Section 22-621.
§ 22-621. Definitions. When used in this chapter the following terms
shall have the following meanings:
(a) "Eligible Business." 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 eligible area 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; and
(2) on or after May twenty-seventh, nineteen hundred eighty-seven
relocates as defined in subdivision (j) of this section all or part of
such business operations; and (3) either (i) on or after May
twenty-seventh, nineteen hundred eighty-seven first enters into a
contract to purchase or lease the premises to which it relocates as
defined in subdivision (j) of this section, or a parcel on which will be
constructed such premises, or (ii) as of May twenty-seventh, nineteen
hundred eighty-seven owns such parcel or premises and has not prior to
such date made application for benefits pursuant to part four of
subchapter two of chapter two of title eleven of the code.
(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." 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." 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." (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 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 area;
(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
real 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 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
area; or
(3) in the case of a relocation, the date of which, as determined
pursuant to subdivision (j) of this section, is on or after July first,
two thousand three, non-residential premises, located in an eligible
area, for which a minimum expenditure has been made after July first,
two thousand three, for improvements in excess of twenty-five dollars
per square foot, provided, however, that 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.
The determination of whether premises meet the requirements for
eligibility set forth in this subdivision shall be made as of the
effective date of the certification of eligibility issued pursuant to
section 22-622 of this chapter. Notwithstanding the provisions of
paragraphs one and two of this subdivision, if, subsequent to such date,
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 continues to occupy such eligible premises; provided however
that if, after such property ceases to meet the requirements of
paragraph one or two, an 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 area." The area of the city excluding that area lying
south of the center line of 96th Street, in the borough of Manhattan.
(g) "Employment share." For each employee, partner or sole proprietor
of an 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' 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'
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.
(h) "Aggregate employment shares." The sum of all employment shares
maintained by an eligible business in a taxable year.
(i) "Eligible aggregate employment shares." The amount, if any, by
which the number of aggregate employment shares maintained by an
eligible business in the eligible area in the taxable year in which such
eligible business claims a credit pursuant to section 22-622 of this
chapter exceeds the number of aggregate employment shares maintained by
an eligible business in the eligible area in the taxable year
immediately preceding the taxable year during which such eligible
business first relocates as defined in subdivision (j) of this section.
Provided, however, that such amount shall not exceed the lesser of: (1)
in the case of particular premises to which an eligible business
relocates before July first, two thousand three, the highest number of
aggregate employment shares maintained by such eligible business in such
premises in the taxable year during which such eligible business
relocates to such premises or in any of the three immediately succeeding
taxable years, exclusive of any employment shares maintained by such
eligible business in such premises in the taxable year immediately
preceding the taxable year during which such eligible business relocates
to such premises; or in the case of particular premises to which an
eligible business relocates on or after July first, two thousand three,
the highest number of aggregate employment shares maintained by such
eligible business in such premises in the taxable year during which such
eligible business relocates to such premises or in any of the five
immediately succeeding taxable years, exclusive of any employment shares
maintained by such eligible business in such premises in the taxable
year immediately preceding the taxable year during which such eligible
business relocates to such premises; or (2) the number of aggregate
employment shares maintained by such eligible business in such premises
in the taxable year in which such eligible business claims a credit
pursuant to such section 22-622, exclusive of any employment shares
maintained by such eligible business in such premises in the taxable
year immediately preceding the taxable year during which such eligible
business relocates to such premises; or (3) in the case of an eligible
business that has relocated as determined pursuant to subdivision (j) of
this section before July first, two thousand three, and has not
relocated on or after July first, two thousand three, twice the number
of aggregate employment shares maintained by such eligible business
outside the eligible area in the taxable year immediately preceding the
taxable year during which such eligible business first relocates or, in
the case of an eligible business that has relocated as determined
pursuant to subdivision (j) of this section on or after July first, two
thousand three, the greater of one hundred aggregate employment shares
and twice the number of aggregate employment shares maintained by such
eligible business outside the eligible area in the taxable year
immediately preceding the taxable year during which such eligible
business first relocates. If an eligible business relocates to more than
one particular premises, the amounts described in paragraphs one and two
of this subdivision shall be determined separately with respect to each
such particular premises, and in such case the total number of eligible
aggregate employment shares for such eligible business shall not exceed
the lesser of the amount determined pursuant to paragraph three of this
subdivision or the sum of the lesser of the amounts determined pursuant
to paragraphs one and two of this subdivision for each particular
premises.
