote.  Vacancies in
   41  the commission shall be filled in the same manner as  original  appoint-
   42  ments.  To  the extent practicable, members of the commission shall have
   43  experience in one or more of the following: determination  of  executive
   44  compensation, human resource administration or financial management.
   45    2.  The  commission  shall only meet within the state, may hold public
   46  hearings, at least one of which shall be open for the public to  provide
   47  comments and shall have all the powers of a legislative committee pursu-
   48  ant  to the legislative law. It shall be governed by articles 6, 6-A and
   49  7 of the public officers law.
   50    3. The members of the commission shall  receive  no  compensation  for
   51  their  services but shall be allowed their actual and necessary expenses
   52  incurred in the performance of their duties hereunder.
   53    4. No member of the commission shall be disqualified from holding  any
   54  other  public office or employment, nor shall he or she forfeit any such
   55  office or employment by reason of his or  her  appointment  pursuant  to
       S. 4610                            94                            A. 6721
    1  this  section, notwithstanding the provisions of any general, special or
    2  local law, regulation, ordinance or city charter.
    3    5. To the maximum extent feasible, the commission shall be entitled to
    4  request  and receive and shall utilize and be provided with such facili-
    5  ties, resources and data of  any  court,  department,  division,  board,
    6  bureau, commission, agency or public authority of the state or any poli-
    7  tical  subdivision  thereof  as  it  may reasonably request to carry out
    8  properly its powers and duties pursuant to this section.
    9    6. The commission may request, and shall receive,  reasonable  assist-
   10  ance from state agency personnel as necessary for the performance of its
   11  function.
   12    7.    The commission shall make a report to the governor, the legisla-
   13  ture and the chief judge of the  state  of  its  findings,  conclusions,
   14  determinations  and  recommendations, if any, not later than the thirty-
   15  first of December of the year in which the commission is established for
   16  judicial compensation and the fifteenth of November the  following  year
   17  for  legislative and executive compensation.  Any findings, conclusions,
   18  determinations and recommendations in the report must be  adopted  by  a
   19  majority  vote  of  the  commission  and findings, conclusions, determi-
   20  nations and recommendations with respect to  executive  and  legislative
   21  compensation shall also be supported by at least one member appointed by
   22  each  appointing  authority.    Each  recommendation made to implement a
   23  determination pursuant to section two of this act shall have  the  force
   24  of  law, and shall supersede, where appropriate, inconsistent provisions
   25  of article 7-B of the judiciary law, section 169 of the  executive  law,
   26  and  sections 5 and 5-a of the legislative law, unless modified or abro-
   27  gated by statute prior to April first of  the  year  as  to  which  such
   28  determination  applies to judicial compensation and January first of the
   29  year as to which such determination applies to legislative and executive
   30  compensation.
   31    8. Upon the making of its report as provided in subdivision  seven  of
   32  this section, each commission established pursuant to this section shall
   33  be deemed dissolved.
   34    S  4.  Date  of  entitlement  to  salary increase. Notwithstanding the
   35  provisions of this act or of any other law, each increase in  salary  or
   36  compensation  of  any  officer or employee provided by this act shall be
   37  added to the salary or compensation of such officer or employee  at  the
   38  beginning  of  that  payroll period the first day of which is nearest to
   39  the effective date of such increase as provided in this act, or  at  the
   40  beginning  of the earlier of two payroll periods the first days of which
   41  are nearest but equally near to the effective date of such  increase  as
   42  provided  in  this  act;  provided,  however, the payment of such salary
   43  increase pursuant to this section on a date prior thereto instead of  on
   44  such  effective  date, shall not operate to confer any additional salary
   45  rights or benefits on such officer or employee.  The annual salaries  as
   46  prescribed  pursuant  to  this  act  whenever  adjusted  pursuant to the
   47  provisions of this act, shall be rounded up to the nearest  multiple  of
   48  one hundred dollars.
   49    S  5.  This  act  shall take effect immediately and shall be deemed to
   50  have been in full force and effect on and after April 1, 2015.
   51                                   PART F
   52    Section 1. This act shall be known and may be cited  as  the  "Infras-
   53  tructure investment act".
   54    S 2. For the purposes of this act:
       S. 4610                            95                            A. 6721
    1    (a)  "authorized  state  entity" shall mean the New York state thruway
    2  authority, the department of transportation, the office of parks, recre-
    3  ation and historic preservation, the department of environmental conser-
    4  vation and the New York state bridge authority.
    5    (b)  "best  value"  shall  mean  the  basis for awarding contracts for
    6  services to the offerer that  optimize  quality,  cost  and  efficiency,
    7  price  and  performance  criteria, which may include, but is not limited
    8  to:
    9    1. The quality of the contractor's performance on previous projects;
   10    2.  The  timeliness  of  the  contractor's  performance  on   previous
   11  projects;
   12    3.  The  level of customer satisfaction with the contractor's perform-
   13  ance on previous projects;
   14    4. The contractor's record of performing previous projects  on  budget
   15  and ability to minimize cost overruns;
   16    5. The contractor's ability to limit change orders;
   17    6. The contractor's ability to prepare appropriate project plans;
   18    7. The contractor's technical capacities;
   19    8. The individual qualifications of the contractor's key personnel;
   20    9.  The  contractor's  ability  to assess and manage risk and minimize
   21  risk impact; and
   22    10. The contractor's past record of compliance with  article  15-A  of
   23  the executive law.
   24    Such  basis  shall reflect, wherever possible, objective and quantifi-
   25  able analysis.
   26    (c) "capital project" shall have the same  meaning  as  such  term  is
   27  defined by subdivision 2-a of section 2 of the state finance law.
   28    (d)  "cost  plus" shall mean compensating a contractor for the cost to
   29  complete a contract by reimbursing actual costs for labor, equipment and
   30  materials plus an additional amount for overhead and profit.
   31    (e) "design-build contract" shall mean a contract for the  design  and
   32  construction  of  a capital project with a single entity, which may be a
   33  team comprised of separate entities.
   34    (f) "procurement record" means documentation of the decisions made and
   35  the approach taken in the procurement process.
   36    S 3. Notwithstanding the provisions of section 38 of the highway  law,
   37  section  136-a  of  the  state  finance  law,  section 359 of the public
   38  authorities law, section 7210 of the education law, and  the  provisions
   39  of  any  other  law to the contrary, and in conformity with the require-
   40  ments of this act, an authorized state entity may utilize  the  alterna-
   41  tive delivery method referred to as design-build contracts, in consulta-
   42  tion  with relevant local labor organizations and construction industry,
   43  for capital projects related to  the  state's  physical  infrastructure,
   44  including,  but  not  limited  to,  the state's highways, bridges, dams,
   45  flood control projects, canals, and parks, including,  but  not  limited
   46  to,  to  repair damage caused by natural disaster, to correct health and
   47  safety defects, to comply with federal and state  laws,  standards,  and
   48  regulations,  to  extend the useful life of or replace the state's high-
   49  ways, bridges, dams, flood control projects, canals,  and  parks  or  to
   50  improve  or  add  to  the state's highways, bridges, dams, flood control
   51  projects, canals, and parks; provided that for the contracts executed by
   52  the department of transportation, the office of  parks,  recreation  and
   53  historic  preservation, or the department of environmental conservation,
   54  the total cost of each such project shall not be less than  one  million
   55  two hundred thousand dollars ($1,200,000).
       S. 4610                            96                            A. 6721
    1    S  4. An entity selected by an authorized state entity to enter into a
    2  design-build contract shall be selected through a  two-step  method,  as
    3  follows:
    4    (a)  Step one. Generation of a list of entities that have demonstrated
    5  the general capability to perform the design-build contract.  Such  list
    6  shall  consist  of  a  specified number of entities, as determined by an
    7  authorized state entity, and shall be generated based upon  the  author-
    8  ized state entity's review of responses to a publicly advertised request
    9  for qualifications. The authorized state entity's request for qualifica-
   10  tions  shall  include  a general description of the project, the maximum
   11  number of entities to be included on the list, and the selection  crite-
   12  ria  to  be  used  in generating the list. Such selection criteria shall
   13  include the qualifications and experience of the design and construction
   14  team, organization, demonstrated responsibility, ability of the team  or
   15  of  a  member  or members of the team to comply with applicable require-
   16  ments, including the provisions of articles 145,  147  and  148  of  the
   17  education  law,  past  record of compliance with the labor law, and such
   18  other qualifications the authorized state entity deems appropriate which
   19  may include but are not  limited  to  project  understanding,  financial
   20  capability  and  record of past performance. The authorized state entity
   21  shall evaluate and rate all entities responding to the request for qual-
   22  ifications.  Based upon such ratings, the authorized state entity  shall
   23  list  the entities that shall receive a request for proposals in accord-
   24  ance with subdivision (b) of this section.   To  the  extent  consistent
   25  with applicable federal law, the authorized state entity shall consider,
   26  when  awarding  any contract pursuant to this section, the participation
   27  of: (i) firms certified pursuant to article 15-A of the executive law as
   28  minority or women-owned businesses and the ability of  other  businesses
   29  under  consideration to work with minority and women-owned businesses so
   30  as to promote and assist participation  by  such  businesses;  and  (ii)
   31  small  business  concerns  identified  pursuant  to  subdivision  (b) of
   32  section 139-g of the state finance law.
   33    (b) Step two. Selection of the proposal which is the best value to the
   34  state. The authorized state entity shall issue a request  for  proposals
   35  to  the entities listed pursuant to subdivision (a) of this section.  If
   36  such an entity consists of a team of  separate  entities,  the  entities
   37  that comprise such a team must remain unchanged from the entity as list-
   38  ed pursuant to subdivision (a) of this section unless otherwise approved
   39  by  the  authorized  state  entity.  The request for proposals shall set
   40  forth the project's scope of work, and other requirements, as determined
   41  by the authorized state entity.  The request for proposals shall specify
   42  the criteria to be used to  evaluate  the  responses  and  the  relative
   43  weight  of  each  such  criteria.    Such  criteria  shall  include  the
   44  proposal's cost, the quality of the proposal's solution, the  qualifica-
   45  tions  and  experience  of  the  design-build  entity, and other factors
   46  deemed pertinent by the authorized state entity, which may include,  but
   47  shall  not be limited to, the proposal's project implementation, ability
   48  to complete the work in a timely and  satisfactory  manner,  maintenance
   49  costs  of  the  completed  project, maintenance of traffic approach, and
   50  community impact. Any contract awarded pursuant to  this  act  shall  be
   51  awarded  to  a  responsive  and  responsible  entity  that  submits  the
   52  proposal, which, in consideration of these and other specified  criteria
   53  deemed  pertinent to the project, offers the best value to the state, as
   54  determined by the authorized  state  entity.  Nothing  herein  shall  be
   55  construed  to  prohibit  the  authorized  entity  from negotiating final
   56  contract terms and conditions including cost.
       S. 4610                            97                            A. 6721
    1    S 5. Any contract entered into pursuant to this act  shall  include  a
    2  clause  requiring  that  any professional services regulated by articles
    3  145, 147 and 148 of the education law shall be performed and stamped and
    4  sealed, where appropriate, by a professional licensed in accordance with
    5  such articles.
    6    S  6.  Construction for each capital project undertaken by the author-
    7  ized state entity pursuant to this act shall be deemed a  "public  work"
    8  to  be  performed  in accordance with the provisions of article 8 of the
    9  labor law, as well as subject to sections 200, 240, 241 and 242  of  the
   10  labor  law  and  enforcement  of prevailing wage requirements by the New
   11  York state department of labor.
   12    S 7. If otherwise  applicable,  capital  projects  undertaken  by  the
   13  authorized state entity pursuant to this act shall be subject to section
   14  135 of the state finance law and section 222 of the labor law.
   15    S  8. Each contract entered into by the authorized state entity pursu-
   16  ant to this section shall comply with the objectives and goals of minor-
   17  ity and women-owned business enterprises pursuant to article 15-A of the
   18  executive law or, for projects receiving federal aid, shall comply  with
   19  applicable federal requirements for disadvantaged business enterprises.
   20    S 9. Capital projects undertaken by the authorized state entity pursu-
   21  ant to this act shall be subject to the requirements of article 8 of the
   22  environmental  conservation law, and, where applicable, the requirements
   23  of the national environmental policy act.
   24    S 10.  If otherwise applicable, capital  projects  undertaken  by  the
   25  authorized  state  entity  pursuant  to  this  act  shall be governed by
   26  sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph
   27  g of subdivision 9 of section 163 of the state finance law.
   28    S 11.  The submission of a proposal or responses or the execution of a
   29  design-build contract pursuant to this act shall not be construed to  be
   30  a violation of section 6512 of the education law.
   31    S  12.  Nothing  contained  in this act shall limit the right or obli-
   32  gation of the authorized state entity to comply with the  provisions  of
   33  any  existing  contract, including any existing contract with or for the
   34  benefit of the holders of the obligations of the authorized state  enti-
   35  ty, or to award contracts as otherwise provided by law.
   36    S  13. Alternative construction awarding processes.  (a) Notwithstand-
   37  ing the provisions of any other law  to  the  contrary,  the  authorized
   38  state entity may award a construction contract:
   39    1. To the contractor offering the best value; or
   40    2.  Utilizing  a cost-plus not to exceed guaranteed maximum price form
   41  of contract in which the authorized state entity shall  be  entitled  to
   42  monitor  and  audit  all project costs. In establishing the schedule and
   43  process for determining a guaranteed maximum price, the contract between
   44  the authorized state entity and the contractor shall:
   45    (i) describe the scope of the work and the  cost  of  performing  such
   46  work;
   47    (ii) include a detailed line item cost breakdown;
   48    (iii)  include a list of all drawings, specifications and other infor-
   49  mation on which the guaranteed maximum price is based;
   50    (iv) include the dates for substantial and final completion  on  which
   51  the guaranteed maximum price is based; and
   52    (v) include a schedule of unit prices; or
   53    3.  Utilizing  a  lump  sum contract in which the contractor agrees to
   54  accept a set dollar amount for a contract which comprises a  single  bid
   55  without  providing a cost breakdown for all costs such as for equipment,
       S. 4610                            98                            A. 6721
    1  labor, materials, as well as such contractor's profit for completing all
    2  items of work comprising the project.
    3    (b)  Capital  projects  undertaken  by  an authorized state entity may
    4  include an incentive clause in  the  contract  for  various  performance
    5  objectives, but the incentive clause shall not include an incentive that
    6  exceeds the quantifiable value of the benefit received by the state. The
    7  authorized  state  entity  shall  establish such performance and payment
    8  bonds as it deems necessary.
    9    S  14.  Prequalified  contractors.  (a)  Notwithstanding   any   other
   10  provision  of  law,  the  authorized state entity may maintain a list of
   11  prequalified contractors who are eligible to submit a proposal  pursuant
   12  to  this  act  and entry into such list shall be continuously available.
   13  Prospective contractors may be prequalified as  contractors  to  provide
   14  particular  types  of  construction, in accordance with general criteria
   15  established by the authorized state entity which may include, but  shall
   16  not  be  limited to, the experience, past performance, ability to under-
   17  take the type and complexity of work, financial capability, responsibil-
   18  ity, compliance with equal employment opportunity requirements and anti-
   19  discrimination laws, and reliability. Such prequalification  may  be  by
   20  categories designed by size and other factors.
   21    (b) A contractor who is denied prequalification or whose prequalifica-
   22  tion  is  revoked or suspended by the authorized state entity may appeal
   23  such decision to the authorized  state  entity.  If  such  a  suspension
   24  extends  for  more than three months, it shall be deemed a revocation of
   25  the prequalification. The authorized state entity may proceed  with  the
   26  contract award during any appeal.
   27    S  15.  Nothing  in  this act shall affect existing powers of New York
   28  state public entities to use alternative project delivery methods.
   29    S 16. A report shall be submitted on or no later than June 30, 2016 to
   30  the governor, the temporary president of the senate and the  speaker  of
   31  the  assembly  by  the  New  York  state  urban  development corporation
   32  containing information on each authorized state entity that has  entered
   33  into  a design-build contract pursuant to this act, which shall include,
   34  but not be limited to, a description of each project, procurement infor-
   35  mation including the short list of qualified bidders, the total cost  of
   36  each  project,  the estimated cost and schedule savings of each project,
   37  an explanation of how the savings were determined, and whether a project
   38  labor agreement was used, and if applicable, the justification for using
   39  a project labor agreement.
   40    S 17. This act shall take effect immediately and shall expire  and  be
   41  deemed  repealed  2  years after such date, provided that, projects with
   42  requests for qualifications issued prior to such repeal shall be permit-
   43  ted to continue under this act notwithstanding such repeal.
   44                                   PART G
   45    Section 1. This act may be known and be cited as the "New  York  State
   46  water infrastructure improvement act of 2015".
   47    S 2. For purposes of this act:
   48    1. "water quality infrastructure project" shall mean "sewage treatment
   49  works"  as  defined in section 17-1903 of the environmental conservation
   50  law or "eligible project" as defined in paragraphs (a), (b), (c) and (e)
   51  of subdivision 4 of section 1160 of the public health law.
   52    2. "construction" shall mean:
   53    (a) for sewage treatment works, the same as defined in section 17-1903
   54  of the environmental conservation law; and
   55    (b) for eligible projects, the same meaning as defined in section 1160
   56  of the public health law.
       S. 4610                            99                            A. 6721
    1    3. "municipality" shall mean any county, city, town, village, district
    2  corporation, county or town improvement district, school district, Indi-
    3  an nation or tribe recognized by the state or the United States  with  a
    4  reservation  wholly  or  partly within the boundaries of New York state,
    5  any  public benefit corporation or public authority established pursuant
    6  to the laws of New York or  any  agency  of  New  York  state  which  is
    7  empowered  to  construct  and  operate  a  water  quality infrastructure
    8  project, or any two or more of the foregoing which are acting jointly in
    9  connection with a water quality infrastructure project.
   10    S 3. 1. The environmental facilities corporation shall  undertake  and
   11  provide state financial assistance payments, from funds appropriated for
   12  such  purpose, to municipalities in support of water quality infrastruc-
   13  ture projects provided, however, in any such year that funds are  appro-
   14  priated  for  such purpose, no municipality shall receive more than five
   15  million dollars of appropriated funds. Such state  financial  assistance
   16  payments  shall be awarded only to water quality infrastructure projects
   17  for:
   18    (a) replacement or repair of infrastructure; or
   19    (b) compliance with environmental and public  health  laws  and  regu-
   20  lations related to water quality.
   21    2. Any state financial assistance payment awarded pursuant to this act
   22  shall not exceed sixty percent of the project cost.
   23    3.  A  municipality  may  make an application for such state financial
   24  assistance payment, in a manner, form and timeframe and containing  such
   25  information  as  the  environmental  facilities  corporation may require
   26  provided however, such requirements shall not include a requirement  for
   27  prior listing on the intended use plan.
   28    4. A municipality shall not be required to accept environmental facil-
   29  ities  corporation  loan  financing in order to obtain a state financial
   30  assistance payment pursuant to this act  if  it  can  provide  proof  of
   31  having  obtained  similarly  low  cost  financing  or other funding from
   32  another source.
   33    5. In awarding such state financial assistance payments, the  environ-
   34  mental  facilities  corporation  shall  consider  and give preference to
   35  municipalities that meet the hardship criteria established by the  envi-
   36  ronmental  facilities  corporation  pursuant  to  section  1285-m of the
   37  public authorities law and projects that result in  the  greatest  water
   38  quality  improvement  or  greatest  reduction  in serious risk to public
   39  health.  For the purposes of this act, the hardship criteria of  section
   40  1285-m  of  the public authorities law shall also apply to sewage treat-
   41  ment works defined in section 17-1903 of the environmental  conservation
   42  law.
