Section 22-623
§ 22-623 Definitions. When used in this chapter the following terms
shall have the following meanings:
(a) "Eligible business" means any person subject to a tax imposed
under chapter five, or subchapter two or three of chapter six, or
chapter eleven, of title eleven of the code, 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 chapter; 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) Non-residential premises which are
wholly contained in real property which is certified as eligible to
receive benefits pursuant to part three or part four of subchapter two
of chapter two of title eleven of the code, 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 a contract
to purchase such premises is first entered into by the special eligible
business after June thirtieth, two thousand five;
(2) non-residential premises which are: (i) wholly contained in or
situated on real property which has been leased from the New York city
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 the city, a lease for which was approved in
accordance with the applicable provisions of the charter, 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 part
four of subchapter two of chapter two of title eleven of the code 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 a 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, non-residential premises
which 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
on or after July first, two thousand three and for which a minimum
expenditure has been made 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 June thirtieth, two thousand five, 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 the 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 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) (1) "Eligible aggregate employment shares" means, 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 section 22-624 of this chapter. 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
section 22-624 of this chapter 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 chapter, 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 22-624 of this chapter to receive the credit allowed by such
section.
(k) "Tax year" and "taxable year" mean, for purposes of this chapter,
in the case of taxpayers authorized to receive the credit allowed by
section 22-624 of this chapter against the tax imposed by chapter eleven
of title eleven of the code, calendar year.
(l) "Special eligible business" means any person subject to a tax
imposed under chapter five, or subchapter two or three of chapter six,
or chapter eleven, of title eleven of the code, 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); (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 22-624 of this
chapter 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.
Section 22-624
§ 22-624 Authorization to provide relocation and employment assistance
credits in Lower Manhattan. (a) An eligible business that relocates as
defined in subdivision (j) of section 22-623 of this chapter or a
special eligible business that relocates as defined in subdivision (m)
of section 22-623 of this chapter shall be allowed to receive a credit
against a tax imposed by chapter five, or subchapter two or three of
chapter six, or chapter eleven, of title eleven of the code, as
described in subdivision (l) of section 11-503, subdivision nineteen of
section 11-604, section 11-643.9 or section 11-1105.3 of the code.
(b) No eligible business or special eligible business shall be
authorized to receive a credit against tax under the provisions of this
chapter, and of title eleven of the code as described in subdivision (a)
of this section, until the premises with respect to which it is claiming
the credit meet the requirements in the definition of eligible premises
and until it has obtained a certification of eligibility from the mayor
or an agency designated by the mayor, and an annual certification from
the mayor or an agency designated by the mayor as to the number of
eligible aggregate employment shares maintained by such eligible
business or special eligible business that may qualify for obtaining a
tax credit for the eligible business' taxable year. No special eligible
business shall be authorized to receive a credit against tax under the
provisions of this chapter and of title eleven of the code unless the
number of relocated employee base shares calculated pursuant to
subdivision (o) of section 22-623 of this chapter is equal to or greater
than the lesser of twenty-five percent of the number of New York city
base shares calculated pursuant to subdivision (p) of such section
22-623, and two hundred fifty employment shares. Any written
documentation submitted to the mayor or such agency or agencies in order
to obtain any such certification shall be deemed a written instrument
for purposes of section 175.00 of the penal law. Application fees for
such certifications shall be determined by the mayor or such agency or
agencies. No certification of eligibility shall be issued to an eligible
business on or after July first, two thousand thirteen unless:
(1) prior to such date such business has purchased, leased or entered
into a contract to purchase or lease premises in the eligible Lower
Manhattan area or a parcel on which will be constructed such premises;
(2) prior to such date improvements have been commenced on such
premises or parcel, which improvements will meet the requirements of
subdivision (e) of section 22-623 of this chapter relating to
expenditures for improvements;
(3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or
agencies with respect to a proposed relocation to such premises; and
(4) such business relocates to such premises not later than thirty-six
months or, in a case in which the expenditures made for the improvements
specified in paragraph two of this subdivision are in excess of fifty
million dollars within seventy-two months from the date of submission of
such preliminary application.
(c) The mayor or an agency or agencies designated by the mayor shall
be authorized to promulgate rules and regulations to administer and
assure compliance with the provisions of this chapter, including but not
limited to rules and regulations to provide for alternative methods to
measure employment shares in instances where an eligible business is not
required by law to maintain weekly records of full-time work weeks and
part-time work weeks of employees, partners or sole proprietors as
defined in subdivision (g) of section 22-623 of this chapter.
(d) An eligible business or special eligible business other than a
utility company subject to the supervision of the department of public
service shall not be authorized to receive a credit against the gross
receipts tax imposed under chapter eleven of title eleven of the code
unless such eligible business or special eligible business elects to
take the credit authorized by this section against the tax imposed by
such chapter on its application filed with the mayor or the agency
designated by such mayor pursuant to subdivision (b) of this section.
The election authorized by this subdivision may not be withdrawn after
the issuance of such certification of eligibility. No taxpayer that has
previously received a certification of eligibility to receive such
credit against any tax imposed by chapter five or subchapter two or
three of chapter six of title eleven of the code may make the election
authorized by this subdivision. No taxpayer that makes the election
provided in this subdivision shall be authorized to take such credit
against any tax imposed by chapter five or subchapter two or three of
chapter six of title eleven of the code.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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