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

§ 25-y. Definitions. As 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 an eligible area

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; and (2) on or after May twenty-seventh,

nineteen hundred eighty-seven relocates as defined in subdivision (j) of

this section all or part of such business operations; and (3) either (i)

on or after May twenty-seventh, nineteen hundred eighty-seven first

enters into a contract to purchase or lease the premises to which it

relocates as defined in subdivision (j) of this section, or a parcel on

which will be constructed such premises, or (ii) as of May

twenty-seventh, nineteen hundred eighty-seven owns such parcel or

premises and has not prior to such date made application for benefits

pursuant to a local law enacted in accordance with title two-D of

article four of the real property tax law.

(b) "Person" means and 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 predominantly

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 predominantly 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

predominantly of the provision of retail banking services.

(d) "Hotel services" means any services which consist predominantly 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 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 an eligible area;

(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 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 an eligible area; or

(3) in the case of a relocation, the date of which, as determined in

subdivision (j) of this section, is on or after July first, two thousand

three, nonresidential premises, located in an eligible area, for which a

minimum expenditure has been made on or after July first, two thousand

three, for improvements in excess of twenty-five dollars per square

foot, provided, however, that 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 such relocation and the lease commencement

date.

The determination of whether premises meet the requirements for

eligibility set forth in this subdivision shall be made as of the

effective date of the certification of eligibility issued pursuant to

section twenty-five-z of this article. Notwithstanding the provisions of

paragraphs one and two of this subdivision, if, subsequent to such date,

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 continues to occupy such premises; provided however that if,

after such property ceases to meet the requirements of paragraph one or

two, an 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 area" means an area of a city having a population of one

million or more, excluding the area lying south of the center line of

96th Street, in the borough of Manhattan in the city of New York.

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

proprietor of an 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' 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' 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.

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

shares maintained by an eligible business in a taxable year.

(i) "Eligible aggregate employment shares" means the amount, if any,

by which the number of aggregate employment shares maintained by an

eligible business in an eligible 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-z of this article exceeds the number

of aggregate employment shares maintained by an eligible business in an

eligible area in the taxable year immediately preceding the taxable year

during which such eligible business first relocates as defined in

subdivision (j) of this section. Provided, however, that such amount

shall not exceed the lesser of: (1) in the case of particular premises

to which an eligible business relocates before July first, two thousand

three, the highest number of aggregate employment shares maintained by

such eligible business in such premises in the taxable year during which

such eligible business relocates to such premises or in any of the three

immediately succeeding taxable years, exclusive of any employment shares

maintained by such eligible business in such premises in the taxable

year immediately preceding the taxable year during which such eligible

business relocates to such premises; or in the case of particular

premises to which an eligible business relocates on or after July first,

two thousand three, the highest number of aggregate employment shares

maintained by such eligible business in such premises in the taxable

year during which such eligible business relocates to such premises or

in any of the five immediately succeeding taxable years, exclusive of

any employment shares maintained by such eligible business in such

premises in the taxable year immediately preceding the taxable year

during which such eligible business relocates to such premises; or (2)

the number of aggregate employment shares maintained by such eligible

business in such premises in the taxable year in which such eligible

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

with section twenty-five-z of this article, exclusive of any employment

shares maintained by such eligible business in such premises in the

taxable year immediately preceding the taxable year during which such

eligible business relocates to such premises; or (3) in the case of an

eligible business that has relocated as determined pursuant to

subdivision (j) of this section before July first, two thousand three,

and has not relocated on or after July first, two thousand three, twice

the number of aggregate employment shares maintained by such eligible

business outside an eligible area in the taxable year immediately

preceding the taxable year during which such eligible business first

relocates or, in the case of an eligible business that has relocated as

determined pursuant to subdivision (j) of this section on or after July

first, two thousand three, the greater of one hundred aggregate

employment shares or twice the number of aggregate employment shares

maintained by such eligible business outside the eligible area in the

taxable year immediately preceding the taxable year during which such

eligible business first relocates. If an eligible business relocates to

more than one particular premises, the amounts described in paragraphs

one and two of this subdivision shall be determined separately with

respect to each such particular premises, and in such case the total

number of eligible aggregate employment shares for such eligible

business shall not exceed the lesser of the amount determined pursuant

to paragraph three of this subdivision or the sum of the lesser of the

amounts determined pursuant to paragraphs one and two of this

subdivision for each particular premises.