   43    S 4. This act shall take effect April 1, 2015.
   44                                   PART H
   45    Section  1.  The  state finance law is amended by adding a new section
   46  93-b to read as follows:
   47    S 93-B. DEDICATED INFRASTRUCTURE INVESTMENT FUND. 1. DEDICATED INFRAS-
   48  TRUCTURE INVESTMENT FUND. (A) THERE IS HEREBY ESTABLISHED IN  THE  JOINT
   49  CUSTODY  OF  THE  STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND
   50  FINANCE A SPECIAL FUND TO BE  KNOWN  AS  THE  "DEDICATED  INFRASTRUCTURE
   51  INVESTMENT FUND".
   52    (B)  ACCOUNT.  THE  DEDICATED  INFRASTRUCTURE  INVESTMENT  FUND  SHALL
   53  CONSIST OF ONE ACCOUNT, THE "INFRASTRUCTURE INVESTMENT ACCOUNT".  MONEYS
       S. 4610                            100                           A. 6721
    1  IN THIS ACCOUNT SHALL BE KEPT SEPARATE AND NOT COMMINGLED WITH ANY OTHER
    2  MONEYS IN THE CUSTODY OF THE COMPTROLLER.
    3    (C) SOURCES OF FUNDS. THE SOURCES OF FUNDS SHALL CONSIST OF ALL MONEYS
    4  COLLECTED  THEREFOR,  OR  MONEYS  CREDITED,  APPROPRIATED OR TRANSFERRED
    5  THERETO FROM ANY OTHER FUND OR SOURCE  PURSUANT  TO  LAW  OR  ANY  OTHER
    6  MONEYS  MADE  AVAILABLE  FOR  THE  PURPOSES  OF  THE  FUND. ANY INTEREST
    7  RECEIVED BY THE COMPTROLLER ON MONEYS ON DEPOSIT SHALL BE  RETAINED  AND
    8  BECOME PART OF THE FUND, UNLESS OTHERWISE DIRECTED BY LAW.
    9    2.  USES  OF FUNDS. FOLLOWING APPROPRIATION BY THE LEGISLATURE, MONEYS
   10  IN THE INFRASTRUCTURE INVESTMENT ACCOUNT SHALL BE AVAILABLE  TO  FINANCE
   11  PROJECTS,  WORKS,  ACTIVITIES OR PURPOSES NECESSARY TO SUPPORT STATEWIDE
   12  INVESTMENTS AS APPROPRIATED BY THE  LEGISLATURE.  NOTHING  CONTAINED  IN
   13  THIS SECTION SHALL BE CONSTRUED TO LIMIT IN ANY WAY THE PROJECTS, WORKS,
   14  ACTIVITIES OR PURPOSES THAT CAN BE FINANCED FROM THIS ACCOUNT, INCLUDING
   15  BUT  NOT LIMITED TO LOANS OF MONEY TO PUBLIC CORPORATIONS OR AUTHORITIES
   16  UNDER TERMS APPROVED BY THE DIRECTOR OF THE BUDGET.
   17    3. TRANSFERS. NOTWITHSTANDING ANY  OTHER  PROVISIONS  OF  LAW  TO  THE
   18  CONTRARY, FOR THE STATE FISCAL YEAR COMMENCING ON APRIL FIRST, TWO THOU-
   19  SAND  FIFTEEN,  THE  COMPTROLLER IS HEREBY AUTHORIZED TO TRANSFER MONIES
   20  FROM THE DEDICATED INFRASTRUCTURE INVESTMENT FUND TO THE  GENERAL  FUND,
   21  AND  FROM  THE  GENERAL  FUND TO THE DEDICATED INFRASTRUCTURE INVESTMENT
   22  FUND, IN AN AMOUNT DETERMINED BY THE  DIRECTOR  OF  THE  BUDGET  TO  THE
   23  EXTENT  MONEYS  ARE  AVAILABLE  IN THE FUND; PROVIDED, HOWEVER, THAT THE
   24  COMPTROLLER IS ONLY AUTHORIZED TO TRANSFER  MONIES  FROM  THE  DEDICATED
   25  INFRASTRUCTURE  INVESTMENT  FUND  TO THE GENERAL FUND IN THE EVENT OF AN
   26  ECONOMIC DOWNTURN AS DESCRIBED IN PARAGRAPH  (A)  OF  THIS  SUBDIVISION;
   27  AND/OR  TO FULFILL DISALLOWANCES AND/OR SETTLEMENTS RELATED TO OVER-PAY-
   28  MENTS OF FEDERAL MEDICARE AND MEDICAID REVENUES IN EXCESS OF ONE HUNDRED
   29  MILLION DOLLARS FROM ANTICIPATED LEVELS, AS DETERMINED BY  THE  DIRECTOR
   30  OF THE BUDGET AND DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION.
   31    (A)  ECONOMIC  DOWNTURN.  NOTWITHSTANDING ANY LAW TO THE CONTRARY, FOR
   32  THE PURPOSE OF THIS SECTION, THE COMMISSIONER OF LABOR  SHALL  CALCULATE
   33  AND  PUBLISH,  ON OR BEFORE THE FIFTEENTH DAY OF EACH MONTH, A COMPOSITE
   34  INDEX OF BUSINESS CYCLE INDICATORS. SUCH INDEX SHALL BE CALCULATED USING
   35  MONTHLY DATA ON NEW YORK STATE  EMPLOYMENT,  TOTAL  MANUFACTURING  HOURS
   36  WORKED,  AND  UNEMPLOYMENT  PREPARED  BY  THE DEPARTMENT OF LABOR OR ITS
   37  SUCCESSOR AGENCY, AND TOTAL SALES TAX  COLLECTED  NET  OF  LAW  CHANGES,
   38  PREPARED  BY  THE  DEPARTMENT  OF  TAXATION AND FINANCE OR ITS SUCCESSOR
   39  AGENCY. SUCH INDEX SHALL BE CONSTRUCTED IN ACCORDANCE  WITH  THE  PROCE-
   40  DURES  FOR  CALCULATING COMPOSITE INDEXES ISSUED BY THE CONFERENCE BOARD
   41  OR ITS SUCCESSOR ORGANIZATION, AND ADJUSTED FOR SEASONAL  VARIATIONS  IN
   42  ACCORDANCE WITH THE PROCEDURES ISSUED BY THE CENSUS BUREAU OF THE UNITED
   43  STATES  DEPARTMENT OF COMMERCE OR ITS SUCCESSOR AGENCY. IF THE COMPOSITE
   44  INDEX DECLINES FOR FIVE CONSECUTIVE MONTHS, THE  COMMISSIONER  OF  LABOR
   45  SHALL  NOTIFY  THE  GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY
   46  PRESIDENT OF THE SENATE, AND THE MINORITY LEADERS OF  THE  ASSEMBLY  AND
   47  THE  SENATE.  UPON  SUCH  NOTIFICATION,  THE  DIRECTOR OF THE BUDGET MAY
   48  AUTHORIZE AND DIRECT THE COMPTROLLER  TO  TRANSFER  FROM  THE  DEDICATED
   49  INFRASTRUCTURE  INVESTMENT  FUND TO THE GENERAL FUND SUCH AMOUNTS AS THE
   50  DIRECTOR OF THE BUDGET DEEMS NECESSARY TO MEET THE REQUIREMENTS  OF  THE
   51  STATE  FINANCIAL  PLAN.  THE  AUTHORITY  TO  TRANSFER  FUNDS  UNDER  THE
   52  PROVISIONS OF THIS PARAGRAPH SHALL LAPSE WHEN THE COMPOSITE INDEX  SHALL
   53  HAVE  INCREASED  FOR  FIVE  CONSECUTIVE MONTHS OR TWELVE MONTHS FROM THE
   54  ORIGINAL NOTIFICATION OF THE COMMISSIONER  OF  LABOR,  WHICHEVER  OCCURS
   55  EARLIER.  PROVIDED,  HOWEVER,  THAT FOR EVERY ADDITIONAL AND CONSECUTIVE
   56  MONTHLY DECLINE SUCCEEDING THE  FIVE  MONTH  DECLINE  SO  NOTED  BY  THE
       S. 4610                            101                           A. 6721
    1  COMMISSIONER  OF LABOR, THE TWELVE MONTH LAPSE DATE SHALL BE EXTENDED BY
    2  ONE ADDITIONAL MONTH.
    3    (B) FEDERAL MEDICARE AND MEDICAID REVENUES. NOTWITHSTANDING ANY LAW TO
    4  THE  CONTRARY,  THE  DIRECTOR OF THE BUDGET MAY AUTHORIZE AND DIRECT THE
    5  COMPTROLLER TO TRANSFER FROM  THE  DEDICATED  INFRASTRUCTURE  INVESTMENT
    6  FUND  TO  THE  GENERAL  FUND  AN  AMOUNT NOT TO EXCEED THE DISALLOWANCES
    7  AND/OR SETTLEMENTS RELATED TO THE OVER-PAYMENTS OF FEDERAL MEDICARE  AND
    8  MEDICAID  REVENUES.  IN  THE  EVENT  THIS AUTHORIZATION IS UTILIZED, THE
    9  DIRECTOR OF THE BUDGET MAY  AUTHORIZE  AND  DIRECT  THE  COMPTROLLER  TO
   10  TRANSFER  SUCH AMOUNT AND THE CONCOMITANT REDUCTION IN STATE SHARE MEDI-
   11  CARE AND MEDICAID REVENUES FROM THE GENERAL FUND  TO  THE  MISCELLANEOUS
   12  SPECIAL REVENUE FUND, MENTAL HYGIENE PROGRAM FUND (21907), THE MISCELLA-
   13  NEOUS  SPECIAL  REVENUE  FUND,  PATIENT  INCOME ACCOUNT (21909), AND THE
   14  MEDICAID MANAGEMENT INFORMATION  SYSTEM  (MMIS)  STATEWIDE  ESCROW  FUND
   15  (60901).
   16    (C)  PRIOR  TO AUTHORIZING ANY TRANSFER FROM THE DEDICATED INFRASTRUC-
   17  TURE INVESTMENT  FUND  ACCOUNTS  PURSUANT  TO  THE  PROVISIONS  OF  THIS
   18  SECTION,  THE  DIRECTOR  OF  THE  BUDGET SHALL NOTIFY THE SPEAKER OF THE
   19  ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE MINORITY  LEAD-
   20  ERS  OF  THE  ASSEMBLY  AND  THE  SENATE.  SUCH LETTER SHALL SPECIFY THE
   21  REASONS FOR THE TRANSFER AND THE AMOUNT THEREOF.
   22    S 2. This act shall take effect immediately.
   23                                   PART I
   24    Section 1. The state comptroller is hereby authorized and directed  to
   25  loan  money in accordance with the provisions set forth in subdivision 5
   26  of section 4 of the state finance law  to  the  following  funds  and/or
   27  accounts:
   28    1. Tuition reimbursement account (20451).
   29    2. Proprietary vocational school supervision account (20452).
   30    3. Local government records management account (20501).
   31    4. Child health plus program account (20810).
   32    5. EPIC premium account (20818).
   33    6. Education - New (20901).
   34    7. VLT - Sound basic education fund (20904).
   35    8.   Sewage  treatment  program  management  and  administration  fund
   36  (21000).
   37    9. Hazardous bulk storage account (21061).
   38    10. Federal grants indirect cost recovery account (21065).
   39    11. Low level radioactive waste account (21066).
   40    12. Recreation account (21067).
   41    13. Public safety recovery account (21077).
   42    14. Environmental regulatory account (21081).
   43    15. Natural resource account (21082).
   44    16. Mined land reclamation program account (21084).
   45    17. Great lakes restoration initiative account (21087).
   46    18. Environmental protection and oil spill compensation fund (21200).
   47    19. Public transportation systems account (21401).
   48    20. Metropolitan mass transportation (21402).
   49    21. Operating permit program account (21451).
   50    22. Mobile source account (21452).
   51    23.  Statewide  planning  and  research  cooperative  system   account
   52  (21902).
   53    24. OPWDD provider of service account (21903).
   54    25. Mental hygiene program fund account (21907).
       S. 4610                            102                           A. 6721
    1    26. Mental hygiene patient income account (21909).
    2    27. Financial control board account (21911).
    3    28. Regulation of racing account (21912).
    4    29. New York Metropolitan Transportation Council account (21913).
    5    30. State university dormitory income reimbursable account (21937).
    6    31. Energy research account (21943).
    7    32. Criminal justice improvement account (21945).
    8    33. Fingerprint identification and technology account (21950).
    9    34. Environmental laboratory reference fee account (21959).
   10    35. Clinical laboratory reference system assessment account (21962).
   11    36. Indirect cost recovery account (21978).
   12    37. High school equivalency program account (21979).
   13    38. Multi-agency training account (21989).
   14    39. Bell jar collection account (22003).
   15    40. Industry and utility service account (22004).
   16    41. Real property disposition account (22006).
   17    42. Parking account (22007).
   18    43. Asbestos safety training program account (22009).
   19    44. Batavia school for the blind account (22032).
   20    45. Investment services account (22034).
   21    46. Surplus property account (22036).
   22    47. Financial oversight account (22039).
   23    48. Regulation of indian gaming account (22046).
   24    49. Rome school for the deaf account (22053).
   25    50. Seized assets account (22054).
   26    51. Administrative adjudication account (22055).
   27    52. Federal salary sharing account (22056).
   28    53. New York City assessment account (22062).
   29    54. Cultural education account (22063).
   30    55. Local services account (22078).
   31    56. DHCR mortgage servicing account (22085).
   32    57. Department of motor vehicles compulsory insurance account (22087).
   33    58. Housing indirect cost recovery account (22090).
   34    59. Accident prevention course program account (22094).
   35    60. DHCR-HCA application fee account (22100).
   36    61. Low income housing monitoring account (22130).
   37    62. Corporation administration account (22135).
   38    63. Montrose veteran's home account (22144).
   39    64. Deferred compensation administration account (22151).
   40    65. Rent revenue other New York City account (22156).
   41    66. Rent revenue account (22158).
   42    67. Tax revenue arrearage account (22168).
   43    68. State university general income offset account (22654).
   44    69. State police motor vehicle law enforcement account (22802).
   45    70. Highway safety program account (23001).
   46    71. EFC drinking water program account (23101).
   47    72. DOH drinking water program account (23102).
   48    73. NYCCC operating offset account (23151).
   49    74. Commercial gaming revenue account (23701).
   50    75. Commercial gaming regulation account (23702).
   51    76. Highway and bridge capital account (30051).
   52    77. State university residence hall rehabilitation fund (30100).
   53    78. State parks infrastructure account (30351).
   54    79. Clean water/clean air implementation fund (30500).
   55    80. Hazardous waste remedial cleanup account (31506).
   56    81. Youth facilities improvement account (31701).
       S. 4610                            103                           A. 6721
    1    82. Housing assistance fund (31800).
    2    83. Housing program fund (31850).
    3    84. Highway facility purpose account (31951).
    4    85. Information technology capital financing account (32215).
    5    86. New York racing account (32213).
    6    87. Mental hygiene facilities capital improvement fund (32300).
    7    88. Correctional facilities capital improvement fund (32350).
    8    89. New York State Storm Recovery Capital Fund (33000).
    9    90. OGS convention center account (50318).
   10    91. Centralized services fund (55000).
   11    92. Archives records management account (55052).
   12    93. Federal single audit account (55053).
   13    94. Civil service law section II administrative account (55055).
   14    95. Civil service EHS occupational health program account (55056).
   15    96. Banking services account (55057).
   16    97. Cultural resources survey account (55058).
   17    98. Neighborhood work project (55059).
   18    99. Automation & printing chargeback account (55060).
   19    100. OFT NYT account (55061).
   20    101. Data center account (55062).
   21    102. Intrusion detection account (55066).
   22    103. Domestic violence grant account (55067).
   23    104. Centralized technology services account (55069).
   24    105. Labor contact center account (55071).
   25    106. Human services contact center account (55072).
   26    107. Tax contact center account (55073).
   27    108. Executive direction internal audit account (55251).
   28    109. CIO Information technology centralized services account (55252).
   29    110. Health insurance internal service account (55300).
   30    111.  Civil  service employee benefits division administrative account
   31  (55301).
   32    112. Correctional industries revolving fund (55350).
   33    113. Employees health insurance account (60201).
   34    114. Medicaid management information system escrow fund (60900).
   35    S 1-a. The state comptroller is hereby authorized and directed to loan
   36  money in accordance with the provisions set forth in  subdivision  5  of
   37  section  4  of the state finance law to any account within the following
   38  federal funds, provided the comptroller has made  a  determination  that
   39  sufficient  federal grant award authority is available to reimburse such
   40  loans:
   41    1. Federal USDA-food and nutrition services fund (25000).
   42    2. Federal health and human services fund (25100).
   43    3. Federal education fund (25200).
   44    4. Federal block grant fund (25250).
   45    5. Federal miscellaneous operating grants fund (25300).
   46    6. Federal unemployment insurance administration fund (25900).
   47    7. Federal unemployment insurance occupational training fund (25950).
   48    8. Federal emergency employment act fund (26000).
   49    9. Federal capital projects fund (31350).
   50    S 2. 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 director of the budget, on
   53  or  before March 31, 2016, up to the unencumbered balance or the follow-
   54  ing amounts:
   55    Economic Development and Public Authorities:
       S. 4610                            104                           A. 6721
    1    1. $175,000 from the miscellaneous special revenue  fund,  underground
    2  facilities safety training account (22172), to the general fund.
    3    2.  An  amount  up  to the unencumbered balance from the miscellaneous
    4  special revenue fund, business and licensing services  account  (21977),
    5  to the general fund.
    6    3.  $14,810,000  from  the  miscellaneous  special  revenue fund, code
    7  enforcement account (21904), to the general fund.
    8    4. $3,000,000 from the  general  fund  to  the  miscellaneous  special
    9  revenue fund, tax revenue arrearage account (22168).
   10    5. $552,000 from the miscellaneous special revenue fund, consumer food
   11  industry account (21966), to the general fund.
   12    Education:
   13    1.  $2,219,000,000  from  the  general fund to the state lottery fund,
   14  education account (20901), as reimbursement for disbursements made  from
   15  such  fund for supplemental aid to education pursuant to section 92-c of
   16  the state finance law that are in excess of  the  amounts  deposited  in
   17  such fund for such purposes pursuant to section 1612 of the tax law.
   18    2.  $950,000,000  from the general fund to the state lottery fund, VLT
   19  education account (20904), as reimbursement for disbursements made  from
   20  such  fund for supplemental aid to education pursuant to section 92-c of
   21  the state finance law that are in excess of  the  amounts  deposited  in
   22  such fund for such purposes pursuant to section 1612 of the tax law.
   23    3.  Moneys  from  the  state lottery fund up to an amount deposited in
   24  such fund pursuant to section 1612 of the  tax  law  in  excess  of  the
   25  current year appropriation for supplemental aid to education pursuant to
   26  section 92-c of the state finance law.
   27    4.  $300,000  from the local government records management improvement
   28  fund (20500) to the archives partnership trust fund (20350).
   29    5. $900,000 from the general fund to the miscellaneous special revenue
   30  fund, Batavia school for the blind account (22032).
   31    6. $900,000 from the general fund to the miscellaneous special revenue
   32  fund, Rome school for the deaf account (22053).
   33    7. $343,400,000  from  the  state  university  dormitory  income  fund
   34  (40350)  to  the  miscellaneous  special  revenue fund, state university
   35  dormitory income reimbursable account (21937).
   36    8. $24,000,000 from any of  the  state  education  department  special
   37  revenue  and internal service funds to the miscellaneous special revenue
   38  fund, indirect cost recovery account (21978).
   39    9. $8,318,000 from the general fund to  the  state  university  income
   40  fund,  state  university  income offset account (22654), for the state's
   41  share of repayment of the STIP loan.
   42    10. $45,000,000 from the state university income fund, state universi-
   43  ty hospitals income reimbursable account (22656) to the general fund for
   44  hospital debt service for the period April 1,  2015  through  March  31,
   45  2016.
   46    Environmental Affairs:
   47    1.  $16,000,000  from any of the department of environmental conserva-
   48  tion's special revenue federal funds to the  environmental  conservation
   49  special revenue fund, federal indirect recovery account (21065).
   50    2.  $2,000,000  from  any of the department of environmental conserva-
   51  tion's special revenue federal funds to the conservation fund as  neces-
   52  sary to avoid diversion of conservation funds.
   53    3. $3,000,000 from any of the office of parks, recreation and historic
   54  preservation  capital projects federal funds and special revenue federal
   55  funds to the miscellaneous special revenue fund, federal grant  indirect
   56  cost recovery account (22188).
       S. 4610                            105                           A. 6721
    1    4. $1,000,000 from any of the office of parks, recreation and historic
    2  preservation  special revenue federal funds to the miscellaneous special
    3  revenue fund, I love NY water account (21930).
    4    5.  $23,000,000  from the general fund to the environmental protection
    5  fund, environmental protection fund transfer account (30451).
    6    6. $8,500,000 from the general fund to the  hazardous  waste  remedial
    7  fund, hazardous waste oversight and assistance account (31505).
    8    7.  $25,000,000  from the environmental protection fund, environmental
    9  protection transfer account (30451), to the general fund.
   10    Family Assistance:
   11    1. $10,000,000 from any of the office of children and family services,
   12  office of temporary and disability assistance, or department  of  health
   13  special  revenue  federal funds and the general fund, in accordance with
   14  agreements with social services districts, to the miscellaneous  special
   15  revenue  fund, office of human resources development state match account
   16  (21967).
   17    2. $3,000,000 from any of the office of children and  family  services
   18  or office of temporary and disability assistance special revenue federal
   19  funds to the miscellaneous special revenue fund, family preservation and
   20  support services and family violence services account (22082).
   21    3. $18,670,000 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  any  other  miscellaneous  revenues
   24  generated  from  the operation of office of children and family services
   25  programs to the general fund.
   26    4. $166,000,000 from any of the office  of  temporary  and  disability
   27  assistance  or department of health special revenue funds to the general
   28  fund.
   29    5. $2,500,000 from any of  the  office  of  temporary  and  disability
   30  assistance  or  office  of  children and family services special revenue
   31  federal funds to the  miscellaneous  special  revenue  fund,  office  of
   32  temporary and disability assistance program account (21980).
   33    6. $35,000,000 from any of the office of children and family services,
   34  office  of temporary and disability assistance, department of labor, and
   35  department of health special revenue federal  funds  to  the  office  of
   36  children  and family services miscellaneous special revenue fund, multi-
   37  agency training contract account (21989).
   38    7. $65,000,000 from the  miscellaneous  special  revenue  fund,  youth
   39  facility per diem account (22186), to the general fund.
   40    8.  $621,850  from the general fund to the combined gifts, grants, and
   41  bequests fund, WB Hoyt Memorial account (20128).
   42    9. $3,100,000 from  the  miscellaneous  special  revenue  fund,  state
   43  central registry (22028), to the general fund.
   44    General Government:
   45    1. $1,566,000 from the miscellaneous special revenue fund, examination
   46  and miscellaneous revenue account (22065) to the general fund.
   47    2. $12,500,000 from the general fund to the health insurance revolving
   48  fund (55300).
   49    3.  $192,400,000  from  the  health  insurance  reserve  receipts fund
   50  (60550) to the general fund.
   51    4. $150,000 from the general fund to the not-for-profit revolving loan
   52  fund (20650).
   53    5. $150,000 from the not-for-profit revolving loan fund (20650) to the
   54  general fund.
   55    6. $3,000,000 from the miscellaneous  special  revenue  fund,  surplus
   56  property account (22036), to the general fund.
       S. 4610                            106                           A. 6721
    1    7.  $19,900,000  from  the  general  fund to the miscellaneous special
    2  revenue fund, alcoholic beverage control account (22033).
    3    8.  $23,000,000  from  the miscellaneous special revenue fund, revenue
    4  arrearage account (22024), to the general fund.
    5    9. $1,826,000 from the miscellaneous  special  revenue  fund,  revenue
    6  arrearage  account  (22024),  to the miscellaneous special revenue fund,
    7  authority budget office account (22138).
    8    10. $1,000,000 from the miscellaneous special  revenue  fund,  parking
    9  services  account (22007), to the general fund, for the purpose of reim-
   10  bursing the costs of debt service related to state parking facilities.
   11    11. $21,794,000 from the general fund to the  internal  service  fund,
   12  COPS account (55013).
   13    12.  $8,360,000 from the general fund to the agencies internal service
   14  fund, central technology services account (55069), for  the  purpose  of
   15  enterprise technology projects.
