N.Y. General City Law § 25-dd: Definitions

§ 25-dd. Definitions. When used in this article, the following terms

shall have the following meanings:

(a) "Eligible business" means any person subject to a tax imposed

under a local law enacted pursuant to part two or three of section one,

or section two, of chapter seven hundred seventy-two of the laws of

nineteen hundred sixty-six or a gross receipts tax imposed under a local

law enacted pursuant to subdivision (a) of section twelve hundred one of

the tax law, that: (1) has been conducting substantial business

operations at one or more business locations outside the city of New

York 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 but has not maintained employment shares

at premises in the city of New York at any time during the period

beginning January first, two thousand two and ending on the date it

enters into a lease or a contract to purchase the premises that will

qualify as eligible premises pursuant to this article; and (2) on or

after July first, two thousand three relocates as defined in subdivision

(j) of this section all or part of such business operations.

(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" means 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" means 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" means: (1) nonresidential premises which are

wholly contained in real property which is certified as eligible to

receive benefits pursuant to a local law enacted in accordance with

title two-C or title two-D of article four of the real property tax law,

provided that such premises have been improved by construction or

renovation, that expenditures have been made after June thirtieth, two

thousand three, or in the case of a relocation by a special eligible

business, after June thirtieth, two thousand five, 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 Lower

Manhattan area, and provided further, that in the case of a special

eligible business, a lease or contract to purchase such premises is

first entered into by the special eligible business after June

thirtieth, two thousand five;

(2) nonresidential premises which are: (i) wholly contained in or

situated on real property which has been leased from an 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 a city having a population of one million or more, a lease for

which was approved in accordance with the applicable provisions of the

charter of such city, 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 property which would be eligible

to receive benefits pursuant to a local law enacted in accordance with

title two-D of article four of the real property tax law except that

such property is exempt from real property taxation; provided that

expenditures have been made after June thirtieth, two thousand three, or

in the case of a relocation by a special eligible business, after June

thirtieth, two thousand five, 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 Lower

Manhattan area, and provided further, that in the case of a special

eligible business, a lease or contract to purchase such premises is

first entered into by the special eligible business after June

thirtieth, two thousand five; or

(3) in the case of an eligible business, nonresidential premises which

are located in the eligible Lower Manhattan area, for which a lease or a

contract to purchase is first entered into by an eligible business on or

after July first, two thousand three and for which a minimum expenditure

has been made on or after such date, for improvements in excess of

twenty-five dollars per square foot, or in the case of a special

eligible business, non-residential premises that are located in the

eligible Lower Manhattan area for which a lease or a contract to

purchase is first entered into by the eligible business after June

thirtieth, two thousand five, and for which a minimum expenditure has

been made after such date for improvements in excess of twenty-five

dollars per square foot, provided, however, that, in either case, 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.

Notwithstanding the provisions of paragraphs one and two of this

subdivision, if, subsequent to date of certification, 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 or special eligible business continues to occupy such premises;

provided however that if, after such property ceases to meet the

requirements of such paragraph one or two, an eligible business or

special 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 Lower Manhattan area" means the area in the city of New

York in the borough of Manhattan lying south of a line running from the

intersection of the Hudson River with the Holland Tunnel and running

thence north along West Street to the intersection of Clarkson Street,

then running east along the centerline of Clarkson Street to the

intersection of Washington Street, then running south along the

centerline of Washington Street to the intersection of West Houston

Street, then east along the centerline of West Houston Street, then at

the intersection of the Avenue of the Americas continuing east along the

centerline of East Houston Street to the easterly bank of the East

River.

(g) "Employment share" means, for each employee, partner or sole

proprietor of an eligible business or special 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' or special

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' or

special 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. For purposes of this section, employment shares shall

not be based upon work weeks attributable to employees, partners or sole

proprietors acquired by an eligible business or special eligible

business as a result of a merger with, acquisition of another person, or

a transaction having a comparable effect, that occurs after June

thirtieth, two thousand five, and before the end of the taxable year in

which a credit is claimed by such eligible business pursuant to this

section, or to successors, if any, to those employees, partners or sole

proprietors.

(h) "Aggregate employment shares" means the sum of all employment

shares maintained by an eligible business or special eligible business

in a taxable year.

(i) "Eligible aggregate employment shares" means (1) in the case of an

eligible business, the amount, if any, of aggregate employment shares

maintained by an eligible business in eligible premises in the eligible

Lower Manhattan area in the taxable year in which such eligible business

claims a credit pursuant to a local law enacted in accordance with

section twenty-five-ee of this article. Provided, however, that such

amount shall not exceed the lesser of: (i) the highest number of

aggregate employment shares maintained by such eligible business in

eligible premises in the taxable year during which such eligible

business relocates or in any of the five immediately succeeding taxable

years; or (ii) the greater of one hundred aggregate employment shares

and twice the number of aggregate employment shares maintained by such

eligible business outside the city of New York in the taxable year

immediately preceding the taxable year during which such eligible

business relocates. In determining eligible aggregate employment shares,

work weeks at premises prior to the later of the date of relocation and

the date such premises meet the requirements of subdivision (e) of this

section shall not be taken into account.

(2) In the case of a special eligible business, "eligible aggregate

employment shares" means: the amount of aggregate employment shares

determined in subparagraph (i) of this paragraph, provided, however,

such amount shall not exceed the lowest of the amounts determined in

subparagraphs (ii), (iii), (iv) and (v) of this paragraph.

