§ 400 — Definitions

* § 400. Definitions. For the purposes of this article:\n 1. "Benefit-cost ratio" means the following calculation: the numerator\nis the sum of (i) the value of all remuneration projected to be paid for\nall net new jobs during the period of participation in the program, and\n(ii) the cost of qualified investments to be made by the business entity\nduring the period of participation in the program, and the denominator\nis the amount of total tax benefits under this article that is projected\nto be used and refunded.\n 2. "Certificate of eligibility" means the document issued by the\ndepartment to an applicant that demonstrates that the applicant has been\nadmitted as a participant into the economic transformation and facility\nredevelopment program by the department. Possession of a certificate of\neligibility does not by itself guarantee the eligibility of the\nparticipant to claim the tax credits allowed pursuant to section\nthirty-five of the tax law.\n 3. "Net new jobs" means jobs created in the economic transformation\narea that:\n (a) are new to the area;\n (b) have not been transferred from employment in this state with the\nparticipant or with a related person in this state, and are not\nreplacing jobs with similar titles or job responsibilities;\n (c) are either full-time wage-paying jobs or equivalent to a full-time\nwage-paying job requiring at least thirty-five hours per week;\n (d) are filled for more than six months in a taxable year;\n (e) are not general executive officers of the participant; and\n (f) may not be filled with individuals having the familial\nrelationship defined in section 267(c)(4) of the internal revenue code\nwith any owner of the participant.\n 4. "Participant" means a business entity that:\n (a) is a new business as defined in subdivision nine of this section.\n (b) has completed an application prescribed by the department to be\nadmitted into the program;\n (c) has demonstrated how it plans to meet the eligibility criteria in\nsection four hundred one of this article; and\n (d) has been issued a certificate of eligibility by the department.\n (e) provided, however that the requirement in paragraph (a) of this\nsubdivision that the participant be a new business shall not apply to a\nclosed facility as defined in paragraph (d) of subdivision eleven of\nthis section.\n 5. "Preliminary schedule of benefits" means the estimated aggregate\namount of the tax credits that a participant in the economic\ntransformation and facility redevelopment program is eligible to receive\npursuant to section thirty-five of the tax law. The schedule shall\nindicate the annual amount of each credit a participant expects to claim\nin each of its five years of eligibility.\n 6. "Qualified investment" means an investment in tangible property\n(including a building or a structural component of a building) owned by\na business entity which:\n (a) is depreciable pursuant to section one hundred sixty-seven of the\ninternal revenue code;\n (b) has a useful life of four years or more;\n (c) is acquired by purchase as defined in section one hundred\nseventy-nine (d) of the internal revenue code;\n (d) has a situs in an economic transformation area in this state in\nwhich it is certified; and\n (e) is placed in service in an economic transformation area in the\nstate on or after the date the certificate of eligibility is issued to\nthe business entity.\n 7. "Related person" means a "related person" pursuant to subparagraph\n(c) of paragraph three of subsection (b) of section four hundred\nsixty-five of the internal revenue code.\n 8. "Remuneration" means wages paid to and benefits received by an\nemployee by a participant in the economic transformation and facility\nredevelopment program.\n 9. "New business" means a business entity that satisfies all of the\nfollowing tests:\n (a) the business entity must not be currently operating or located\nwithin the economic transformation area in which it is applying for\ncertification;\n (b) the business entity must not be moving existing jobs into the\neconomic transformation area in which it is applying for certification\nfrom another area of the state;\n (c) the business entity must not be substantially similar in ownership\nand operation to another taxpayer taxable or previously taxable under\nsection one hundred eighty-three or one hundred eighty-four or former\nsection one hundred eighty-five of article nine, former section one\nhundred eighty-six or article nine-A, twenty-two, thirty-two or\nthirty-three of the tax law or the income or losses of which is or was\nincludable under article twenty-two of the tax law;\n (d) the business entity must not have caused individuals to transfer\nfrom existing employment with a related person and located in New York\nstate to similar employment with the business entity;\n (e) the business entity must not have acquired, purchased, leased, or\nhad transferred to it real property located in the economic\ntransformation area in which it is applying for certification if that\nreal property was previously owned by an entity with similar ownership,\nregardless of form of incorporation or organization; and\n (f) the business entity must not be substantially similar in operation\nto a business entity from which it has acquired real or tangible\npersonal property that is located in the economic transformation area in\nwhich it is applying for certification.\n 10. "Economic transformation area" means:\n (a) In the region of the state outside of the metropolitan commuter\ntransportation district (as defined in section twelve hundred sixty-two\nof the public authorities law) and the port authority district (as\ndefined by article two of chapter one hundred fifty-four of the laws of\nnineteen hundred twenty-one), an area within a five mile radius in this\nstate of a closed facility. If more than sixty persons were employed in\nfull-time positions at a closed facility on April first, two thousand\neleven, then it is the area within a ten mile radius in this state of\nthat closed facility. The commissioner may increase the radius of the\narea from ten miles to up to fifteen miles in this state based on\nfactors including but not limited to population density, the poverty\nrate, the unemployment rate and the loss of jobs in the region. However,\nthe increased radius may not extend into the metropolitan commuter\ntransportation district. The commissioner may also decrease the radius\nof the ten mile area but to no less than a five mile radius based on\nfactors including but not limited to population density, the poverty\nrate, the unemployment rate and the loss of jobs in the region. Upon\nnotification of the commissioner, pursuant to subdivision eleven of this\nsection, the commissioner shall establish the size of the transformation\narea prior to the acceptance of any applications into the program.\n (b) In the metropolitan commuter transportation district outside the\nport authority district, an area within a one mile radius in this state\nof a closed facility. If more than sixty persons were employed in\nfull-time positions at a closed facility on April first, two thousand\neleven, then it is the area within a five mile radius in this state of\nthat closed facility, provided that the commissioner may decrease the\nradius of the expanded area but to no less than a one mile radius based\non factors including but not limited to population density, the poverty\nrate, the unemployment rate, and the loss of jobs in the area and\nwhether the radius would extend outside of the metropolitan commuter\ntransportation district. Upon notification of the commissioner pursuant\nto subdivision eleven of this section, the commissioner shall establish\nthe size of the transformation area prior to the acceptance of any\napplications into the program.\n (c) In the port authority district, an area limited to the site of the\nclosed facility.\n (d) Notwithstanding paragraph (b) of this subdivision, with respect to\na closed facility described in paragraph (d) of subdivision eleven of\nthis section, the economic transformation area shall consist only of the\nacreage of the closed facility.\n 11. "Closed facility" means:\n (a) a correctional facility, as defined in paragraph (a) of\nsubdivision four of section two of the correction law, that has been\nselected by the governor of the state of New York for closure after\nApril first, two thousand eleven but no later than March thirty-first,\ntwo thousand twenty-six; or\n (b) a facility operated by the office of children and family services\nunder article nineteen-G of the executive law that is closed pursuant to\nauthority granted to such office in a chapter of the laws of two\nthousand eleven; or\n (c) which has been closed provided that the commissioner of\ncorrectional services or the commissioner of the office of children and\nfamily services has notified the commissioner of such closure; or\n (d) a facility previously owned by the state, and when operated, was\noperated as a psychiatric facility pursuant to section 7.17 of the\nmental hygiene law, and located within the metropolitan commuter\ntransportation district but outside New York city.\n * NB Repealed December 31, 2026\n