   16    13.  $5,000,000  from the miscellaneous special revenue fund, workers'
   17  compensation account (21995),  to  the  miscellaneous  capital  projects
   18  fund, workers' compensation board IT business process design fund.
   19    Health:
   20    1. $30,000,000 from the miscellaneous special revenue fund, quality of
   21  care account (21915), to the general fund.
   22    2.  $1,000,000 from the general fund to the combined gifts, grants and
   23  bequests fund, breast cancer research and education account (20155),  an
   24  amount  equal to the monies collected and deposited into that account in
   25  the previous fiscal year.
   26    3. $250,000 from the general fund to the combined  gifts,  grants  and
   27  bequests  fund,  prostate  cancer  research,  detection,  and  education
   28  account (20183), an amount equal to the moneys collected  and  deposited
   29  into that account in the previous fiscal year.
   30    4.  $500,000  from  the general fund to the combined gifts, grants and
   31  bequests fund,  Alzheimer's  disease  research  and  assistance  account
   32  (20143), an amount equal to the moneys collected and deposited into that
   33  account in the previous fiscal year.
   34    5.  $30,295,000  from the HCRA resources fund (20800) to the miscella-
   35  neous special revenue fund, empire state stem cell  trust  fund  account
   36  (22161).
   37    6.  $30,000,000  from  any of the department of health accounts within
   38  the federal health and human services fund to the miscellaneous  special
   39  revenue fund, quality of care account (21915).
   40    7. $6,000,000 from the miscellaneous special revenue fund, certificate
   41  of  need  account  (21920),  to the miscellaneous capital projects fund,
   42  healthcare IT capital subfund.
   43    8. $1,000,000 from the miscellaneous special  revenue  fund,  adminis-
   44  tration  program  account (21982), to the miscellaneous capital projects
   45  fund, healthcare IT capital account (32216).
   46    9. $1,000,000 from  the  miscellaneous  special  revenue  fund,  vital
   47  records  account  (22103),  to  the miscellaneous capital projects fund,
   48  healthcare IT capital account (32216).
   49    10. $55,000,000 from the HCRA resources fund (20800)  to  the  capital
   50  projects fund (30000).
   51    11.  $3,700,000  from  the  miscellaneous  New York state agency fund,
   52  medical assistance account to the general fund.
   53    12. $6,740,000 from the general fund to the  medical  marihuana  trust
   54  fund, health operation and oversight account (23755).
   55    13.  $4,096,000 from the HCRA resources fund (20800), to the miscella-
   56  neous special revenue fund, cigarette strike force account.
       S. 4610                            107                           A. 6721
    1    14. $3,086,000 from the miscellaneous special  revenue  fund,  certif-
    2  icate of need account (21920), to the general fund.
    3    Labor:
    4    1.  $400,000  from the miscellaneous special revenue fund, DOL fee and
    5  penalty account (21923), to the child performer's protection fund, child
    6  performer protection account (20401).
    7    2. $8,400,000 from the miscellaneous special revenue fund, DOL fee and
    8  penalty account (21923), to the general fund.
    9    3. $3,300,000 from the unemployment  insurance  interest  and  penalty
   10  fund,  unemployment  insurance  special  interest  and  penalty  account
   11  (23601), to the general fund.
   12    Mental Hygiene:
   13    1. $10,000,000 from the miscellaneous  special  revenue  fund,  mental
   14  hygiene  patient  income  account  (21909), to the miscellaneous special
   15  revenue fund, federal salary sharing account (22056).
   16    2. $15,000,000 from the miscellaneous  special  revenue  fund,  mental
   17  hygiene  patient  income  account  (21909), to the miscellaneous special
   18  revenue fund, provider of service accounts (21903).
   19    3. $15,000,000 from the miscellaneous  special  revenue  fund,  mental
   20  hygiene  program  fund  account  (21907),  to  the miscellaneous special
   21  revenue fund, provider of service account (21903).
   22    4. $1,400,000,000 from the general fund to the  miscellaneous  special
   23  revenue fund, mental hygiene patient income account (21909).
   24    5.  $1,850,000,000  from the general fund to the miscellaneous special
   25  revenue fund, mental hygiene program fund account (21907).
   26    6. $100,000,000 from the miscellaneous special  revenue  fund,  mental
   27  hygiene program fund account (21907), to the general fund.
   28    7.  $100,000,000  from  the miscellaneous special revenue fund, mental
   29  hygiene patient income account (21909), to the general fund.
   30    8. $292,888,000 from the chemical dependence  service  fund,  chemical
   31  dependence service account (22700), to the general fund.
   32    Public Protection:
   33    1.  $1,350,000  from the miscellaneous special revenue fund, emergency
   34  management account (21944), to the general fund.
   35    2. $3,300,000 from the  general  fund  to  the  miscellaneous  special
   36  revenue fund, recruitment incentive account (22171).
   37    3.  $13,000,000  from  the general fund to the correctional industries
   38  revolving  fund,  correctional  industries  internal   service   account
   39  (55350).
   40    4.  $3,000,000  from  the federal miscellaneous operating grants fund,
   41  DMNA damage account (25324), to the general fund.
   42    5. $14,300,000 from the general  fund  to  the  miscellaneous  special
   43  revenue fund, crimes against revenue program account (22015).
   44    6.  $22,900,000  from the miscellaneous special revenue fund, criminal
   45  justice improvement account (21945), to the general fund.
   46    7. $50,000,000 from the miscellaneous special revenue fund,  statewide
   47  public safety communications account (22123), to the general fund.
   48    8.  $106,000,000  from  the state police motor vehicle law enforcement
   49  and motor vehicle theft  and  insurance  fraud  prevention  fund,  state
   50  police  motor  vehicle  enforcement account (22802), to the general fund
   51  for state operation expenses of the division of state police.
   52    9. $21,500,000 from the general fund to  the  correctional  facilities
   53  capital improvement fund (32350).
   54    10.  $5,000,000  from  the  general  fund to the dedicated highway and
   55  bridge trust fund (30050) for the purpose of work zone safety activities
       S. 4610                            108                           A. 6721
    1  provided by the division of state police for the department of transpor-
    2  tation.
    3    11.  $5,000,000 from the miscellaneous special revenue fund, statewide
    4  public safety communications account (22123), to  the  capital  projects
    5  fund (30000).
    6    12.  $2,900,000  from  the  miscellaneous  special revenue fund, legal
    7  services assistance account (22096), to the general fund.
    8    13. $300,000 from the state police motor vehicle law  enforcement  and
    9  motor  vehicle  theft and insurance fraud prevention fund, motor vehicle
   10  theft and insurance fraud account (22801), to the general fund.
   11    Transportation:
   12    1. $17,672,000 from the federal miscellaneous operating grants fund to
   13  the miscellaneous special revenue fund, New York Metropolitan  Transpor-
   14  tation Council account (21913).
   15    2. $20,147,000 from the federal capital projects fund to the miscella-
   16  neous special revenue fund, New York Metropolitan Transportation Council
   17  account (21913).
   18    3. $15,700,000 from the miscellaneous special revenue fund, compulsory
   19  insurance account (22087), to the general fund.
   20    4.  $14,878,096 from the general fund to the mass transportation oper-
   21  ating assistance fund, public transportation systems  operating  assist-
   22  ance account (21401), of which $12,000,000 constitutes the base need for
   23  operations.
   24    5.  $728,507,000  from  the  general fund to the dedicated highway and
   25  bridge trust fund (30050).
   26    6. $606,000 from the  miscellaneous  special  revenue  fund,  accident
   27  prevention course program account (22094), to the general fund.
   28    7.  $6,000  from  the  miscellaneous  special revenue fund, motorcycle
   29  safety account (21976), to the general fund.
   30    8. $309,250,000 from the general fund to the MTA financial  assistance
   31  fund, mobility tax trust account (23651).
   32    9. $20,000,000 from the mass transportation operating assistance fund,
   33  metropolitan  mass  transportation operating assistance account (21402),
   34  to the general debt service  fund  (40151),  for  reimbursement  of  the
   35  state's expenses in connection with payments of debt service and related
   36  expenses  for  the metropolitan transportation authority's state service
   37  contract bonds.
   38    10. $5,000,000 from the miscellaneous special revenue fund,  transpor-
   39  tation  regulation  account  (22067) to the dedicated highway and bridge
   40  trust fund (30050), for disbursements made  from  such  fund  for  motor
   41  carrier  safety that are in excess of the amounts deposited in the dedi-
   42  cated highway and bridge trust fund (30050) for such purpose pursuant to
   43  section 94 of the transportation law.
   44    11. $121,548,000 from the  mass  transportation  operating  assistance
   45  fund,  metropolitan  mass  transportation  operating  assistance account
   46  (21402), to the transit assistance for capital investments fund,  metro-
   47  politan   transit   assistance  for  capital  investments  account,  for
   48  disbursements made from such fund pursuant to a chapter of the  laws  of
   49  2015.
   50    Miscellaneous:
   51    1. $200,000,000 from the general fund to any funds or accounts for the
   52  purpose of reimbursing certain outstanding accounts receivable balances.
   53    2.  $500,000,000  from  the general fund to the debt reduction reserve
   54  fund (40000).
   55    3. $450,000,000 from the New York state storm  recovery  capital  fund
   56  (33000) to the revenue bond tax fund (40152).
       S. 4610                            109                           A. 6721
    1    4.  $15,500,000  from  the general fund, community projects account GG
    2  (10256), to the general fund, state purposes account (10050).
    3    5.  $4,550,000,000  from the general fund to the dedicated infrastruc-
    4  ture investment fund infrastructure investment account.
    5    6. Upon request of the director of the budget, up to $850,000,000 from
    6  the general fund to any special revenue fund or account, agency fund  or
    7  account, or any combination of funds or accounts.
    8    S  3.  Notwithstanding any law to the contrary, and in accordance with
    9  section 4 of the state finance law, the comptroller is hereby authorized
   10  and directed to transfer, on or before March 31, 2016:
   11    1. Upon request of the commissioner of environmental conservation,  up
   12  to  $11,354,000 from revenues credited to any of the department of envi-
   13  ronmental conservation special revenue funds, including $3,285,400  from
   14  the  environmental  protection  and oil spill compensation fund (21200),
   15  and $1,779,600 from the conservation fund (21150), to the  environmental
   16  conservation special revenue fund, indirect charges account (21060).
   17    2.  Upon request of the commissioner of agriculture and markets, up to
   18  $3,000,000 from any special revenue fund or enterprise fund  within  the
   19  department of agriculture and markets to the general fund, to pay appro-
   20  priate administrative expenses.
   21    3.  Upon request of the commissioner of agriculture and markets, up to
   22  $2,000,000 from the state exposition special fund, state  fair  receipts
   23  account  (50051)  to the miscellaneous capital projects fund, state fair
   24  capital improvement account (32208).
   25    4. Upon request of the commissioner of the  division  of  housing  and
   26  community  renewal, up to $6,221,000 from revenues credited to any divi-
   27  sion of housing and community renewal federal or  miscellaneous  special
   28  revenue fund to the miscellaneous special revenue fund, housing indirect
   29  cost recovery account (22090).
   30    5.  Upon  request  of  the commissioner of the division of housing and
   31  community renewal, up to $5,500,000 may be transferred from any  miscel-
   32  laneous  special  revenue  fund  account,  to  any miscellaneous special
   33  revenue fund.
   34    6. Upon request of the commissioner of health up  to  $5,000,000  from
   35  revenues  credited  to any of the department of health's special revenue
   36  funds, to the miscellaneous special revenue fund, administration account
   37  (21982).
   38    S 4. On or before March 31, 2016, the comptroller is hereby authorized
   39  and directed to deposit earnings that  would  otherwise  accrue  to  the
   40  general  fund  that are attributable to the operation of section 98-a of
   41  the state finance law, to the agencies internal  service  fund,  banking
   42  services  account  (55057),  for  the purpose of meeting direct payments
   43  from such account.
   44    S 5. Notwithstanding any law to the contrary, upon  the  direction  of
   45  the  director of the budget and upon requisition by the state university
   46  of New York, the dormitory  authority  of  the  state  of  New  York  is
   47  directed  to  transfer, up to $22,000,000 in revenues generated from the
   48  sale of notes or  bonds,  to  the  state  university  of  New  York  for
   49  reimbursement  of bondable equipment for further transfer to the state's
   50  general fund.
   51    S 6. 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, upon request of the director of the budget and
   54  upon  consultation  with  the  state university chancellor or his or her
   55  designee, on or before March 31, 2016, up to $16,000,000 from the  state
   56  university  income  fund  general  revenue  account (22653) to the state
       S. 4610                            110                           A. 6721
    1  general fund for debt service costs related to campus supported  capital
    2  project  costs  for  the  NY-SUNY  2020  challenge  grant program at the
    3  University at Buffalo.
    4    S  7.  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, upon request of the director of the budget and
    7  upon consultation with the state university chancellor  or  his  or  her
    8  designee,  on  or before March 31, 2016, up to $6,500,000 from the state
    9  university income fund general revenue  account  (22653)  to  the  state
   10  general  fund for debt service costs related to campus supported capital
   11  project costs for the  NY-SUNY  2020  challenge  grant  program  at  the
   12  University at Albany.
   13    S  8.  Notwithstanding  any  law to the contrary, the state university
   14  chancellor or his or her designee is authorized and directed to transfer
   15  estimated tuition revenue balances from the state university  collection
   16  fund  (61000)  to  the  state  university  income fund, state university
   17  general revenue offset account (22655) on or before March 31, 2016.
   18    S 9. 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, upon request of the director of the budget, up
   21  to  $87,864,000  from  the  general  fund to the state university income
   22  fund, state university hospitals  income  reimbursable  account  (22656)
   23  during  the period July 1, 2015 through June 30, 2016 to reflect ongoing
   24  state subsidy of SUNY hospitals and to pay  costs  attributable  to  the
   25  SUNY hospitals' state agency status.
   26    S  10. Notwithstanding any law to the contrary, and in accordance with
   27  section 4 of the state finance law, the comptroller is hereby authorized
   28  and directed to transfer, upon request of the director of the budget, up
   29  to $1,004,249,800 from the general fund to the state  university  income
   30  fund, state university general revenue offset account (22655) during the
   31  period  of  July  1, 2015 through June 30, 2016 to support operations at
   32  the state university.
   33    S 11. Notwithstanding any law to the contrary, and in accordance  with
   34  section 4 of the state finance law, the comptroller is hereby authorized
   35  and directed to transfer, upon request of the director of the budget, up
   36  to $3,370,000 from the general fund to the state university income fund,
   37  state university general revenue offset account (22655) during the peri-
   38  od  of  April 1, 2015 through June 30, 2015 to support operations at the
   39  state university.
   40    S 12. Notwithstanding any law to the contrary, and in accordance  with
   41  section 4 of the state finance law, the comptroller is hereby authorized
   42  and  directed to transfer, upon request of the state university chancel-
   43  lor or his or her designee, up to $55,000,000 from the state  university
   44  income  fund,  state  university  hospitals  income reimbursable account
   45  (22656), for services and expenses of hospital  operations  and  capital
   46  expenditures at the state university hospitals; and the state university
   47  income  fund,  Long  Island  veterans' home account (22652) to the state
   48  university capital projects fund (32400) on or before June 30, 2016.
   49    S 12-a. Subdivision 2 of section 92-cc of the state  finance  law,  as
   50  amended  by  section  17 of part U of chapter 59 of the laws of 2012, is
   51  amended to read as follows:
   52    2. Such fund shall have a maximum balance not to exceed  [three]  FIVE
   53  per  centum  of  the aggregate amount projected to be disbursed from the
   54  general fund during the fiscal year immediately following the  then-cur-
   55  rent  fiscal  year.  At  the  request of the director of the budget, the
   56  state comptroller shall transfer monies to the rainy day reserve fund up
       S. 4610                            111                           A. 6721
    1  to and including an amount equivalent to [three-tenths of]  SEVENTY-FIVE
    2  ONE-HUNDREDTHS OF one per centum of the aggregate amount projected to be
    3  disbursed  from  the  general  fund during the then-current fiscal year,
    4  unless  such  transfer  would  increase the rainy day reserve fund to an
    5  amount in excess of [three] FIVE per  centum  of  the  aggregate  amount
    6  projected  to  be disbursed from the general fund during the fiscal year
    7  immediately following the then-current fiscal year, in which event  such
    8  transfer  shall be limited to such amount as will increase the rainy day
    9  reserve fund to such [three] FIVE per centum limitation.
   10    S 13. Notwithstanding any law to the contrary, and in accordance  with
   11  section  4 of the state finance law, the comptroller, after consultation
   12  with the state university chancellor or his or her designee,  is  hereby
   13  authorized  and directed to transfer moneys, in the first instance, from
   14  the state university collection fund, Stony  Brook  hospital  collection
   15  account (61006), Brooklyn hospital collection account (61007), and Syra-
   16  cuse  hospital collection account (61008) to the state university income
   17  fund, state university hospitals income reimbursable account (22656)  in
   18  the  event  insufficient  funds  are  available  in the state university
   19  income fund, state  university  hospitals  income  reimbursable  account
   20  (22656)  to  permit the full transfer of moneys authorized for transfer,
   21  to the general fund for payment of debt  service  related  to  the  SUNY
   22  hospitals.  Notwithstanding  any law to the contrary, the comptroller is
   23  also hereby authorized and directed, after consultation with  the  state
   24  university  chancellor  or  his or her designee, to transfer moneys from
   25  the state university income fund to the state  university  income  fund,
   26  state  university  hospitals  income reimbursable account (22656) in the
   27  event insufficient funds are available in the  state  university  income
   28  fund,  state university hospitals income reimbursable account (22656) to
   29  pay hospital operating costs or to permit the full  transfer  of  moneys
   30  authorized for transfer, to the general fund for payment of debt service
   31  related to the SUNY hospitals on or before March 31, 2016.
   32    S  14.  Notwithstanding any law to the contrary, upon the direction of
   33  the director of the budget and the chancellor of the state university of
   34  New York or his or her designee, and in accordance with section 4 of the
   35  state finance law, the comptroller is hereby authorized and directed  to
   36  transfer  monies from the state university dormitory income fund (40350)
   37  to the state university residence hall rehabilitation fund (30100),  and
   38  from  the state university residence hall rehabilitation fund (30100) to
   39  the state university dormitory income fund (40350), in a net amount  not
   40  to exceed $80 million.
   41    S  15. Notwithstanding any law to the contrary, and in accordance with
   42  section 4 of the state finance law, the comptroller is hereby authorized
   43  and directed to transfer monies, upon request of  the  director  of  the
   44  budget,  on  or  before March 31, 2016, from and to any of the following
   45  accounts: the miscellaneous special revenue fund, patient income account
   46  (21909), the miscellaneous special revenue fund, mental hygiene  program
   47  fund  account  (21907),  the miscellaneous special revenue fund, federal
   48  salary sharing account (22056), or the general fund in any  combination,
   49  the aggregate of which shall not exceed $350 million.
   50    S  16. 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, at the request of the director of the  budget,
   53  up  to $500 million from the unencumbered balance of any special revenue
   54  fund or account, agency  fund  or  account,  internal  service  fund  or
   55  account,  enterprise  fund  or account, or any combination of such funds
   56  and accounts, to the general fund. The amounts transferred  pursuant  to
       S. 4610                            112                           A. 6721
    1  this authorization shall be in addition to any other transfers expressly
    2  authorized  in  the  2015-16  budget. Transfers from federal funds, debt
    3  service funds, capital projects funds, the community projects  fund,  or
    4  funds  that would result in the loss of eligibility for federal benefits
    5  or federal funds pursuant to federal law, rule, or regulation as assent-
    6  ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws  of
    7  1951 are not permitted pursuant to this authorization.
    8    S  16-a.  Notwithstanding  any  law to the contrary, and in accordance
    9  with section 4 of the state  finance  law,  the  comptroller  is  hereby
   10  authorized  and  directed to transfer, at the request of the director of
   11  the budget, up to 28 million dollars ($28,000,000) from the unencumbered
   12  balance of any special revenue fund or account, or combination of  funds
   13  and  accounts,  to  the community projects fund. The amounts transferred
   14  pursuant to this authorization shall be in addition to any other  trans-
   15  fers  expressly authorized in the 2014-15 budget. Transfers from federal
   16  funds, debt services funds, capital projects funds, or funds that  would
   17  result  in the loss of eligibility for federal benefits or federal funds
   18  pursuant to federal law, rule, or regulation as assented to  in  chapter
   19  683  of  the  laws  of  1938 and chapter 700 of the laws of 1951 are not
   20  permitted pursuant to this authorization. The  director  of  the  budget
   21  shall  (a) have received a request in writing from one or both houses of
   22  the legislature, and (b) notify both houses of the legislature in  writ-
   23  ing  prior  to initiating transfers pursuant to this authorization.  The
   24  comptroller shall provide the director of the budget, the chair  of  the
   25  senate  finance  committee, and the chair of the assembly ways and means
   26  committee with an accurate accounting and report of any  transfers  that
   27  occur  pursuant  to  this  section on or before the fifteenth day of the
   28  following month in which such transfers occur.
   29    S 17. Notwithstanding any law to the contrary, and in accordance  with
   30  section 4 of the state finance law, the comptroller is hereby authorized
   31  and  directed to transfer, at the request of the director of the budget,
   32  up to $100 million from any non-general fund or account, or  combination
   33  of  funds and accounts, to the miscellaneous special revenue fund, tech-
   34  nology financing account (22207) or the miscellaneous  capital  projects
   35  fund,  information technology capital financing account (32215), for the
   36  purpose  of  consolidating  technology  procurement  and  services.  The
   37  amounts transferred to the miscellaneous special revenue fund, technolo-
   38  gy  financing  account  (22207)  pursuant to this authorization shall be
   39  equal to or less than the amount of  such  monies  intended  to  support
   40  information  technology  costs  which  are  attributable, according to a
   41  plan, to such account made in pursuance  to  an  appropriation  by  law.
