N.Y. GCT Law § 25-Y — New York Code / Act GCT / Article 2-H / Section 25-Y
Definitions
Status: in_force

§ 25-y. Definitions. As used in this article the following terms shall\nhave the following meanings:\n  (a) "Eligible business" means any person subject to a tax imposed\nunder a local law enacted pursuant to part two or three of section one,\nor section two, of chapter seven hundred seventy-two of the laws of\nnineteen hundred sixty-six or a gross receipts tax imposed under a local\nlaw enacted pursuant to subdivision (a) of section twelve hundred one of\nthe tax law that: (1) has been conducting substantial business\noperations at one or more business locations outside an eligible area\nfor the twenty-four consecutive months immediately preceding the taxable\nyear during which such eligible business relocates as defined in\nsubdivision (j) of this section; and (2) on or after May twenty-seventh,\nnineteen hundred eighty-seven relocates as defined in subdivision (j) of\nthis section all or part of such business operations; and (3) either (i)\non or after May twenty-seventh, nineteen hundred eighty-seven first\nenters into a contract to purchase or lease the premises to which it\nrelocates as defined in subdivision (j) of this section, or a parcel on\nwhich will be constructed such premises, or (ii) as of May\ntwenty-seventh, nineteen hundred eighty-seven owns such parcel or\npremises and has not prior to such date made application for benefits\npursuant to a local law enacted in accordance with title two-D of\narticle four of the real property tax law.\n  (b) "Person" means and includes any individual, partnership,\nassociation, joint-stock company, corporation, estate or trust, limited\nliability company, and any combination of the foregoing.\n  (c) "Retail activity" means any activity which consists predominantly\nof the sale, other than through the mail or by the telephone or by means\nof the internet, of tangible personal property to any person, for any\npurpose unrelated to the trade or business of such person, or which\nconsists predominantly of the selling of services to individuals which\ngenerally involve the physical, mental and/or spiritual care of such\nindividuals, or the physical care of the personal property of any person\nunrelated to the trade or business of such person, or which consists\npredominantly of the provision of retail banking services.\n  (d) "Hotel services" means any services which consist predominantly of\nthe lodging of guests at a building or a portion thereof which is\nregularly used and kept open for such services. The term "hotel\nservices" shall include the lodging of guests at an apartment hotel, a\nmotel, boarding house or club, whether or not meals are served.\n  (e) "Eligible premises" means: (1) nonresidential premises which are\nwholly contained in real property which is certified as eligible to\nreceive benefits pursuant to a local law enacted in accordance with\ntitle two-C or title two-D of article four of the real property tax law,\nprovided that such premises have been improved by construction or\nrenovation, that expenditures have been made for improvements to such\nreal property in excess of fifty per centum or, in the case of\nindustrial property, in excess of twenty-five per centum, of the value\nat which such real property was assessed for tax purposes for the tax\nyear in which such improvements commenced and such expenditures have\nbeen made within thirty-six months or, in the case of expenditures for\nsuch improvements to such real property in excess of fifty million\ndollars within seventy-two months from such commencement and, provided\nfurther, that such real property is located in an eligible area;\n  (2) nonresidential premises which are: (i) wholly contained in or\nsituated on real property which has been leased from an industrial\ndevelopment agency established pursuant to article eighteen-A of the\ngeneral municipal law, provided that such premises were constructed or\nrenovated subsequent to the approval of such construction or renovation\nby such agency, or (ii) wholly contained in or situated on real property\nowned by a city having a population of one million or more, a lease for\nwhich was approved in accordance with the applicable provisions of the\ncharter of such city, provided that such premises were constructed or\nrenovated subsequent to such approval, or (iii) wholly contained in or\nsituated on real property which has been leased from the port authority\nof the state of New York and New Jersey or the New York state urban\ndevelopment corporation, or a subsidiary thereof, provided that such\npremises were constructed or renovated subsequent to the execution of\nsuch lease, or (iv) wholly contained in property which would be eligible\nto receive benefits pursuant to a local law enacted in accordance with\ntitle two-D of article four of the real property tax law except that\nsuch property is exempt from real property taxation; provided that\nexpenditures have been made for improvements to such real property in\nexcess of fifty per centum or, in the case of industrial property, in\nexcess of twenty-five per centum, of the value at which such real\nproperty was assessed for tax purposes for the tax year in which such\nimprovements commenced and such expenditures have been made within\nthirty-six months or, in the case of expenditures for such improvements\nto such real property in excess of fifty million dollars within\nseventy-two months from the date of such commencement, and provided\nfurther that such real property is located in an eligible area; or\n  (3) in the case of a relocation, the date of which, as determined in\nsubdivision (j) of this section, is on or after July first, two thousand\nthree, nonresidential premises, located in an eligible area, for which a\nminimum expenditure has been made on or after July first, two thousand\nthree, for improvements in excess of twenty-five dollars per square\nfoot, provided, however, that if such premises are leased, such lease\nshall have a term that does not expire until at least three years after\nthe later of the date of such relocation and the lease commencement\ndate.