(j) "Relocate." To transfer pre-existing business operations to
premises that 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 eligible area.
The date of relocation to any particular premises shall be any date
elected by the eligible business on which an employee, partner or sole
proprietor of the eligible business is transferred to the particular
premises from pre-existing business operations conducted outside the
eligible area and begins work at such premises, provided that such date
is subsequent to the date of commencement of improvements to such
premises the real property in which such premises are located, which
improvements will meet the requirements of subdivision (e) of this
section relating to expenditures for improvements, and provided further
that such date is prior to the date of the issuance of a certification
of eligibility pursuant to section 22-622 of this chapter. The year of
relocation shall be the taxable year in which such date of relocation
falls. The election provided for in this subdivision shall be made prior
to the issuance of such certification of eligibility and shall be
irrevocable. An eligible business may relocate only once to any
particular premises.
(k) "Industrial construction work." The construction of a new building
or structure or the modernization, rehabilitation, expansion or
improvement of an existing building or structure for use as industrial
property.
(l) "Industrial property." Nonresidential real property containing or
which will contain after the completion of industrial construction work
a building or structure wherein at least seventy-five percent of the
total net square footage is used or immediately available and held out
for use for manufacturing activities involving the assembly of goods or
the fabrication or processing of raw materials.
(m) "Tax year" and "taxable year." For purposes of this chapter, in
the case of taxpayers authorized to receive the credit allowed by
section 22-622 of this chapter against the tax imposed by chapter eleven
of title eleven of the code, calendar year.
(n) "Revitalization area" means any district in the city of New York
that is zoned C4, C5, C6, M1, M2 or M3 in accordance with the zoning
resolution of such city in any area of such city except the area lying
south of the center line of 96th Street in the borough of Manhattan.
(o) "Total attributed eligible aggregate employment shares" means, for
any relocation, the sum of the number of eligible aggregate employment
shares apportioned to such relocation pursuant to paragraph one of this
subdivision, less any excess shares determined with respect to such
relocation pursuant to paragraph two of this subdivision, plus any
excess shares attributed to such relocation pursuant to paragraph three
of this subdivision. Except as provided in paragraph four of this
subdivision, any eligible aggregate employment shares that are
attributed to a relocation to particular premises pursuant to paragraph
three of this subdivision shall be treated as eligible aggregate
employment shares that are maintained with respect to such premises and
shall be subject to all provisions of this chapter and the provisions
for a credit against a tax imposed under chapter five or subchapter two
or three of chapter six or chapter eleven of title eleven of the code as
such provisions pertain to such relocation.
(1) In the case of a business that has relocated once, all eligible
aggregate employment shares are apportioned to the premises to which the
single relocation took place. In the case of a business that has
relocated more than once, eligible aggregate employment shares are
apportioned as follows:
(i) If in a taxable year, the sum for all eligible premises of the
lesser of the amounts determined pursuant to paragraphs one and two of
subdivision (i) of this section for each particular eligible premises is
equal to the total number of eligible aggregate employment shares
determined pursuant to such subdivision (i), the number of shares
apportioned to each particular eligible premises is the lesser of such
amounts for each particular eligible premises;
(ii) If in a taxable year, the sum for all eligible premises of the
lesser of the amounts determined pursuant to paragraphs one and two of
subdivision (i) of this section for each particular eligible premises is
greater than the total number of eligible aggregate employment shares
determined pursuant to such subdivision (i), the number of shares
apportioned to a particular eligible premises shall be such total number
of eligible aggregate employment shares multiplied by a fraction the
numerator of which is the lesser of the amounts determined pursuant to
paragraphs one and two of subdivision (i) of this section for such
premises and the denominator of which is such sum.
(2) "Excess shares" shall mean eligible aggregate employment shares
that are apportioned pursuant to paragraph one of this subdivision to a
relocation in excess of the limitation amount defined in subparagraphs
(i) and (ii) of this paragraph for such relocation.