(i) the amount determined in this subparagraph is the number of

aggregate employment shares maintained by a special eligible business in

eligible premises in the eligible Lower Manhattan area in the taxable

year in which such special eligible business claims a credit pursuant to

a local law enacted in accordance with section twenty-five-ee of this

article less the number of aggregate employment shares maintained by

such business in such premises in the taxable year prior to the year of

relocation.

(ii) the amount determined in this subparagraph is the amount, if any,

by which the number of aggregate employment shares maintained by a

special eligible business in the taxable year in the city of New York

exceeds the number of New York city base shares.

(iii) the amount determined in this subparagraph is the amount, if

any, by which number of aggregate employment shares maintained by a

special eligible business in the taxable year in the eligible Lower

Manhattan area exceeds the number of Lower Manhattan base shares.

(iv) the amount determined in this subparagraph is the greater of one

hundred and twice the number of aggregate employment shares maintained

by the special eligible business outside the city of New York in the

year prior to the year of relocation.

(v) the amount determined in this subparagraph is:

(A) for the year of relocation, the number of full time work weeks

worked by relocated employees in eligible premises after the date of

relocation divided by the number of weeks in such taxable year, plus the

number of part-time work weeks worked by such employees in such premises

after the date of relocation, divided by twice the number of weeks in

the taxable year of relocation;

(B) for taxable years after the taxable year of relocation, the lesser

of:

(I) the number of relocated employee base shares plus the product of

(a) the excess, if any, of the number of aggregate employment shares

determined in subparagraph (i) of this paragraph over the number of

relocated employee base shares and (b) a fraction, the numerator of

which is the number of relocated employee base shares and the

denominator of which is the sum of relocated employee base shares and

New York city base shares; and

(II) the highest number of eligible aggregate employment shares

maintained by the special eligible business in eligible premises during

the year of relocation and the five immediately succeeding taxable

years.

(j) In the case of an eligible business, "relocate" means to transfer

pre-existing business operations to one or more premises which 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 city of New York. The date of

relocation shall be the later of: (1) the first day on which the

individual so transferred commences work at premises that are or will

become eligible premises, and (2) the date of completion of sufficient

improvements to the eligible premises at which such individual has

commenced work, to meet the requirements of subdivision (e) of this

section relating to expenditures for improvements. The taxable year of

relocation shall be the taxable year in which the date of relocation

occurs. For purposes of this article, an eligible business may relocate

only once but may add or substitute other eligible premises throughout

the period during which it is authorized pursuant to subdivision (a) of

section twenty-five-ee of this article to receive the credit allowed by

such section.

(k) "Tax year" and "taxable year" mean, for purposes of this article,

in the case of taxpayers authorized to receive the credit allowed by

section twenty-five-ee of this article against the tax imposed under a

local law enacted pursuant to subdivision (a) of section twelve hundred

one of the tax law, calendar year.

(l) "Special eligible business" means any person subject to a tax

imposed under a local law enacted pursuant to part two or three of

section one, or section two, of chapter seven hundred seventy-two of the

laws of nineteen hundred sixty-six or a gross receipts tax imposed under

a local law enacted pursuant to subdivision (a) of section twelve

hundred one of the tax law, that: (1) has been conducting substantial

business operations at one or more business locations outside the city

of New York for the twenty-four consecutive months immediately preceding

the taxable year during which such eligible business relocates as

defined in subdivision (m) of this section, (2) maintained employment

shares at premises in Manhattan in the city of New York at some time

during the period beginning January first, two thousand two, and ending

on the date it enters into a lease or a contract to purchase the

premises that will qualify as eligible premises pursuant to this

section, and (3) on or after June thirtieth, two thousand five,

relocates as defined in subdivision (m) of this section all or part of

such business operations.

(m) In the case of a special eligible business, "relocate" means to

transfer pre-existing business operations and employees from one or more

qualifying business locations outside the city of New York to one or

more premises which are or will become eligible premises in accordance

with subdivision (e) of this section. The date of relocation shall be

the later of: (1) the first day on which the first individual so

transferred commences work at premises that are or will become eligible

premises, and (2) the date of completion of sufficient improvements to

the eligible premises at which such individual has commenced work to

meet the requirements of subdivision (e) of this section relating to

expenditures for improvements. The taxable year of relocation shall be

the taxable year in which the date of relocation occurs. For purposes of

this chapter, a special eligible business may relocate only once but may

add additional eligible premises throughout the period during which it

is authorized pursuant to subdivision (a) of section twenty-five-ee of

this article to receive the credit allowed by such section.

(n) "Relocated Employee" means an employee of a special eligible

business who (1) has worked at a qualifying business location of the

eligible business outside of the city of New York continuously,

full-time or part-time, for the ten work weeks prior to the date of

relocation and continuously from the date of relocation until the date

of transfer to eligible premises, (2) is transferred to eligible

premises, and (3) continues to work for the eligible business at the

eligible premises for at least ten full work weeks after the date of

transfer.

(o) "Relocated employee base shares" means the number of full-time

work weeks worked by relocated employees in eligible premises during the

twelve calendar months after the month of relocation, divided by the

number of weeks in such twelve months, plus the number of part-time work

weeks worked by such employees in such premises divided by twice the

number of weeks in such months.

(p) "New York city base shares" means the number of aggregate

employment shares maintained by the special eligible business in the

city of New York in the year prior to the year of relocation.

(q) "Lower Manhattan base shares" means the number of aggregate

employment shares maintained by the special eligible business in the

eligible Lower Manhattan area in the year prior to the year of

relocation.

(r) "Qualifying business location" means a business location of a

special eligible business located outside the city of New York at which

such business has been conducting substantial business operations for

the twenty-four months immediately preceding the year of relocation.