NY Econ Dev L § 400 (2021)
2021 New York Laws COM - Economic Development Law Article 18 - Economic Transformation and Facility Redevelopment Program 400 - Definitions.

* § 400. Definitions. For the purposes of this article:   1. "Benefit-cost ratio" means the following calculation: the numerator is the sum of (i) the value of all remuneration projected to be paid for all  net new jobs during the period of participation in the program, and (ii) the cost of qualified investments to be made by the business entity during the period of participation in the program, and  the  denominator is the amount of total tax benefits under this article that is projected to be used and refunded.   2.  "Certificate  of  eligibility"  means  the  document issued by the department to an applicant that demonstrates that the applicant has been admitted as a participant into the economic transformation and  facility redevelopment  program by the department. Possession of a certificate of eligibility  does  not  by  itself  guarantee  the  eligibility  of  the participant  to  claim  the  tax  credits  allowed  pursuant  to section thirty-five of the tax law.   3. "Net new jobs" means jobs created in  the  economic  transformation area that:  (a) are new to the area;  (b)  have  not been transferred from employment in this state with the participant or with  a  related  person  in  this  state,  and  are  not replacing jobs with similar titles or job responsibilities;  (c) are either full-time wage-paying jobs or equivalent to a full-time wage-paying job requiring at least thirty-five hours per week;  (d) are filled for more than six months in a taxable year;  (e) are not general executive officers of the participant; and  (f)   may   not   be  filled  with  individuals  having  the  familial relationship defined in section 267(c)(4) of the internal  revenue  code with any owner of the participant.   4. "Participant" means a business entity that:  (a) is a new business as defined in subdivision nine of this section.  (b)  has  completed  an application prescribed by the department to be admitted into the program;  (c) has demonstrated how it plans to meet the eligibility criteria  in section four hundred one of this article; and  (d) has been issued a certificate of eligibility by the department.  (e)  provided,  however  that the requirement in paragraph (a) of this subdivision that the participant be a new business shall not apply to  a closed  facility  as  defined  in paragraph (d) of subdivision eleven of this section.   5. "Preliminary schedule of benefits" means  the  estimated  aggregate amount   of   the  tax  credits  that  a  participant  in  the  economic transformation and facility redevelopment program is eligible to receive pursuant to section thirty-five of  the  tax  law.  The  schedule  shall indicate the annual amount of each credit a participant expects to claim in each of its five years of eligibility.   6.  "Qualified  investment"  means  an investment in tangible property (including a building or a structural component of a building) owned  by a business entity which:  (a)  is depreciable pursuant to section one hundred sixty-seven of the internal revenue code;  (b) has a useful life of four years or more;  (c) is  acquired  by  purchase  as  defined  in  section  one  hundred seventy-nine (d) of the internal revenue code;  (d)  has  a  situs in an economic transformation area in this state in which it is certified; and  (e) is placed in service in an economic  transformation  area  in  the state  on  or after the date the certificate of eligibility is issued to the business entity.    7. "Related person" means a "related person" pursuant to  subparagraph (c)  of  paragraph  three  of  subsection  (b)  of  section four hundred sixty-five of the internal revenue code.   8.  "Remuneration"  means  wages  paid  to and benefits received by an employee by a participant in the economic  transformation  and  facility redevelopment program.   9.  "New  business"  means a business entity that satisfies all of the following tests:  (a) the business entity must not be  currently  operating  or  located within  the  economic  transformation  area  in which it is applying for certification;  (b) the business entity must not be  moving  existing  jobs  into  the economic  transformation  area in which it is applying for certification from another area of the state;  (c) the business entity must not be substantially similar in ownership and operation to another taxpayer taxable or  previously  taxable  under section  one  hundred  eighty-three or one hundred eighty-four or former section one hundred eighty-five of  article  nine,  former  section  one hundred   eighty-six   or  article  nine-A,  twenty-two,  thirty-two  or thirty-three of the tax law or the income or losses of which is  or  was includable under article twenty-two of the tax law;  (d)  the  business entity must not have caused individuals to transfer from existing employment with a related person and located in  New  York state to similar employment with the business entity;  (e)  the business entity must not have acquired, purchased, leased, or had  transferred  to  it  real  property   located   in   the   economic transformation  area  in  which it is applying for certification if that real property was previously owned by an entity with similar  ownership, regardless of form of incorporation or organization; and  (f) the business entity must not be substantially similar in operation to  a  business  entity  from  which  it  has  acquired real or tangible personal property that is located in the economic transformation area in which it is applying for certification.   10. "Economic transformation area" means:  (a) In the region of the state outside of  the  metropolitan  commuter transportation  district (as defined in section twelve hundred sixty-two of the public authorities law)  and  the  port  authority  district  (as defined  by article two of chapter one hundred fifty-four of the laws of nineteen hundred twenty-one), an area within a five mile radius in  this state  of a closed facility. If more than sixty persons were employed in full-time positions at a closed facility on April  first,  two  thousand eleven,  then  it  is the area within a ten mile radius in this state of that closed facility. The commissioner may increase the  radius  of  the area  from  ten  miles  to  up  to  fifteen miles in this state based on factors including but not limited to  population  density,  the  poverty rate, the unemployment rate and the loss of jobs in the region. However, the  increased  radius  may  not  extend  into the metropolitan commuter transportation district. The commissioner may also decrease  the  radius of  the  ten  mile  area but to no less than a five mile radius based on factors including but not limited to  population  density,  the  poverty rate,  the  unemployment  rate  and the loss of jobs in the region. Upon notification of the commissioner, pursuant to subdivision eleven of this section, the commissioner shall establish the size of the transformation area prior to the acceptance of any applications into the program.  (b) In the metropolitan commuter transportation district  outside  the port  authority district, an area within a one mile radius in this state of a closed facility. If  more  than  sixty  persons  were  employed  in full-time  positions  at  a closed facility on April first, two thousand  eleven, then it is the area within a five mile radius in this  state  of that  closed  facility,  provided that the commissioner may decrease the radius of the expanded area but to no less than a one mile radius  based on  factors including but not limited to population density, the poverty rate, the unemployment rate, and the  loss  of  jobs  in  the  area  and whether  the  radius  would  extend outside of the metropolitan commuter transportation district. Upon notification of the commissioner  pursuant to  subdivision eleven of this section, the commissioner shall establish the size of the transformation area  prior  to  the  acceptance  of  any applications into the program.  (c) In the port authority district, an area limited to the site of the closed facility.  (d) Notwithstanding paragraph (b) of this subdivision, with respect to a  closed  facility  described in paragraph (d) of subdivision eleven of this section, the economic transformation area shall consist only of the acreage of the closed facility.   11. "Closed facility" means:  (a)  a  correctional  facility,  as  defined  in  paragraph   (a)   of subdivision  four  of  section  two of the correction law, that has been selected by the governor of the state of  New  York  for  closure  after April  first,  two thousand eleven but no later than March thirty-first, two thousand twenty-six; or  (b) a facility operated by the office of children and family  services under article nineteen-G of the executive law that is closed pursuant to authority  granted  to  such  office  in  a  chapter  of the laws of two thousand eleven; or  (c)  which  has  been  closed  provided  that  the   commissioner   of correctional  services or the commissioner of the office of children and family services has notified the commissioner of such closure; or  (d) a facility previously owned by the state, and when  operated,  was operated  as  a  psychiatric  facility  pursuant  to section 7.17 of the mental  hygiene  law,  and  located  within  the  metropolitan  commuter transportation district but outside New York city.   * NB Repealed December 31, 2026