   42  Transfers  to  the  technology financing account shall be completed from
   43  amounts collected by non-general funds or accounts pursuant  to  a  fund
   44  deposit  schedule  or permanent statute, and shall be transferred to the
   45  technology financing account pursuant to a schedule agreed upon  by  the
   46  affected  agency commissioner. Transfers from funds that would result in
   47  the loss of eligibility for federal benefits or federal  funds  pursuant
   48  to federal law, rule, or regulation as assented to in chapter 683 of the
   49  laws  of  1938  and  chapter  700  of the laws of 1951 are not permitted
   50  pursuant to this authorization.
   51    S 18. 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, at the request of the director of the budget,
   54  up to $300 million from any non-general fund or account, or  combination
   55  of  funds  and  accounts, to the general fund for the purpose of consol-
   56  idating technology procurement and  services.  The  amounts  transferred
       S. 4610                            113                           A. 6721
    1  pursuant to this authorization shall be equal to or less than the amount
    2  of  such  monies  intended to support information technology costs which
    3  are attributable, according to a plan, to such account made in pursuance
    4  to  an  appropriation  by  law.  Transfers  to the general fund shall be
    5  completed from amounts collected by non-general funds or accounts pursu-
    6  ant to a fund deposit schedule. Transfers from funds that  would  result
    7  in  the loss of eligibility for federal benefits or federal funds pursu-
    8  ant to federal law, rule, or regulation as assented to in chapter 683 of
    9  the laws of 1938 and chapter 700 of the laws of 1951 are  not  permitted
   10  pursuant to this authorization.
   11    S  19. Notwithstanding any provision of law to the contrary, as deemed
   12  feasible and advisable by its trustees, the power authority of the state
   13  of New York is authorized and directed to (i) make a contribution to the
   14  state treasury to the credit  of  the  general  fund,  or  as  otherwise
   15  directed in writing by the director of the budget, in an amount of up to
   16  $90,000,000  for  the  state  fiscal  year commencing April 1, 2015, the
   17  proceeds of which will be utilized to support energy-related initiatives
   18  of the state, or for economic development purposes, and (ii) transfer up
   19  to $25,000,000 of any such contribution by June 30, 2015 and the remain-
   20  der of any such contribution by March 31, 2016. Such  economic  develop-
   21  ment  purposes  may  include,  but  shall  not be limited to, efforts to
   22  attract and expand business investment and  job  creation  in  New  York
   23  state  through  the  Open  for  Business program as well as all expenses
   24  associated with Global NY and  trade  missions,  domestic  and  interna-
   25  tional,  promoting  New  York businesses; provided that in the event any
   26  contributed funds are used by a state agency or public authority for the
   27  purpose of advertising and promoting the benefits  of  the  START-UP  NY
   28  program,  no  more  than sixty percent of the contributed funds used for
   29  such purpose shall be used for advertising  and  promotion  outside  the
   30  state of New York.
   31    S  20. Notwithstanding any provision of law, rule or regulation to the
   32  contrary, the New York State energy research and  development  authority
   33  is  authorized and directed to make a contribution to the state treasury
   34  to the credit of the general fund in  the  amount  of  $41,000,000  from
   35  proceeds  collected  by the authority from the auction or sale of carbon
   36  dioxide emission allowances allocated by the department of environmental
   37  conservation under the Regional Greenhouse Gas Initiative on  or  before
   38  March 31, 2016.
   39    S  21.  Subdivision  5  of section 97-rrr of the state finance law, as
   40  amended by section 20 of part I of chapter 55 of the laws  of  2014,  is
   41  amended to read as follows:
   42    5. Notwithstanding the provisions of section one hundred seventy-one-a
   43  of  the  tax law, as separately amended by chapters four hundred eighty-
   44  one and four hundred eighty-four of the laws of nineteen hundred  eight-
   45  y-one,  and notwithstanding the provisions of chapter ninety-four of the
   46  laws of two thousand eleven, or any  other  provisions  of  law  to  the
   47  contrary,  during  the  fiscal  year beginning April first, two thousand
   48  [fourteen] FIFTEEN, the  state  comptroller  is  hereby  authorized  and
   49  directed  to  deposit  to the fund created pursuant to this section from
   50  amounts collected pursuant to article twenty-two  of  the  tax  law  and
   51  pursuant  to  a  schedule submitted by the director of the budget, up to
   52  [$3,429,375,000] $3,382,279,000, as may be certified in such schedule as
   53  necessary to meet the purposes of such fund for the fiscal  year  begin-
   54  ning April first, two thousand [fourteen] FIFTEEN.
   55    S  22.  The  comptroller  is authorized and directed to deposit to the
   56  general fund-state purposes account reimbursements from moneys appropri-
       S. 4610                            114                           A. 6721
    1  ated or reappropriated to the correctional facilities  capital  improve-
    2  ment  fund  by  a  chapter  of the laws of 2015. Reimbursements shall be
    3  available for spending from appropriations made  to  the  department  of
    4  corrections and community supervision in the general fund-state purposes
    5  accounts  by a chapter of the laws of 2015 for costs associated with the
    6  administration and security of capital  projects  and  for  other  costs
    7  which are attributable, according to a plan, to such capital projects.
    8    S  23.  Notwithstanding  any  other  law,  rule,  or regulation to the
    9  contrary, the state comptroller is hereby authorized and directed to use
   10  any balance remaining in the mental health services  fund  debt  service
   11  appropriation, after payment by the state comptroller of all obligations
   12  required pursuant to any lease, sublease, or other financing arrangement
   13  between the dormitory authority of the state of New York as successor to
   14  the  New  York  state  medical  care  facilities finance agency, and the
   15  facilities development corporation pursuant to chapter 83 of the laws of
   16  1995 and the department of mental hygiene  for  the  purpose  of  making
   17  payments  to  the  dormitory  authority of the state of New York for the
   18  amount of the earnings for the investment of  monies  deposited  in  the
   19  mental health services fund that such agency determines will or may have
   20  to  be  rebated  to the federal government pursuant to the provisions of
   21  the internal revenue code of 1986, as amended, in order to  enable  such
   22  agency  to  maintain  the  exemption from federal income taxation on the
   23  interest paid to the holders of such agency's mental services facilities
   24  improvement revenue bonds. Annually on or before each  June  30th,  such
   25  agency  shall  certify to the state comptroller its determination of the
   26  amounts received in the mental health services fund as a result  of  the
   27  investment  of  monies  deposited  therein  that  will or may have to be
   28  rebated to the federal government pursuant  to  the  provisions  of  the
   29  internal revenue code of 1986, as amended.
   30    S  24.  Subdivision  8  of  section  68-b of the state finance law, as
   31  amended by section 44 of part HH of chapter 57 of the laws of  2013,  is
   32  amended to read as follows:
   33    8.  Revenue  bonds  may  only  be  issued  for authorized purposes, as
   34  defined in section sixty-eight-a of this  article.  Notwithstanding  the
   35  foregoing,  the  dormitory authority of the state of New York [and], the
   36  urban development corporation AND THE NEW YORK STATE  THRUWAY  AUTHORITY
   37  may  issue  revenue  bonds  for any authorized purpose of any other such
   38  authorized issuer through March  thirty-first,  two  thousand  [fifteen]
   39  TWENTY.    ANY  SUCH  REVENUE BONDS ISSUED BY THE NEW YORK STATE THRUWAY
   40  AUTHORITY SHALL BE SUBJECT TO THE APPROVAL OF THE NEW YORK STATE  PUBLIC
   41  AUTHORITIES  CONTROL  BOARD, PURSUANT TO SECTION FIFTY-ONE OF THE PUBLIC
   42  AUTHORITIES LAW. The authorized issuers  shall  not  issue  any  revenue
   43  bonds  in  an  amount  in  excess  of  statutory authorizations for such
   44  authorized purposes. Authorizations for such authorized  purposes  shall
   45  be  reduced in an amount equal to the amount of revenue bonds issued for
   46  such authorized purposes under this article. Such reduction shall not be
   47  made in relation to revenue bonds issued to fund reserve funds, if  any,
   48  and  costs  of  issuance,  if these items are not counted under existing
   49  authorizations, nor shall revenue bonds issued to  refund  bonds  issued
   50  under existing authorizations reduce the amount of such authorizations.
   51    S  24-a.  Subdivision  8  of section 69-n of the state finance law, as
   52  added by section 58 of part HH of chapter 57 of the  laws  of  2013,  is
   53  amended to read as follows:
   54    8.  Revenue  bonds  may  only  be  issued  for authorized purposes, as
   55  defined in section sixty-nine-m of  this  article.  Notwithstanding  the
   56  foregoing, any authorized issuer may issue revenue bonds for any author-
       S. 4610                            115                           A. 6721
    1  ized  purpose. ANY SUCH REVENUE BONDS ISSUED BY THE NEW YORK STATE THRU-
    2  WAY AUTHORITY SHALL BE SUBJECT TO THE APPROVAL OF  THE  NEW  YORK  STATE
    3  PUBLIC  AUTHORITIES  CONTROL BOARD, PURSUANT TO SECTION FIFTY-ONE OF THE
    4  PUBLIC  AUTHORITIES  LAW.  The  authorized  issuers  shall not issue any
    5  revenue bonds in an amount in excess  of  statutory  authorizations  for
    6  such  authorized  purposes.  Authorizations for such authorized purposes
    7  shall be reduced in an amount equal  to  the  amount  of  revenue  bonds
    8  issued  for  such authorized purposes under this article. Such reduction
    9  shall not be made in relation to revenue bonds issued  to  fund  reserve
   10  funds,  if  any,  and  costs of issuance, if these items are not counted
   11  under existing authorizations, nor shall revenue bonds issued to  refund
   12  bonds  issued  under  existing  authorizations reduce the amount of such
   13  authorizations.
   14    S 25. Subdivision 1 of section 47 of section 1 of chapter 174  of  the
   15  laws  of  1968, constituting the New York state urban development corpo-
   16  ration act, as amended by section 28 of part I of chapter 55 of the laws
   17  of 2014, is amended to read as follows:
   18    1. Notwithstanding the provisions of any other law  to  the  contrary,
   19  the  dormitory  authority  and  the corporation are hereby authorized to
   20  issue bonds or notes in one or more series for the  purpose  of  funding
   21  project costs for the office of information technology services, depart-
   22  ment  of  law,  and  other  state  costs  associated  with  such capital
   23  projects. The aggregate principal  amount  of  bonds  authorized  to  be
   24  issued  pursuant  to  this  section  shall  not exceed [one] TWO hundred
   25  [eighty-two]  SIXTY-NINE  million  [four]  ONE  hundred  forty  thousand
   26  dollars, excluding bonds issued to fund one or more debt service reserve
   27  funds, to pay costs of issuance of such bonds, and bonds or notes issued
   28  to refund or otherwise repay such bonds or notes previously issued. Such
   29  bonds and notes of the dormitory authority and the corporation shall not
   30  be  a  debt of the state, and the state shall not be liable thereon, nor
   31  shall they be payable out of any funds other than those appropriated  by
   32  the  state to the dormitory authority and the corporation for principal,
   33  interest, and related expenses pursuant to a service contract  and  such
   34  bonds  and  notes  shall contain on the face thereof a statement to such
   35  effect. Except for purposes of complying with the internal revenue code,
   36  any interest income earned on bond proceeds shall only be  used  to  pay
   37  debt service on such bonds.
   38    S  26.  Section 1 of chapter 174 of the laws of 1968, constituting the
   39  New York state urban development corporation act, is amended by adding a
   40  new section 51 to read as follows:
   41    S 51. 1. NOTWITHSTANDING THE  PROVISIONS  OF  ANY  OTHER  LAW  TO  THE
   42  CONTRARY,  THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION
   43  ARE HEREBY AUTHORIZED TO ISSUE BONDS OR NOTES IN ONE OR MORE SERIES  FOR
   44  THE  PURPOSE  OF  FUNDING PROJECT COSTS FOR THE NONPROFIT INFRASTRUCTURE
   45  CAPITAL INVESTMENT PROGRAM AND OTHER STATE COSTS  ASSOCIATED  WITH  SUCH
   46  CAPITAL  PROJECTS. THE AGGREGATE PRINCIPAL AMOUNT OF BONDS AUTHORIZED TO
   47  BE ISSUED PURSUANT TO  THIS  SECTION  SHALL  NOT  EXCEED  FIFTY  MILLION
   48  DOLLARS, EXCLUDING BONDS ISSUED TO FUND ONE OR MORE DEBT SERVICE RESERVE
   49  FUNDS, TO PAY COSTS OF ISSUANCE OF SUCH BONDS, AND BONDS OR NOTES ISSUED
   50  TO REFUND OR OTHERWISE REPAY SUCH BONDS OR NOTES PREVIOUSLY ISSUED. SUCH
   51  BONDS  AND  NOTES  OF  THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT
   52  CORPORATION SHALL NOT BE A DEBT OF THE STATE, AND THE STATE SHALL NOT BE
   53  LIABLE THEREON, NOR SHALL THEY BE PAYABLE OUT OF ANY  FUNDS  OTHER  THAN
   54  THOSE APPROPRIATED BY THE STATE TO THE DORMITORY AUTHORITY AND THE URBAN
   55  DEVELOPMENT  CORPORATION  FOR  PRINCIPAL, INTEREST, AND RELATED EXPENSES
   56  PURSUANT TO A SERVICE CONTRACT AND SUCH BONDS AND NOTES SHALL CONTAIN ON
       S. 4610                            116                           A. 6721
    1  THE FACE THEREOF A STATEMENT TO SUCH  EFFECT.  EXCEPT  FOR  PURPOSES  OF
    2  COMPLYING  WITH THE INTERNAL REVENUE CODE, ANY INTEREST INCOME EARNED ON
    3  BOND PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS.
    4    2.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW TO THE CONTRARY, IN
    5  ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPO-
    6  RATION IN UNDERTAKING THE FINANCING FOR PROJECT COSTS FOR THE  NONPROFIT
    7  INFRASTRUCTURE  CAPITAL INVESTMENT PROGRAM AND OTHER STATE COSTS ASSOCI-
    8  ATED WITH SUCH CAPITAL PROJECTS, THE DIRECTOR OF THE  BUDGET  IS  HEREBY
    9  AUTHORIZED TO ENTER INTO ONE OR MORE SERVICE CONTRACTS WITH THE DORMITO-
   10  RY  AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION, NONE OF WHICH SHALL
   11  EXCEED THIRTY YEARS IN DURATION, UPON SUCH TERMS AND CONDITIONS  AS  THE
   12  DIRECTOR  OF THE BUDGET AND THE DORMITORY AUTHORITY AND THE URBAN DEVEL-
   13  OPMENT CORPORATION AGREE, SO AS TO ANNUALLY  PROVIDE  TO  THE  DORMITORY
   14  AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION, IN THE AGGREGATE, A SUM
   15  NOT TO EXCEED THE PRINCIPAL, INTEREST, AND RELATED EXPENSES REQUIRED FOR
   16  SUCH BONDS AND NOTES. ANY SERVICE CONTRACT ENTERED INTO PURSUANT TO THIS
   17  SECTION SHALL PROVIDE THAT THE OBLIGATION OF THE STATE TO PAY THE AMOUNT
   18  THEREIN  PROVIDED  SHALL  NOT  CONSTITUTE A DEBT OF THE STATE WITHIN THE
   19  MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED
   20  EXECUTORY ONLY TO THE EXTENT OF MONIES AVAILABLE AND THAT  NO  LIABILITY
   21  SHALL  BE  INCURRED  BY  THE  STATE BEYOND THE MONIES AVAILABLE FOR SUCH
   22  PURPOSE, SUBJECT TO ANNUAL APPROPRIATION BY THE  LEGISLATURE.  ANY  SUCH
   23  CONTRACT  OR  ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED
   24  AND PLEDGED BY THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT  CORPO-
   25  RATION  AS  SECURITY  FOR  ITS  BONDS  AND  NOTES, AS AUTHORIZED BY THIS
   26  SECTION.
   27    S 27. Subdivision 1 of section 16 of part D of chapter 389 of the laws
   28  of 1997, relating  to  the  financing  of  the  correctional  facilities
   29  improvement  fund and the youth facility improvement fund, as amended by
   30  section 29 of part I of chapter 55 of the laws of 2014,  is  amended  to
   31  read as follows:
   32    1.  Subject  to  the provisions of chapter 59 of the laws of 2000, but
   33  notwithstanding the provisions of section 18 of section 1 of chapter 174
   34  of the laws of 1968, the New York state urban development corporation is
   35  hereby authorized to issue bonds, notes  and  other  obligations  in  an
   36  aggregate  principal  amount  not  to  exceed  seven billion one hundred
   37  [forty-eight] SIXTY-THREE  million  THREE  HUNDRED  sixty-nine  thousand
   38  dollars  [$7,148,069,000]  $7,163,369,000,  and shall include all bonds,
   39  notes and other obligations issued pursuant to chapter 56 of the laws of
   40  1983, as amended or supplemented. The proceeds of such bonds,  notes  or
   41  other obligations shall be paid to the state, for deposit in the correc-
   42  tional facilities capital improvement fund to pay for all or any portion
   43  of  the amount or amounts paid by the state from appropriations or reap-
   44  propriations made to the department of corrections and community  super-
   45  vision  from  the  correctional  facilities capital improvement fund for
   46  capital projects. The aggregate amount of bonds, notes  or  other  obli-
   47  gations  authorized  to be issued pursuant to this section shall exclude
   48  bonds, notes or other obligations issued to refund  or  otherwise  repay
   49  bonds,  notes  or  other obligations theretofore issued, the proceeds of
   50  which were paid to the state  for  all  or  a  portion  of  the  amounts
   51  expended  by  the  state from appropriations or reappropriations made to
   52  the department  of  corrections  and  community  supervision;  provided,
   53  however,  that  upon any such refunding or repayment the total aggregate
   54  principal amount of outstanding bonds, notes or other obligations may be
   55  greater than seven billion one hundred [forty-eight] SIXTY-THREE million
   56  THREE   HUNDRED    sixty-nine    thousand    dollars    [$7,148,069,000]
       S. 4610                            117                           A. 6721
    1  $7,163,369,000,  only if the present value of the aggregate debt service
    2  of the refunding or repayment bonds, notes or other  obligations  to  be
    3  issued  shall not exceed the present value of the aggregate debt service
    4  of  the  bonds,  notes or other obligations so to be refunded or repaid.
    5  For the purposes hereof, the present value of the aggregate debt service
    6  of the refunding or repayment bonds, notes or other obligations  and  of
    7  the  aggregate  debt service of the bonds, notes or other obligations so
    8  refunded or repaid, shall  be  calculated  by  utilizing  the  effective
    9  interest  rate of the refunding or repayment bonds, notes or other obli-
   10  gations, which shall be that rate arrived at by doubling the semi-annual
   11  interest rate (compounded semi-annually) necessary to discount the  debt
   12  service  payments  on  the  refunding or repayment bonds, notes or other
   13  obligations from the payment dates thereof to the date of issue  of  the
   14  refunding  or  repayment  bonds,  notes  or other obligations and to the
   15  price bid including estimated accrued interest or proceeds  received  by
   16  the corporation including estimated accrued interest from the sale ther-
   17  eof.
   18    S  28.  Paragraph  (a) of subdivision 2 of section 47-e of the private
   19  housing finance law, as amended by section 30 of part I of chapter 55 of
   20  the laws of 2014, is amended to read as follows:
   21    (a) Subject to the provisions of chapter fifty-nine of the laws of two
   22  thousand, in order to enhance and encourage  the  promotion  of  housing
   23  programs  and thereby achieve the stated purposes and objectives of such
   24  housing programs, the agency shall have the power and is hereby  author-
   25  ized  from  time  to  time to issue negotiable housing program bonds and
   26  notes in such principal amount as shall be necessary to  provide  suffi-
   27  cient  funds  for the repayment of amounts disbursed (and not previously
   28  reimbursed) pursuant to law or any prior year making  capital  appropri-
   29  ations  or  reappropriations  for  the  purposes of the housing program;
   30  provided, however, that the agency may issue such bonds and notes in  an
   31  aggregate  principal amount not exceeding [two] THREE billion [nine] ONE
   32  hundred [ninety-nine]  FIFTY-THREE  million  SEVEN  HUNDRED  ninety-nine
   33  thousand  dollars,  plus  a principal amount of bonds issued to fund the
   34  debt service reserve fund in accordance with the  debt  service  reserve
   35  fund  requirement  established  by  the  agency  and  to  fund any other
   36  reserves that the agency reasonably deems necessary for the security  or
   37  marketability  of  such bonds and to provide for the payment of fees and
   38  other charges and expenses, including  underwriters'  discount,  trustee
   39  and rating agency fees, bond insurance, credit enhancement and liquidity
   40  enhancement  related to the issuance of such bonds and notes. No reserve
   41  fund securing the housing program bonds shall be entitled or eligible to
   42  receive state funds apportioned or appropriated to maintain  or  restore
   43  such  reserve  fund at or to a particular level, except to the extent of
   44  any deficiency resulting directly or indirectly from a  failure  of  the
   45  state to appropriate or pay the agreed amount under any of the contracts
   46  provided for in subdivision four of this section.
   47    S  29.  Subdivision  (b)  of  section 11 of chapter 329 of the laws of
   48  1991, amending the state finance law and  other  laws  relating  to  the
   49  establishment of the dedicated highway and bridge trust fund, as amended
   50  by section 31 of part I of chapter 55 of the laws of 2014, is amended to
   51  read as follows:
   52    (b) Any service contract or contracts for projects authorized pursuant
   53  to  sections  10-c,  10-f,  10-g and 80-b of the highway law and section
   54  14-k of the transportation law, and entered into pursuant to subdivision
   55  (a) of this section, shall provide  for  state  commitments  to  provide
   56  annually  to  the  thruway  authority a sum or sums, upon such terms and
       S. 4610                            118                           A. 6721
    1  conditions as shall be deemed appropriate by the director of the budget,
    2  to fund, or fund the debt service requirements of any bonds or any obli-
    3  gations of the thruway authority issued to  fund  or  to  reimburse  the
    4  state  for  funding  such  projects  having  a  cost  not  in  excess of
    5  [$8,120,728,000] $8,658,881,000 cumulatively by the end of  fiscal  year
    6  [2014-15] 2015-16.
