N.Y. EXC Law § 845-E — New York Code / Act EXC / Article 35 / Section 845-E
Commercial security tax credit program
Status: in_force

§ 845-e. Commercial security tax credit program. 1. Definitions. For\nthe purposes of this section:\n  (a) "Certificate of tax credit" means the document issued to a\nbusiness entity by the division after the division has verified that the\nbusiness entity has met all applicable eligibility criteria in\nsubdivision two of this section. The certificate shall specify the exact\namount of the tax credit under this section that a business entity may\nclaim, pursuant to subdivision five of this section, and other\ninformation as required by the department of taxation and finance.\n  (b) "Qualified business" means a business with fifty or fewer total\nemployees that operates one or more physical retail business locations\nopen to the public in New York state that incurs costs related to\nprotection against retail theft of goods through retail theft prevention\nmeasures.\n  (c) "Qualified retail theft prevention measure expenses" means any\ncombination of retail theft prevention measure costs paid or incurred by\na qualified business during the taxable year that cumulatively exceed\nfour thousand dollars for a qualified business with twenty-five or fewer\ntotal employees or six thousand dollars for a qualified business with\nmore than twenty-five employees for each New York retail location.\n  (d) "Retail theft prevention measure" means (i) the use of security\nofficers as defined in paragraph (e) of this subdivision, (ii) security\ncameras, (iii) perimeter security lighting, (iv) interior or exterior\nlocking or hardening measures, (v) alarm systems, (vi) access control\nsystems, or (vii) other appropriate anti-theft devices as determined by\nthe division to be eligible under this section.\n  (e) "Security officers" means security officers, registered under\narticle seven-A of the general business law, responsible for the\nsecurity and theft deterrence in a qualified business, whether employed\ndirectly by such business or indirectly through a contractor.\n  2. Eligibility criteria. To be eligible for a tax credit under the\ncommercial security tax credit program, an eligible business must:\n  (a) be a qualified business required to file a tax return pursuant to\narticles nine, nine-A or twenty-two of the tax law;\n  (b) have qualified retail theft prevention measure expenses that\nexceed four thousand dollars for a qualified business with twenty-five\nor fewer total employees or six thousand dollars for a qualified\nbusiness with more than twenty-five employees for each New York retail\nlocation during the taxable year;\n  (c) provide a certification in a manner and form prescribed by the\ncommissioner that the business entity participates in a community\nanti-theft partnership as established by the division between businesses\nand relevant local law enforcement agencies; and\n  (d) may not owe past due state taxes or local property taxes unless\nthe business entity is making payments and complying with an approved\nbinding payment agreement entered into with the taxing authority.\n  3. Application and approval process. (a) A business entity must submit\na complete application as prescribed by the commissioner by October\nthirty-first of each year.\n  (b) The commissioner shall establish procedures for business entities\nto submit applications. As part of the application, each business entity\nmust:\n  (i) provide evidence of eligibility in a form and manner prescribed by\nthe commissioner;\n  (ii) agree to allow the department of taxation and finance to share\nthe business entity's tax information with the division. However, any\ninformation shared as a result of this program shall not be available\nfor disclosure or inspection under the state freedom of information law\npursuant to article six of the public officers law;\n  (iii) allow the division and its agents access to any and all books\nand records the division may require to confirm eligibility; and\n  (iv) agree to provide any additional information required by the\ndivision relevant to this section.\n  4. Certificate of tax credit. After reviewing a business entity's\ncompleted final application and determining that a business entity meets\nthe eligibility criteria as set forth in this section, the division may\nissue to that business entity a certificate of tax credit. All\napplications will be processed by the division in the order they are\nreceived and certificates of tax credit may be issued in amounts that,\nin the aggregate, do not exceed the annual cap as set forth in\nsubdivision seven of this section.\n  5. Commercial security tax credit. (a) For taxable years beginning on\nor after January first, two thousand twenty-four and before January\nfirst, two thousand twenty-nine, a business entity in the commercial\nsecurity tax credit program that meets the eligibility requirements of\nsubdivision two of this section may be eligible to claim a credit equal\nto three thousand dollars for each retail location of the business\nentity located in New York state.\n  (b) A business entity may claim the tax credit in the taxable year\nthat begins in the year for which it was allocated a credit by the\ndivision under this section.\n  (c) The credit shall be allowed as provided in section forty-nine,\nsection one hundred eighty-seven-r, subdivision sixty of section two\nhundred ten-B and subsection (ppp) of section six hundred six of the tax\nlaw.\n  (d) The commissioner shall, in consultation with the department of\ntaxation and finance, develop a certificate of tax credit that shall be\nissued by the commissioner to eligible businesses.\n  (e) The commissioner shall solely determine the eligibility of any\napplicant applying for entry into the program and shall remove any\nbusiness entity from the program for failing to meet any of the\nrequirements set forth in subdivision two and subdivision three of this\nsection. In the event a business entity is removed from the program, the\ndivision shall notify the department of taxation and finance of such\nremoval.\n  6. Maintenance of records. Each eligible business participating in the\nprogram shall keep all relevant records for the duration of their\nprogram participation for at least three years.\n  7. Cap on tax credit. The total amount of tax credits listed on\ncertificates of tax credit issued by the division pursuant to this\nsection may not exceed five million dollars per calendar year.\n