(i) Subject to the provisions of subparagraph (ii) of this paragraph,
for any taxable year in which an eligible business is claiming the
credit allowed by section 22-622 of this chapter, the "limitation
amount" shall mean:
(A) for one or more relocations in an eligible business' latest year
of relocation as determined pursuant to subdivision (j) of this section,
the amount, if any, by which the number of aggregate employment shares
maintained by the eligible business in the eligible area in the taxable
year in which it is claiming the credit authorized by this article
exceeds the number of aggregate employment shares maintained by it in
the eligible area in the taxable year immediately preceding such year of
relocation; or
(B) for one or more relocations in a specified year of relocation that
is not the latest such year of relocation by an eligible business, the
amount, if any, by which the number of aggregate employment shares
maintained by the eligible business in the eligible area in the taxable
year in which it is claiming the credit authorized by this chapter
exceeds the sum of (I) the number of total attributed eligible aggregate
employment shares that are attributed in the taxable year in which the
credit is claimed to relocations that took place in years of relocation
later than the specified year of relocation and (II) the number of
aggregate employment shares maintained by it in the eligible area in the
taxable year immediately preceding such specified year of relocation.
(ii) In the case of an eligible business that has relocated more than
once in the same taxable year, the limitation amount determined in
accordance with subparagraph (i) of this paragraph shall be applied to
such relocations in the same proportion as the eligible aggregate
employment shares apportioned to such relocations pursuant to paragraph
one of this subdivision.
(3)(i) In any taxable year in which there are excess shares, such
excess shares, or a portion thereof, from a relocation or relocations
that took place in a specified year of relocation shall be attributed in
reverse chronological order to any relocations that took place in
earlier years of relocation.
(ii) Notwithstanding subparagraph (i) of this paragraph,
(A) no excess shares may be attributed to a relocation unless the
number of eligible aggregate employment shares apportioned pursuant to
paragraph one of this subdivision to such relocation for the taxable
year in which the credit is claimed is less than the highest number of
total attributed eligible aggregate employment shares pertaining to such
relocation in any taxable year prior to the taxable year in which the
credit is claimed;
(B) the sum of the number of shares attributed to such relocation
pursuant to subparagraph (i) of this paragraph and the eligible
aggregate employment shares apportioned to any such relocation pursuant
to paragraph one of this subdivision may not exceed such highest number
of total attributed eligible aggregate employment shares; and
(C) such sum may not exceed the limitation amount for such relocation
defined in paragraph two of this subdivision.
(4) Notwithstanding the provisions of other paragraphs of this
subdivision, any excess shares that are apportioned pursuant to
paragraph one of this subdivision to a relocation to particular eligible
premises that are not located in a revitalization area as defined in
subdivision (n) of this section, but are attributed pursuant to
paragraph three of this subdivision to particular eligible premises that
are located in such a revitalization area, shall be treated as if such
premises to which they are attributed were not in such a revitalization
area.
(p) "Particular premises" means all premises occupied by an eligible
business within a single building. "Particular eligible premises" means
the portion of such particular premises that meets the requirements for
eligible premises specified in subdivision (e) of this section.
(q) "Designated additional or replacement premises" means
nonresidential premises in the eligible area that (i) are owned or
leased by an eligible business that has been certified pursuant to
subdivision (b) of section 22-622 of this chapter to receive the credit
provided for in this chapter, and (ii) with regard to which such
eligible business obtains the certification provided for in subdivision
(e) of section 22-622 of this chapter.
Section 22-622.
§ 22-622. Authorization to provide relocation and employment
assistance credits.
(a) An eligible business that relocates as defined in subdivision (j)
of section 22-621 of the code 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 (i) of section 11-503, subdivision seventeen of
section 11-604, section 11-643.7 and section 11-1105.2 of the code, and
a reduction in base rent subject to tax as described in subdivision f of
section 11-704 of the code, provided, however, notwithstanding any other
provision of law to the contrary, no such credit shall be allowed
against the tax imposed under such chapter eleven for a relocation
taking place prior to January first, nineteen hundred ninety-nine.
(b) No eligible business shall be authorized to receive a credit
against tax or a reduction in base rent subject to 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 that may qualify for obtaining a tax credit for
the eligible business' taxable year. 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 particular premises or a parcel on
which will be constructed such premises or already owned such premises
or parcel;
(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 22-621 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 particular
premises; and
(4) such business relocates to such particular premises not later than
thirty-six months or, in a case in which the expenditures made for
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 22-621 of this chapter.
(d) An 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 elects
to take the credit authorized by this section against the tax imposed by
such chapter on an application filed with respect to the first
relocation of such business that qualifies or will qualify under this
section, 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.
