N.Y. Executive Law § 845-e: Commercial security tax credit program

§ 845-e. Commercial security tax credit program. 1. Definitions. For

the purposes of this section:

(a) "Certificate of tax credit" means the document issued to a

business entity by the division after the division has verified that the

business entity has met all applicable eligibility criteria in

subdivision two of this section. The certificate shall specify the exact

amount of the tax credit under this section that a business entity may

claim, pursuant to subdivision five of this section, and other

information as required by the department of taxation and finance.

(b) "Qualified business" means a business with fifty or fewer total

employees that operates one or more physical retail business locations

open to the public in New York state that incurs costs related to

protection against retail theft of goods through retail theft prevention

measures.

(c) "Qualified retail theft prevention measure expenses" means any

combination of retail theft prevention measure costs paid or incurred by

a qualified business during the taxable year that cumulatively exceed

four thousand dollars for a qualified business with twenty-five or fewer

total employees or six thousand dollars for a qualified business with

more than twenty-five employees for each New York retail location.

(d) "Retail theft prevention measure" means (i) the use of security

officers as defined in paragraph (e) of this subdivision, (ii) security

cameras, (iii) perimeter security lighting, (iv) interior or exterior

locking or hardening measures, (v) alarm systems, (vi) access control

systems, or (vii) other appropriate anti-theft devices as determined by

the division to be eligible under this section.

(e) "Security officers" means security officers, registered under

article seven-A of the general business law, responsible for the

security and theft deterrence in a qualified business, whether employed

directly by such business or indirectly through a contractor.

2. Eligibility criteria. To be eligible for a tax credit under the

commercial security tax credit program, an eligible business must:

(a) be a qualified business required to file a tax return pursuant to

articles nine, nine-A or twenty-two of the tax law;

(b) have qualified retail theft prevention measure expenses that

exceed four thousand dollars for a qualified business with twenty-five

or fewer total employees or six thousand dollars for a qualified

business with more than twenty-five employees for each New York retail

location during the taxable year;

(c) provide a certification in a manner and form prescribed by the

commissioner that the business entity participates in a community

anti-theft partnership as established by the division between businesses

and relevant local law enforcement agencies; and

(d) may not owe past due state taxes or local property taxes unless

the business entity is making payments and complying with an approved

binding payment agreement entered into with the taxing authority.

3. Application and approval process. (a) A business entity must submit

a complete application as prescribed by the commissioner by October

thirty-first of each year.

(b) The commissioner shall establish procedures for business entities

to submit applications. As part of the application, each business entity

must:

(i) provide evidence of eligibility in a form and manner prescribed by

the commissioner;

(ii) agree to allow the department of taxation and finance to share

the business entity's tax information with the division. However, any

information shared as a result of this program shall not be available

for disclosure or inspection under the state freedom of information law

pursuant to article six of the public officers law;

(iii) allow the division and its agents access to any and all books

and records the division may require to confirm eligibility; and

(iv) agree to provide any additional information required by the

division relevant to this section.

4. Certificate of tax credit. After reviewing a business entity's

completed final application and determining that a business entity meets

the eligibility criteria as set forth in this section, the division may

issue to that business entity a certificate of tax credit. All

applications will be processed by the division in the order they are

received and certificates of tax credit may be issued in amounts that,

in the aggregate, do not exceed the annual cap as set forth in

subdivision seven of this section.

5. Commercial security tax credit. (a) For taxable years beginning on

or after January first, two thousand twenty-four and before January

first, two thousand twenty-nine, a business entity in the commercial

security tax credit program that meets the eligibility requirements of

subdivision two of this section may be eligible to claim a credit equal

to three thousand dollars for each retail location of the business

entity located in New York state.

(b) A business entity may claim the tax credit in the taxable year

that begins in the year for which it was allocated a credit by the

division under this section.

(c) The credit shall be allowed as provided in section forty-nine,

section one hundred eighty-seven-r, subdivision sixty of section two

hundred ten-B and subsection (ppp) of section six hundred six of the tax

law.

(d) The commissioner shall, in consultation with the department of

taxation and finance, develop a certificate of tax credit that shall be

issued by the commissioner to eligible businesses.

(e) The commissioner shall solely determine the eligibility of any

applicant applying for entry into the program and shall remove any

business entity from the program for failing to meet any of the

requirements set forth in subdivision two and subdivision three of this

section. In the event a business entity is removed from the program, the

division shall notify the department of taxation and finance of such

removal.

6. Maintenance of records. Each eligible business participating in the

program shall keep all relevant records for the duration of their

program participation for at least three years.

7. Cap on tax credit. The total amount of tax credits listed on

certificates of tax credit issued by the division pursuant to this

section may not exceed five million dollars per calendar year.