NY Tax L § 20 (2021)
2021 New York Laws TAX - Tax Article 1 - Short Title; Definitions; Miscellaneous 20 - Credit for Transportation Improvement Contributions.

§   20.  Credit  for  transportation  improvement  contributions.  (a) Allowance of credit. For taxable years beginning before  January  first, two thousand nine, a taxpayer subject to tax under article nine, nine-A, twenty-two,  thirty-two or thirty-three of this chapter shall be allowed a credit against such tax, pursuant  to  the  provisions  referenced  in subdivision  (d)  of  this  section. The credit shall be allowed where a taxpayer has made a certified  contribution  of  at  least  ten  million dollars  to  a  qualified  transportation improvement project in a prior taxable year. The credit shall be equal to six percent of the taxpayer's increased qualified business facility payroll for the taxable year.  The aggregate of all credit amounts allowed to the taxpayer pursuant to this section  with  respect  to a certified contribution shall not exceed the amount of such certified contribution.  (b) Definitions. As used in this section, the  following  terms  shall have the following meanings:  (1)  Qualified  business  facility  ("QBF").  A  business facility the construction or expansion of which is  intended  to  be  enhanced  by  a qualified  transportation improvement project, as described in paragraph three of this subdivision.  (2) Certified contribution. The term "certified contribution" means  a contribution certified jointly by the commissioner of transportation and the  commissioner  of  economic  development  as  a  contribution  to  a qualified  transportation  improvement   project,   such   certification indicating the date and amount of such contribution by the taxpayer, and including  a  description  of  the  associated  QBF. The commissioner of transportation and the comptroller are authorized to accept,  hold  and, notwithstanding  section four of the state finance law, to disburse such contributions, in  the  same  manner  as  is  authorized  for  municipal contributions in section ten of the highway law.  (3)  Qualified transportation improvement project. The term "qualified transportation  improvement  project"  means  the  design,  development, construction,  and/or  improvement  of transportation infrastructure and related facilities or systems, including, but not limited to,  highways, roadways,  bridges,  ramps or lanes; or railroad, port, aviation or mass transit  facilities;  or  ferry  or  marine  facilities;  or  associated right-of-way   and   associated   connections  to  existing  or  planned transportation  infrastructure  or  facilities.  Such  project  must  be designed  in  part to enhance the planned construction or expansion of a QBF.  A  project  for  the  design,  development,  construction,  and/or improvement  of  transportation infrastructure and related facilities or systems shall be  considered  a  "qualified  transportation  improvement project"  under  this section only if the commissioner of transportation and the commissioner of economic development jointly determine, in their sole discretion, that the  project  would  promote  the  development  of employment  opportunities  in  connection with such QBF by creating more than one thousand new jobs in connection therewith, and is in  the  best interests of the people of the state. The undertaking of said project is declared   to   be  for  a  public  purpose,  and  the  commissioner  of transportation is authorized to participate in the costs thereof.  (4) Increased QBF payroll. The term "increased QBF payroll" means  the excess,  if  any,  of (A) the taxpayer's total wages, salaries and other personal service compensation of employees employed in connection with a QBF  other  than  general  executive  officers  (in  the   case   of   a corporation),  for  the  taxable  year,  over  (B)  the  average  of the taxpayer's total wages, salaries and other personal service compensation of such employees for the taxable year in  which  the  contribution  was made  and  for  the two immediately preceding taxable years, if any, but only to the extent that such excess exists with regard to the state.  (c) Recapture. (1) If the taxpayer has made a  contribution  which  is the  basis  for a credit allowed under this section, and if with respect to the third full taxable year (the  "test  year")  next  following  the taxable  year during which such contribution was made (the "contribution year") the employment increase test described in paragraph three of this subdivision  is  not  met,  the  taxpayer  shall add back the sum of the amounts of such credit which have been allowed  for  all  prior  taxable years,  and  shall  be allowed no further credit under this section with respect to such contribution with respect to any other taxable year.  (2) The amount required to be added back pursuant to this  subdivision shall  be augmented by an amount equal to the product of such amount and the underpayment rate of interest (without regard to  compounding),  set by  the  commissioner pursuant to subsection (e) of section one thousand ninety-six of this chapter, in the case of taxpayers which  applied  the credit   against   tax   under   article  nine,  nine-A,  thirty-two  or thirty-three, or pursuant to  subsection  (j)  of  section  six  hundred ninety-seven  of  this chapter, in the case of taxpayers who applied the credit against tax under article twenty-two of this chapter,  in  effect on the last day of the taxable year.  (3) The employment increase test shall be deemed met where the average number of full-time employees of the taxpayer employed (A) in connection with a QBF and (B) in this state, during the test year, exceeds, in each case,  such  number determined with respect to the contribution year and the two immediately preceding taxable years by one thousand.  (4) The average number  of  employees  in  a  taxable  year  shall  be computed  by  ascertaining  the  number  of  employees,  except  general executive officers (in the case  of  a  corporation),  employed  by  the taxpayer  on  the  thirty-first day of March, the thirtieth day of June, the thirtieth day of September and the thirty-first day of  December  in the taxable year, by adding together the number of employees ascertained on  each of such dates and dividing the sum so obtained by the number of such abovementioned dates occurring within the taxable year.  (d) Cross-references. For application of the credit  provided  for  in this section, see the following provisions of this chapter:  (1) Article 9: Section 187-e,  (2) Article 9-A: Section 210: subdivision 32,  (3) Article 22: Section 606: subsections (i) and (z),  (4) Article 32: Section 1456: subsection (n),  (5) Article 33: Section 1511: subdivision (p).