NY Gen Mun L § 964 (2021)
2021 New York Laws GMU - General Municipal Article 18-B - New York State Empire Zones 964 - Empire Zone Capital Corporations.

§ 964. Empire zone capital corporations. (a) No more than three empire zone  capital  corporations  may  be  established  in  each zone for the purpose of raising funds through private and public grants, donations or investments, to be used in making investments in, and loans to, business firms certified pursuant to subdivision  (a)  of  section  nine  hundred fifty-nine   of   this  article  for  the  purpose  of  encouraging  the establishment or expansion of businesses and the provision of additional job opportunities within such area. A zone capital corporation may serve one or more zones within an economic development region or zones  within two  or  more  regions.  Prior  to  the  establishment of a zone capital corporation, the zone board and the commissioner of  the  department  of economic  development  shall  approve the formation of the proposed zone capital corporation, its board of  directors  and  management,  and  its procedures  for  making,  servicing  and  monitoring  investments. In no event, however, shall an empire  zone  capital  corporation  acquire  an ownership  interest in any certified business firm which amounts to more than twenty-five percent of the ownership  interest  of  such  certified business  firm.  No  loan to or investment in any business firm shall be made by an empire zone capital corporation located in a  zone  within  a town  with  a  population  of more than twenty-five thousand, until such corporation has accumulated at least two  hundred  thousand  dollars  in capital  stock. No loan or investment in any business firm shall be made by an empire zone capital corporation located in a zone  within  a  town with   a  population  of  less  than  twenty-five  thousand  until  such corporation has accumulated at least one  hundred  thousand  dollars  in capital stock. A zone capital corporation shall submit to the zone board an annual report on its activities.  (b)  Each  zone  capital  corporation  shall  establish  an investment committee for the purpose  of  evaluating  applications  for  loans  and equity  investments.  Each  committee  shall be comprised of members who possess the requisite business  and  financial  expertise  necessary  to evaluate applications for loans and/or equity investments.  (c)  Each empire zone capital corporation shall, to the maximum extent feasible,  undertake  measures  and  procedures  to  ensure   meaningful participation  by minority-owned and women-owned business enterprises in the  activities  and  investments  of  such   corporation.   Each   such corporation   shall   additionally,  to  the  maximum  extent  feasible, undertake measures and procedures to ensure meaningful participation  by locally  owned business enterprises in the activities and investments of such corporation.  (d) The total amount of tax credits available to each zone pursuant to subdivision twenty of section two hundred ten, subsection (l) of section six hundred six, subsection (d) of section  fourteen  hundred  fifty-six and  subdivision  (h)  of section fifteen hundred eleven of the tax law, shall be two million five hundred thousand dollars, (provided,  however, that  in  no  event  shall the credits available in any zone exceed five hundred thousand  dollars  in  the  case  of  qualified  investments  in certified   zone  businesses  as  described  in  such  subdivisions  and subsections). Apportionment of credits within  a  zone  between  capital investments  in  and  contributions to zone capital corporations, direct investments in certified zone businesses or contributions  to  community development  projects  will be determined and accounted for by the local zone administrative board in consultation with the  zone  administrative entity,  subject  to  regulations promulgated by the commissioner of the department of economic development. Credits not used by  a  zone  within four  years  of  their  apportionment  may,  after  a public hearing, be reallocated pursuant to regulations  promulgated  by  the  commissioner. Certifications  under  subdivision  twenty  of  section two hundred ten,  subsection (l) of section six hundred six,  subsection  (d)  of  section fourteen fifty-six and subdivision (h) of section fifteen hundred eleven of  the  tax  law  shall  be  consistent  with  the  provisions  of this subdivision.  (e)  The  commissioner  shall  promulgate  regulations  governing  the criteria of eligibility for the tax credits, referred to in  subdivision (d)  of  this  section,  applicable  to  direct  equity  investments  in certified zone businesses and to contributions to community  development projects  provided for in this section. Such regulations shall establish requirements including, but not limited to: (i) a demonstration that the direct equity investment in a certified zone business  will  contribute, significantly, to an activity having tangible economic benefits, such as start-up,  expansion  or industrial modernization of such zone business; (ii) a demonstration that the certified zone business has the  potential to  create  jobs;  and  (iii)  a  demonstration  that  the direct equity investment is necessary to increase the amount of capital  available  to the  certified zone business, provided, however, that such investment is not intended nor shall it be used to refinance existing debt or  replace existing equity in such zone business.  (f)  In addition to the duties set forth in subdivision (b) of section nine hundred sixty-three of this article, the zone administrative  board shall,  consistent with the regulations promulgated by the commissioner, determine the eligibility of direct equity investments in certified zone businesses and contributions to community development projects  for  the tax  credits,  described  in  subdivision  (d) of this section, that are available to such zone. Such determination by  the  zone  administrative board  shall  be  subject  to  review  by the commissioner in his or her discretion. The commissioner, upon review of a zone board  determination made   pursuant  to  this  subdivision,  shall  accept  or  reject  such determination as may be deemed appropriate.