    7    S  30.  Subdivision 1 of section 1689-i of the public authorities law,
    8  as amended by section 32 of part I of chapter 55 of the laws of 2014, is
    9  amended to read as follows:
   10    1. The dormitory authority  is  authorized  to  issue  bonds,  at  the
   11  request  of  the  commissioner of education, to finance eligible library
   12  construction projects pursuant to section two hundred seventy-three-a of
   13  the education law, in amounts certified  by  such  commissioner  not  to
   14  exceed  a total principal amount of [one hundred twenty-six] ONE HUNDRED
   15  FORTY million dollars.
   16    S 31. Subdivision (a) of section 27 of part Y of  chapter  61  of  the
   17  laws  of  2005,  providing  for  the administration of certain funds and
   18  accounts related to the 2005-2006 budget, as amended by  section  33  of
   19  part I of chapter 55 of the laws of 2014, is amended to read as follows:
   20    (a)  Subject  to the provisions of chapter 59 of the laws of 2000, but
   21  notwithstanding any provisions of law to the contrary, the urban  devel-
   22  opment  corporation  is hereby authorized to issue bonds or notes in one
   23  or  more  series  in  an  aggregate  principal  amount  not  to   exceed
   24  [$149,600,000]  $155,600,000,  excluding  bonds issued to finance one or
   25  more debt service reserve funds, to pay costs of issuance of such bonds,
   26  and bonds or notes issued to refund or otherwise  repay  such  bonds  or
   27  notes  previously  issued, for the purpose of financing capital projects
   28  including IT initiatives for the division of state police, debt  service
   29  and  leases;  and  to reimburse the state general fund for disbursements
   30  made therefor. Such bonds and notes of such authorized issuer shall  not
   31  be  a  debt of the state, and the state shall not be liable thereon, nor
   32  shall they be payable out of any funds other than those appropriated  by
   33  the  state  to  such  authorized  issuer  for  debt  service and related
   34  expenses pursuant to any service contract executed pursuant to  subdivi-
   35  sion  (b)  of this section and such bonds and notes shall contain on the
   36  face thereof a statement to such effect. Except for purposes of  comply-
   37  ing  with  the internal revenue code, any interest income earned on bond
   38  proceeds shall only be used to pay debt service on such bonds.
   39    S 32. Section 44 of section 1 of chapter 174  of  the  laws  of  1968,
   40  constituting  the  New  York state urban development corporation act, as
   41  amended by section 34 of part I of chapter 55 of the laws  of  2014,  is
   42  amended to read as follows:
   43    S  44.  Issuance  of  certain  bonds  or notes. 1. Notwithstanding the
   44  provisions of any other law to the contrary, the dormitory authority and
   45  the corporation are hereby authorized to issue bonds or notes in one  or
   46  more  series  for  the purpose of funding project costs for the regional
   47  economic development council  initiative,  the  economic  transformation
   48  program,  state university of New York college for nanoscale and science
   49  engineering, projects within the city of Buffalo  or  surrounding  envi-
   50  rons,  the  New  York  works economic development fund, projects for the
   51  retention of professional football in western New York, the empire state
   52  economic development fund, the  clarkson-trudeau  partnership,  the  New
   53  York  genome  center, the cornell university college of veterinary medi-
   54  cine, the olympic regional development  authority,  a  project  at  nano
   55  Utica,  onondaga  county  revitalization projects, BINGHAMTON UNIVERSITY
   56  SCHOOL OF PHARMACY, NEW YORK POWER ELECTRONICS MANUFACTURING CONSORTIUM,
       S. 4610                            119                           A. 6721
    1  REGIONAL INFRASTRUCTURE PROJECTS, and other state costs associated  with
    2  such  projects. The aggregate principal amount of bonds authorized to be
    3  issued pursuant to this section shall not exceed two billion [two] EIGHT
    4  hundred  [three]  EIGHTY-EIGHT  million two hundred fifty-seven thousand
    5  dollars, excluding bonds issued to fund one or more debt service reserve
    6  funds, to pay costs of issuance of such bonds, and bonds or notes issued
    7  to refund or otherwise repay such bonds or notes previously issued. Such
    8  bonds and notes of the dormitory authority and the corporation shall not
    9  be a debt of the state, and the state shall not be liable  thereon,  nor
   10  shall  they be payable out of any funds other than those appropriated by
   11  the state to the dormitory authority and the corporation for  principal,
   12  interest,  and  related expenses pursuant to a service contract and such
   13  bonds and notes shall contain on the face thereof a  statement  to  such
   14  effect. Except for purposes of complying with the internal revenue code,
   15  any  interest  income  earned on bond proceeds shall only be used to pay
   16  debt service on such bonds.
   17    2. Notwithstanding any other provision of  law  to  the  contrary,  in
   18  order to assist the dormitory authority and the corporation in undertak-
   19  ing  the  financing for project costs for the regional economic develop-
   20  ment council initiative,  the  economic  transformation  program,  state
   21  university  of  New  York college for nanoscale and science engineering,
   22  projects within the city of Buffalo or  surrounding  environs,  the  New
   23  York  works  economic  development  fund,  projects for the retention of
   24  professional football in western New York,  the  empire  state  economic
   25  development  fund, the clarkson-trudeau partnership, the New York genome
   26  center, the cornell university college of veterinary medicine, the olym-
   27  pic regional development authority, a project at  nano  Utica,  onondaga
   28  county  revitalization projects, BINGHAMTON UNIVERSITY SCHOOL OF PHARMA-
   29  CY,  NEW  YORK  POWER  ELECTRONICS  MANUFACTURING  CONSORTIUM,  REGIONAL
   30  INFRASTRUCTURE  PROJECTS  and  other  state  costs  associated with such
   31  projects, the director of the budget is hereby authorized to enter  into
   32  one  or  more  service  contracts  with  the dormitory authority and the
   33  corporation, none of which shall exceed thirty years in  duration,  upon
   34  such terms and conditions as the director of the budget and the dormito-
   35  ry authority and the corporation agree, so as to annually provide to the
   36  dormitory  authority and the corporation, in the aggregate, a sum not to
   37  exceed the principal, interest, and related expenses required  for  such
   38  bonds  and  notes.  Any  service  contract entered into pursuant to this
   39  section shall provide that the obligation of the state to pay the amount
   40  therein provided shall not constitute a debt of  the  state  within  the
   41  meaning of any constitutional or statutory provision and shall be deemed
   42  executory  only  to the extent of monies available and that no liability
   43  shall be incurred by the state beyond  the  monies  available  for  such
   44  purpose,  subject  to  annual appropriation by the legislature. Any such
   45  contract or any payments made or to be made thereunder may  be  assigned
   46  and  pledged  by the dormitory authority and the corporation as security
   47  for its bonds and notes, as authorized by this section.
   48    S 33. Subdivisions 1 and 3 of section 1285-p of the public authorities
   49  law, subdivision 1 as amended by section 55 of part HH of chapter 57  of
   50  the laws of 2013 and subdivision 3 as amended by section 35 of part I of
   51  chapter 55 of the laws of 2014, are amended to read as follows:
   52    1.  Subject  to  chapter  fifty-nine  of the laws of two thousand, but
   53  notwithstanding any other provisions of law to the contrary, in order to
   54  assist the corporation in undertaking the administration and the financ-
   55  ing of the design, acquisition, construction, improvement, installation,
   56  and related work for all or any portion of any of the following environ-
       S. 4610                            120                           A. 6721
    1  mental infrastructure projects and for the provision  of  funds  to  the
    2  state  for any amounts disbursed therefor: (a) projects authorized under
    3  the environmental protection fund, or for which appropriations are  made
    4  to  the  environmental  protection  fund  including,  but not limited to
    5  municipal  parks  and  historic  preservation,   stewardship,   farmland
    6  protection, non-point source, pollution control, Hudson River Park, land
    7  acquisition,  and  waterfront revitalization; (b) department of environ-
    8  mental conservation capital appropriations for Onondaga Lake for certain
    9  water quality improvement projects in the same manner as  set  forth  in
   10  paragraph (d) of subdivision one of section 56-0303 of the environmental
   11  conservation law; (c) for the purpose of the administration, management,
   12  maintenance, and use of the real property at the western New York nucle-
   13  ar  service  center;  [and] (d) department of environmental conservation
   14  capital appropriations  for  the  administration,  design,  acquisition,
   15  construction,  improvement, installation, and related work on department
   16  of environmental  conservation  environmental  infrastructure  projects;
   17  [and]  (e)  office of parks, recreation and historic preservation appro-
   18  priations or reappropriations from the state parks infrastructure  fund;
   19  [and]  (f)  capital  grants for the cleaner, greener communities program
   20  AND (G) CAPITAL COSTS  OF  WATER  QUALITY  INFRASTRUCTURE  PROJECTS  the
   21  director  of the division of budget and the corporation are each author-
   22  ized to enter into one or more service contracts, none  of  which  shall
   23  exceed  twenty  years in duration, upon such terms and conditions as the
   24  director and the corporation may agree, so as to annually provide to the
   25  corporation in the aggregate, a  sum  not  to  exceed  the  annual  debt
   26  service  payments  and related expenses required for any bonds and notes
   27  authorized pursuant to section twelve hundred ninety of this title.  Any
   28  service  contract  entered  into  pursuant to this section shall provide
   29  that the obligation of the state to fund or to pay the  amounts  therein
   30  provided for shall not constitute a debt of the state within the meaning
   31  of  any constitutional or statutory provision and shall be deemed execu-
   32  tory only to the extent of moneys available for such  purposes,  subject
   33  to annual appropriation by the legislature. Any such service contract or
   34  any  payments  made or to be made thereunder may be assigned and pledged
   35  by the corporation as security for its bonds and  notes,  as  authorized
   36  pursuant to section twelve hundred ninety of this title.
   37    3.  The  maximum amount of bonds that may be issued for the purpose of
   38  financing  environmental  infrastructure  projects  authorized  by  this
   39  section shall be one billion [three] SEVEN hundred [ninety-eight] SEVEN-
   40  TY-FIVE million [two] SEVEN hundred sixty thousand dollars, exclusive of
   41  bonds  issued to fund any debt service reserve funds, pay costs of issu-
   42  ance of such bonds, and bonds or notes issued  to  refund  or  otherwise
   43  repay  bonds  or  notes  previously  issued. Such bonds and notes of the
   44  corporation shall not be a debt of the state, and the state shall not be
   45  liable thereon, nor shall they be payable out of any  funds  other  than
   46  those  appropriated by the state to the corporation for debt service and
   47  related expenses pursuant to any service contracts executed pursuant  to
   48  subdivision  one of this section, and such bonds and notes shall contain
   49  on the face thereof a statement to such effect.
   50    S 34. Subdivision 1 of section 45 of section 1 of chapter 174  of  the
   51  laws  of  1968, constituting the New York state urban development corpo-
   52  ration act, as amended by section 37 of part I of chapter 55 of the laws
   53  of 2014, is amended to read as follows:
   54    1. Notwithstanding the provisions of any other law  to  the  contrary,
   55  the  urban  development  corporation  of the state of New York is hereby
   56  authorized to issue bonds or notes in one or more series for the purpose
       S. 4610                            121                           A. 6721
    1  of funding project costs for the implementation of a NY-SUNY and NY-CUNY
    2  2020 challenge grant program subject to the approval of  a  NY-SUNY  and
    3  NY-CUNY  2020 plan or plans by the governor and either the chancellor of
    4  the state university of New York or the chancellor of the city universi-
    5  ty  of  New York, as applicable. The aggregate principal amount of bonds
    6  authorized to be issued  pursuant  to  this  section  shall  not  exceed
    7  [$330,000,000]  $440,000,000, excluding bonds issued to fund one or more
    8  debt service reserve funds, to pay costs of issuance of such bonds,  and
    9  bonds  or  notes issued to refund or otherwise repay such bonds or notes
   10  previously issued. Such bonds and notes of the corporation shall not  be
   11  a  debt  of  the  state,  and the state shall not be liable thereon, nor
   12  shall they be payable out of any funds other than those appropriated  by
   13  the  state  to  the  corporation  for  principal,  interest, and related
   14  expenses pursuant to a service contract and such bonds and  notes  shall
   15  contain  on  the  face  thereof  a  statement to such effect. Except for
   16  purposes of complying with  the  internal  revenue  code,  any  interest
   17  income earned on bond proceeds shall only be used to pay debt service on
   18  such bonds.
   19    S  35.  Subdivision  (a)  of section 48 of part K of chapter 81 of the
   20  laws of 2002, providing for the  administration  of  certain  funds  and
   21  accounts  related  to  the 2002-2003 budget, as amended by section 38 of
   22  part I of chapter 55 of the laws of 2014, is amended to read as follows:
   23    (a) Subject to the provisions of chapter 59 of the laws  of  2000  but
   24  notwithstanding  the  provisions  of section 18 of the urban development
   25  corporation act, the corporation is hereby authorized to issue bonds  or
   26  notes  in  one  or  more  series in an aggregate principal amount not to
   27  exceed $197,000,000 excluding bonds issued to  fund  one  or  more  debt
   28  service reserve funds, to pay costs of issuance of such bonds, and bonds
   29  or  notes issued to refund or otherwise repay such bonds or notes previ-
   30  ously issued, for the purpose of  financing  capital  costs  related  to
   31  homeland  security  and  training  facilities  for the division of state
   32  police, the division of military and naval affairs, and any other  state
   33  agency,  including  the reimbursement of any disbursements made from the
   34  state capital projects fund, and is hereby authorized to issue bonds  or
   35  notes  in  one  or  more  series in an aggregate principal amount not to
   36  exceed [$317,800,000] $469,800,000, excluding bonds issued to  fund  one
   37  or  more  debt  service  reserve funds, to pay costs of issuance of such
   38  bonds, and bonds or notes issued to refund or otherwise repay such bonds
   39  or notes previously issued, for the purpose of financing improvements to
   40  State office buildings and other facilities located statewide, including
   41  the reimbursement of any  disbursements  made  from  the  state  capital
   42  projects  fund.  Such  bonds and notes of the corporation shall not be a
   43  debt of the state, and the state shall not be liable thereon, nor  shall
   44  they  be  payable  out of any funds other than those appropriated by the
   45  state to the corporation for debt service and related expenses  pursuant
   46  to  any  service  contracts executed pursuant to subdivision (b) of this
   47  section, and such bonds and notes shall contain on the  face  thereof  a
   48  statement to such effect.
   49    S 36. Subdivision 1 of section 386-b of the public authorities law, as
   50  amended  by  section  39 of part I of chapter 55 of the laws of 2014, is
   51  amended to read as follows:
   52    1. Notwithstanding any other provision of law  to  the  contrary,  the
   53  authority, the dormitory authority and the urban development corporation
   54  are  hereby authorized to issue bonds or notes in one or more series for
   55  the purpose of financing peace bridge  projects  and  capital  costs  of
   56  state and local highways, parkways, bridges, the New York state thruway,
       S. 4610                            122                           A. 6721
    1  Indian reservation roads, and facilities, and transportation infrastruc-
    2  ture   projects   including  aviation  projects,  non-MTA  mass  transit
    3  projects, and rail service preservation projects, including work  appur-
    4  tenant  and  ancillary  thereto. The aggregate principal amount of bonds
    5  authorized to be issued pursuant to this section shall not exceed [four]
    6  ONE  BILLION   SIX   hundred   [sixty-five]   NINETY   million   dollars
    7  [($465,000,000)]  $1,690,000,000,  excluding bonds issued to fund one or
    8  more debt service reserve funds, to pay costs of issuance of such bonds,
    9  and to refund or otherwise repay such bonds or notes previously  issued.
   10  Such  bonds  and notes of the authority, the dormitory authority and the
   11  urban development corporation shall not be a debt of the state, and  the
   12  state  shall not be liable thereon, nor shall they be payable out of any
   13  funds other than those appropriated by the state to the  authority,  the
   14  dormitory authority and the urban development corporation for principal,
   15  interest,  and  related expenses pursuant to a service contract and such
   16  bonds and notes shall contain on the face thereof a  statement  to  such
   17  effect. Except for purposes of complying with the internal revenue code,
   18  any  interest  income  earned on bond proceeds shall only be used to pay
   19  debt service on such bonds.
   20    S 37. Paragraph (c) of subdivision 19 of section 1680  of  the  public
   21  authorities law, as amended by section 40 of part I of chapter 55 of the
   22  laws of 2014, is amended to read as follows:
   23    (c) Subject to the provisions of chapter fifty-nine of the laws of two
   24  thousand,  the  dormitory  authority shall not issue any bonds for state
   25  university educational facilities purposes if the  principal  amount  of
   26  bonds to be issued when added to the aggregate principal amount of bonds
   27  issued  by  the  dormitory  authority  on and after July first, nineteen
   28  hundred eighty-eight for state university  educational  facilities  will
   29  exceed   [ten]   ELEVEN   billion   [nine]   TWO  hundred  [eighty-four]
   30  TWENTY-EIGHT million dollars; provided, however, that bonds issued or to
   31  be issued shall be excluded from such limitation if: (1) such bonds  are
   32  issued to refund state university construction bonds and state universi-
   33  ty  construction  notes previously issued by the housing finance agency;
   34  or (2) such bonds are issued to refund bonds of the authority  or  other
   35  obligations  issued for state university educational facilities purposes
   36  and the present value of the aggregate debt  service  on  the  refunding
   37  bonds does not exceed the present value of the aggregate debt service on
   38  the bonds refunded thereby; provided, further that upon certification by
   39  the director of the budget that the issuance of refunding bonds or other
   40  obligations  issued between April first, nineteen hundred ninety-two and
   41  March thirty-first, nineteen hundred  ninety-three  will  generate  long
   42  term  economic  benefits  to  the  state, as assessed on a present value
   43  basis, such issuance will be deemed to have met the present  value  test
   44  noted  above. For purposes of this subdivision, the present value of the
   45  aggregate debt service of the refunding bonds  and  the  aggregate  debt
   46  service of the bonds refunded, shall be calculated by utilizing the true
   47  interest  cost  of the refunding bonds, which shall be that rate arrived
   48  at by doubling the semi-annual interest rate (compounded  semi-annually)
   49  necessary  to  discount the debt service payments on the refunding bonds
   50  from the payment dates thereof to the date of  issue  of  the  refunding
   51  bonds  to  the purchase price of the refunding bonds, including interest
   52  accrued thereon prior to the issuance  thereof.  The  maturity  of  such
   53  bonds,  other  than  bonds issued to refund outstanding bonds, shall not
   54  exceed the weighted average economic life, as  certified  by  the  state
   55  university construction fund, of the facilities in connection with which
   56  the  bonds  are  issued,  and  in any case not later than the earlier of
       S. 4610                            123                           A. 6721
    1  thirty years or the expiration of the term of  any  lease,  sublease  or
    2  other  agreement  relating  thereto;  provided  that  no note, including
    3  renewals thereof, shall mature later than five years after the  date  of
    4  issuance  of  such  note. The legislature reserves the right to amend or
    5  repeal such limit, and the state of New York, the  dormitory  authority,
    6  the  state university of New York, and the state university construction
    7  fund are prohibited from covenanting or making any other agreements with
    8  or for the benefit of bondholders which might in  any  way  affect  such
    9  right.
   10    S  38.  Paragraph  (c) of subdivision 14 of section 1680 of the public
   11  authorities law, as amended by section 41 of part I of chapter 55 of the
   12  laws of 2014, is amended to read as follows:
   13    (c) Subject to the provisions of chapter fifty-nine of the laws of two
   14  thousand, (i) the dormitory authority shall  not  deliver  a  series  of
   15  bonds for city university community college facilities, except to refund
   16  or  to  be substituted for or in lieu of other bonds in relation to city
   17  university community college facilities pursuant to a resolution of  the
   18  dormitory  authority adopted before July first, nineteen hundred eighty-
   19  five or any resolution supplemental thereto, if the principal amount  of
   20  bonds  so  to  be  issued  when  added to all principal amounts of bonds
   21  previously issued by the dormitory authority for city university  commu-
   22  nity  college  facilities, except to refund or to be substituted in lieu
   23  of other bonds in relation to city university community college  facili-
   24  ties will exceed the sum of four hundred twenty-five million dollars and
   25  (ii)  the dormitory authority shall not deliver a series of bonds issued
   26  for city university facilities, including community college  facilities,
   27  pursuant  to a resolution of the dormitory authority adopted on or after
   28  July first, nineteen hundred eighty-five, except  to  refund  or  to  be
   29  substituted for or in lieu of other bonds in relation to city university
   30  facilities  and except for bonds issued pursuant to a resolution supple-
   31  mental to a resolution of the dormitory authority adopted prior to  July
   32  first, nineteen hundred eighty-five, if the principal amount of bonds so
   33  to  be  issued  when  added  to the principal amount of bonds previously
   34  issued pursuant to any such resolution, except bonds issued to refund or
   35  to be substituted for or in lieu of other  bonds  in  relation  to  city
   36  university  facilities,  will  exceed  seven billion [two] THREE hundred
   37  [seventy-three] NINETY-TWO million [three]  SEVEN  hundred  [thirty-one]
   38  FIFTY-THREE  thousand  dollars.  The  legislature  reserves the right to
   39  amend or repeal such limit, and the state of  New  York,  the  dormitory
   40  authority,  the city university, and the fund are prohibited from coven-
   41  anting or making any other agreements with or for the benefit  of  bond-
   42  holders which might in any way affect such right.
   43    S  39. Subdivision 10-a of section 1680 of the public authorities law,
   44  as amended by section 42 of part I of chapter 55 of the laws of 2014, is
   45  amended to read as follows:
   46    10-a. Subject to the provisions of chapter fifty-nine of the  laws  of
   47  two  thousand, but notwithstanding any other provision of the law to the
   48  contrary, the maximum amount of bonds and notes to be issued after March
   49  thirty-first, two thousand two, on behalf of the state, in  relation  to
   50  any  locally sponsored community college, shall be [seven] EIGHT hundred
   51  [seventy-six]  THIRTY-EIGHT  million   [three]   FOUR   hundred   [five]
   52  FIFTY-EIGHT  thousand  dollars.  Such amount shall be exclusive of bonds
   53  and notes issued to fund any reserve fund or funds,  costs  of  issuance
   54  and  to  refund any outstanding bonds and notes, issued on behalf of the
   55  state, relating to a locally sponsored community college.
