2023 New York Laws › EXC - Executive › Article 35 - Division of Criminal Justice Services › 845-E - Commercial Security Tax Credit Program.

§  845-e.  Commercial security tax credit program. 1. Definitions. For
the purposes of this section:
(a) "Certificate of  tax  credit"  means  the  document  issued  to  a
business entity by the division after the division has verified that the
business   entity   has  met  all  applicable  eligibility  criteria  in
subdivision two of this section. The certificate shall specify the exact
amount of the tax credit under this section that a business  entity  may
claim,   pursuant  to  subdivision  five  of  this  section,  and  other
information as required by the department of taxation and finance.
(b) "Qualified business" means a business with fifty  or  fewer  total
employees  that  operates one or more physical retail business locations
open to the public in New  York  state  that  incurs  costs  related  to
protection against retail theft of goods through retail theft prevention
measures.
(c)  "Qualified  retail  theft  prevention measure expenses" means any
combination of retail theft prevention measure costs paid or incurred by
a qualified business during the taxable year  that  cumulatively  exceed
four thousand dollars for a qualified business with twenty-five or fewer
total  employees  or  six thousand dollars for a qualified business with
more than twenty-five employees for each New York retail location.
(d) "Retail theft prevention measure" means (i) the  use  of  security
officers  as defined in paragraph (e) of this subdivision, (ii) security
cameras, (iii) perimeter security lighting, (iv)  interior  or  exterior
locking  or  hardening  measures, (v) alarm systems, (vi) access control
systems, or (vii) other appropriate anti-theft devices as determined  by
the division to be eligible under this section.
(e)  "Security  officers"  means  security  officers, registered under
article seven-A  of  the  general  business  law,  responsible  for  the
security  and theft deterrence in a qualified business, whether employed
directly by such business or indirectly through a contractor.
2. Eligibility criteria. To be eligible for a  tax  credit  under  the
commercial security tax credit program, an eligible business must:
(a)  be a qualified business required to file a tax return pursuant to
articles nine, nine-A or twenty-two of the tax law;
(b) have qualified  retail  theft  prevention  measure  expenses  that
exceed  four  thousand dollars for a qualified business with twenty-five
or fewer total  employees  or  six  thousand  dollars  for  a  qualified
business  with  more than twenty-five employees for each New York retail
location during the taxable year;
(c) provide a certification in a manner and  form  prescribed  by  the
commissioner  that  the  business  entity  participates  in  a community
anti-theft partnership as established by the division between businesses
and relevant local law enforcement agencies; and
(d) may not owe past due state taxes or local  property  taxes  unless
the  business  entity  is making payments and complying with an approved
binding payment agreement entered into with the taxing authority.
3. Application and approval process. (a) A business entity must submit
a complete application as prescribed  by  the  commissioner  by  October
thirty-first of each year.
(b)  The commissioner shall establish procedures for business entities
to submit applications. As part of the application, each business entity
must:
(i) provide evidence of eligibility in a form and manner prescribed by
the commissioner;
(ii) agree to allow the department of taxation and  finance  to  share
the  business  entity's  tax information with the division. However, any
information shared as a result of this program shall  not  be  available

for  disclosure or inspection under the state freedom of information law
pursuant to article six of the public officers law;
(iii)  allow  the  division and its agents access to any and all books
and records the division may require to confirm eligibility; and
(iv) agree to provide  any  additional  information  required  by  the
division relevant to this section.
4.  Certificate  of  tax  credit.  After reviewing a business entity's
completed final application and determining that a business entity meets
the eligibility criteria as set forth in this section, the division  may
issue  to  that  business  entity  a  certificate  of  tax  credit.  All
applications will be processed by the division in  the  order  they  are
received  and  certificates of tax credit may be issued in amounts that,
in the aggregate,  do  not  exceed  the  annual  cap  as  set  forth  in
subdivision seven of this section.
5.  Commercial security tax credit. (a) For taxable years beginning on
or after January first, two  thousand  twenty-four  and  before  January
first,  two  thousand  twenty-six,  a  business entity in the commercial
security tax credit program that meets the eligibility  requirements  of
subdivision  two of this section may be eligible to claim a credit equal
to three thousand dollars for  each  retail  location  of  the  business
entity located in New York state.
(b)  A  business  entity  may claim the tax credit in the taxable year
that begins in the year for which it  was  allocated  a  credit  by  the
division under this section.
(c)  The  credit  shall  be allowed as provided in section forty-nine,
section one hundred eighty-seven-r, subdivision  sixty  of  section  two
hundred ten-B and subsection (ppp) of section six hundred six of the tax
law.
(d)  The  commissioner  shall,  in consultation with the department of
taxation and finance, develop a certificate of tax credit that shall  be
issued by the commissioner to eligible businesses.
(e)  The  commissioner  shall  solely determine the eligibility of any
applicant applying for entry into  the  program  and  shall  remove  any
business  entity  from  the  program  for  failing  to  meet  any of the
requirements set forth in subdivision two and subdivision three of  this
section. In the event a business entity is removed from the program, the
division  shall  notify  the  department of taxation and finance of such
removal.
6. Maintenance of records. Each eligible business participating in the
program shall keep all  relevant  records  for  the  duration  of  their
program participation for at least three years.
7.  Cap  on  tax  credit.  The  total  amount of tax credits listed on
certificates of tax credit issued  by  the  division  pursuant  to  this
section may not exceed five million dollars per calendar year.