\n  The determination of whether premises meet the requirements for\neligibility set forth in this subdivision shall be made as of the\neffective date of the certification of eligibility issued pursuant to\nsection twenty-five-z of this article. Notwithstanding the provisions of\nparagraphs one and two of this subdivision, if, subsequent to such date,\nthe property in which such premises are contained ceases to meet the\nrequirements of paragraph one or two of this subdivision, such premises\nshall nonetheless remain eligible premises, provided that the eligible\nbusiness continues to occupy such premises; provided however that if,\nafter such property ceases to meet the requirements of paragraph one or\ntwo, an eligible business first leases or purchases additional premises\ncontained in such property, such additional premises shall not be\nconsidered eligible premises unless they meet the requirements of\nparagraph three of this subdivision.\n  (f) "Eligible area" means an area of a city having a population of one\nmillion or more, excluding the area lying south of the center line of\n96th Street, in the borough of Manhattan in the city of New York.\n  (g) "Employment share" means for each employee, partner or sole\nproprietor of an eligible business, the sum of : (1) the number of\nfull-time work weeks worked by such employee, partner or sole proprietor\nduring the eligible business' taxable year divided by the number of\nweeks in the taxable year, and (2) the number of part-time work weeks\nworked by such employee, partner or sole proprietor during the eligible\nbusiness' taxable year divided by an amount equal to twice the number of\nweeks in the taxable year. For purposes of this subdivision, "full-time\nwork week" shall mean a week during which at least thirty-five hours of\ngainful work has been performed by such employee, partner or sole\nproprietor and "part-time work week" shall mean a week during which at\nleast fifteen but less than thirty-five hours of gainful work has been\nperformed by such employee, partner or sole proprietor.\n  (h) "Aggregate employment shares" means the sum of all employment\nshares maintained by an eligible business in a taxable year.\n  (i) "Eligible aggregate employment shares" means the amount, if any,\nby which the number of aggregate employment shares maintained by an\neligible business in an eligible area in the taxable year in which such\neligible business claims a credit pursuant to a local law enacted in\naccordance with section twenty-five-z of this article exceeds the number\nof aggregate employment shares maintained by an eligible business in an\neligible area in the taxable year immediately preceding the taxable year\nduring which such eligible business first relocates as defined in\nsubdivision (j) of this section. Provided, however, that such amount\nshall not exceed the lesser of: (1) in the case of particular premises\nto which an eligible business relocates before July first, two thousand\nthree, the highest number of aggregate employment shares maintained by\nsuch eligible business in such premises in the taxable year during which\nsuch eligible business relocates to such premises or in any of the three\nimmediately succeeding taxable years, exclusive of any employment shares\nmaintained by such eligible business in such premises in the taxable\nyear immediately preceding the taxable year during which such eligible\nbusiness relocates to such premises; or in the case of particular\npremises to which an eligible business relocates on or after July first,\ntwo thousand three, the highest number of aggregate employment shares\nmaintained by such eligible business in such premises in the taxable\nyear during which such eligible business relocates to such premises or\nin any of the five immediately succeeding taxable years, exclusive of\nany employment shares maintained by such eligible business in such\npremises in the taxable year immediately preceding the taxable year\nduring which such eligible business relocates to such premises; or (2)\nthe number of aggregate employment shares maintained by such eligible\nbusiness in such premises in the taxable year in which such eligible\nbusiness claims a credit pursuant to a local law enacted in accordance\nwith section twenty-five-z of this article, exclusive of any employment\nshares maintained by such eligible business in such premises in the\ntaxable year immediately preceding the taxable year during which such\neligible business relocates to such premises; or (3) in the case of an\neligible business that has relocated as determined pursuant to\nsubdivision (j) of this section before July first, two thousand three,\nand has not relocated on or after July first, two thousand three, twice\nthe number of aggregate employment shares maintained by such eligible\nbusiness outside an eligible area in the taxable year immediately\npreceding the taxable year during which such eligible business first\nrelocates or, in the case of an eligible business that has relocated as\ndetermined pursuant