       S. 4610                            124                           A. 6721
    1    S 40. Section 1680-r of  the  public  authorities  law,  as  added  by
    2  section  43  of  part I of chapter 55 of the laws of 2014, is amended to
    3  read as follows:
    4    S  1680-r.  Authorization  for  the  issuance of bonds for the capital
    5  restructuring financing program AND THE HEALTH CARE FACILITY TRANSFORMA-
    6  TION PROGRAM. 1. Notwithstanding the provisions of any other law to  the
    7  contrary,  the dormitory authority and the urban development corporation
    8  are hereby authorized to issue bonds or notes in one or more series  for
    9  the  purpose  of  funding  project  costs  for the capital restructuring
   10  financing program for health care and related facilities licensed pursu-
   11  ant to the public health law or the mental hygiene law and  other  state
   12  costs associated with such capital projects AND THE HEALTH CARE FACILITY
   13  TRANSFORMATION PROGRAM.  The aggregate principal amount of bonds author-
   14  ized  to  be  issued pursuant to this section shall not exceed [one] TWO
   15  billion two hundred million dollars, excluding bonds issued to fund  one
   16  or  more  debt  service  reserve funds, to pay costs of issuance of such
   17  bonds, and bonds or notes issued to refund or otherwise repay such bonds
   18  or notes previously issued.  Such  bonds  and  notes  of  the  dormitory
   19  authority  and  the urban development corporation shall not be a debt of
   20  the state, and the state shall not be liable thereon, nor shall they  be
   21  payable  out  of any funds other than those appropriated by the state to
   22  the dormitory authority and the urban development corporation for  prin-
   23  cipal, interest, and related expenses pursuant to a service contract and
   24  such  bonds  and  notes shall contain on the face thereof a statement to
   25  such effect. Except for purposes of complying with the internal  revenue
   26  code,  any interest income earned on bond proceeds shall only be used to
   27  pay debt service on such bonds.
   28    2. Notwithstanding any other provision of  law  to  the  contrary,  in
   29  order to assist the dormitory authority and the urban development corpo-
   30  ration  in  undertaking  the financing for project costs for the capital
   31  restructuring financing program for health care and  related  facilities
   32  licensed pursuant to the public health law or the mental hygiene law and
   33  other  state  costs associated with such capital projects AND THE HEALTH
   34  CARE FACILITY TRANSFORMATION PROGRAM, the  director  of  the  budget  is
   35  hereby  authorized  to enter into one or more service contracts with the
   36  dormitory authority and the urban development corporation, none of which
   37  shall exceed thirty years in duration, upon such terms and conditions as
   38  the director of the budget and the dormitory  authority  and  the  urban
   39  development corporation agree, so as to annually provide to the dormito-
   40  ry  authority and the urban development corporation, in the aggregate, a
   41  sum not to exceed the principal, interest, and related expenses required
   42  for such bonds and notes. Any service contract entered into pursuant  to
   43  this  section  shall provide that the obligation of the state to pay the
   44  amount therein provided shall not constitute a debt of the state  within
   45  the  meaning  of  any constitutional or statutory provision and shall be
   46  deemed executory only to the extent of  monies  available  and  that  no
   47  liability shall be incurred by the state beyond the monies available for
   48  such  purpose,  subject  to annual appropriation by the legislature. Any
   49  such contract or any payments made or  to  be  made  thereunder  may  be
   50  assigned  and  pledged by the dormitory authority and the urban develop-
   51  ment corporation as security for its bonds and notes, as  authorized  by
   52  this section.
   53    S 41. Subdivision 1 of section 17 of part D of chapter 389 of the laws
   54  of  1997,  relating  to  the  financing  of  the correctional facilities
   55  improvement fund and the youth facility improvement fund, as amended  by
       S. 4610                            125                           A. 6721
    1  section  44  of  part I of chapter 55 of the laws of 2014, is amended to
    2  read as follows:
    3    1.  Subject  to  the provisions of chapter 59 of the laws of 2000, but
    4  notwithstanding the provisions of section 18 of section 1 of chapter 174
    5  of the laws of 1968, the New York state urban development corporation is
    6  hereby authorized to issue bonds, notes  and  other  obligations  in  an
    7  aggregate principal amount not to exceed [four] SIX hundred [sixty-five]
    8  ELEVEN million [three] TWO hundred [sixty-five] FIFTEEN thousand dollars
    9  [($465,365,000)]   ($611,215,000),  which  authorization  increases  the
   10  aggregate principal amount of bonds, notes and other obligations author-
   11  ized by section 40 of chapter 309 of the laws of 1996, and shall include
   12  all bonds, notes and other obligations issued pursuant to chapter 211 of
   13  the laws of 1990, as amended  or  supplemented.  The  proceeds  of  such
   14  bonds, notes or other obligations shall be paid to the state, for depos-
   15  it  in  the  youth  facilities  improvement  fund, to pay for all or any
   16  portion of the amount or amounts paid by the state  from  appropriations
   17  or  reappropriations  made to the office of children and family services
   18  from the youth facilities improvement fund  for  capital  projects.  The
   19  aggregate  amount of bonds, notes and other obligations authorized to be
   20  issued pursuant to this section shall  exclude  bonds,  notes  or  other
   21  obligations  issued  to  refund or otherwise repay bonds, notes or other
   22  obligations theretofore issued, the proceeds of which were paid  to  the
   23  state  for  all  or  a portion of the amounts expended by the state from
   24  appropriations or reappropriations made to the office  of  children  and
   25  family  services;  provided,  however,  that  upon any such refunding or
   26  repayment the total aggregate principal  amount  of  outstanding  bonds,
   27  notes  or  other  obligations  may  be  greater  than [four] SIX hundred
   28  [sixty-five] ELEVEN million [three]  TWO  hundred  [sixty-five]  FIFTEEN
   29  thousand  dollars  [($465,365,000)]  ($611,215,000), only if the present
   30  value of the aggregate debt service of the refunding or repayment bonds,
   31  notes or other obligations to be issued shall  not  exceed  the  present
   32  value  of  the aggregate debt service of the bonds, notes or other obli-
   33  gations so to be refunded or repaid. For the purposes hereof, the  pres-
   34  ent  value  of  the aggregate debt service of the refunding or repayment
   35  bonds, notes or other obligations and of the aggregate debt  service  of
   36  the  bonds,  notes  or other obligations so refunded or repaid, shall be
   37  calculated by utilizing the effective interest rate of the refunding  or
   38  repayment  bonds,  notes  or other obligations, which shall be that rate
   39  arrived at by doubling the semi-annual interest rate  (compounded  semi-
   40  annually) necessary to discount the debt service payments on the refund-
   41  ing  or  repayment  bonds,  notes  or other obligations from the payment
   42  dates thereof to the date of issue of the refunding or repayment  bonds,
   43  notes  or  other  obligations  and  to the price bid including estimated
   44  accrued interest or proceeds received by the corporation including esti-
   45  mated accrued interest from the sale thereof.
   46    S 42. Paragraph b of subdivision 2 of section  9-a  of  section  1  of
   47  chapter 392 of the laws of 1973, constituting the New York state medical
   48  care  facilities  finance agency act, as amended by section 46 of part I
   49  of chapter 55 of the laws of 2014, is amended to read as follows:
   50    b. The agency shall have power and is hereby authorized from  time  to
   51  time  to  issue negotiable bonds and notes in conformity with applicable
   52  provisions of the uniform commercial code in such principal  amount  as,
   53  in  the  opinion  of  the  agency, shall be necessary, after taking into
   54  account other moneys which may be available for the purpose, to  provide
   55  sufficient  funds  to  the  facilities  development  corporation, or any
   56  successor agency, for the financing or refinancing of or for the design,
       S. 4610                            126                           A. 6721
    1  construction, acquisition, reconstruction, rehabilitation or improvement
    2  of mental health services facilities pursuant to  paragraph  a  of  this
    3  subdivision,  the payment of interest on mental health services improve-
    4  ment  bonds and mental health services improvement notes issued for such
    5  purposes, the establishment of reserves to secure such bonds and  notes,
    6  the  cost  or  premium  of  bond insurance or the costs of any financial
    7  mechanisms which may be used to reduce the debt service  that  would  be
    8  payable  by the agency on its mental health services facilities improve-
    9  ment bonds and notes and all other expenditures of the  agency  incident
   10  to  and  necessary or convenient to providing the facilities development
   11  corporation, or any successor agency, with funds for  the  financing  or
   12  refinancing of or for any such design, construction, acquisition, recon-
   13  struction, rehabilitation or improvement and for the refunding of mental
   14  hygiene improvement bonds issued pursuant to section 47-b of the private
   15  housing  finance law; provided, however, that the agency shall not issue
   16  mental health services facilities improvement bonds  and  mental  health
   17  services  facilities  improvement notes in an aggregate principal amount
   18  exceeding seven billion [four] SEVEN  hundred  [thirty-five]  TWENTY-TWO
   19  million  eight hundred fifteen thousand dollars, excluding mental health
   20  services facilities improvement bonds and mental health services facili-
   21  ties improvement  notes  issued  to  refund  outstanding  mental  health
   22  services facilities improvement bonds and mental health services facili-
   23  ties  improvement notes; provided, however, that upon any such refunding
   24  or repayment of mental  health  services  facilities  improvement  bonds
   25  and/or  mental  health  services  facilities improvement notes the total
   26  aggregate principal amount of outstanding mental health services facili-
   27  ties improvement bonds and mental health  facilities  improvement  notes
   28  may  be  greater  than  seven billion [four] SEVEN hundred [thirty-five]
   29  TWENTY-TWO million eight  hundred  fifteen  thousand  dollars  only  if,
   30  except  as  hereinafter  provided with respect to mental health services
   31  facilities bonds and mental health services facilities notes  issued  to
   32  refund mental hygiene improvement bonds authorized to be issued pursuant
   33  to  the  provisions  of section 47-b of the private housing finance law,
   34  the present value of the aggregate debt  service  of  the  refunding  or
   35  repayment  bonds  to be issued shall not exceed the present value of the
   36  aggregate debt service of the  bonds  to  be  refunded  or  repaid.  For
   37  purposes hereof, the present values of the aggregate debt service of the
   38  refunding  or  repayment  bonds,  notes  or other obligations and of the
   39  aggregate debt service of the  bonds,  notes  or  other  obligations  so
   40  refunded  or  repaid,  shall  be  calculated  by utilizing the effective
   41  interest rate of the refunding or repayment bonds, notes or other  obli-
   42  gations, which shall be that rate arrived at by doubling the semi-annual
   43  interest  rate (compounded semi-annually) necessary to discount the debt
   44  service payments on the refunding or repayment  bonds,  notes  or  other
   45  obligations  from  the payment dates thereof to the date of issue of the
   46  refunding or repayment bonds, notes or  other  obligations  and  to  the
   47  price  bid  including estimated accrued interest or proceeds received by
   48  the authority including estimated accrued interest from the sale  there-
   49  of.  Such  bonds,  other  than bonds issued to refund outstanding bonds,
   50  shall be scheduled to mature over a  term  not  to  exceed  the  average
   51  useful  life, as certified by the facilities development corporation, of
   52  the projects for which the bonds are issued, and in any case  shall  not
   53  exceed  thirty  years  and the maximum maturity of notes or any renewals
   54  thereof shall not exceed five years from the date of the original  issue
   55  of such notes. Notwithstanding the provisions of this section, the agen-
   56  cy  shall have the power and is hereby authorized to issue mental health
       S. 4610                            127                           A. 6721
    1  services facilities improvement  bonds  and/or  mental  health  services
    2  facilities  improvement  notes  to  refund  outstanding  mental  hygiene
    3  improvement bonds authorized to be issued pursuant to the provisions  of
    4  section  47-b of the private housing finance law and the amount of bonds
    5  issued or outstanding for  such  purposes  shall  not  be  included  for
    6  purposes  of  determining  the  amount  of bonds issued pursuant to this
    7  section. The director of the budget shall allocate the aggregate princi-
    8  pal authorized to be issued by the agency among  the  office  of  mental
    9  health,  office  for  people  with  developmental  disabilities, and the
   10  office of alcoholism and substance abuse services, in consultation  with
   11  their respective commissioners to finance bondable appropriations previ-
   12  ously approved by the legislature.
   13    S  43.  Paragraph  (b) of subdivision 3 of section 1 and clause (B) of
   14  subparagraph (iii) of paragraph (j) of subdivision 4  of  section  1  of
   15  part D of chapter 63 of the laws of 2005 relating to the composition and
   16  responsibilities of the New York state higher education capital matching
   17  grant  board,  as amended by section 46-c of part I of chapter 55 of the
   18  laws of 2014, is amended to read as follows:
   19    (b) Within amounts appropriated therefor, the board is hereby  author-
   20  ized  and  directed  to award matching capital grants totaling [180] 210
   21  million dollars. Each college shall be eligible for a grant award amount
   22  as determined by the calculations pursuant to subdivision five  of  this
   23  section.  In  addition,  such  colleges shall be eligible to compete for
   24  additional funds pursuant to paragraph (h) of subdivision four  of  this
   25  section.
   26    (B)  The  dormitory authority shall not issue any bonds or notes in an
   27  amount in excess of [180] 210 million dollars for the purposes  of  this
   28  section;  excluding  bonds  or  notes  issued  to  fund one or more debt
   29  service reserve funds, to pay costs of issuance of such bonds, and bonds
   30  or notes issued to refund or otherwise repay such bonds or notes  previ-
   31  ously issued. Except for purposes of complying with the internal revenue
   32  code,  any  interest  on  bond  proceeds  shall only be used to pay debt
   33  service on such bonds.
   34    S 44. Subdivision 1 of section 49 of section 1 of chapter 174  of  the
   35  laws  of  1968, constituting the New York state urban development corpo-
   36  ration act, as amended by section 46-a of part I of chapter  55  of  the
   37  laws of 2014, is amended to read as follows:
   38    1.  Notwithstanding  the  provisions of any other law to the contrary,
   39  the dormitory authority and the corporation  are  hereby  authorized  to
   40  issue  bonds  or  notes in one or more series for the purpose of funding
   41  project costs for the state and municipal facilities program  and  other
   42  state costs associated with such capital projects. The aggregate princi-
   43  pal  amount  of  bonds  authorized to be issued pursuant to this section
   44  shall not exceed [seven hundred seventy] ONE BILLION ONE HUNDRED  FIFTY-
   45  FIVE  million  dollars,  excluding bonds issued to fund one or more debt
   46  service reserve funds, to pay costs of issuance of such bonds, and bonds
   47  or notes issued to refund or otherwise repay such bonds or notes  previ-
   48  ously  issued.  Such  bonds and notes of the dormitory authority and the
   49  corporation shall not be a debt of the state, and the state shall not be
   50  liable thereon, nor shall they be payable out of any  funds  other  than
   51  those  appropriated  by  the  state  to  the dormitory authority and the
   52  corporation for principal, interest, and related expenses pursuant to  a
   53  service  contract  and  such  bonds  and notes shall contain on the face
   54  thereof a statement to such effect. Except  for  purposes  of  complying
   55  with  the  internal  revenue  code,  any  interest income earned on bond
   56  proceeds shall only be used to pay debt service on such bonds.
       S. 4610                            128                           A. 6721
    1    S 45. Intentionally omitted.
    2    S 46. Subdivision 1 of section 386-a of the public authorities law, as
    3  added  by  section  46  of  part U of chapter 59 of the laws of 2012, is
    4  amended to read as follows:
    5    1. Notwithstanding any other provision of law  to  the  contrary,  the
    6  authority, the dormitory authority and the urban development corporation
    7  are  hereby authorized to issue bonds or notes in one or more series for
    8  the purpose of assisting the metropolitan  transportation  authority  in
    9  the  financing  of  transportation  facilities as defined in subdivision
   10  seventeen of section twelve  hundred  sixty-one  of  this  chapter.  The
   11  aggregate  principal amount of bonds authorized to be issued pursuant to
   12  this section shall not exceed ONE BILLION [seven] FIVE hundred [seventy]
   13  TWENTY  million  dollars  [($770,000,000)]  ($1,520,000,000),  excluding
   14  bonds  issued  to  fund  one  or more debt service reserve funds, to pay
   15  costs of issuance of such bonds, and to refund or otherwise  repay  such
   16  bonds or notes previously issued. Such bonds and notes of the authority,
   17  the  dormitory authority and the urban development corporation shall not
   18  be a debt of the state, and the state shall not be liable  thereon,  nor
   19  shall  they be payable out of any funds other than those appropriated by
   20  the state to the authority, the dormitory authority and the urban devel-
   21  opment corporation for principal, interest, and related expenses  pursu-
   22  ant  to a service contract and such bonds and notes shall contain on the
   23  face thereof a statement to such effect. Except for purposes of  comply-
   24  ing  with  the internal revenue code, any interest income earned on bond
   25  proceeds shall only be used to pay debt service on such bonds.
   26    S 47. This act shall take effect immediately and shall  be  deemed  to
   27  have been in full force and effect on and after April 1, 2015; provided,
   28  however,  that the provisions of sections one through eight and sections
   29  thirteen through twenty of this act shall expire March  31,  2016,  when
   30  upon such date the provisions of such sections shall be deemed repealed.
   31                                   PART J
   32    Section  1.  The  public health law is amended by adding a new section
   33  2825-a to read as follows:
   34    S 2825-A. HEALTH CARE FACILITY TRANSFORMATION  PROGRAM:  KINGS  COUNTY
   35  PROJECT.  1.  A KINGS COUNTY HEALTH CARE FACILITY TRANSFORMATION PROGRAM
   36  IS HEREBY ESTABLISHED UNDER THE JOINT ADMINISTRATION OF THE COMMISSIONER
   37  AND THE PRESIDENT OF THE DORMITORY AUTHORITY OF THE STATE  OF  NEW  YORK
   38  FOR  THE  PURPOSE  OF  STRENGTHENING  AND PROTECTING CONTINUED ACCESS TO
   39  HEALTH CARE SERVICES IN COMMUNITIES. THE PROGRAM SHALL  PROVIDE  CAPITAL
   40  FUNDING  IN  SUPPORT  OF  PROJECTS THAT REPLACE INEFFICIENT AND OUTDATED
   41  FACILITIES AS PART OF A  MERGER,  CONSOLIDATION,  ACQUISITION  OR  OTHER
   42  SIGNIFICANT CORPORATE RESTRUCTURING ACTIVITY INTENDED TO CREATE A FINAN-
   43  CIALLY  SUSTAINABLE  SYSTEM  OF CARE. THE ISSUANCE OF ANY BONDS OR NOTES
   44  HEREUNDER SHALL BE SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE  DIVI-
   45  SION  OF  THE  BUDGET,  AND  ANY PROJECTS FUNDED THROUGH THE ISSUANCE OF
   46  BONDS OR NOTES HEREUNDER SHALL BE APPROVED BY THE NEW YORK STATE  PUBLIC
   47  AUTHORITIES  CONTROL  BOARD,  AS REQUIRED UNDER SECTION FIFTY-ONE OF THE
   48  PUBLIC AUTHORITIES LAW.
   49    2. THE COMMISSIONER AND THE PRESIDENT OF  THE  AUTHORITY  SHALL  ENTER
   50  INTO  AN  AGREEMENT,  SUBJECT TO APPROVAL BY THE DIRECTOR OF THE BUDGET,
   51  AND SUBJECT TO SECTION SIXTEEN HUNDRED EIGHTY-R OF THE  PUBLIC  AUTHORI-
   52  TIES  LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND ADMINISTERING
   53  THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION.  SUCH  FUNDS  MAY  BE
   54  DISTRIBUTED  BY  THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY FOR
       S. 4610                            129                           A. 6721
    1  CAPITAL GRANTS TO GENERAL HOSPITALS, RESIDENTIAL HEALTH CARE FACILITIES,
    2  DIAGNOSTIC AND TREATMENT CENTERS, PRIMARY CARE PROVIDERS, AND HOME  CARE
    3  PROVIDERS,  CERTIFIED OR LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF THIS
    4  CHAPTER,  FOR CAPITAL NON-OPERATIONAL WORKS OR PURPOSES THAT SUPPORT THE
    5  PURPOSES SET FORTH IN THIS SECTION. A COPY OF SUCH  AGREEMENT,  AND  ANY
    6  AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF THE SENATE FINANCE
    7  COMMITTEE,  THE  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, AND THE
    8  DIRECTOR OF THE DIVISION OF BUDGET NO LATER THAN THIRTY  DAYS  PRIOR  TO
    9  THE  RELEASE  OF  A  REQUEST  FOR  APPLICATIONS  FOR  FUNDING UNDER THIS
   10  PROGRAM. PROJECTS AWARDED UNDER SECTION TWENTY-EIGHT HUNDRED TWENTY-FIVE
   11  OF THIS ARTICLE SHALL NOT BE ELIGIBLE FOR GRANTS OR AWARDS  MADE  AVAIL-
   12  ABLE UNDER THIS SECTION.
   13    3.  NOTWITHSTANDING  SECTION  ONE  HUNDRED  SIXTY-THREE  OF  THE STATE
   14  FINANCE LAW OR ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, UP  TO
   15  SEVEN HUNDRED MILLION DOLLARS OF THE FUNDS APPROPRIATED FOR THIS PROGRAM
   16  SHALL BE AWARDED WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
   17  ESS FOR CAPITAL GRANTS TO HEALTH CARE PROVIDERS (HEREAFTER "APPLICANTS")
   18  LOCATED IN THE COUNTY OF KINGS.
   19    (A)  ELIGIBLE  APPLICANTS  SHALL SERVE COMMUNITIES WHOSE RESIDENTS ARE
   20  EXPERIENCING SIGNIFICANT LEVELS OF HEALTH CARE  DISPARITIES  AND  HEALTH
   21  CARE  NEEDS  COMPARED TO OTHER COMMUNITIES WITHIN THE COUNTY OF KINGS AS
   22  EVIDENCED BY:
   23    (I) A HIGH NUMBER OF MEDICAID ENROLLEES AND UNINSURED INDIVIDUALS;
   24    (II) ELEVATED BLOOD LEAD LEVEL RATES AMONG  CHILDREN,  HIGH  RATES  OF
   25  DIABETES,  HIGH  BLOOD PRESSURE, ASTHMA, OBESITY, INFANT DEATH OR PREMA-
   26  TURE BIRTH,  HEART  FAILURE,  BEHAVIORAL  HEALTH  CONDITIONS,  SUBSTANCE
   27  ABUSE;
   28    (III)  LOW  LEVELS  OF  INCOME, HIGH RATES OF UNEMPLOYMENT, DISTRESSED
   29  HOUSING CONDITIONS, AND POOR NUTRITIONAL STATUS;
   30    (IV) OTHER RISK FACTORS AS DETERMINED  BY  THE  COMMISSIONER  AND  THE
   31  PRESIDENT OF THE AUTHORITY; AND
   32    (B) SUCH ELIGIBLE APPLICANT SHALL:
   33    (I)  (A) HAVE A LOSS FROM OPERATIONS FOR EACH OF THE THREE CONSECUTIVE
   34  PRECEDING YEARS AS EVIDENCED BY AUDITED FINANCIAL STATEMENTS;
   35    (B) HAVE A NEGATIVE FUND BALANCE OR NEGATIVE EQUITY POSITION  IN  EACH
   36  OF  THE  THREE  PRECEDING YEARS AS EVIDENCED BY AUDITED FINANCIAL STATE-
   37  MENTS; AND
   38    (C) HAVE A CURRENT RATIO OF LESS THAN 1:1 FOR EACH  OF  THREE  CONSEC-
   39  UTIVE PRECEDING YEARS; OR
   40    (II)  BE  DEEMED BY THE COMMISSIONER AND PRESIDENT OF THE AUTHORITY TO
   41  BE A PROVIDER THAT FULFILLS OR WILL FULFILL AN UNMET  HEALTH  CARE  NEED
   42  FOR  ACUTE  INPATIENT,  OUTPATIENT,  PRIMARY  OR RESIDENTIAL HEALTH CARE
   43  SERVICES IN A COMMUNITY.
   44    4. IN DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER  THIS  SECTION,
   45  THE  COMMISSIONER  AND  THE  PRESIDENT  OF  THE AUTHORITY SHALL CONSIDER
   46  CRITERIA INCLUDING, BUT NOT LIMITED TO:
   47    (A) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT  WILL  CONTRIBUTE
   48  TO  THE  LONG  TERM  SUSTAINABILITY  OF THE APPLICANT OR PRESERVATION OF
   49  ESSENTIAL HEALTH SERVICES IN THE COMMUNITY OR COMMUNITIES SERVED BY  THE
   50  APPLICANT;
   51    (B)  THE  EXTENT  TO  WHICH THE PROPOSED PROJECT OR PURPOSE IS ALIGNED
   52  WITH DELIVERY SYSTEM REFORM INCENTIVE PAYMENT  ("DSRIP")  PROGRAM  GOALS
   53  AND OBJECTIVES;
   54    (C)  THE RELATIONSHIP BETWEEN THE PROPOSED CAPITAL PROJECT AND IDENTI-
   55  FIED COMMUNITY NEED;
       S. 4610                            130                           A. 6721
    1    (D) THE EXTENT THAT THE PROPOSED CAPITAL PROJECT FURTHERS THE DEVELOP-
    2  MENT OF PRIMARY CARE AND OTHER OUTPATIENT SERVICES;
    3    (E) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT BENEFITS MEDICAID
    4  ENROLLEES AND UNINSURED INDIVIDUALS;
    5    (F)  THE  EXTENT  TO  WHICH  THE  APPLICANT  HAS ENGAGED THE COMMUNITY
    6  AFFECTED BY THE PROPOSED CAPITAL PROJECT AND THE MANNER IN WHICH  COMMU-
    7  NITY ENGAGEMENT HAS SHAPED SUCH CAPITAL PROJECT; AND
    8    (G)  THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT ADDRESSES POTEN-
    9  TIAL RISK TO PATIENT SAFETY AND WELFARE.
   10    5. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS  TO  THE
   11  CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND
   12  ASSEMBLY  HEALTH  COMMITTEES.  SUCH  REPORTS SHALL BE SUBMITTED NO LATER
   13  THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL CONFORM TO THE
   14  REPORTING REQUIREMENTS OF SUBDIVISION  TWENTY  OF  SECTION  TWENTY-EIGHT
   15  HUNDRED SEVEN OF THIS ARTICLE, AS APPLICABLE.
   16    S  2.  The public health law is amended by adding a new section 2825-b
   17  to read as follows:
   18    S 2825-B. ONEIDA COUNTY HEALTH CARE FACILITY  TRANSFORMATION  PROGRAM:
   19  ONEIDA  COUNTY  PROJECT. 1. AN ONEIDA COUNTY HEALTH CARE FACILITY TRANS-
   20  FORMATION PROGRAM IS HEREBY ESTABLISHED UNDER THE  JOINT  ADMINISTRATION
   21  OF  THE COMMISSIONER AND THE PRESIDENT OF THE DORMITORY AUTHORITY OF THE
   22  STATE OF NEW YORK  FOR  THE  PURPOSE  OF  STRENGTHENING  AND  PROTECTING
   23  CONTINUED  ACCESS  TO  HEALTH  CARE SERVICES IN COMMUNITIES. THE PROGRAM
   24  SHALL PROVIDE CAPITAL FUNDING IN SUPPORT  OF  PROJECTS  LOCATED  IN  THE
   25  LARGEST  POPULATION  CENTER  IN  ONEIDA COUNTY THAT CONSOLIDATE MULTIPLE
   26  LICENSED HEALTH CARE FACILITIES INTO AN INTEGRATED SYSTEM OF  CARE.  THE
   27  ISSUANCE  OF  ANY  BONDS  OR  NOTES  HEREUNDER  SHALL  BE SUBJECT TO THE
   28  APPROVAL OF THE DIRECTOR OF THE DIVISION OF THE BUDGET, AND ANY PROJECTS
   29  FUNDED THROUGH THE  ISSUANCE  OF  BONDS  OR  NOTES  HEREUNDER  SHALL  BE
   30  APPROVED  BY  THE  NEW  YORK  STATE PUBLIC AUTHORITIES CONTROL BOARD, AS
   31  REQUIRED UNDER SECTION FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
   32    2. THE COMMISSIONER AND THE PRESIDENT OF  THE  AUTHORITY  SHALL  ENTER
   33  INTO  AN  AGREEMENT,  SUBJECT TO APPROVAL BY THE DIRECTOR OF THE BUDGET,
   34  AND SUBJECT TO SECTION SIXTEEN HUNDRED EIGHTY-R OF THE  PUBLIC  AUTHORI-
   35  TIES  LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND ADMINISTERING
   36  THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION.  SUCH  FUNDS  MAY  BE
   37  DISTRIBUTED  BY  THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY FOR
   38  CAPITAL GRANTS TO GENERAL HOSPITALS FOR THE  PURPOSES  OF  CONSOLIDATING
   39  MULTIPLE  LICENSED  HEALTH  CARE FACILITIES INTO AN INTEGRATED SYSTEM OF
   40  CARE FOR CAPITAL NON-OPERATIONAL WORKS  OR  PURPOSES  THAT  SUPPORT  THE
   41  PURPOSES  SET  FORTH  IN THIS SECTION. A COPY OF SUCH AGREEMENT, AND ANY
   42  AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF THE SENATE FINANCE
   43  COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE,  AND  THE
   44  DIRECTOR  OF  THE  DIVISION OF BUDGET NO LATER THAN THIRTY DAYS PRIOR TO
   45  THE RELEASE OF  A  REQUEST  FOR  APPLICATIONS  FOR  FUNDING  UNDER  THIS
   46  PROGRAM. PROJECTS AWARDED UNDER SECTION TWENTY-EIGHT HUNDRED TWENTY-FIVE
   47  OF  THIS  ARTICLE SHALL NOT BE ELIGIBLE FOR GRANTS OR AWARDS MADE AVAIL-
   48  ABLE UNDER THIS SECTION.
   49    3. NOTWITHSTANDING  SECTION  ONE  HUNDRED  SIXTY-THREE  OF  THE  STATE
   50  FINANCE  LAW OR ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, UP TO
   51  THREE HUNDRED MILLION DOLLARS OF THE FUNDS APPROPRIATED FOR THIS PROGRAM
   52  SHALL BE AWARDED WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
   53  ESS FOR CAPITAL GRANTS TO HEALTH CARE PROVIDERS (HEREAFTER "APPLICANTS")
   54  LOCATED IN THE COUNTY OF ONEIDA.
       S. 4610                            131                           A. 6721
    1    4. IN DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER  THIS  SECTION,
    2  THE  COMMISSIONER  AND  THE  PRESIDENT  OF  THE AUTHORITY SHALL CONSIDER
    3  CRITERIA INCLUDING, BUT NOT LIMITED TO:
    4    (A)  THE  EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT WILL CONTRIBUTE
    5  TO THE INTEGRATION OF HEALTH CARE SERVICES AND LONG TERM  SUSTAINABILITY
    6  OF  THE  APPLICANT  OR  PRESERVATION OF ESSENTIAL HEALTH SERVICES IN THE
    7  COMMUNITY OR COMMUNITIES SERVED BY THE APPLICANT;
    8    (B) THE EXTENT TO WHICH THE PROPOSED PROJECT  OR  PURPOSE  IS  ALIGNED
    9  WITH  DELIVERY  SYSTEM  REFORM INCENTIVE PAYMENT ("DSRIP") PROGRAM GOALS
   10  AND OBJECTIVES;
   11    (C) THE RELATIONSHIP BETWEEN THE PROPOSED CAPITAL PROJECT AND  IDENTI-
   12  FIED COMMUNITY NEED;
   13    (D) THE EXTENT THAT THE PROPOSED CAPITAL PROJECT FURTHERS THE DEVELOP-
   14  MENT OF PRIMARY CARE AND OTHER OUTPATIENT SERVICES;
   15    (E) THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT BENEFITS MEDICAID
   16  ENROLLEES AND UNINSURED INDIVIDUALS;
   17    (F)  THE  EXTENT  TO  WHICH  THE  APPLICANT  HAS ENGAGED THE COMMUNITY
   18  AFFECTED BY THE PROPOSED CAPITAL PROJECT AND THE MANNER IN WHICH  COMMU-
   19  NITY ENGAGEMENT HAS SHAPED SUCH CAPITAL PROJECT; AND
   20    (G)  THE EXTENT TO WHICH THE PROPOSED CAPITAL PROJECT ADDRESSES POTEN-
   21  TIAL RISK TO PATIENT SAFETY AND WELFARE.
   22    5. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS  TO  THE
   23  CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND
   24  ASSEMBLY  HEALTH  COMMITTEES.  SUCH  REPORTS SHALL BE SUBMITTED NO LATER
   25  THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL CONFORM TO THE
   26  REPORTING REQUIREMENTS OF SUBDIVISION  TWENTY  OF  SECTION  TWENTY-EIGHT
   27  HUNDRED SEVEN OF THIS ARTICLE, AS APPLICABLE.
   28    S  3.  The public health law is amended by adding a new section 2825-c
   29  to read as follows:
   30    S 2825-C. ESSENTIAL HEALTH CARE PROVIDER SUPPORT PROGRAM.  1. NOTWITH-
   31  STANDING SECTION ONE HUNDRED SIXTY-THREE OF THE STATE  FINANCE  LAW,  OR
   32  ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, WITHIN AMOUNTS APPRO-
   33  PRIATED,  FUNDS  MAY  BE  ALLOCATED  AND DISTRIBUTED BY THE COMMISSIONER
   34  WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROCESS, FOR GRANTS TO
   35  ESSENTIAL HEALTH CARE PROVIDERS  TO  SUPPORT  DEBT  RETIREMENT,  CAPITAL
   36  PROJECTS OR NON-CAPITAL PROJECTS THAT FACILITATE HEALTH CARE TRANSFORMA-
   37  TION,  INCLUDING  MERGERS,  CONSOLIDATION,  AND RESTRUCTURING ACTIVITIES
   38  INTENDED TO CREATE A FINANCIALLY  SUSTAINABLE  SYSTEM  OF  CARE.  GRANTS
   39  SHALL  NOT  BE  AVAILABLE  TO  SUPPORT  GENERAL  OPERATING EXPENSES. FOR
   40  PURPOSES OF THIS SECTION, AN ESSENTIAL HEALTH CARE PROVIDER IS A  HOSPI-
   41  TAL  OR  HOSPITAL  SYSTEM  THAT,  IN THE DISCRETION OF THE COMMISSIONER,
   42  OFFERS HEALTH CARE SERVICES WITHIN A  DEFINED  GEOGRAPHIC  REGION  WHERE
   43  SUCH  SERVICES  WOULD OTHERWISE BE UNAVAILABLE TO THE POPULATION OF SUCH
   44  REGION.
   45    2. THE COMMISSIONER SHALL AWARD GRANTS FOR  PROJECTS  CONSISTENT  WITH
   46  THE PURPOSES OF THIS SECTION. ELIGIBLE APPLICANTS SHALL MEET THE FOLLOW-
   47  ING CRITERIA:
   48    (A)  (I) HAVE A LOSS FROM OPERATIONS FOR EACH OF THE THREE CONSECUTIVE
   49  PRECEDING YEARS AS EVIDENCED BY AUDITED FINANCIAL STATEMENTS;
   50    (II) HAVE A NEGATIVE FUND BALANCE OR NEGATIVE EQUITY POSITION IN  EACH
   51  OF  THE  THREE  PRECEDING YEARS AS EVIDENCED BY AUDITED FINANCIAL STATE-
   52  MENTS; AND
   53    (III) HAVE A CURRENT RATIO OF LESS THAN 1:1 FOR EACH OF THREE  CONSEC-
   54  UTIVE PRECEDING YEARS; OR
   55    (B)  BE  DEEMED  BY THE COMMISSIONER TO BE A PROVIDER THAT FULFILLS OR
   56  WILL FULFILL AN UNMET NEED FOR ACUTE INPATIENT, OUTPATIENT,  PRIMARY  OR
       S. 4610                            132                           A. 6721
    1  RESIDENTIAL  HEALTH  CARE  SERVICES IN A DEFINED GEOGRAPHIC REGION WHERE
    2  SUCH SERVICES WOULD BE OTHERWISE UNAVAILABLE TO THE POPULATION  OF  SUCH
    3  REGION.
    4    3.  SUCH  AWARDS  SHALL BE DISTRIBUTED PURSUANT TO CRITERIA, INCLUDING
    5  BUT NOT LIMITED TO:
    6    (A) THE EXTENT TO WHICH THE PROPOSED PROJECT WILL  CONTRIBUTE  TO  THE
    7  LONG  TERM  SUSTAINABILITY OF THE APPLICANT OR PRESERVATION OF ESSENTIAL
    8  HEALTH CARE SERVICES IN A COMMUNITY;
    9    (B) THE EXTENT TO WHICH THE PROPOSED PROJECT  OR  PURPOSE  IS  ALIGNED
   10  WITH  DELIVERY  SYSTEM  REFORM INCENTIVE PAYMENT ("DSRIP") PROGRAM GOALS
   11  AND OBJECTIVES;
   12    (C) CONSIDERATION OF GEOGRAPHIC DISTRIBUTION OF FUNDS;
   13    (D) THE RELATIONSHIP BETWEEN THE PROPOSED PROJECT  AND  AN  IDENTIFIED
   14  COMMUNITY NEED;
   15    (E)  THE  EXTENT  TO  WHICH  THE  APPLICANT  HAS ACCESS TO ALTERNATIVE
   16  FINANCING;
   17    (F) THE EXTENT TO WHICH THE PROPOSED PROJECT FURTHERS THE  DEVELOPMENT
   18  OF PRIMARY CARE;
   19    (G)  THE EXTENT TO WHICH THE PROPOSED PROJECT BENEFITS MEDICAID ENROL-
   20  LEES AND UNINSURED INDIVIDUALS;
   21    (H) THE EXTENT TO  WHICH  THE  APPLICANT  HAS  ENGAGED  THE  COMMUNITY
   22  AFFECTED  BY  THE PROPOSED PROJECT AND THE MANNER IN WHICH THE COMMUNITY
   23  ENGAGEMENT HAS SHAPED SUCH PROJECT; AND
   24    (I) THE EXTENT TO WHICH THE PROPOSED PROJECT ADDRESSES POTENTIAL  RISK
   25  TO PATIENT SAFETY AND WELFARE.
   26    4.  DISBURSEMENT  OF  AWARDS  MADE  PURSUANT  TO THIS SECTION SHALL BE
   27  CONDITIONED ON THE AWARDEE ACHIEVING  CERTAIN  PROCESS  AND  PERFORMANCE
   28  METRICS  AND  MILESTONES  AS  DETERMINED  IN  THE SOLE DISCRETION OF THE
   29  COMMISSIONER. SUCH METRICS AND MILESTONES SHALL BE STRUCTURED TO  ENSURE
   30  THAT THE HEALTH CARE TRANSFORMATION AND PROVIDER SUSTAINABILITY GOALS OF
   31  THE  PROJECT  ARE  ACHIEVED,  AND  SUCH  METRICS AND MILESTONES SHALL BE
   32  INCLUDED IN GRANT DISBURSEMENT AGREEMENTS OR OTHER CONTRACTUAL DOCUMENTS
   33  AS REQUIRED BY THE COMMISSIONER.
   34    5. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO   THE
   35  CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND
   36  ASSEMBLY  HEALTH  COMMITTEES.  SUCH  REPORTS SHALL BE SUBMITTED NO LATER
   37  THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL  INCLUDE,  FOR
   38  EACH  AWARD,  THE NAME OF THE APPLICANT, A DESCRIPTION OF THE PROJECT OR
   39  PURPOSE, THE AMOUNT OF THE  AWARD,  DISBURSEMENT  DATE,  AND  STATUS  OF
   40  ACHIEVEMENT  OF  PROCESS AND PERFORMANCE METRICS AND MILESTONES PURSUANT
   41  TO SUBDIVISION FOUR OF THIS SECTION.
   42    S 4. The opening paragraph of subdivision 3 of  section  2825  of  the
   43  public  health law, as added by section 8 of part A of chapter 60 of the
   44  laws of 2014, is amended to read as follows:
   45    The commissioner and the president of the authority shall  enter  into
   46  an  agreement,  subject  to  approval  by the director of the budget and
   47  subject to section sixteen hundred eighty-r of  the  public  authorities
   48  law, as added by a chapter of the laws of two thousand fourteen, for the
   49  purposes  of  awarding,  distributing,  and administering the funds made
   50  available pursuant to this section. TO  THE  EXTENT  PRACTICABLE,  FUNDS
   51  SHALL  BE  AWARDED REGIONALLY IN PROPORTION TO THE APPLICATIONS RECEIVED
   52  FROM THE REQUEST FOR APPLICATION ISSUED BY  OR  BEFORE  MAY  FIRST,  TWO
   53  THOUSAND  FIFTEEN.  PROJECTS AWARDED UNDER SECTIONS TWENTY-EIGHT HUNDRED
   54  TWENTY-FIVE-A AND TWENTY-EIGHT HUNDRED  TWENTY-FIVE-B  OF  THIS  ARTICLE
   55  SHALL  NOT  BE  ELIGIBLE  FOR GRANTS OR AWARDS MADE AVAILABLE UNDER THIS
   56  SECTION.
       S. 4610                            133                           A. 6721
    1    S 5. The public health law is amended by adding a new  section  2815-a
    2  to read as follows:
