NY Gen City L § 25-Y (2021)
2021 New York Laws GCT - General City Article 2-H - Relocation and Employment Assistance Program 25-Y - Definitions.

§ 25-y. Definitions. As used in this article the following terms shall have the following meanings:  (a)  "Eligible  business"  means  any  person subject to a tax imposed under a local law enacted pursuant to part two or three of section  one, or  section  two,  of  chapter  seven hundred seventy-two of the laws of nineteen hundred sixty-six or a gross receipts tax imposed under a local law enacted pursuant to subdivision (a) of section twelve hundred one of the  tax  law  that:  (1)  has  been  conducting  substantial   business operations  at  one  or more business locations outside an eligible area for the twenty-four consecutive months immediately preceding the taxable year during  which  such  eligible  business  relocates  as  defined  in subdivision (j) of this section; and (2) on or after May twenty-seventh, nineteen hundred eighty-seven relocates as defined in subdivision (j) of this section all or part of such business operations; and (3) either (i) on  or  after  May  twenty-seventh,  nineteen hundred eighty-seven first enters into a contract to purchase or lease the  premises  to  which  it relocates  as defined in subdivision (j) of this section, or a parcel on which  will  be  constructed  such  premises,  or   (ii)   as   of   May twenty-seventh,  nineteen  hundred  eighty-seven  owns  such  parcel  or premises and has not prior to such date made  application  for  benefits pursuant  to  a  local  law  enacted  in  accordance with title two-D of article four of the real property tax law.  (b)  "Person"  means  and  includes   any   individual,   partnership, association,  joint-stock company, corporation, estate or trust, limited liability company, and any combination of the foregoing.  (c) "Retail activity" means any activity which consists  predominantly of the sale, other than through the mail or by the telephone or by means of  the  internet,  of tangible personal property to any person, for any purpose unrelated to the trade or business  of  such  person,  or  which consists  predominantly  of the selling of services to individuals which generally involve the physical, mental and/or  spiritual  care  of  such individuals, or the physical care of the personal property of any person unrelated  to  the  trade  or business of such person, or which consists predominantly of the provision of retail banking services.  (d) "Hotel services" means any services which consist predominantly of the lodging of guests at a  building  or  a  portion  thereof  which  is regularly  used  and  kept  open  for  such  services.  The  term "hotel services" shall include the lodging of guests at an apartment  hotel,  a motel, boarding house or club, whether or not meals are served.  (e)  "Eligible  premises" means: (1) nonresidential premises which are wholly contained in real property which  is  certified  as  eligible  to receive  benefits  pursuant  to  a  local law enacted in accordance with title two-C or title two-D of article four of the real property tax law, provided that such  premises  have  been  improved  by  construction  or renovation,  that  expenditures  have been made for improvements to such real property in  excess  of  fifty  per  centum  or,  in  the  case  of industrial  property,  in excess of twenty-five per centum, of the value at which such real property was assessed for tax purposes  for  the  tax year  in  which  such  improvements commenced and such expenditures have been made within thirty-six months or, in the case of  expenditures  for such  improvements  to  such  real  property  in excess of fifty million dollars within seventy-two months from such commencement  and,  provided further, that such real property is located in an eligible area;  (2)  nonresidential  premises  which  are:  (i) wholly contained in or situated on real property which  has  been  leased  from  an  industrial development  agency  established  pursuant  to article eighteen-A of the general municipal law, provided that such premises were  constructed  or renovated  subsequent to the approval of such construction or renovation  by such agency, or (ii) wholly contained in or situated on real property owned by a city having a population of one million or more, a lease  for which  was  approved in accordance with the applicable provisions of the charter  of  such  city, provided that such premises were constructed or renovated subsequent to such approval, or (iii) wholly contained  in  or situated  on real property which has been leased from the port authority of the state of New York and New Jersey or  the  New  York  state  urban development  corporation,  or  a  subsidiary thereof, provided that such premises were constructed or renovated subsequent to  the  execution  of such lease, or (iv) wholly contained in property which would be eligible to  receive  benefits pursuant to a local law enacted in accordance with title two-D of article four of the real property  tax  law  except  that such  property  is  exempt  from  real  property taxation; provided that expenditures have been made for improvements to such  real  property  in excess  of  fifty  per centum or, in the case of industrial property, in excess of twenty-five per centum,  of  the  value  at  which  such  real property  was  assessed  for tax purposes for the tax year in which such improvements commenced and  such  expenditures  have  been  made  within thirty-six  months or, in the case of expenditures for such improvements to such  real  property  in  excess  of  fifty  million  dollars  within seventy-two  months  from  the  date  of such commencement, and provided further that such real property is located in an eligible area; or  (3) in the case of a relocation, the date of which, as  determined  in subdivision (j) of this section, is on or after July first, two thousand three, nonresidential premises, located in an eligible area, for which a minimum  expenditure  has been made on or after July first, two thousand three, for improvements in excess  of  twenty-five  dollars  per  square foot,  provided,  however,  that if such premises are leased, such lease shall have a term that does not expire until at least three years  after the  later  of  the  date  of such relocation and the lease commencement date.   