(e) Notwithstanding other provisions of this chapter, an eligible
business that has obtained pursuant to subdivision (b) of this section a
certification of eligibility for a relocation to particular eligible
premises may apply to the mayor of such city or an agency designated by
such mayor to have premises in a building, other than the building in
which such particular eligible premises are located, certified as
designated additional or replacement premises as defined in subdivision
(q) of section 22-621 of this chapter. After the certification provided
for in this subdivision has been obtained, any aggregate employment
shares maintained by the eligible business in such premises shall be
treated as if such employment shares were maintained in the particular
premises to which the eligible business relocated. No such certification
shall be issued after the end of the period during which the credit may
be taken with regard to the relocation to such particular eligible
premises, and the issuance of such certification shall not extend such
period. Provided, however, (i) no premises shall be certified as
designated additional or replacement premises if the eligible business
maintained employment shares in such premises prior to the application
for certification provided for in this subdivision, (ii) no premises
shall be certified as designated additional or replacement premises
unless such premises meet the requirements for eligible premises in
subdivision (e) of section 22-621 of this chapter, and (iii) if the
particular premises to which the eligible business relocated are in a
revitalization zone, no premises shall be certified as designated
additional or replacement premises with regard to such relocation unless
such designated additional or replacement premises are located in a
revitalization zone.
(f)(1)(i) Notwithstanding the provisions of subdivision (i) of section
22-621 of this chapter, in the case of an eligible business meeting the
criteria in subparagraphs (ii) and (iii) of this paragraph, the mayor or
his or her designee, in his or her discretion, may for any taxable year
in which such business is eligible to receive the credit provided for in
this section, determine the number of eligible aggregate employment
shares as provided in paragraph two of this subdivision, and such number
shall be deemed to be the number of eligible aggregate employment shares
determined pursuant to such subdivision (i) of section 22-621 for the
purpose of attributing shares pursuant to subdivision (o) of section
22-621 of this chapter to relocations as defined in subdivision (j) of
such section 22-621 occurring after July first, two thousand three:
(ii) in the case of a relocation before July first, two thousand five,
in the taxable year prior to its first relocation after July first, two
thousand three (such prior year being hereafter referred to as the "base
year"), such eligible business maintained more than one hundred
aggregate employment shares in the eligible Lower Manhattan area as
defined in subdivision (f) of section 22-623 of this title, provided
that in the case of a relocation after June thirtieth, two thousand
five, in the taxable year prior to its first relocation after such date
(such prior year being hereafter referred to as the "base year"), such
eligible business maintained one or more aggregate employment shares in
such eligible Lower Manhattan area, and
(iii) in the case of a relocation before July first, two thousand
five, in the taxable year subsequent to the base year for which the
determination of eligible aggregate employment shares is being made, the
number of aggregate employment shares in the eligible Lower Manhattan
area maintained by the eligible business is less than the number of
aggregate employment shares it maintained in such area in the base year
reduced by one hundred, provided that in the case of a relocation after
June thirtieth, two thousand five, in the taxable year subsequent to the
base year for which the determination of eligible aggregate employment
shares is being made, the number of aggregate employment shares in the
eligible Lower Manhattan area maintained by the eligible business is
less than the number of aggregate employment shares it maintained in
such area in the base year.
(2) The number of eligible aggregate employment shares determined
under this paragraph shall be the number of eligible aggregate
employment shares determined pursuant to subdivision (i) of section
22-621 of this chapter without regard to paragraphs one and three of
such subdivision (i), less the reduction amount provided for in
paragraph three of this subdivision.
(3) For any taxable year, the reduction amount shall be the excess of
(i) the number of aggregate employment shares maintained by the eligible
business in the eligible Lower Manhattan area in the base year, over
(ii) the number of aggregate employment shares maintained by the
eligible business in the eligible Lower Manhattan area in the taxable
year.
(4) Notwithstanding anything herein to the contrary, the number of
eligible aggregate employment shares may be determined pursuant to
paragraph two of this subdivision only if the number of such shares
determined pursuant to such paragraph two is less than the number of
such shares determined pursuant to subdivision (i) of section 22-621 of
this chapter.
(5) The mayor, or his or her designee, may exercise the discretion
provided for in paragraph one of this subdivision if he or she
determines it to be in the best interests of the city, taking into
account whether the credit provided for in this section caused the
reduction in the number of jobs maintained by the eligible business in
the eligible Lower Manhattan area.
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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