    3    S  2815-A.  COMMUNITY  HEALTH  CARE REVOLVING CAPITAL FUND. 1.   DEFI-
    4  NITIONS. AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES  SHALL
    5  HAVE  THE  FOLLOWING  MEANINGS  UNLESS  A  DIFFERENT  MEANING IS PLAINLY
    6  REQUIRED BY THE CONTEXT:
    7    A. "ADMINISTRATOR" SHALL MEAN A NOT FOR PROFIT  COMMUNITY  DEVELOPMENT
    8  FINANCIAL INSTITUTION CDFI THAT IS CERTIFIED BY THE U.S. TREASURY COMMU-
    9  NITY  DEVELOPMENT  FINANCIAL  FUND, HAS EXPERIENCE FINANCING PROJECTS IN
   10  THE NEW YORK STATE HEALTHCARE SECTOR AND OTHERWISE  MEETS  THE  REQUIRE-
   11  MENTS OF THIS SECTION.
   12    B.  "DORMITORY  AUTHORITY"  OR  "AUTHORITY"  SHALL  MEAN THE DORMITORY
   13  AUTHORITY OF THE STATE OF NEW YORK CREATED  BY  TITLE  FOUR  OF  ARTICLE
   14  EIGHT  OF  THE PUBLIC AUTHORITIES LAW WHICH HAS SUCCEEDED TO THE POWERS,
   15  FUNCTIONS AND DUTIES OF  THE  MEDICAL  CARE  FACILITIES  FINANCE  AGENCY
   16  PURSUANT  TO  CHAPTER EIGHTY-THREE OF THE LAWS OF NINETEEN HUNDRED NINE-
   17  TY-FIVE.
   18    C. "PARTICIPATING BORROWER" SHALL MEAN A COMMUNITY-BASED  HEALTH  CARE
   19  PROVIDER,  WHICH  FOR  THE PURPOSES OF THIS SECTION, SHALL BE DEFINED AS
   20  DIAGNOSTIC AND TREATMENT CENTER LICENSED OR GRANTED AN OPERATING CERTIF-
   21  ICATE UNDER ARTICLE TWENTY-EIGHT OF THIS CHAPTER, A MENTAL HEALTH CLINIC
   22  LICENSED OR GRANTED AN OPERATING CERTIFICATE UNDER ARTICLE THIRTY-ONE OF
   23  THE MENTAL HEALTH LAW; OR AN ALCOHOL AND SUBSTANCE ABUSE TREATMENT CLIN-
   24  IC LICENSED OR GRANTED AN OPERATING CERTIFICATE UNDER ARTICLE THIRTY-TWO
   25  OF THE MENTAL HYGIENE LAW, EACH ORGANIZED UNDER THE LAWS OF THIS STATE.
   26    D. "REVOLVING CAPITAL FUND" SHALL MEAN COMMUNITY HEALTH CARE REVOLVING
   27  CAPITAL FUND AUTHORIZED TO BE ESTABLISHED BY THE DORMITORY AUTHORITY AND
   28  ADMINISTERED PURSUANT TO THIS SECTION.
   29    2. REVOLVING CAPITAL  FUND.  THE  DORMITORY  AUTHORITY  SHALL,  WITHIN
   30  AMOUNTS  APPROPRIATED,  ESTABLISH  THE  COMMUNITY  HEALTH CARE REVOLVING
   31  CAPITAL FUND.  MONIES IN THE REVOLVING CAPITAL FUND  SHALL  BE  UTILIZED
   32  FOR THE PURPOSE OF MAKING LOANS TO QUALIFYING PARTICIPATING BORROWERS TO
   33  IMPROVE  ACCESS  TO  AFFORDABLE  CAPITAL FINANCING TO EXPAND AND IMPROVE
   34  CAPACITY TO PROVIDE HEALTH CARE IN THE STATE. FUNDS SHALL BE TRANSFERRED
   35  BY THE COMMISSIONER TO  THE  DORMITORY  AUTHORITY  FOR  DEPOSIT  IN  THE
   36  REVOLVING  CAPITAL  FUND  IN  AN  AMOUNT AS AUTHORIZED BY APPROPRIATION.
   37  MONIES IN THE FUND SHALL BE: (A) HELD BY THE AUTHORITY PURSUANT TO  THIS
   38  SECTION  AS  CUSTODIAN  PURSUANT  TO  AN AGREEMENT WITH THE COMMISSIONER
   39  UNTIL TRANSFERRED TO THE ADMINISTRATOR PURSUANT TO THIS SECTION, AND (B)
   40  INVESTED BY THE AUTHORITY IN ACCORDANCE WITH THE  INVESTMENT  GUIDELINES
   41  OF  THE  AUTHORITY  DURING  SAID CUSTODIAL PERIOD. ALL INVESTMENT INCOME
   42  SHALL BE CREDITED TO, AND SHALL BE DEPOSITED IN, THE  REVOLVING  CAPITAL
   43  FUND.
   44    3.  ADMINISTRATION AGREEMENT. THE COMMISSIONER AND THE AUTHORITY SHALL
   45  ENTER INTO AN AGREEMENT, SUBJECT TO THE APPROVAL OF THE DIRECTOR OF  THE
   46  BUDGET,  FOR  THE  PURPOSE  OF  ADMINISTERING THE FUNDS IN THE REVOLVING
   47  CAPITAL FUND THROUGH AN ADMINISTRATOR. A COPY OF SUCH AGREEMENT, AND ANY
   48  AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF THE SENATE FINANCE
   49  COMMITTEE, THE DIRECTOR OF THE DIVISION OF BUDGET, AND THE CHAIR OF  THE
   50  ASSEMBLY  WAYS AND MEANS COMMITTEE. THE AGREEMENT SHALL SPECIFY THAT THE
   51  ADMINISTRATOR SHALL ADMINISTER THE COMMUNITY HEALTH CARE REVOLVING CAPI-
   52  TAL FUND IN A MANNER THAT WILL BENEFIT THE PUBLIC HEALTH BY  ENCOURAGING
   53  IMPROVEMENTS  IN THE COMMUNITY HEALTH CARE DELIVERY SYSTEM IN THE STATE,
   54  IN COMPLIANCE WITH ALL APPLICABLE LAWS,  RULES,  REGULATIONS  AND  OTHER
   55  REQUIREMENTS.
       S. 4610                            134                           A. 6721
    1    4. AGREEMENT WITH THE ADMINISTRATOR. THE DORMITORY AUTHORITY SHALL, IN
    2  CONSULTATION  WITH  THE  COMMISSIONER,  ENTER INTO AN AGREEMENT WITH THE
    3  ADMINISTRATOR. SUCH AGREEMENT SHALL PROVIDE FOR  THE  ADMINISTRATION  OF
    4  THE  REVOLVING  CAPITAL  FUND  ADMINISTRATOR,  IN  ACCORDANCE  WITH  THE
    5  REQUIREMENTS  OF  THIS SECTION, THE COMMISSIONER AND DORMITORY AUTHORITY
    6  AND ALL APPLICABLE LAWS, RULES, REGULATIONS AND OTHER REQUIREMENTS. UPON
    7  THE EFFECTIVE DATE OF THE AGREEMENT, CUSTODY OF, AND RESPONSIBILITY FOR,
    8  THE REVOLVING CAPITAL FUND  SHALL  BE  TRANSFERRED  FROM  THE  DORMITORY
    9  AUTHORITY  TO  THE  ADMINISTRATOR,  SUBJECT  TO  THE REQUIREMENTS OF THE
   10  AGREEMENT. SUCH AGREEMENT SHALL INCLUDE, BUT  NOT  BE  LIMITED  TO,  THE
   11  FOLLOWING PROVISIONS:
   12    A.  THAT  THE  ADMINISTRATOR  SHALL  BE  RESPONSIBLE  FOR THE RECEIPT,
   13  MANAGEMENT AND EXPENDITURE OF MONIES HELD IN THE REVOLVING CAPITAL FUND;
   14    B. THAT THE ADMINISTRATOR SHALL MAINTAIN BOOKS AND RECORDS  PERTAINING
   15  TO  ALL  MONIES  RECEIVED AND DISBURSED PURSUANT TO THIS SECTION AND THE
   16  AGREEMENT;
   17    C. THAT MONIES IN SUCH REVOLVING CAPITAL FUND SHALL  BE  UTILIZED  FOR
   18  THE  PURPOSE  OF  MAKING LOANS TO QUALIFYING PARTICIPATING BORROWERS, TO
   19  PROVIDE PARTICIPATING BORROWERS WITH IMPROVED ACCESS TO AFFORDABLE CAPI-
   20  TAL TO EXPAND AND IMPROVE PREVENTIVE OR PRIMARY CARE CAPACITY;
   21    D. THAT PARTICIPATING BORROWERS SHALL BE CHOSEN BY  THE  ADMINISTRATOR
   22  THROUGH AN APPLICATION PROCESS APPROVED BY THE AUTHORITY AND THE COMMIS-
   23  SIONER;
   24    E.  THAT  ELIGIBLE  USES OF FUNDS SO LOANED TO PARTICIPATING BORROWERS
   25  SHALL INCLUDE BUT NOT BE LIMITED TO: (I) ELIGIBLE COSTS AS DESCRIBED  IN
   26  PARAGRAPH   (F)  OF  THIS  SUBDIVISION,  ATTRIBUTABLE  TO  THE  PROPOSED
   27  CONSTRUCTION, RECONSTRUCTION, RENOVATION, REHABILITATION,  REFURBISHING,
   28  EXPANSION,  UPGRADING AND EQUIPPING OF A PARTICIPATING BORROWER'S COMMU-
   29  NITY-BASED HEALTH CARE FACILITY; (II) RESERVES  FOR  CREDIT  ENHANCEMENT
   30  INCLUDING LOAN GUARANTEES; (III) LOAN LOSS AND DEBT SERVICE RESERVES AND
   31  SUBORDINATED  LOANS;  AND  (IV)  FACILITY FINANCING, INCLUDING LOANS FOR
   32  PREDEVELOPMENT, ACQUISITION AND CONSTRUCTION,  PERMANENT  FINANCING  AND
   33  BRIDGE LOANS;
   34    F.  THAT  ELIGIBLE  COSTS UNDER THIS SECTION SHALL INCLUDE, BUT NOT BE
   35  LIMITED TO, ALL HARD CONSTRUCTION COSTS AND ASSOCIATED PROFESSIONAL  AND
   36  OTHER  COSTS, FURNITURE, FIXTURES AND EQUIPMENT, INCLUDING HEALTH INFOR-
   37  MATION TECHNOLOGY, ACQUISITION, PREDEVELOPMENT  DUE  DILIGENCE,  INITIAL
   38  OPERATING EXPENSES AND WORKING CAPITAL;
   39    G.  THAT  THE  ADMINISTRATOR  ADMINISTERING THE REVOLVING CAPITAL FUND
   40  SHALL REPORT QUARTERLY ON THE TRANSACTIONS IN THE REVOLVING CAPITAL FUND
   41  IN A FORM AND MANNER SPECIFIED BY THE AUTHORITY IN CONSULTATION WITH THE
   42  COMMISSIONER, INCLUDING BUT NOT LIMITED TO: RECEIPTS OR DEPOSITS TO  THE
   43  FUND,  DISBURSEMENTS,  LOANS  OR  CREDIT ENHANCEMENT MADE FROM THE FUND,
   44  INVESTMENT INCOME, AND THE BALANCE ON HAND AS OF THE END  OF  THE  MONTH
   45  FOR EACH SUCH QUARTER;
   46    H. THAT THE ADMINISTRATOR SHALL BE REQUIRED TO INVEST MONIES ON DEPOS-
   47  IT  IN  THE  FUND  IN  ACCORDANCE WITH INVESTMENT GUIDELINES MEETING THE
   48  REQUIREMENTS OF THE DEPARTMENT AND DORMITORY AUTHORITY, AND ALL  INVEST-
   49  MENT  INCOME SHALL BE CREDITED TO, AND ANY REPAYMENT OF LOANS AS HEREIN-
   50  AFTER PROVIDED SHALL BE DEPOSITED IN, THE REVOLVING  CAPITAL  FUND,  AND
   51  SPENT THEREFROM ONLY FOR THE PURPOSES SET FORTH IN THIS SECTION;
   52    I.  THAT  ONLY THE REASONABLE EXPENSES OF THE ADMINISTRATOR, AS DETER-
   53  MINED BY THE COMMISSIONER AND PRESIDENT OF THE  AUTHORITY,  INCURRED  IN
   54  THE  ESTABLISHMENT  AND  ADMINISTRATION  OF  THE  REVOLVING CAPITAL LOAN
   55  PROGRAM (INCLUDING THE RETENTION OF PROFESSIONALS  AND  CONSULTANTS,  IF
   56  ANY) MAY BE PAID OR REIMBURSED FROM THE REVOLVING CAPITAL FUND;
       S. 4610                            135                           A. 6721
    1    J.  THAT REVOLVING CAPITAL FUND MONIES SHALL BE HELD IN TRUST AND USED
    2  FOR THE BENEFIT OF ELIGIBLE COMMUNITY-BASED HEALTH CARE FACILITY CAPITAL
    3  PROJECTS; AND
    4    K.  ANY  OTHER  TERM  OR  CONDITION AS DETERMINED BY THE AUTHORITY, IN
    5  CONSULTATION WITH THE COMMISSIONER.
    6    5. LOAN DOCUMENTATION. LOANS FROM THE REVOLVING CAPITAL FUND SHALL  BE
    7  MADE  PURSUANT TO A WRITTEN LOAN AGREEMENT BETWEEN THE ADMINISTRATOR AND
    8  THE PARTICIPATING  BORROWER,  SPECIFYING  THE  TERMS  THEREOF  INCLUDING
    9  REPAYMENT TERMS. THE LOAN AGREEMENT SHALL BE IN SUCH FORM AND CONTENT AS
   10  SHALL BE ACCEPTABLE TO THE COMMISSIONER AND DORMITORY AUTHORITY, AND MAY
   11  INCLUDE  SUCH  OTHER ANY FURTHER WRITTEN DOCUMENTATION AND/OR AGREEMENTS
   12  AS SHALL BE REQUIRED IN THE JUDGMENT OF THE COMMISSIONER  AND  DORMITORY
   13  AUTHORITY,  INCLUDING  BUT NOT LIMITED TO ALL REQUIRED FILINGS UNDER THE
   14  UNIFORM COMMERCIAL CODE.
   15    S 6. Section 2826 of the public health law is amended by adding a  new
   16  subdivision (g) to read as follows:
   17    (G)  NOTWITHSTANDING  SUBDIVISION  (A)  OF  THIS  SECTION,  AND WITHIN
   18  AMOUNTS APPROPRIATED FOR SUCH PURPOSES  AS  DESCRIBED  HEREIN,  FOR  THE
   19  PERIOD  OF APRIL FIRST, TWO THOUSAND FIFTEEN THROUGH MARCH THIRTY-FIRST,
   20  TWO THOUSAND SIXTEEN, THE COMMISSIONER MAY AWARD A TEMPORARY  ADJUSTMENT
   21  TO THE NON-CAPITAL COMPONENTS OF RATES, OR MAKE TEMPORARY LUMP-SUM MEDI-
   22  CAID PAYMENTS TO ELIGIBLE GENERAL HOSPITALS IN SEVERE FINANCIAL DISTRESS
   23  TO  ENABLE  SUCH  FACILITIES  TO  MAINTAIN OPERATIONS AND VITAL SERVICES
   24  WHILE SUCH FACILITIES ESTABLISH LONG TERM SOLUTIONS TO ACHIEVE SUSTAINA-
   25  BLE HEALTH SERVICES.
   26    (I) ELIGIBLE GENERAL HOSPITALS SHALL INCLUDE:
   27    (A) A PUBLIC HOSPITAL, WHICH FOR PURPOSES OF THIS  SUBDIVISION,  SHALL
   28  MEAN  A GENERAL HOSPITAL OPERATED BY A COUNTY OR MUNICIPALITY, BUT SHALL
   29  EXCLUDE ANY SUCH HOSPITAL OPERATED BY A PUBLIC BENEFIT CORPORATION;
   30    (B) A FEDERALLY DESIGNATED CRITICAL ACCESS HOSPITAL;
   31    (C) A FEDERALLY DESIGNATED SOLE COMMUNITY HOSPITAL; OR
   32    (D) A GENERAL HOSPITAL THAT  IS  A  SAFETY  NET  HOSPITAL,  WHICH  FOR
   33  PURPOSES OF THIS SUBDIVISION SHALL MEAN:
   34    (1)  SUCH  HOSPITAL  HAS  AT  LEAST  THIRTY  PERCENT  OF ITS INPATIENT
   35  DISCHARGES MADE UP OF MEDICAID ELIGIBLE INDIVIDUALS, UNINSURED  INDIVID-
   36  UALS   OR  MEDICAID  DUALLY  ELIGIBLE  INDIVIDUALS  AND  WITH  AT  LEAST
   37  THIRTY-FIVE PERCENT OF ITS OUTPATIENT VISITS MADE UP OF MEDICAID  ELIGI-
   38  BLE INDIVIDUALS, UNINSURED INDIVIDUALS OR MEDICAID DUALLY-ELIGIBLE INDI-
   39  VIDUALS; OR
   40    (2) SUCH HOSPITAL SERVES AT LEAST THIRTY PERCENT OF THE RESIDENTS OF A
   41  COUNTY  OR  A  MULTI-COUNTY  AREA WHO ARE MEDICAID ELIGIBLE INDIVIDUALS,
   42  UNINSURED INDIVIDUALS OR MEDICAID DUALLY-ELIGIBLE INDIVIDUALS.
   43    (II) ELIGIBLE APPLICANTS MUST DEMONSTRATE  THAT  WITHOUT  SUCH  AWARD,
   44  THEY  WILL  BE  IN SEVERE FINANCIAL DISTRESS THROUGH MARCH THIRTY-FIRST,
   45  TWO THOUSAND SIXTEEN, AS EVIDENCED BY:
   46    (A) CERTIFICATION THAT SUCH APPLICANT HAS LESS THAN FIFTEEN DAYS  CASH
   47  AND EQUIVALENTS;
   48    (B)  SUCH  APPLICANT  HAS  NO  ASSETS THAT CAN BE MONETIZED OTHER THAN
   49  THOSE VITAL TO OPERATIONS; AND
   50    (C) SUCH APPLICANT HAS EXHAUSTED ALL EFFORTS TO OBTAIN RESOURCES  FROM
   51  CORPORATE PARENTS AND AFFILIATED ENTITIES TO SUSTAIN OPERATIONS.
   52    (III)  AWARDS UNDER THIS SUBDIVISION SHALL BE MADE UPON APPLICATION TO
   53  THE DEPARTMENT.
   54    (A) APPLICATIONS UNDER THIS SUBDIVISION  SHALL  INCLUDE  A  MULTI-YEAR
   55  TRANSFORMATION  PLAN  THAT  IS  ALIGNED  WITH THE DELIVERY SYSTEM REFORM
   56  INCENTIVE PAYMENT ("DSRIP") PROGRAM  GOALS  AND  OBJECTIVES.  SUCH  PLAN
       S. 4610                            136                           A. 6721
    1  SHALL BE APPROVED BY THE DEPARTMENT AND SHALL DEMONSTRATE A PATH TOWARDS
    2  LONG TERM SUSTAINABILITY AND IMPROVED PATIENT CARE.
    3    (B)  THE  DEPARTMENT  MAY AUTHORIZE INITIAL AWARD PAYMENTS TO ELIGIBLE
    4  APPLICANTS BASED SOLELY ON THE CRITERIA PURSUANT TO PARAGRAPHS  (I)  AND
    5  (II) OF THIS SUBDIVISION.
    6    (C) NOTWITHSTANDING SUBPARAGRAPH (B) OF THIS PARAGRAPH, THE DEPARTMENT
    7  MAY  SUSPEND OR REPEAL AN AWARD IF AN ELIGIBLE APPLICANT FAILS TO SUBMIT
    8  A MULTI-YEAR TRANSFORMATION PLAN PURSUANT TO SUBPARAGRAPH  (A)  OF  THIS
    9  PARAGRAPH  THAT  IS  ACCEPTABLE  TO  THE DEPARTMENT BY NO LATER THAN THE
   10  THIRTIETH DAY OF SEPTEMBER TWO THOUSAND FIFTEEN.
   11    (D) APPLICANTS UNDER THIS SUBDIVISION SHALL DETAIL THE EXTENT TO WHICH
   12  THE AFFECTED COMMUNITY HAS  BEEN  ENGAGED  AND  CONSULTED  ON  POTENTIAL
   13  PROJECTS  OF  SUCH  APPLICATION, AS WELL AS ANY OUTREACH TO STAKEHOLDERS
   14  AND HEALTH PLANS.
   15    (E) THE DEPARTMENT SHALL REVIEW ALL APPLICATIONS UNDER  THIS  SUBDIVI-
   16  SION, AND A DETERMINE:
   17    (1) APPLICANT ELIGIBILITY;
   18    (2) EACH APPLICANT'S PROJECTED FINANCIAL STATUS;
   19    (3)  EACH  APPLICANT'S  PROPOSED  USE  OF  FUNDS  TO MAINTAIN CRITICAL
   20  SERVICES NEEDED BY ITS COMMUNITY; AND
   21    (4) THE ANTICIPATED IMPACT OF THE LOSS OF SUCH SERVICES.
   22    (F) AFTER REVIEW OF ALL APPLICATIONS UNDER  THIS  SUBDIVISION,  AND  A
   23  DETERMINATION OF THE AGGREGATE AMOUNT OF REQUESTED FUNDS, THE DEPARTMENT
   24  SHALL  MAKE  AWARDS TO ELIGIBLE APPLICANTS; PROVIDED, HOWEVER, THAT SUCH
   25  AWARDS MAY BE IN AN AMOUNT LOWER THAN SUCH REQUESTED FUNDING, ON  A  PER
   26  APPLICANT OR AGGREGATE BASIS.
   27    (IV) AWARDS UNDER THIS SUBDIVISION MAY NOT BE USED FOR:
   28    (A) CAPITAL EXPENDITURES, INCLUDING, BUT NOT LIMITED TO: CONSTRUCTION,
   29  RENOVATION AND ACQUISITION OF CAPITAL EQUIPMENT, INCLUDING MAJOR MEDICAL
   30  EQUIPMENT;
   31    (B) CONSULTANT FEES;
   32    (C) RETIREMENT OF LONG TERM DEBT; OR
   33    (D) BANKRUPTCY-RELATED COSTS.
   34    (V)  PAYMENTS  MADE  TO AWARDEES PURSUANT TO THIS SUBDIVISION SHALL BE
   35  MADE ON A MONTHLY BASIS. SUCH PAYMENTS WILL BE BASED ON THE  APPLICANT'S
   36  ACTUAL  MONTHLY FINANCIAL PERFORMANCE DURING SUCH PERIOD AND THE REASON-
   37  ABLE CASH AMOUNT NECESSARY  TO  SUSTAIN  OPERATIONS  FOR  THE  FOLLOWING
   38  MONTH.  THE  APPLICANT'S MONTHLY FINANCIAL PERFORMANCE SHALL BE MEASURED
   39  BY SUCH APPLICANT'S MONTHLY FINANCIAL AND ACTIVITY REPORTS, WHICH  SHALL
   40  INCLUDE,  BUT  NOT  BE  LIMITED  TO, ACTUAL REVENUE AND EXPENSES FOR THE
   41  PRIOR MONTH, PROJECTED CASH NEED FOR THE CURRENT  MONTH,  AND  PROJECTED
   42  CASH NEED FOR THE FOLLOWING MONTH.
   43    (VI) 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, THE AMOUNT OF THE AWARD, PAYMENTS
   48  TO  DATE,  AND A DESCRIPTION OF THE STATUS OF THE MULTI-YEAR TRANSFORMA-
   49  TION PLAN PURSUANT TO PARAGRAPH (III) OF THIS SUBDIVISION.
   50    S 7. This act shall take effect immediately.
   51    S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
   52  sion, section or part of this act shall be  adjudged  by  any  court  of
   53  competent  jurisdiction  to  be invalid, such judgment shall not affect,
   54  impair, or invalidate the remainder thereof, but shall  be  confined  in
   55  its  operation  to the clause, sentence, paragraph, subdivision, section
   56  or part thereof directly involved in the controversy in which such judg-
       S. 4610                            137                           A. 6721
    1  ment shall have been rendered. It is hereby declared to be the intent of
    2  the legislature that this act would  have  been  enacted  even  if  such
    3  invalid provisions had not been included herein.
    4    S  3.  This  act shall take effect immediately provided, however, that
    5  the applicable effective date of Parts A through J of this act shall  be
    6  as specifically set forth in the last section of such Parts.