2023 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.