S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          637
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 7, 2015
                                      ___________
       Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
         printed to be committed to the Committee on Commerce, Economic  Devel-
         opment and Small Business
       AN  ACT  to  amend  the  economic  development  law  and the tax law, in
         relation to establishing the capital investment jobs retention program
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The  economic  development law is amended by adding a new
    2  article 22 to read as follows:
    3                                 ARTICLE 22
    4                  CAPITAL INVESTMENT JOBS RETENTION PROGRAM
    5  SECTION 441. SHORT TITLE.
    6          442. DEFINITIONS.
    7          443. ELIGIBILITY CRITERIA.
    8          444. APPLICATION AND APPROVAL PROCESS.
    9          445. CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT.
   10          446. POWERS AND DUTIES OF THE COMMISSIONER.
   11          447. MAINTENANCE OF RECORDS.
   12          448. REPORTING.
   13          449. CAP ON TAX CREDIT.
   14          450. PENALTIES.
   15    S 441. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
   16  THE "CAPITAL INVESTMENT JOBS RETENTION PROGRAM".
   17    S 442. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   18    1.  "AGRICULTURE"  MEANS  BOTH AGRICULTURAL PRODUCTION (ESTABLISHMENTS
   19  PERFORMING THE COMPLETE FARM OR RANCH OPERATION, SUCH AS FARM  OWNER-OP-
   20  ERATORS,  TENANT  FARM  OPERATORS,  AND  SHARECROPPERS) AND AGRICULTURAL
   21  SUPPORT (ESTABLISHMENTS THAT PERFORM ONE OR MORE  ACTIVITIES  ASSOCIATED
   22  WITH FARM OPERATION, SUCH AS SOIL PREPARATION, PLANTING, HARVESTING, AND
   23  MANAGEMENT, ON A CONTRACT OR FEE BASIS).
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03250-02-5
       S. 637                              2
    1    2. "BACK OFFICE OPERATIONS" MEANS A BUSINESS FUNCTION THAT MAY INCLUDE
    2  ONE  OR  MORE OF THE FOLLOWING ACTIVITIES: CUSTOMER SERVICE, INFORMATION
    3  TECHNOLOGY AND DATA PROCESSING, HUMAN RESOURCES, ACCOUNTING AND  RELATED
    4  ADMINISTRATIVE FUNCTIONS.
    5    3.  "CERTIFICATE  OF  ELIGIBILITY"  MEANS  THE  DOCUMENT ISSUED BY THE
    6  DEPARTMENT TO AN APPLICANT THAT  HAS  COMPLETED  AN  APPLICATION  TO  BE
    7  ADMITTED INTO THE CAPITAL INVESTMENT JOBS RETENTION PROGRAM AND HAS BEEN
    8  ACCEPTED INTO THE PROGRAM BY THE DEPARTMENT. POSSESSION OF A CERTIFICATE
    9  OF ELIGIBILITY DOES NOT BY ITSELF GUARANTEE THE ELIGIBILITY TO CLAIM THE
   10  TAX CREDIT.
   11    4.  "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A PARTIC-
   12  IPANT BY THE DEPARTMENT, AFTER THE  DEPARTMENT  HAS  VERIFIED  THAT  THE
   13  PARTICIPANT HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE.
   14  THE  CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED
   15  AND SHALL SPECIFY THE EXACT AMOUNT OF EACH TAX CREDIT UNDER THIS ARTICLE
   16  THAT  A  PARTICIPANT  MAY  CLAIM,  PURSUANT  TO  SECTION  FOUR   HUNDRED
   17  FORTY-FIVE  OF THIS ARTICLE, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH
   18  SUCH CREDIT MAY BE CLAIMED.
   19    5. "DISTRIBUTION CENTER" MEANS A LARGE SCALE FACILITY INVOLVING  PROC-
   20  ESSING,  REPACKAGING  AND/OR MOVEMENT OF FINISHED OR SEMI-FINISHED GOODS
   21  TO RETAIL LOCATIONS ACROSS A MULTI-STATE AREA.
   22    6. "FINANCIAL SERVICES DATA CENTERS" OR "FINANCIAL  SERVICES  CUSTOMER
   23  BACK  OFFICE  OPERATIONS"  MEANS  OPERATIONS  THAT  MANAGE  THE  DATA OR
   24  ACCOUNTS OF EXISTING CUSTOMERS OR PROVIDE PRODUCT OR SERVICE INFORMATION
   25  AND SUPPORT TO CUSTOMERS  OF  FINANCIAL  SERVICES  COMPANIES,  INCLUDING
   26  BANKS,  OTHER  LENDERS,  SECURITIES AND COMMODITIES BROKERS AND DEALERS,
   27  INVESTMENT BANKS,  PORTFOLIO  MANAGERS,  TRUST  OFFICES,  AND  INSURANCE
   28  COMPANIES.
   29    7.  "IMPACTED  JOBS" MEANS JOBS EXISTING AT A BUSINESS ENTERPRISE AT A