(j) "Relocate" means to transfer pre-existing business operations to

premises that 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 eligible area.

The date of relocation to any particular premises shall be any date

elected by the eligible business on which an employee, partner or sole

proprietor of the eligible business is transferred to the particular

premises from pre-existing business operations conducted outside the

eligible area and begins work at such premises, provided that such date

is subsequent to the date of commencement of improvements to such

premises or the real property in which such premises are located, which

improvements will meet the requirements of subdivision (e) of this

section relating to expenditures for improvements, and provided further

that such date of relocation is prior to the date of the issuance of a

certification of eligibility pursuant to section twenty-five-z of this

article. The year of relocation shall be the taxable year in which such

date of relocation falls. The election provided for in this subdivision

shall be made prior to the issuance of such certification of eligibility

and shall be irrevocable. An eligible business may relocate only once to

any particular premises.

(k) "Industrial construction work" means the construction of a new

building or structure or the modernization, rehabilitation, expansion or

improvement of an existing building or structure for use as industrial

property.

(l) "Industrial property" means nonresidential real property

containing or which will contain after the completion of industrial

construction work a building or structure wherein at least seventy-five

percent of the total net square footage is used or immediately available

and held out for use for manufacturing activities involving the assembly

of goods or the fabrication or processing of raw materials.

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

insofar as it applies to a gross receipts tax imposed under a local law

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

tax law, calendar year.

(n) "Revitalization area" means any area of a city having a population

of one million or more, provided that in the city of New York a

revitalization area shall mean any district that is zoned C4, C5, C6,

M1, M2 or M3 in accordance with the zoning resolution of such city in

any area such city except the area lying south of the center line of

96th Street in the borough of Manhattan.

(o) "Total attributed eligible aggregate employment shares" means, for

any relocation, the sum of the number of eligible aggregate employment

shares apportioned to such relocation pursuant to paragraph one of this

subdivision, less any excess shares determined with respect to such

relocation pursuant to paragraph two of this subdivision, plus any

excess shares attributed to such relocation pursuant to paragraph three

of this subdivision. Except as provided in paragraph four of this

subdivision, any eligible aggregate employment shares that are

attributed to a relocation to particular premises pursuant to paragraph

three of this subdivision shall be treated as eligible aggregate

employment shares that are maintained with respect to such premises and

shall be subject to all provisions of this article and provisions for

the credit against 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 as such provisions

pertain to such relocation.

(1) In the case of a business that has relocated once, all eligible

aggregate employment shares are apportioned to the premises to which the

single relocation took place. In the case of a business that has

relocated more than once, eligible aggregate shares are apportioned as

follows:

(i) If in a taxable year, the sum for all eligible premises of the

lesser of the amounts determined pursuant to paragraphs one and two of

subdivision (i) of this section for each particular eligible premises is

equal to the total number of eligible aggregate employment shares

determined pursuant to such subdivision (i), the number of shares

apportioned to each particular eligible premises is the lesser of such

amounts for each particular eligible premises;

(ii) If in a taxable year, the sum for all eligible premises of the

lesser of the amounts determined pursuant to paragraphs one and two of

subdivision (i) of this section for each particular eligible premises is

greater than the total number of eligible aggregate employment shares

determined pursuant to such subdivision (i), the number of shares

apportioned to a particular eligible premises shall be such total number

of eligible aggregate employment shares multiplied by a fraction the

numerator of which is the lesser of the amounts determined pursuant to

paragraphs one and two of subdivision (i) of this section for such

premises and the denominator of which is such sum.

