2023 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