N.Y. Comp. Codes R. & Regs. tit. 5 § 200.2

Current through Register Vol. 46, No. 50, December 11, 2024

Section 200.2 - Definitions

As used in this regulation, the following terms shall have the following meanings:

(a) Benefit-cost ratio means the following calculation: the numerator is the sum of:

(1) the value of all remuneration projected to be paid for all net new jobs during the period of participation in the program; and

(2) the cost of qualified investments to be made by the business entity during the period of participation in the program, and the denominator is the amount of total tax benefits under this article that is projected to be used and refunded.

(b) Certificate of eligibility means the document issued by the department to an applicant that demonstrates that the applicant has been admitted as a participant into the Economic Transformation and Facility Redevelopment Program by the department. Possession of a certificate of eligibility does not by itself guarantee the eligibility of the participant to claim the tax credits allowed pursuant to section 35 of the Tax Law.

(c) Net new jobs means jobs created in the economic transformation area that:

(1) are new to the area;

(2) have not been transferred from employment in this State with the participant or with a related person in this State, and are not replacing jobs with similar titles or job responsibilities;

(3) are either full-time wage-paying jobs or equivalent to a full-time wage-paying job requiring at least 35 hours per week;

(4) are filled for more than six months in a taxable year;

(5) are not general executive officers of the participant; and

(6) may not be filled with individuals having the familial relationship defined in section 267(c)(4) of the Internal Revenue Code with any owner of the participant.

(d) Notice of removal means the notification given by the commissioner to a participant that has failed to meet any of the requirements set forth in section 201.1(b) of this Title, or failed to meet the eligibility criteria set forth in section 201.2 of this Title.

(e) Department shall mean the Department of Economic Development.

(f) Participant means a business entity that:

(1) is a new business as defined in subdivision (k) of this section;

(2) has completed an application prescribed by the department to be admitted into the program;

(3) has demonstrated how it plans to meet the eligibility criteria in section 201.2 of this Title and section 401 of the Economic Development Law; and

(4) has been issued a certificate of eligibility by the department.

(g) Preliminary schedule of benefits means the estimated aggregate amount of the tax credits that a participant in the Economic Transformation and Facility Redevelopment Program is eligible to receive pursuant to section 35 of the Tax Law. The preliminary schedule of benefits shall indicate the annual amount of each credit a participant expects to claim in each of its five years of eligibility.

(h) Qualified investment means an investment in tangible property (including a building or a structural component of a building) owned by a business entity that:

(1) is depreciable pursuant to section 167 of the Internal Revenue Code;

(2) has a useful life of four years or more;

(3) is acquired by purchase as defined in section 179(d) of the Internal Revenue Code;

(4) has a situs in an economic transformation area in this State in which it is certified; and

(5) is placed in service in an economic transformation area in the State on or after the date the certificate of eligibility is issued to the business entity.

(i) Related person means a related person pursuant to section 465(b)(3)(c) of the Internal Revenue Code.

(j) Remuneration means wages paid to and benefits received by an employee of a participant in the Economic Transformation and Facility Redevelopment Program.

(k) New business means a business entity that satisfies all of the following tests:

(1) the business entity must not be currently operating or located within the economic transformation area in which it is applying for certification;

(2) the business entity must not be moving existing jobs into the economic transformation area in which it is applying for certification from another area of the State;

(3) the business entity must not be substantially similar in ownership and operation to another taxpayer taxable or previously taxable under section 183, 184 or 185 of article 9, former section 186 or article 9-A, 22, 32 or 33 of the Tax Law or the income or losses of which is or was includable under article 22 of the Tax Law;

(4) the business entity must not have caused individuals to transfer from existing employment with a related person and located in New York State to similar employment with the business entity;

(5) the business entity must not have acquired, purchased, leased, or had transferred to it real property located in the economic transformation area in which it is applying for certification if that real property was previously owned by an entity with similar ownership, regardless of form of incorporation or organization; and

(6) the business entity must not be substantially similar in operation to a business entity from which it has acquired real or tangible personal property that is located in the economic transformation area in which it is applying for certification.

(l) Economic transformation area means:

(1) an area within a five mile radius of the following facilities: Buffalo Correctional Facility in Alden, New York; Allen Residential Center in South Kortright, New York, Mid-Orange Correctional Facility in Warwick, New York, and Harriet Tubman Residential Center in Auburn, New York;

(2) an area within a 10 mile radius of the following facilities: Camp Georgetown, Georgetown, New York and Industry Secure Facility in Rush, New York;

(3) an area within a 15 mile radius of the following facilities: Oneida Correctional Facility in Rome, New York, Summit Shock Facility in Summit, New York, and Tryon Girls Center in Johnstown, New York;

(4) an area limited to the site of the following facilities: Fulton Correctional Facility in Bronx, New York and Arthur Kill Correctional Facility in Staten Island, New York.

(m) Closed facility means:

(1) the following correctional facilities, as defined in section 2 (4)(a) of the Correction Law, that were selected by the Governor of the State of New York for closure after April 1, 2011 but no later than March 31, 2012, Arthur Kill Correctional in Staten Island, New York, Buffalo Correctional in Alden, New York, Camp Georgetown in Georgetown, New York, Fulton Correctional in Bronx, New York, Mid-Orange Correctional in Warwick, New York, Oneida Correctional in Rome, New York and Summit Shock Incarceration Correctional in Summit, New York; or

(2) the following facilities operated by the Office of Children and Family Services under article 19-G of the Executive Law that is closed pursuant to authority granted to such office in a chapter of the Laws of 2011, Allen Residential Center in South Kortright, New York, Harriet Tubman Residential Center in Auburn, New York, Industry Secure Facility in Rush, New York and Tryon Girls Center in Johnstown, New York; and

(3) which has been closed provided that the Commissioner of Correctional Services or the Commissioner of the Office of Children and Family Services has notified the commissioner of such closure.

N.Y. Comp. Codes R. & Regs. Tit. 5 § 200.2