to subdivision (j) of this section on or after July\nfirst, two thousand three, the greater of one hundred aggregate\nemployment shares or twice the number of aggregate employment shares\nmaintained by such eligible business outside the eligible area in the\ntaxable year immediately preceding the taxable year during which such\neligible business first relocates. If an eligible business relocates to\nmore than one particular premises, the amounts described in paragraphs\none and two of this subdivision shall be determined separately with\nrespect to each such particular premises, and in such case the total\nnumber of eligible aggregate employment shares for such eligible\nbusiness shall not exceed the lesser of the amount determined pursuant\nto paragraph three of this subdivision or the sum of the lesser of the\namounts determined pursuant to paragraphs one and two of this\nsubdivision for each particular premises.\n  (j) "Relocate" means to transfer pre-existing business operations to\npremises that are or will become eligible premises in accordance with\nsubdivision (e) of this section, or to establish new business operations\nat such premises, provided that an eligible business shall not be deemed\nto have relocated unless at least one employee, partner or sole\nproprietor of the eligible business is transferred to such premises from\npre-existing business operations conducted outside the eligible area.\nThe date of relocation to any particular premises shall be any date\nelected by the eligible business on which an employee, partner or sole\nproprietor of the eligible business is transferred to the particular\npremises from pre-existing business operations conducted outside the\neligible area and begins work at such premises, provided that such date\nis subsequent to the date of commencement of improvements to such\npremises or the real property in which such premises are located, which\nimprovements will meet the requirements of subdivision (e) of this\nsection relating to expenditures for improvements, and provided further\nthat such date of relocation is prior to the date of the issuance of a\ncertification of eligibility pursuant to section twenty-five-z of this\narticle. The year of relocation shall be the taxable year in which such\ndate of relocation falls. The election provided for in this subdivision\nshall be made prior to the issuance of such certification of eligibility\nand shall be irrevocable. An eligible business may relocate only once to\nany particular premises.\n  (k) "Industrial construction work" means the construction of a new\nbuilding or structure or the modernization, rehabilitation, expansion or\nimprovement of an existing building or structure for use as industrial\nproperty.\n  (l) "Industrial property" means nonresidential real property\ncontaining or which will contain after the completion of industrial\nconstruction work a building or structure wherein at least seventy-five\npercent of the total net square footage is used or immediately available\nand held out for use for manufacturing activities involving the assembly\nof goods or the fabrication or processing of raw materials.\n  (m) "Tax year" and "taxable year" mean, for purposes of this article,\ninsofar as it applies to a gross receipts tax imposed under a local law\nenacted pursuant to subdivision (a) of section twelve hundred one of the\ntax law, calendar year.\n  (n) "Revitalization area" means any area of a city having a population\nof one million or more, provided that in the city of New York a\nrevitalization area shall mean any district that is zoned C4, C5, C6,\nM1, M2 or M3 in accordance with the zoning resolution of such city in\nany area such city except the area lying south of the center line of\n96th Street in the borough of Manhattan.\n  (o) "Total attributed eligible aggregate employment shares" means, for\nany relocation, the sum of the number of eligible aggregate employment\nshares apportioned to such relocation pursuant to paragraph one of this\nsubdivision, less any excess shares determined with respect to such\nrelocation pursuant to paragraph two of this subdivision, plus any\nexcess shares attributed to such relocation pursuant to paragraph three\nof this subdivision. Except as provided in paragraph four of this\nsubdivision, any eligible aggregate employment shares that are\nattributed to a relocation to particular premises pursuant to paragraph\nthree of this subdivision shall be treated as eligible aggregate\nemployment shares that are maintained with respect to such premises and\nshall be subject to all provisions of this article and provisions for\nthe credit against a tax imposed under a local law enacted pursuant to\npart two or three of section one, or section two, of chapter seven\nhundred seventy-two of the laws of nineteen hundred sixty-six or a gross\nreceipts tax imposed under a local law enacted pursuant to subdivision\n(a) of section twelve hundred one of the tax law as such provisions\npertain to such relocation.