   30  LOCATION OR LOCATIONS WITHIN THE COUNTY DECLARED  AN  EMERGENCY  BY  THE
   31  GOVERNOR  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY ON WHICH THE EVENT
   32  LEADING TO THE EMERGENCY DECLARATION BY THE GOVERNOR OCCURRED.
   33    8. "MANUFACTURING" MEANS THE PROCESS OF  WORKING  RAW  MATERIALS  INTO
   34  PRODUCTS  SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR NEW
   35  COMBINATIONS TO MATTER WHICH HAS ALREADY GONE  THROUGH  SOME  ARTIFICIAL
   36  PROCESS  BY  THE  USE  OF MACHINERY, TOOLS, APPLIANCES, OR OTHER SIMILAR
   37  EQUIPMENT. "MANUFACTURING" DOES NOT INCLUDE AN OPERATION  THAT  INVOLVES
   38  ONLY  THE  ASSEMBLY  OF  COMPONENTS,  PROVIDED, HOWEVER, THE ASSEMBLY OF
   39  MOTOR VEHICLES OR OTHER HIGH VALUE-ADDED PRODUCTS  SHALL  BE  CONSIDERED
   40  MANUFACTURING.
   41    9. "PARTICIPANT" MEANS A BUSINESS ENTITY THAT:
   42    (A)  HAS  COMPLETED  AN APPLICATION PRESCRIBED BY THE DEPARTMENT TO BE
   43  ADMITTED INTO THE PROGRAM;
   44    (B) HAS BEEN ISSUED A CERTIFICATE OF ELIGIBILITY BY THE DEPARTMENT;
   45    (C) HAS DEMONSTRATED THAT IT MEETS THE ELIGIBILITY CRITERIA IN SECTION
   46  FOUR HUNDRED FORTY-THREE AND SUBDIVISION TWO  OF  SECTION  FOUR  HUNDRED
   47  FORTY-FOUR OF THIS ARTICLE; AND
   48    (D) HAS BEEN CERTIFIED AS A PARTICIPANT BY THE COMMISSIONER.
   49    10.  "PRELIMINARY  SCHEDULE  OF  BENEFITS" MEANS THE MAXIMUM AGGREGATE
   50  AMOUNT OF THE TAX CREDIT THAT A PARTICIPANT IN  THE  EMPIRE  STATE  JOBS
   51  RETENTION  PROGRAM  IS ELIGIBLE TO RECEIVE PURSUANT TO THIS ARTICLE. THE
   52  SCHEDULE SHALL INDICATE THE ANNUAL AMOUNT OF THE  CREDIT  A  PARTICIPANT
   53  MAY CLAIM IN EACH OF ITS TEN YEARS OF ELIGIBILITY. THE PRELIMINARY SCHE-
   54  DULE  OF  BENEFITS SHALL BE ISSUED BY THE DEPARTMENT WHEN THE DEPARTMENT
   55  APPROVES THE APPLICATION FOR ADMISSION INTO THE PROGRAM. THE COMMISSION-
       S. 637                              3
    1  ER MAY AMEND THAT SCHEDULE, PROVIDED THAT THE COMMISSIONER COMPLIES WITH
    2  THE CREDIT CAPS IN SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.
    3    11.  "PROJECT  SITE" MEANS A SINGLE LOCATION FROM WHICH OPERATIONS ARE
    4  CONDUCTED AND MANUFACTURERS MAY DESIGNATE MULTIPLE LOCATIONS  CONSISTING
    5  OF  ONE OR MORE INTEGRATED BUILDINGS OR STRUCTURES WITHIN A FIFTEEN-MILE
    6  RADIUS AS ONE PROJECT SITE.
    7    12. "RELATED PERSON" MEANS A RELATED PERSON PURSUANT  TO  SUBPARAGRAPH
    8  (C)  OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-
    9  FIVE OF THE INTERNAL REVENUE CODE.
   10    13. "SCIENTIFIC RESEARCH AND DEVELOPMENT"  MEANS  CONDUCTING  RESEARCH
   11  AND  EXPERIMENTAL  DEVELOPMENT  IN  THE  PHYSICAL, ENGINEERING, AND LIFE
   12  SCIENCES, INCLUDING BUT NOT LIMITED TO AGRICULTURE,  ELECTRONICS,  ENVI-
   13  RONMENTAL,  BIOLOGY,  BOTANY, BIOTECHNOLOGY, COMPUTERS, CHEMISTRY, FOOD,
   14  FISHERIES, FORESTS, GEOLOGY, HEALTH, MATHEMATICS,  MEDICINE,  OCEANOGRA-
   15  PHY,  PHARMACY,  PHYSICS, VETERINARY, AND OTHER ALLIED SUBJECTS. FOR THE
   16  PURPOSES OF THIS ARTICLE, SCIENTIFIC RESEARCH AND DEVELOPMENT  DOES  NOT
   17  INCLUDE MEDICAL OR VETERINARY LABORATORY TESTING FACILITIES.
   18    14.  "SOFTWARE  DEVELOPMENT"  MEANS  THE  CREATION  OF  CODED COMPUTER
   19  INSTRUCTIONS AND INCLUDES NEW MEDIA AS DEFINED BY  THE  COMMISSIONER  IN
   20  REGULATIONS.
   21    S  443.  ELIGIBILITY  CRITERIA.  1. TO BE A PARTICIPANT IN THE CAPITAL
   22  INVESTMENT JOBS RETENTION PROGRAM, A BUSINESS ENTITY SHALL:
   23    (A) OPERATE IN NEW YORK STATE PREDOMINANTLY:
   24    (I) AS A FINANCIAL SERVICES DATA CENTER OR A FINANCIAL  SERVICES  BACK
   25  OFFICE OPERATION;
   26    (II) IN MANUFACTURING;
   27    (III) IN SOFTWARE DEVELOPMENT AND NEW MEDIA;
   28    (IV) IN SCIENTIFIC RESEARCH AND DEVELOPMENT;
   29    (V) IN AGRICULTURE;
   30    (VI)  IN  THE  CREATION  OR EXPANSION OF BACK OFFICE OPERATIONS IN THE
   31  STATE; OR
   32    (VII) IN A DISTRIBUTION CENTER.
