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

§  25-dd.  Definitions. When 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  the  city  of  New York  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 but has not maintained employment shares at premises in the city of New  York  at  any  time  during  the  period beginning  January  first,  two  thousand  two and ending on the date it enters into a lease or a contract to purchase  the  premises  that  will qualify  as  eligible  premises  pursuant to this article; and (2) on or after July first, two thousand three relocates as defined in subdivision (j) of this section all or part of such business operations.  (b)  "Person"  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  predominately 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 predominately 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 predominately of the provision of retail banking services.  (d) "Hotel services" means any services which consist predominately 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 after June  thirtieth,  two thousand  three,  or  in  the case of a relocation by a special eligible business, after June thirtieth, two thousand five, 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  the  eligible  Lower Manhattan  area,  and  provided  further,  that in the case of a special eligible business, a lease or contract  to  purchase  such  premises  is first   entered  into  by  the  special  eligible  business  after  June thirtieth, two thousand five;  (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 after June thirtieth, two thousand three, or in the case of a relocation by a special eligible business,  after  June thirtieth,  two thousand five, 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  the eligible Lower Manhattan area, and provided further, that in  the  case  of  a  special eligible  business,  a  lease  or  contract to purchase such premises is first  entered  into  by  the  special  eligible  business  after   June thirtieth, two thousand five; or  (3) in the case of an eligible business, nonresidential premises which are located in the eligible Lower Manhattan area, for which a lease or a contract to purchase is first entered into by an eligible business on or after July first, two thousand three and for which a minimum expenditure has  been  made  on  or  after  such date, for improvements in excess of twenty-five dollars per square  foot,  or  in  the  case  of  a  special eligible  business,  non-residential  premises  that  are located in the eligible Lower Manhattan area  for  which  a  lease  or  a  contract  to purchase  is  first  entered  into  by  the eligible business after June thirtieth, two thousand five, and for which a  minimum  expenditure  has been  made  after  such  date  for improvements in excess of twenty-five dollars per square foot, provided, however, that,  in  either  case,  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 relocation and the lease commencement date.   Notwithstanding  the  provisions  of  paragraphs  one  and two of this subdivision, if, subsequent to date of certification,  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 or special eligible business continues to occupy such premises; provided however that  if,  after  such  property  ceases  to  meet  the requirements  of  such  paragraph  one  or  two, an eligible business or special 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 Lower Manhattan area" means the area in the city of New York in the borough of Manhattan lying south of a line running from  the intersection  of  the  Hudson  River with the Holland Tunnel and running thence north along West Street to the intersection of  Clarkson  Street, then  running  east  along  the  centerline  of  Clarkson  Street to the intersection  of  Washington  Street,  then  running  south  along   the centerline  of  Washington  Street  to  the intersection of West Houston Street, then east along the centerline of West Houston Street,  then  at the intersection of the Avenue of the Americas continuing east along the centerline  of  East  Houston  Street  to  the easterly bank of the East River.  (g) "Employment share" means,  for  each  employee,  partner  or  sole proprietor of an eligible business or special 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'  or  special 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' or special 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.  For purposes of this section, employment shares shall not be based upon work weeks attributable to employees, partners or sole proprietors  acquired  by  an  eligible  business  or  special  eligible business as a result of a merger with, acquisition of another person, or a  transaction  having  a  comparable  effect,  that  occurs  after June thirtieth, two thousand five, and before the end of the taxable year  in which  a  credit  is  claimed by such eligible business pursuant to this section, or to successors, if any, to those employees, partners or  sole proprietors.  (h)  "Aggregate  employment  shares"  means  the sum of all employment shares maintained by an eligible business or special  eligible  business in a taxable year.  (i) "Eligible aggregate employment shares" means (1) in the case of an eligible  business,  the  amount, if any, of aggregate employment shares maintained by an eligible business in eligible premises in the  eligible Lower Manhattan 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-ee of this article.  Provided,  however,  that  such amount  shall  not  exceed  the  lesser  of:  (i)  the highest number of aggregate employment shares maintained  by  such  eligible  business  in eligible  premises  in  the  taxable  year  during  which  such eligible business relocates or in any of the five immediately succeeding  taxable years;  or  (ii)  the greater of one hundred aggregate employment shares and twice the number of aggregate employment shares maintained  by  such eligible  business  outside  the  city  of  New York in the taxable year immediately preceding  the  taxable  year  during  which  such  eligible business relocates. In determining eligible aggregate employment shares, work  weeks at premises prior to the later of the date of relocation and the date such premises meet the requirements of subdivision (e) of  this section shall not be taken into account.  (2)  In  the  case of a special eligible business, "eligible aggregate employment shares" means: the  amount  of  aggregate  employment  shares determined  in  subparagraph  (i)  of this paragraph, provided, however,  such amount shall not exceed the lowest of  the  amounts  determined  in subparagraphs (ii), (iii), (iv) and (v) of this paragraph.  (i)  the  amount  determined  in  this  subparagraph  is the number of aggregate employment shares maintained by a special eligible business in eligible premises in the eligible Lower Manhattan area  in  the  taxable year in which such special eligible business claims a credit pursuant to a  local  law  enacted in accordance with section twenty-five-ee of this article less the number of aggregate  employment  shares  maintained  by such  business in such premises in the taxable year prior to the year of relocation.  (ii) the amount determined in this subparagraph is the amount, if any, by which the number of  aggregate  employment  shares  maintained  by  a special  eligible  business  in the taxable year in the city of New York exceeds the number of New York city base shares.  (iii) the amount determined in this subparagraph  is  the  amount,  if any,  by  which  number  of  aggregate employment shares maintained by a special eligible business in the taxable  year  in  the  eligible  Lower Manhattan area exceeds the number of Lower Manhattan base shares.  (iv)  the amount determined in this subparagraph is the greater of one hundred and twice the number of aggregate employment  shares  maintained by  the  special  eligible  business outside the city of New York in the year prior to the year of relocation.  (v) the amount determined in this subparagraph is:  (A) for the year of relocation, the number of  full  time  work  weeks worked  by  relocated  employees  in eligible premises after the date of relocation divided by the number of weeks in such taxable year, plus the number of part-time work weeks worked by such employees in such premises after the date of relocation, divided by twice the number  of  weeks  in the taxable year of relocation;  (B) for taxable years after the taxable year of relocation, the lesser of:  (I)  the  number of relocated employee base shares plus the product of (a) the excess, if any, of the number  of  aggregate  employment  shares determined  in  subparagraph  (i)  of  this paragraph over the number of relocated employee base shares and (b)  a  fraction,  the  numerator  of which   is  the  number  of  relocated  employee  base  shares  and  the denominator of which is the sum of relocated employee  base  shares  and New York city base shares; and  (II)  the  highest  number  of  eligible  aggregate  employment shares maintained by the special eligible business in eligible premises  during the  year  of  relocation  and  the  five immediately succeeding taxable years.  (j) In the case of an eligible business, "relocate" means to  transfer pre-existing  business  operations  to one or more premises which 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  city  of  New  York.  The  date  of relocation  shall  be  the  later  of:  (1)  the  first day on which the individual so transferred commences work at premises that  are  or  will become  eligible  premises, and (2) the date of completion of sufficient improvements to the eligible  premises  at  which  such  individual  has commenced  work,  to  meet  the  requirements of subdivision (e) of this section relating to expenditures for improvements. The taxable  year  of relocation  shall  be  the  taxable year in which the date of relocation occurs. For purposes of this article, an eligible business may  relocate  only  once  but may add or substitute other eligible premises throughout the period during which it is authorized pursuant to subdivision (a)  of section  twenty-five-ee of this article to receive the credit allowed by such section.  (k)  "Tax year" and "taxable year" mean, for purposes of this article, in the case of taxpayers authorized to receive  the  credit  allowed  by section  twenty-five-ee  of this article against the tax imposed under a local law enacted pursuant to subdivision (a) of section twelve  hundred one of the tax law, calendar year.  (l)  "Special  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 the city of New York for the twenty-four consecutive months immediately preceding the taxable year  during  which  such  eligible  business  relocates  as defined  in  subdivision  (m) of this section, (2) maintained employment shares at premises in Manhattan in the city of New  York  at  some  time during  the period beginning January first, two thousand two, and ending on the date it enters into  a  lease  or  a  contract  to  purchase  the premises  that  will  qualify  as  eligible  premises  pursuant  to this section, and  (3)  on  or  after  June  thirtieth,  two  thousand  five, relocates  as  defined in subdivision (m) of this section all or part of such business operations.  (m) In the case of a special eligible business,  "relocate"  means  to transfer pre-existing business operations and employees from one or more qualifying  business  locations  outside  the city of New York to one or more premises which are or will become eligible premises  in  accordance with  subdivision  (e)  of this section. The date of relocation shall be the later of: (1) the  first  day  on  which  the  first  individual  so transferred  commences work at premises that are or will become eligible premises, and (2) the date of completion of sufficient  improvements  to the  eligible  premises  at  which such individual has commenced work to meet the requirements of subdivision (e) of  this  section  relating  to expenditures  for  improvements. The taxable year of relocation shall be the taxable year in which the date of relocation occurs. For purposes of this chapter, a special eligible business may relocate only once but may add additional eligible premises throughout the period during  which  it is  authorized  pursuant to subdivision (a) of section twenty-five-ee of this article to receive the credit allowed by such section.  (n) "Relocated Employee" means  an  employee  of  a  special  eligible business  who  (1)  has  worked at a qualifying business location of the eligible  business  outside  of  the  city  of  New  York  continuously, full-time  or  part-time,  for  the  ten work weeks prior to the date of relocation and continuously from the date of relocation until  the  date of  transfer  to  eligible  premises,  (2)  is  transferred  to eligible premises, and (3) continues to work for the  eligible  business  at  the eligible  premises  for  at  least ten full work weeks after the date of transfer.  (o) "Relocated employee base shares" means  the  number  of  full-time work weeks worked by relocated employees in eligible premises during the twelve  calendar  months  after  the month of relocation, divided by the number of weeks in such twelve months, plus the number of part-time work weeks worked by such employees in such premises  divided  by  twice  the number of weeks in such months.  (p)  "New  York  city  base  shares"  means  the  number  of aggregate employment shares maintained by the special  eligible  business  in  the city of New York in the year prior to the year of relocation.  (q)  "Lower  Manhattan  base  shares"  means  the  number of aggregate employment shares maintained by the special  eligible  business  in  the eligible  Lower  Manhattan  area  in  the  year  prior  to  the  year of relocation.  (r) "Qualifying business location" means  a  business  location  of  a special  eligible business located outside the city of New York at which such business has been conducting substantial  business  operations  for the twenty-four months immediately preceding the year of relocation.