N.Y. Tax Law § 20 — Credit for transportation improvement contributions

§ 20. Credit for transportation improvement contributions. (a)\nAllowance of credit. For taxable years beginning before January first,\ntwo thousand nine, a taxpayer subject to tax under article nine, nine-A,\ntwenty-two, thirty-two or thirty-three of this chapter shall be allowed\na credit against such tax, pursuant to the provisions referenced in\nsubdivision (d) of this section. The credit shall be allowed where a\ntaxpayer has made a certified contribution of at least ten million\ndollars to a qualified transportation improvement project in a prior\ntaxable year. The credit shall be equal to six percent of the taxpayer's\nincreased qualified business facility payroll for the taxable year. The\naggregate of all credit amounts allowed to the taxpayer pursuant to this\nsection with respect to a certified contribution shall not exceed the\namount of such certified contribution.\n (b) Definitions. As used in this section, the following terms shall\nhave the following meanings:\n (1) Qualified business facility ("QBF"). A business facility the\nconstruction or expansion of which is intended to be enhanced by a\nqualified transportation improvement project, as described in paragraph\nthree of this subdivision.\n (2) Certified contribution. The term "certified contribution" means a\ncontribution certified jointly by the commissioner of transportation and\nthe commissioner of economic development as a contribution to a\nqualified transportation improvement project, such certification\nindicating the date and amount of such contribution by the taxpayer, and\nincluding a description of the associated QBF. The commissioner of\ntransportation and the comptroller are authorized to accept, hold and,\nnotwithstanding section four of the state finance law, to disburse such\ncontributions, in the same manner as is authorized for municipal\ncontributions in section ten of the highway law.\n (3) Qualified transportation improvement project. The term "qualified\ntransportation improvement project" means the design, development,\nconstruction, and/or improvement of transportation infrastructure and\nrelated facilities or systems, including, but not limited to, highways,\nroadways, bridges, ramps or lanes; or railroad, port, aviation or mass\ntransit facilities; or ferry or marine facilities; or associated\nright-of-way and associated connections to existing or planned\ntransportation infrastructure or facilities. Such project must be\ndesigned in part to enhance the planned construction or expansion of a\nQBF. A project for the design, development, construction, and/or\nimprovement of transportation infrastructure and related facilities or\nsystems shall be considered a "qualified transportation improvement\nproject" under this section only if the commissioner of transportation\nand the commissioner of economic development jointly determine, in their\nsole discretion, that the project would promote the development of\nemployment opportunities in connection with such QBF by creating more\nthan one thousand new jobs in connection therewith, and is in the best\ninterests of the people of the state. The undertaking of said project is\ndeclared to be for a public purpose, and the commissioner of\ntransportation is authorized to participate in the costs thereof.\n (4) Increased QBF payroll. The term "increased QBF payroll" means the\nexcess, if any, of (A) the taxpayer's total wages, salaries and other\npersonal service compensation of employees employed in connection with a\nQBF other than general executive officers (in the case of a\ncorporation), for the taxable year, over (B) the average of the\ntaxpayer's total wages, salaries and other personal service compensation\nof such employees for the taxable year in which the contribution was\nmade and for the two immediately preceding taxable years, if any, but\nonly to the extent that such excess exists with regard to the state.\n (c) Recapture. (1) If the taxpayer has made a contribution which is\nthe basis for a credit allowed under this section, and if with respect\nto the third full taxable year (the "test year") next following the\ntaxable year during which such contribution was made (the "contribution\nyear") the employment increase test described in paragraph three of this\nsubdivision is not met, the taxpayer shall add back the sum of the\namounts of such credit which have been allowed for all prior taxable\nyears, and shall be allowed no further credit under this section with\nrespect to such contribution with respect to any other taxable year.\n (2) The amount required to be added back pursuant to this subdivision\nshall be augmented by an amount equal to the product of such amount and\nthe underpayment rate of interest (without regard to compounding), set\nby the commissioner pursuant to subsection (e) of section one thousand\nninety-six of this chapter, in the case of taxpayers which applied the\ncredit against tax under article nine, nine-A, thirty-two or\nthirty-three, or pursuant to subsection (j) of section six hundred\nninety-seven of this chapter, in the case of taxpayers who applied the\ncredit against tax under article twenty-two of this chapter, in effect\non the last day of the taxable year.\n (3) The employment increase test shall be deemed met where the average\nnumber of full-time employees of the taxpayer employed (A) in connection\nwith a QBF and (B) in this state, during the test year, exceeds, in each\ncase, such number determined with respect to the contribution year and\nthe two immediately preceding taxable years by one thousand.\n (4) The average number of employees in a taxable year shall be\ncomputed by ascertaining the number of employees, except general\nexecutive officers (in the case of a corporation), employed by the\ntaxpayer on the thirty-first day of March, the thirtieth day of June,\nthe thirtieth day of September and the thirty-first day of December in\nthe taxable year, by adding together the number of employees ascertained\non each of such dates and dividing the sum so obtained by the number of\nsuch abovementioned dates occurring within the taxable year.\n (d) Cross-references. For application of the credit provided for in\nthis section, see the following provisions of this chapter:\n (1) Article 9: Section 187-e,\n (2) Article 9-A: Section 210: subdivision 32,\n (3) Article 22: Section 606: subsections (i) and (z),\n (4) Article 32: Section 1456: subsection (n),\n (5) Article 33: Section 1511: subdivision (p).\n