   33    (B) INVEST AT LEAST FIFTY MILLION DOLLARS IN FIXED ASSETS FOR MANUFAC-
   34  TURING OPERATIONS OR TWENTY MILLION  IN  FIXED  ASSETS  FOR  SIGNIFICANT
   35  CORPORATE  ADMINISTRATIVE FUNCTIONS AT THE PROJECT SITE. SUCH INVESTMENT
   36  SHALL BE COMPLETED WITHIN THE THREE CONSECUTIVE CALENDAR YEARS PRECEDING
   37  THE TAXABLE YEAR IN WHICH SUCH PARTICIPANT FIRST CLAIMS THE  TAX  CREDIT
   38  SET  FORTH  IN THIS ARTICLE. IN CALCULATING SUCH INVESTMENT, THE PARTIC-
   39  IPANT MAY NOT INCLUDE:
   40    (I) PAYMENTS MADE FOR THE ACQUISITION  OF  PERSONAL  PROPERTY  THROUGH
   41  OPERATING LEASES,
   42    (II)  PAYMENTS  MADE TO RELATED MEMBERS, INCLUDING, BUT NOT LIMITED TO
   43  RELATED ENTITIES, COMPONENT MEMBERS, OR PERSONS TO OR FROM WHOM THERE IS
   44  ATTRIBUTION OF STOCK OWNERSHIP,
   45    (III) ELECTED CONSOLIDATED TAXPAYERS, OR
   46    (IV) PERSONS TREATED AS SINGLE TAXPAYERS KNOWN AS COMBINED TAXPAYERS.
   47    (C) AGREE TO MAINTAIN OPERATIONS AT THE PROJECT SITE FOR AT LEAST  THE
   48  GREATER OF:
   49    (I) THE TERM OF THE TAX CREDIT PLUS THREE YEARS, OR
   50    (II) SEVEN YEARS.
   51    (D) DEMONSTRATE TO THE COMMISSIONER THAT:
   52    (I) IT IS ECONOMICALLY SOUND AND POSSESSES THE FINANCIAL CAPABILITY TO
   53  COMPLETE THE REQUIRED CAPITAL INVESTMENT, AND
   54    (II)  THE TAX CREDIT PROVIDED FOR IN THIS ARTICLE IS A MAJOR FACTOR IN
   55  ITS DETERMINATION TO BEGIN, CONTINUE AND COMPLETE THE CAPITAL INVESTMENT
   56  PROJECT.
       S. 637                              4
    1    (E) PROVIDE THE COMMISSIONER WITH A LETTER OF SUPPORT FROM  THE  LOCAL
    2  COMMUNITY IN WHICH THE PROJECT IS LOCATED.
    3    2. WHEN DETERMINING WHETHER AN APPLICANT IS OPERATING PREDOMINANTLY IN
    4  ONE  OF  THE  INDUSTRIES  LISTED IN SUBDIVISION ONE OF THIS SECTION, THE
    5  COMMISSIONER SHALL EXAMINE THE NATURE OF THE BUSINESS  ACTIVITY  AT  THE
    6  LOCATION  FOR  THE  PROPOSED  PROJECT AND WILL MAKE ELIGIBILITY DETERMI-
    7  NATIONS BASED ON SUCH ACTIVITY.
    8    3. FOR THE PURPOSES OF THIS ARTICLE, IN ORDER TO  PARTICIPATE  IN  THE
    9  CAPITAL  INVESTMENT  JOBS RETENTION PROGRAM, A BUSINESS ENTITY OPERATING
   10  IN ONE OF THE STRATEGIC INDUSTRIES LISTED IN  SUBDIVISION  ONE  OF  THIS
   11  SECTION:
   12    (A) SHALL EMPLOY AT LEAST TWO HUNDRED FULL-TIME EQUIVALENT JOBS AT THE
   13  PROJECT SITE DURING THE TIME FOR WHICH THE TAX CREDIT IS GRANTED, AND
   14    (B) SHALL CONTINUE TO EMPLOY AT LEAST TWO HUNDRED FULL-TIME EQUIVALENT
   15  EMPLOYEES FOR THE DURATION OF THE AGREEMENT ENTERED INTO WITH THE EMPIRE
   16  STATE  DEVELOPMENT  CORPORATION;  PROVIDED,  HOWEVER,  THAT THE BUSINESS
   17  ENTITY SHALL NOT INCLUDE FULL-TIME EQUIVALENT POSITIONS WHOSE  EXISTENCE
   18  ARE PREDICATED UPON THE ASSISTANCE OFFERED BY THE TAX CREDIT.
   19    4. AN INTRASTATE RELOCATION PROJECT, A NOT-FOR-PROFIT BUSINESS ENTITY,
   20  A  BUSINESS  ENTITY  WHOSE PRIMARY FUNCTION IS THE PROVISION OF SERVICES
   21  INCLUDING PERSONAL SERVICES, BUSINESS  SERVICES,  OR  THE  PROVISION  OF
   22  UTILITIES,  A  BUSINESS  ENTITY  ENGAGED  PREDOMINANTLY IN THE RETAIL OR
   23  ENTERTAINMENT INDUSTRY, OR  A  COMPANY  ENGAGED  IN  THE  GENERATION  OR
   24  DISTRIBUTION  OF  ELECTRICITY,  THE  DISTRIBUTION OF NATURAL GAS, OR THE
   25  PRODUCTION OF STEAM ASSOCIATED WITH THE GENERATION  OF  ELECTRICITY  ARE
   26  NOT ELIGIBLE TO RECEIVE THE TAX CREDIT DESCRIBED IN THIS ARTICLE.
   27    5.  A BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER PROTECTION
   28  AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A  BUSINESS  ENTITY
   29  MAY  NOT  OWE  PAST DUE STATE TAXES. IN ADDITION, A BUSINESS ENTITY MUST
   30  NOT OWE LOCAL PROPERTY TAXES FOR ANY YEAR PRIOR TO THE YEAR IN WHICH  IT
   31  APPLIES TO PARTICIPATE IN THE CAPITAL INVESTMENT JOBS RETENTION PROGRAM.
   32    S  444.  APPLICATION  AND  APPROVAL  PROCESS. 1. A BUSINESS ENTERPRISE
   33  SHALL SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE  COMMISSIONER.
   34  SUCH COMPLETED APPLICATION SHALL BE SUBMITTED TO THE COMMISSIONER WITHIN
   35  ONE HUNDRED EIGHTY DAYS OF THE ENACTMENT OF THIS ARTICLE.
   36    2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTERPRISE SHALL:
   37    (A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
   38  TAX  INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
   39  A RESULT OF THIS AGREEMENT SHALL NOT  BE  AVAILABLE  FOR  DISCLOSURE  OR
   40  INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
   41    (B)  AGREE  TO  ALLOW  THE  DEPARTMENT  OF  LABOR TO SHARE ITS TAX AND
   42  EMPLOYER INFORMATION  WITH  THE  DEPARTMENT.  HOWEVER,  ANY  INFORMATION
   43  SHARED  AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLO-
   44  SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
   45    (C) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY  AND  ALL  BOOKS
   46  AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
   47    (D)  AGREE TO BE PERMANENTLY DISQUALIFIED FOR EMPIRE ZONE TAX BENEFITS
   48  AT ANY LOCATION OR LOCATIONS THAT QUALIFY FOR  CAPITAL  INVESTMENT  JOBS
   49  RETENTION  PROGRAM BENEFITS IF ADMITTED INTO THE CAPITAL INVESTMENT JOBS
   50  RETENTION PROGRAM.
   51    (E) PROVIDE THE FOLLOWING INFORMATION TO THE DEPARTMENT UPON REQUEST:
   52    (I) A PLAN OUTLINING THE  SCHEDULE  FOR  MEETING  THE  JOBS  RETENTION
   53  REQUIREMENTS  AS  SET FORTH IN SUBDIVISION THREE OF SECTION FOUR HUNDRED
   54  FORTY-THREE OF THIS ARTICLE. SUCH PLAN  MUST  INCLUDE  DETAILS  ON  JOBS
   55  TITLES AND EXPECTED SALARIES;
       S. 637                              5
    1    (II)  THE  PRIOR  THREE YEARS OF FEDERAL AND STATE INCOME OR FRANCHISE
    2  TAX RETURNS, UNEMPLOYMENT INSURANCE QUARTERLY RETURNS, REAL PROPERTY TAX
    3  BILLS AND AUDITED FINANCIAL STATEMENTS; AND
    4    (III)  THE  EMPLOYER IDENTIFICATION OR SOCIAL SECURITY NUMBERS FOR ALL
    5  RELATED PERSONS TO THE APPLICANT, INCLUDING THOSE OF ANY  MEMBERS  OF  A
    6  LIMITED LIABILITY COMPANY OR PARTNERS IN A PARTNERSHIP.
    7    (F)  PROVIDE  A CLEAR AND DETAILED PRESENTATION OF ALL RELATED PERSONS
    8  TO THE APPLICANT TO ASSURE THE DEPARTMENT THAT JOBS ARE NOT BEING SHIFT-
    9  ED WITHIN THE STATE.
   10    (G) CERTIFY, UNDER PENALTY OF  PERJURY,  THAT  IT  IS  IN  SUBSTANTIAL
   11  COMPLIANCE  WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL, STATE,
   12  AND FEDERAL TAX LAWS.
   13    3. AFTER REVIEWING A BUSINESS ENTERPRISE'S COMPLETED  APPLICATION  AND
   14  DETERMINING  THAT  THE  BUSINESS ENTERPRISE WILL MEET THE CONDITIONS SET
   15  FORTH IN SUBDIVISION THREE OF SECTION FOUR HUNDRED FORTY-THREE  OF  THIS
   16  ARTICLE,  THE  DEPARTMENT  MAY  ADMIT THE APPLICANT INTO THE PROGRAM AND
   17  PROVIDE THE APPLICANT WITH A CERTIFICATE OF ELIGIBILITY AND  A  PRELIMI-
   18  NARY  SCHEDULE  OF BENEFITS BY YEAR BASED ON THE APPLICANT'S PROJECTIONS
   19  AS SET FORTH IN ITS APPLICATION.  THIS PRELIMINARY SCHEDULE OF  BENEFITS
   20  DELINEATES THE MAXIMUM POSSIBLE BENEFITS AN APPLICANT MAY RECEIVE.
   21    4. IN ORDER TO BECOME A PARTICIPANT IN THE PROGRAM, AN APPLICANT SHALL
   22  SUBMIT  EVIDENCE THAT IT SATISFIES THE ELIGIBILITY CRITERIA SPECIFIED IN
   23  SECTION FOUR HUNDRED FORTY-THREE OF THIS ARTICLE AND SUBDIVISION TWO  OF
   24  THIS  SECTION  IN  SUCH  FORM  AS  THE COMMISSIONER MAY PRESCRIBE. AFTER
   25  REVIEWING SUCH EVIDENCE AND FINDING IT SUFFICIENT, THE DEPARTMENT  SHALL
   26  CERTIFY  THE  APPLICANT AS A PARTICIPANT AND ISSUE TO THAT PARTICIPANT A
   27  CERTIFICATE OF TAX CREDIT FOR ONE TAXABLE YEAR. TO RECEIVE A CERTIFICATE
   28  OF TAX CREDIT FOR SUBSEQUENT TAXABLE YEARS, THE PARTICIPANT MUST  SUBMIT
   29  TO  THE  DEPARTMENT  A PERFORMANCE REPORT DEMONSTRATING THAT THE PARTIC-
   30  IPANT CONTINUES TO SATISFY THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION
   31  FOUR HUNDRED FORTY-THREE OF THIS ARTICLE AND  SUBDIVISION  TWO  OF  THIS
   32  SECTION.
   33    5.  A PARTICIPANT MAY CLAIM TAX BENEFITS COMMENCING IN THE FIRST TAXA-
   34  BLE YEAR THAT THE BUSINESS ENTERPRISE  RECEIVES  A  CERTIFICATE  OF  TAX
   35  CREDIT  OR  THE FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY SCHEDULE OF
   36  BENEFITS, WHICHEVER IS LATER. A PARTICIPANT MAY CLAIM SUCH BENEFITS  FOR
   37  THE  NEXT  NINE CONSECUTIVE TAXABLE YEARS, PROVIDED THAT THE PARTICIPANT
   38  DEMONSTRATES TO THE DEPARTMENT THAT IT CONTINUES TO SATISFY  THE  ELIGI-
   39  BILITY  CRITERIA  SPECIFIED  IN SECTION FOUR HUNDRED FORTY-THREE OF THIS
   40  ARTICLE AND SUBDIVISION TWO OF THIS SECTION IN  EACH  OF  THOSE  TAXABLE
   41  YEARS.
   42    S  445. CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT. 1. A PARTIC-
   43  IPANT IN THE CAPITAL INVESTMENT JOBS RETENTION PROGRAM SHALL BE ELIGIBLE
   44  TO CLAIM A CREDIT FOR THE IMPACTED JOBS. THE AMOUNT OF SUCH CREDIT SHALL
   45  BE EQUAL TO SEVENTY-FIVE PERCENT OF THE  NEW  YORK  STATE  INCOME  TAXES