The determination  of  whether  premises  meet  the  requirements  for eligibility  set  forth  in  this  subdivision  shall  be made as of the effective date of the certification of eligibility  issued  pursuant  to section twenty-five-z of this article. Notwithstanding the provisions of paragraphs one and two of this subdivision, if, subsequent to such date, the  property  in  which  such premises are contained ceases to meet the requirements of paragraph one or two of this subdivision, such  premises shall  nonetheless  remain eligible premises, provided that the eligible business continues to occupy such premises; provided  however  that  if, after  such property ceases to meet the requirements of paragraph one or two, an eligible business first leases or purchases additional  premises contained  in  such  property,  such  additional  premises  shall not be considered eligible  premises  unless  they  meet  the  requirements  of paragraph three of this subdivision.  (f) "Eligible area" means an area of a city having a population of one million  or  more,  excluding the area lying south of the center line of 96th Street, in the borough of Manhattan in the city of New York.  (g) "Employment share"  means  for  each  employee,  partner  or  sole proprietor  of  an  eligible  business,  the  sum of : (1) the number of full-time work weeks worked by such employee, partner or sole proprietor during the eligible business' taxable year  divided  by  the  number  of weeks  in  the  taxable year, and (2) the number of part-time work weeks worked by such employee, partner or sole proprietor during the  eligible business' taxable year divided by an amount equal to twice the number of weeks  in the taxable year. For purposes of this subdivision, "full-time work week" shall mean a week during which at least thirty-five hours  of gainful  work  has  been  performed  by  such  employee, partner or sole  proprietor and "part-time work week" shall mean a week during  which  at least  fifteen  but less than thirty-five hours of gainful work has been performed by such employee, partner or sole proprietor.  (h)  "Aggregate  employment  shares"  means  the sum of all employment shares maintained by an eligible business in a taxable year.  (i) "Eligible aggregate employment shares" means the amount,  if  any, by  which  the  number  of  aggregate employment shares maintained by an eligible business in an eligible area in the taxable year in which  such eligible  business  claims  a  credit pursuant to a local law enacted in accordance with section twenty-five-z of this article exceeds the number of aggregate employment shares maintained by an eligible business in  an eligible area in the taxable year immediately preceding the taxable year during  which  such  eligible  business  first  relocates  as defined in subdivision (j) of this section. Provided,  however,  that  such  amount shall  not  exceed the lesser of: (1) in the case of particular premises to which an eligible business relocates before July first, two  thousand three,  the  highest number of aggregate employment shares maintained by such eligible business in such premises in the taxable year during which such eligible business relocates to such premises or in any of the three immediately succeeding taxable years, exclusive of any employment shares maintained by such eligible business in such  premises  in  the  taxable year  immediately  preceding the taxable year during which such eligible business relocates to such  premises;  or  in  the  case  of  particular premises to which an eligible business relocates on or after July first, two  thousand  three,  the highest number of aggregate employment shares maintained by such eligible business in such  premises  in  the  taxable year  during  which such eligible business relocates to such premises or in any of the five immediately succeeding taxable  years,  exclusive  of any  employment  shares  maintained  by  such  eligible business in such premises in the taxable year  immediately  preceding  the  taxable  year during  which  such eligible business relocates to such premises; or (2) the number of aggregate employment shares maintained  by  such  eligible business  in  such  premises  in the taxable year in which such eligible business claims a credit pursuant to a local law enacted  in  accordance with  section twenty-five-z of this article, exclusive of any employment shares maintained by such eligible business  in  such  premises  in  the taxable  year  immediately  preceding the taxable year during which such eligible business relocates to such premises; or (3) in the case  of  an eligible   business   that  has  relocated  as  determined  pursuant  to subdivision (j) of this section before July first, two  thousand  three, and  has not relocated on or after July first, two thousand three, twice the number of aggregate employment shares maintained  by  such  eligible business  outside  an  eligible  area  in  the  taxable year immediately preceding the taxable year during which  such  eligible  business  first relocates  or, in the case of an eligible business