(2) "Excess shares" shall mean eligible aggregate employment shares

that are apportioned pursuant to paragraph one of this subdivision to a

relocation in excess of the limitation amount defined in subparagraphs

(i) and (ii) of this paragraph for such relocation.

(i) Subject to the provisions of subparagraph (ii) of this paragraph,

for any taxable year in which an eligible business is claiming the

credit authorized pursuant to section twenty-five-z of this article, the

"limitation amount" shall mean:

(A) for one or more relocations in an eligible business' latest year

of relocation as determined pursuant to subdivision (j) of this section,

the amount, if any, by which the number of aggregate employment shares

maintained by the eligible business in the eligible area in the taxable

year in which it is claiming the credit authorized by this article

exceeds the number of aggregate employment shares maintained by it in

the eligible area in the taxable year immediately preceding such year of

relocation; or

(B) for one or more relocations in a specified year of relocation that

is not the latest such year of relocation by an eligible business, the

amount, if any, by which the number of aggregate employment shares

maintained by the eligible business in the eligible area in the taxable

year in which it is claiming the credit authorized by this article

exceeds the sum of (I) the number of total attributed eligible aggregate

employment shares that are attributed in the taxable year in which the

credit is claimed to relocations that took place in years of relocation

later than the specified year of relocation and (II) the number of

aggregate employment shares maintained by it in the eligible area in the

taxable year immediately preceding such specified year of relocation.

(ii) In the case of an eligible business that has relocated more than

once in the same taxable year, the limitation amount determined in

accordance with subparagraph (i) of this paragraph shall be applied to

such relocations in the same proportion as the eligible aggregate

employment shares apportioned to such relocations pursuant to paragraph

one of this subdivision.

(3)(i) In any taxable year in which there are excess shares, such

excess shares, or a portion thereof, from a relocation or relocations

that took place in a specified year of relocation shall be attributed in

reverse chronological order to any relocations that took place in

earlier years of relocation.

(ii) Notwithstanding subparagraph (i) of this paragraph:

(A) no excess shares may be attributed to a relocation unless the

number of eligible aggregate employment shares apportioned pursuant to

paragraph one of this subdivision to such relocation for the taxable

year in which the credit is claimed is less than the highest number of

total attributed eligible aggregate employment shares pertaining to such

relocation in any taxable year prior to the taxable year in which the

credit is claimed;

(B) the sum of the number of shares attributed to such relocation

pursuant to subparagraph (i) of this paragraph and the eligible

aggregate employment shares apportioned to any such relocation pursuant

to paragraph one of this subdivision may not exceed such highest number

of total attributed eligible aggregate employment shares; and

(C) such sum may not exceed the limitation amount for such relocation

defined in paragraph two of this subdivision.

(4) Notwithstanding the provisions of other paragraphs of this

subdivision, any excess shares that are apportioned pursuant to

paragraph one of this subdivision to a relocation to particular eligible

premises that are not located in a revitalization area as defined in

subdivision (n) of this section, but are attributed pursuant to

paragraph three of this subdivision to particular eligible premises that

are located in such a revitalization area, shall be treated as if such

premises to which they are attributed were not in such a revitalization

area.

(p) "Particular premises" means all premises occupied by an eligible

business within a single building. "Particular eligible premises" means

the portion of such particular premises that meets the requirements for

eligible premises specified in subdivision (e) of this section.

(q) "Designated additional or replacement premises" means

nonresidential premises in the eligible area that (i) are owned or

leased by an eligible business that has been certified pursuant to

subdivision (b) of section twenty-five-z of this article to receive the

credit provided for in this article, and (ii) with regard to which such

eligible business obtains the certification provided for in subdivision

(e) of section twenty-five-z of this article.