   46  WITHHELD FROM ELIGIBLE FULL-TIME EMPLOYEES.
   47    2.  THE  TAX CREDIT ESTABLISHED IN THIS SECTION SHALL BE REFUNDABLE AS
   48  PROVIDED IN THE TAX LAW. IF A PARTICIPANT FAILS TO SATISFY THE ELIGIBIL-
   49  ITY CRITERIA IN ANY ONE YEAR, IT WILL LOSE THE ABILITY TO  CLAIM  CREDIT
   50  FOR  THAT  YEAR. THE EVENT OF SUCH FAILURE SHALL NOT EXTEND THE ORIGINAL
   51  TEN-YEAR ELIGIBILITY PERIOD.
   52    3. (A) THE BUSINESS ENTERPRISE SHALL BE ALLOWED TO CLAIM THE CREDIT AS
   53  PRESCRIBED IN SECTION FORTY-TWO OF THE TAX  LAW;  PROVIDED,  HOWEVER,  A
   54  BUSINESS  ENTERPRISE  SHALL  NOT BE ALLOWED TO CLAIM THE CREDIT PRIOR TO
   55  TAX YEAR TWO THOUSAND SIXTEEN.
       S. 637                              6
    1    (B) ANY INDIVIDUAL THAT IS A MEMBER OR EMPLOYEE OF A  PARTICIPANT  MAY
    2  CLAIM THE PRO RATA SHARE OF THE CREDIT EARNED BY SUCH PARTICIPANT.
    3    4.  A  PARTICIPANT  MAY BE ELIGIBLE FOR BENEFITS UNDER THIS ARTICLE AS
    4  WELL AS ARTICLE SEVENTEEN OF THIS CHAPTER, PROVIDED THE PARTICIPANT  CAN
    5  ONLY  RECEIVE  BENEFITS  PURSUANT  TO  SUBDIVISION  TWO OF SECTION THREE
    6  HUNDRED FIFTY-FIVE OF THIS CHAPTER FOR COSTS IN EXCESS OF  COSTS  RECOV-
    7  ERED BY INSURANCE.
    8    S  446.  POWERS  AND  DUTIES  OF THE COMMISSIONER. 1. THE COMMISSIONER
    9  SHALL PROMULGATE REGULATIONS ESTABLISHING  AN  APPLICATION  PROCESS  AND
   10  ELIGIBILITY  CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES
   11  OF THIS ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX  CREDITS  SET
   12  FORTH  IN  SECTION  THREE  HUNDRED  FIFTY-NINE  OF  THIS  CHAPTER WHICH,
   13  NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE  ADMINISTRA-
   14  TIVE  PROCEDURE  ACT,  MAY  BE ADOPTED ON AN EMERGENCY BASIS. SUCH REGU-
   15  LATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, CRITERIA  FOR  DETERMINING
   16  WHETHER A BUSINESS ENTITY IS ECONOMICALLY SOUND AND POSSESSES THE FINAN-
   17  CIAL  CAPABILITY TO COMPLETE THE REQUIRED CAPITAL INVESTMENT AND WHETHER
   18  THE TAX CREDIT PROVIDED FOR IN THIS ARTICLE IS A  MAJOR  FACTOR  IN  THE
   19  DETERMINATION  OF  SUCH  BUSINESS ENTITY TO BEGIN, CONTINUE AND COMPLETE
   20  THE CAPITAL INVESTMENT PROJECT.
   21    2. THE COMMISSIONER SHALL, IN  CONSULTATION  WITH  THE  DEPARTMENT  OF
   22  TAXATION  AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
   23  ISSUED BY THE COMMISSIONER TO PARTICIPANTS. PARTICIPANTS MAY BE REQUIRED
   24  BY THE COMMISSIONER OF TAXATION AND FINANCE TO INCLUDE  THE  CERTIFICATE
   25  OF  TAX  CREDIT  WITH THEIR TAX RETURN TO RECEIVE ANY TAX BENEFITS UNDER
   26  THIS ARTICLE.
   27    3. THE COMMISSIONER SHALL SOLELY  DETERMINE  THE  ELIGIBILITY  OF  ANY
   28  APPLICANT  APPLYING  FOR  ENTRY  INTO  THE  PROGRAM AND SHALL REMOVE ANY
   29  PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
   30  SET FORTH IN SUBDIVISION TWO OF SECTION FOUR HUNDRED FORTY-FOUR OF  THIS
   31  ARTICLE, OR FOR FAILING TO MEET THE JOB RETENTION REQUIREMENTS SET FORTH
   32  IN  SUBDIVISION  THREE OF SECTION FOUR HUNDRED FORTY-THREE OF THIS ARTI-
   33  CLE, OR FOR FAILING TO MEET THE  REQUIREMENTS  OF  SUBDIVISION  FIVE  OF
   34  SECTION FOUR HUNDRED FORTY-THREE OF THIS ARTICLE.
   35    S  447.  MAINTENANCE OF RECORDS. EACH PARTICIPANT SHALL KEEP ALL RELE-
   36  VANT RECORDS FOR THE DURATION OF ITS PROGRAM  PARTICIPATION  PLUS  THREE
   37  YEARS.
   38    S  448. REPORTING. 1. (A) IN ORDER TO RECEIVE A TAX CREDIT CERTIFICATE
   39  AND TO MAINTAIN ELIGIBILITY FOR THIS TAX CREDIT  PROGRAM,  THE  TAXPAYER
   40  MUST  SUBMIT  AN ANNUAL REPORT TO THE DEPARTMENT OF TAXATION AND FINANCE