\n  (1) In the case of a business that has relocated once, all eligible\naggregate employment shares are apportioned to the premises to which the\nsingle relocation took place. In the case of a business that has\nrelocated more than once, eligible aggregate shares are apportioned as\nfollows:\n  (i) If in a taxable year, the sum for all eligible premises of the\nlesser of the amounts determined pursuant to paragraphs one and two of\nsubdivision (i) of this section for each particular eligible premises is\nequal to the total number of eligible aggregate employment shares\ndetermined pursuant to such subdivision (i), the number of shares\napportioned to each particular eligible premises is the lesser of such\namounts for each particular eligible premises;\n  (ii) If in a taxable year, the sum for all eligible premises of the\nlesser of the amounts determined pursuant to paragraphs one and two of\nsubdivision (i) of this section for each particular eligible premises is\ngreater than the total number of eligible aggregate employment shares\ndetermined pursuant to such subdivision (i), the number of shares\napportioned to a particular eligible premises shall be such total number\nof eligible aggregate employment shares multiplied by a fraction the\nnumerator of which is the lesser of the amounts determined pursuant to\nparagraphs one and two of subdivision (i) of this section for such\npremises and the denominator of which is such sum.\n  (2) "Excess shares" shall mean eligible aggregate employment shares\nthat are apportioned pursuant to paragraph one of this subdivision to a\nrelocation in excess of the limitation amount defined in subparagraphs\n(i) and (ii) of this paragraph for such relocation.\n  (i) Subject to the provisions of subparagraph (ii) of this paragraph,\nfor any taxable year in which an eligible business is claiming the\ncredit authorized pursuant to section twenty-five-z of this article, the\n"limitation amount" shall mean:\n  (A) for one or more relocations in an eligible business' latest year\nof relocation as determined pursuant to subdivision (j) of this section,\nthe amount, if any, by which the number of aggregate employment shares\nmaintained by the eligible business in the eligible area in the taxable\nyear in which it is claiming the credit authorized by this article\nexceeds the number of aggregate employment shares maintained by it in\nthe eligible area in the taxable year immediately preceding such year of\nrelocation; or\n  (B) for one or more relocations in a specified year of relocation that\nis not the latest such year of relocation by an eligible business, the\namount, if any, by which the number of aggregate employment shares\nmaintained by the eligible business in the eligible area in the taxable\nyear in which it is claiming the credit authorized by this article\nexceeds the sum of (I) the number of total attributed eligible aggregate\nemployment shares that are attributed in the taxable year in which the\ncredit is claimed to relocations that took place in years of relocation\nlater than the specified year of relocation and (II) the number of\naggregate employment shares maintained by it in the eligible area in the\ntaxable year immediately preceding such specified year of relocation.\n  (ii) In the case of an eligible business that has relocated more than\nonce in the same taxable year, the limitation amount determined in\naccordance with subparagraph (i) of this paragraph shall be applied to\nsuch relocations in the same proportion as the eligible aggregate\nemployment shares apportioned to such relocations pursuant to paragraph\none of this subdivision.\n  (3)(i) In any taxable year in which there are excess shares, such\nexcess shares, or a portion thereof, from a relocation or relocations\nthat took place in a specified year of relocation shall be attributed in\nreverse chronological order to any relocations that took place in\nearlier years of relocation.\n  (ii) Notwithstanding subparagraph (i) of this paragraph:\n  (A) no excess shares may be attributed to a relocation unless the\nnumber of eligible aggregate employment shares apportioned pursuant to\nparagraph one of this subdivision to such relocation for the taxable\nyear in which the credit is claimed is less than the highest number of\ntotal attributed eligible aggregate employment shares pertaining to such\nrelocation in any taxable year prior to the taxable year in which the\ncredit is claimed;\n  (B) the sum of the number of shares attributed to such relocation\npursuant to subparagraph (i) of this paragraph and the eligible\naggregate employment shares apportioned to any such relocation pursuant\nto paragraph one of this subdivision may not exceed such highest number\nof total attributed eligible aggregate employment shares; and\n  (C) such sum may not exceed the limitation amount for such relocation\ndefined in paragraph two of this subdivision.\n  (4) Notwithstanding the provisions of other paragraphs of this\nsubdivision, any excess shares that are apportioned pursuant to\nparagraph one of this subdivision to a relocation to particular eligible\npremises that are not located in a revitalization area as defined in\nsubdivision (n) of this section, but are attributed pursuant to\nparagraph three of this subdivision to particular eligible premises that\nare located in such a revitalization area, shall be treated as if such\npremises to which they are attributed were not in such a revitalization\narea.\n  (p) "Particular premises" means all premises occupied by an eligible\nbusiness within a single building. "Particular eligible premises" means\nthe portion of such particular premises that meets the requirements for\neligible premises specified in subdivision (e) of this section.\n  (q) "Designated additional or replacement premises" means\nnonresidential premises in the eligible area that (i) are owned or\nleased by an eligible business that has been certified pursuant to\nsubdivision (b) of section twenty-five-z of this article to receive the\ncredit provided for in this article, and (ii) with regard to which such\neligible business obtains the certification provided for in subdivision\n(e) of section twenty-five-z of this article.\n