that has relocated as determined pursuant to subdivision (j) of this section on or after  July first,  two  thousand  three,  the  greater  of  one  hundred  aggregate employment shares or twice the number  of  aggregate  employment  shares maintained  by  such  eligible business outside the eligible area in the taxable year immediately preceding the taxable year  during  which  such eligible  business first relocates. If an eligible business relocates to more than one particular premises, the amounts described  in  paragraphs one  and  two  of  this  subdivision shall be determined separately with respect to each such particular premises, and in  such  case  the  total number  of  eligible  aggregate  employment  shares  for  such  eligible business shall not exceed the lesser of the amount  determined  pursuant to  paragraph  three of this subdivision or the sum of the lesser of the  amounts  determined  pursuant  to  paragraphs  one  and  two   of   this subdivision for each particular premises.  (j)  "Relocate"  means to transfer pre-existing business operations to premises that are or will become eligible premises  in  accordance  with subdivision (e) of this section, or to establish new business operations at such premises, provided that an eligible business shall not be deemed to  have  relocated  unless  at  least  one  employee,  partner  or sole proprietor of the eligible business is transferred to such premises from pre-existing business operations conducted outside  the  eligible  area. The  date  of  relocation  to  any particular premises shall be any date elected by the eligible business on which an employee, partner  or  sole proprietor  of  the  eligible  business is transferred to the particular premises from pre-existing business  operations  conducted  outside  the eligible  area and begins work at such premises, provided that such date is subsequent to the  date  of  commencement  of  improvements  to  such premises  or the real property in which such premises are located, which improvements will meet the  requirements  of  subdivision  (e)  of  this section  relating to expenditures for improvements, and provided further that such date of relocation is prior to the date of the issuance  of  a certification  of  eligibility pursuant to section twenty-five-z of this article. The year of relocation shall be the taxable year in which  such date  of relocation falls. The election provided for in this subdivision shall be made prior to the issuance of such certification of eligibility and shall be irrevocable. An eligible business may relocate only once to any particular premises.  (k) "Industrial construction work" means the  construction  of  a  new building or structure or the modernization, rehabilitation, expansion or improvement  of  an existing building or structure for use as industrial property.  (l)  "Industrial  property"   means   nonresidential   real   property containing  or  which  will  contain  after the completion of industrial construction work a building or structure wherein at least  seventy-five percent of the total net square footage is used or immediately available and held out for use for manufacturing activities involving the assembly of goods or the fabrication or processing of raw materials.  (m)  "Tax year" and "taxable year" mean, for purposes of this article, insofar as it applies to a gross receipts tax imposed under a local  law enacted pursuant to subdivision (a) of section twelve hundred one of the tax law, calendar year.  (n) "Revitalization area" means any area of a city having a population of  one  million  or  more,  provided  that  in  the  city of New York a revitalization area shall mean any district that is zoned  C4,  C5,  C6, M1,  M2  or  M3 in accordance with the zoning resolution of such city in any area such city except the area lying south of  the  center  line  of 96th Street in the borough of Manhattan.  (o) "Total attributed eligible aggregate employment shares" means, for any  relocation,  the sum of the number of eligible aggregate employment shares apportioned to such relocation pursuant to paragraph one of  this subdivision,  less  any  excess  shares  determined with respect to such relocation pursuant to paragraph  two  of  this  subdivision,  plus  any excess  shares attributed to such relocation pursuant to paragraph three of this subdivision. Except  as  provided  in  paragraph  four  of  this subdivision,   any   eligible   aggregate  employment  shares  that  are attributed to a relocation to particular premises pursuant to  paragraph three  of  this  subdivision  shall  be  treated  as  eligible aggregate employment shares that are maintained with respect to such premises  and shall  be  subject  to all provisions of this article and provisions for the credit against a tax imposed under a local law enacted  pursuant  to  part  two  or  three  of  section  one, or section two, of chapter seven hundred seventy-two of the laws of nineteen hundred sixty-six or a gross receipts tax imposed under a local law enacted pursuant  to  subdivision (a)  of  section  twelve  hundred  one of the tax law as such provisions pertain to such relocation.  (1) In the case of a business that has relocated  once,  all  eligible aggregate employment shares are apportioned to the premises to which the single  relocation  took  place.  