   41  BY MARCH FIRST OF THE YEAR FOLLOWING ANY YEAR FOR WHICH THE  TAX  CREDIT
   42  IS  CLAIMED,  THE  FIRST  REPORT OF WHICH IS DUE MARCH FIRST OF THE YEAR
   43  FOLLOWING THE CALENDAR YEAR IN WHICH THE INVESTMENT IS COMPLETED AND THE
   44  TAX CREDIT BEGINS.
   45    (B) SUCH REPORT SHALL CONTAIN THE NUMBER OF ELIGIBLE FULL-TIME  EQUIV-
   46  ALENT EMPLOYEES AND THE AMOUNT OF INCOME TAX WITHHELD FROM THOSE EMPLOY-
   47  EES,  AND THE AMOUNTS PAID TOWARDS THE COMPLETION OF THE CAPITAL INVEST-
   48  MENT. ONCE THIS IS VERIFIED BY THE COMMISSIONER OF TAXATION AND FINANCE,
   49  THE COMMISSIONER WILL ISSUE A TAX CREDIT CERTIFICATE TO THE TAXPAYER.
   50    (C) THE PARTICIPANT MUST THEN SUBMIT THE TAX CREDIT  CERTIFICATE  WITH
   51  THE  APPLICABLE  STATE TAX RETURN. IF THE TAX CREDIT IS GREATER THAN THE
   52  STATE TAX LIABILITY, THE UNUSED PORTION MAY BE  CARRIED  FORWARD  UP  TO
   53  THREE YEARS.
   54    (D)  FAILURE TO SUBMIT A COMPLETE AND TIMELY ANNUAL REPORT WILL RESULT
   55  IN THE ASSESSMENT OF A FIVE HUNDRED DOLLAR LATE  FEE  FOR  EACH  ENSUING
   56  CALENDAR MONTH THE REPORT REMAINS INCOMPLETE OR UNFILED.
       S. 637                              7
    1    (E)  ONCE  THE ACTIVE TERM OF THE TAX CREDIT ENDS, A POST-TERM PERIOD,
    2  LENGTH TO BE DETERMINED BY THE  EMPIRE  STATE  DEVELOPMENT  CORPORATION,
    3  WILL  REQUIRE  ANNUAL REPORTING REQUIREMENTS TO CERTIFY THAT SUBSTANTIAL
    4  OPERATIONS REMAIN AT THE PROJECT SITE.
    5    2. EACH PARTICIPANT MUST SUBMIT A PERFORMANCE REPORT ANNUALLY, IN SUCH
    6  FORM  AS  THE COMMISSIONER MAY REQUIRE, WITHIN THIRTY DAYS OF THE END OF
    7  THEIR TAXABLE YEAR.
    8    3. THE COMMISSIONER SHALL PREPARE  ON  A  QUARTERLY  BASIS  A  PROGRAM
    9  REPORT FOR POSTING ON THE DEPARTMENT'S WEBSITE. THE FIRST REPORT WILL BE
   10  DUE JUNE THIRTIETH, TWO THOUSAND SEVENTEEN, AND EVERY THREE MONTHS THER-
   11  EAFTER.    SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOW-
   12  ING:  NUMBER OF APPLICANTS; NUMBER OF PARTICIPANTS  APPROVED;  NAMES  OF
   13  PARTICIPANTS;  TOTAL AMOUNT OF BENEFITS CERTIFIED; BENEFITS RECEIVED PER
   14  PARTICIPANT; TOTAL NUMBER OF RETAINED JOBS; AND SUCH  OTHER  INFORMATION
   15  AS THE COMMISSIONER DETERMINES.
   16    S 449. CAP ON TAX CREDIT. 1. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
   17  CERTIFICATES  OF  TAX  CREDIT ISSUED BY THE COMMISSIONER FOR ANY TAXABLE
   18  YEAR MAY NOT EXCEED THE FOLLOWING AMOUNTS:
   19    (A) FOR 2016, THIRTEEN MILLION DOLLARS.
   20    (B) FOR 2017, EIGHTEEN MILLION DOLLARS.
   21    (C) FOR 2018, TWENTY-THREE MILLION DOLLARS.
   22    (D) FOR 2019, TWENTY-EIGHT MILLION DOLLARS.
   23    (E) FOR 2020, THIRTY-THREE MILLION DOLLARS.
   24    2. FOR EACH INDIVIDUAL PROJECT, THE EMPIRE  STATE  DEVELOPMENT  CORPO-
   25  RATION  SHALL APPROVE A SCHEDULE FOR THE MAXIMUM AMOUNT OF CREDITS TO BE
   26  ISSUED IN A CALENDAR YEAR.
   27    S 450. PENALTIES. 1. IF A PARTICIPANT FAILS TO MAINTAIN THE JOB LEVELS
   28  REQUIRED IN SUBDIVISION THREE OF SECTION  FOUR  HUNDRED  FORTY-THREE  OF
   29  THIS  ARTICLE,  OR  IN ANY OTHER WAY FAILS TO COMPLY WITH THE TERMS, THE
   30  EMPIRE STATE DEVELOPMENT CORPORATION MAY TERMINATE OR REDUCE  THE  BENE-
   31  FITS,  OR  MAY  ASK  FOR  A  ONE  HUNDRED  PERCENT  REFUND OF ASSISTANCE
   32  RECEIVED.
   33    2. IF THE PARTICIPANT FAILS TO COMPLY WITH TERMS DURING THE  POST-TERM
   34  REPORTING PERIOD, THE EMPIRE STATE DEVELOPMENT CORPORATION MAY REQUIRE A
   35  REFUND OF UP TO SEVENTY-FIVE PERCENT OF ASSISTANCE RECEIVED.
   36    S  2.  The  tax  law  is amended by adding a new section 42 to read as
   37  follows:
   38    S 42. CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT. (A)  ALLOWANCE
   39  OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO OR
   40  THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX,
   41  PURSUANT  TO  THE  PROVISIONS  REFERENCED  IN  SUBDIVISION  (E)  OF THIS
   42  SECTION. THE AMOUNT OF THE CREDIT, ALLOWABLE  FOR  TEN  CONSECUTIVE  TAX
   43  YEARS,  IS  EQUAL  TO  THE  AMOUNT  DETERMINED  PURSUANT TO SECTION FOUR
   44  HUNDRED FORTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW.
   45    (B) ELIGIBILITY. TO  BE  ELIGIBLE  FOR  THE  CAPITAL  INVESTMENT  JOBS
   46  RETENTION  CREDIT,  THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF
   47  TAX CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO  SUBDI-
   48  VISION  FOUR OF SECTION FOUR HUNDRED FORTY-FOUR OF THE ECONOMIC DEVELOP-
   49  MENT LAW, WHICH CERTIFICATE SHALL SET FORTH THE  AMOUNT  OF  THE  CREDIT
   50  THAT  MAY  BE  CLAIMED  FOR  THE TAXABLE YEAR. A TAXPAYER MAY CLAIM SUCH
   51  CREDIT FOR UP TO TEN CONSECUTIVE TAXABLE YEARS COMMENCING IN  THE  FIRST
   52  TAXABLE  YEAR  THAT THE TAXPAYER RECEIVES A CERTIFICATE OF TAX CREDIT OR
   53  THE FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY SCHEDULE  OF  BENEFITS,
   54  WHICHEVER IS LATER.
   55    HOWEVER,  A TAXPAYER SHALL NOT BE ALLOWED TO CLAIM THE CREDIT PRIOR TO
   56  THE TAX YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND  SIXTEEN
       S. 637                              8
    1  AND  BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN. THE TAXPAYER SHALL BE
    2  ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT
    3  FOR THAT TAXABLE YEAR. SUCH CERTIFICATE, IF REQUIRED BY THE  COMMISSION-
    4  ER,  SHALL BE ATTACHED TO THE TAXPAYER'S RETURN. NO COST OR EXPENSE PAID
    5  OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCULATION
    6  OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT.
    7    (C) INFORMATION SHARING. (1) NOTWITHSTANDING  ANY  PROVISION  OF  THIS
    8  CHAPTER,  EMPLOYEES  AND OFFICERS OF THE DEPARTMENT OF ECONOMIC DEVELOP-
    9  MENT AND THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO  SHARE  AND
   10  EXCHANGE:
   11    (A)  INFORMATION  DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT
   12  TO A TAXPAYER'S ELIGIBILITY TO PARTICIPATE  IN  THE  CAPITAL  INVESTMENT
   13  JOBS RETENTION PROGRAM;
   14    (B)  INFORMATION  REGARDING THE CREDIT APPLIED FOR, ALLOWED OR CLAIMED
   15  PURSUANT TO THIS SECTION AND TAXPAYERS WHO ARE APPLYING FOR  THE  CREDIT
   16  OR WHO ARE CLAIMING THE CREDIT; AND
   17    (C)  INFORMATION  CONTAINED  IN  OR  DERIVED  FROM  CREDIT CLAIM FORMS
   18  SUBMITTED TO THE DEPARTMENT AND  APPLICATIONS  FOR  ADMISSION  INTO  THE
   19  CAPITAL INVESTMENT JOBS RETENTION PROGRAM.
   20    EXCEPT  AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION, ALL INFORMA-
   21  TION EXCHANGED BETWEEN THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  AND  THE
   22  DEPARTMENT  SHALL  NOT  BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE
   23  STATE'S FREEDOM OF INFORMATION LAW.
   24    (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE COMMISSIONER OR
   25  THE COMMISSIONER'S DESIGNEE IS AUTHORIZED TO RELEASE THE  NAME  OF  EACH
   26  TAXPAYER CLAIMING THE CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY EACH
   27  TAXPAYER.  HOWEVER, IF THE TAXPAYER CLAIMS A CREDIT BECAUSE THE TAXPAYER
   28  IS A MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN  A  PARTNERSHIP
   29  OR  A  SHAREHOLDER  IN  A  SUBCHAPTER  S CORPORATION, ONLY THE NAME OF A
   30  LIMITED LIABILITY  COMPANY,  PARTNERSHIP  OR  SUBCHAPTER  S  CORPORATION
   31  PARTICIPATING  IN  THE CAPITAL INVESTMENT JOBS RETENTION PROGRAM AND THE
   32  AMOUNT OF CREDIT EARNED BY THAT ENTITY MAY BE RELEASED.
   33    (D) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
   34  OF TAX CREDIT ISSUED BY THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  UNDER
   35  ARTICLE  TWENTY-TWO  OF  THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
   36  DEPARTMENT, THE AMOUNT OF CREDIT DESCRIBED IN THIS SECTION  AND  CLAIMED
   37  BY  THE  TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK TO TAX IN
   38  THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL.
   39    (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
   40  THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   41    (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 49;
   42    (2) ARTICLE 22: SECTION 606, SUBSECTION (CCC);
   43    (3) ARTICLE 33, SECTION 1511, SUBDIVISION (DD).
   44    S  3. Section 210-B of the tax law is amended by adding a new subdivi-
   45  sion 49 to read as follows:
   46    49. CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT. (A) ALLOWANCE OF
   47  CREDIT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS  PROVIDED
   48  IN  SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS
   49  ARTICLE.
   50    (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
   51  FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
   52  THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF  THE  AMOUNT  OF
   53  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
   54  TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
   55  TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
   56  REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
       S. 637                              9
    1  EIGHTY-SIX  OF  THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE PROVISIONS OF
    2  SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
    3  NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
    4    S  4. Section 606 of the tax law is amended by adding a new subsection
    5  (ccc) to read as follows:
    6    (CCC) CAPITAL INVESTMENT JOBS PROGRAM RETENTION CREDIT. (1)  ALLOWANCE
    7  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS
    8  PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE  TAX  IMPOSED
    9  BY THIS ARTICLE.
   10    (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
   11  THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
   12  YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
   13  OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
   14  EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
   15  PAID THEREON.
   16    S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
   17  of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
   18  follows:
   19  (XLI) CAPITAL INVESTMENT             AMOUNT OF CREDIT UNDER SUBDIVISION
   20  JOBS RETENTION PROGRAM CREDIT        FORTY-NINE OF SECTION TWO HUNDRED
   21                                       TEN-B
   22    S 6. Section 1511 of the tax law is amended by adding a  new  subdivi-
   23  sion (dd) to read as follows:
   24    (DD)  CAPITAL  INVESTMENT JOBS RETENTION PROGRAM CREDIT. (1) ALLOWANCE
   25  OF CREDIT. A TAXPAYER SHALL BE ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS
   26  PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAXES IMPOSED
   27  BY THIS ARTICLE.
   28    (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
   29  FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
   30  THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
   31  CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
   32  TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
   33  TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
   34  REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
   35  EIGHTY-SIX OF THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
   36  SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
   37  NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
   38    S 7. This act shall take effect  immediately;  provided  however  that
   39  sections two, three, four, five and six of this act shall apply to taxa-
   40  ble years beginning on and after January 1, 2016.