In  the  case  of  a business that has relocated more than once, eligible aggregate shares are  apportioned  as follows:  (i)  If  in  a  taxable year, the sum for all eligible premises of the lesser of the amounts determined pursuant to paragraphs one and  two  of subdivision (i) of this section for each particular eligible premises is equal  to  the  total  number  of  eligible  aggregate employment shares determined pursuant to  such  subdivision  (i),  the  number  of  shares apportioned  to  each particular eligible premises is the lesser of such amounts for each particular eligible premises;  (ii) If in a taxable year, the sum for all eligible  premises  of  the lesser  of  the amounts determined pursuant to paragraphs one and two of subdivision (i) of this section for each particular eligible premises is greater than the total number of eligible  aggregate  employment  shares determined  pursuant  to  such  subdivision  (i),  the  number of shares apportioned to a particular eligible premises shall be such total number of eligible aggregate employment shares multiplied  by  a  fraction  the numerator  of  which is the lesser of the amounts determined pursuant to paragraphs one and two of subdivision  (i)  of  this  section  for  such premises and the denominator of which is such sum.  (2)  "Excess  shares"  shall mean eligible aggregate employment shares that are apportioned pursuant to paragraph one of this subdivision to  a relocation  in  excess of the limitation amount defined in subparagraphs (i) and (ii) of this paragraph for such relocation.  (i) Subject to the provisions of subparagraph (ii) of this  paragraph, for  any  taxable  year  in  which  an eligible business is claiming the credit authorized pursuant to section twenty-five-z of this article, the "limitation amount" shall mean:  (A) for one or more relocations in an eligible business'  latest  year of relocation as determined pursuant to subdivision (j) of this section, the  amount,  if any, by which the number of aggregate employment shares maintained by the eligible business in the eligible area in the  taxable year  in  which  it  is  claiming  the credit authorized by this article exceeds the number of aggregate employment shares maintained  by  it  in the eligible area in the taxable year immediately preceding such year of relocation; or  (B) for one or more relocations in a specified year of relocation that is  not  the latest such year of relocation by an eligible business, the amount, if any, by which  the  number  of  aggregate  employment  shares maintained  by the eligible business in the eligible area in the taxable year in which it is claiming  the  credit  authorized  by  this  article exceeds the sum of (I) the number of total attributed eligible aggregate employment  shares  that are attributed in the taxable year in which the credit is claimed to relocations that took place in years of  relocation later  than  the  specified  year  of  relocation and (II) the number of aggregate employment shares maintained by it in the eligible area in the taxable year immediately preceding such specified year of relocation.  (ii) In the case of an eligible business that has relocated more  than once  in  the  same  taxable  year,  the limitation amount determined in accordance with subparagraph (i) of this paragraph shall be  applied  to such  relocations  in  the  same  proportion  as  the eligible aggregate  employment shares apportioned to such relocations pursuant to  paragraph one of this subdivision.  (3)(i)  In  any  taxable  year  in which there are excess shares, such excess shares, or a portion thereof, from a  relocation  or  relocations that took place in a specified year of relocation shall be attributed in reverse  chronological  order  to  any  relocations  that  took place in earlier years of relocation.  (ii) Notwithstanding subparagraph (i) of this paragraph:  (A) no excess shares may be attributed  to  a  relocation  unless  the number  of  eligible aggregate employment shares apportioned pursuant to paragraph one of this subdivision to such  relocation  for  the  taxable year  in  which the credit is claimed is less than the highest number of total attributed eligible aggregate employment shares pertaining to such relocation in any taxable year prior to the taxable year  in  which  the credit is claimed;  (B)  the  sum  of  the  number of shares attributed to such relocation pursuant  to  subparagraph  (i)  of  this  paragraph  and  the  eligible aggregate  employment shares apportioned to any such relocation pursuant to paragraph one of this subdivision may not exceed such highest  number of total attributed eligible aggregate employment shares; and  (C)  such sum may not exceed the limitation amount for such relocation defined in paragraph two of this subdivision.  (4)  Notwithstanding  the  provisions  of  other  paragraphs  of  this subdivision,   any  excess  shares  that  are  apportioned  pursuant  to paragraph one of this subdivision to a relocation to particular eligible premises that are not located in a revitalization  area  as  defined  in subdivision  (n)  of  this  section,  but  are  attributed  pursuant  to paragraph three of this subdivision to particular eligible premises that are located in such a revitalization area, shall be treated as  if  such premises  to which they are attributed were not in such a revitalization area.  (p) "Particular premises" means all premises occupied by  an  eligible business  within a single building. "Particular eligible premises" means the portion of such particular premises that meets the requirements  for eligible premises specified in subdivision (e) of this section.  (q)    "Designated   additional   or   replacement   premises"   means nonresidential premises in the eligible  area  that  (i)  are  owned  or leased  by  an  eligible  business  that  has been certified pursuant to subdivision (b) of section twenty-five-z of this article to receive  the credit  provided for in this article, and (ii) with regard to which such eligible business obtains the certification provided for in  subdivision (e) of section twenty-five-z of this article.