S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5215
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 13, 2015
                                      ___________
       Introduced  by M. of A. KOLB, OAKS, WALTER, MONTESANO, PALMESANO, LOPEZ,
         RAIA, HAWLEY, BARCLAY, KEARNS, TENNEY, FINCH -- Multi-Sponsored by  --
         M.  of A. CERETTO, McLAUGHLIN -- read once and referred to the Commit-
         tee on Ways and Means
       AN ACT to amend the tax law, in relation to  expanding  eligibility  for
         the  investment tax credit to all businesses in the state (Part A); to
         amend the tax law, in relation to a qualified emerging technology  tax
         credit  (Part  B); and to amend the general municipal law, in relation
         to certified startup business enterprises; and to amend the  tax  law,
         in relation to the angel tax credit (Part C)
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. This act enacts into law components of legislation relating
    2  to "Invest-NY".  Each component is wholly contained within a Part  iden-
    3  tified  as  Parts  A  through  C. The effective date for each particular
    4  provision contained within such Part is set forth in the last section of
    5  such Part. Any provision in any section contained within a Part, includ-
    6  ing the effective date of the Part, which makes a reference to a section
    7  "of this act", when used in connection with that  particular  component,
    8  shall  be  deemed  to mean and refer to the corresponding section of the
    9  Part in which it is found. Section three of  this  act  sets  forth  the
   10  general effective date of this act.
   11                                   PART A
   12    Section  1.    Subparagraph  (i)  of paragraph (b) of subdivision 1 of
   13  section 210-B of the tax law, as added by section 17 of part A of  chap-
   14  ter 59 of the laws of 2014, is amended to read as follows:
   15    (i)  A  credit shall be allowed under this subdivision with respect to
   16  tangible personal property and other tangible property, including build-
   17  ings and structural components  of  buildings,  which  are:  depreciable
   18  pursuant  to  section  one  hundred  sixty-seven of the internal revenue
   19  code, have a useful life of four years or more, are acquired by purchase
   20  as defined in section one  hundred  seventy-nine  (d)  of  the  internal
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08887-01-5
       A. 5215                             2
    1  revenue code, have a situs in this state and are (A) principally used by
    2  the  taxpayer  in  the production of goods by manufacturing, processing,
    3  assembling, refining, mining, extracting, farming,  agriculture,  horti-
    4  culture, floriculture, viticulture or commercial fishing, (B) industrial
    5  waste  treatment facilities or air pollution control facilities, used in
    6  the taxpayer's trade or business, (C) research and development property,
    7  or (D) principally used in the ordinary course of the  taxpayer's  trade
    8  or  business  as  a  broker or dealer in connection with the purchase or
    9  sale (which shall include but not be limited to the  issuance,  entering
   10  into,  assumption,  offset,  assignment,  termination,  or  transfer) of
   11  stocks, bonds or other securities as defined  in  section  four  hundred
   12  seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
   13  defined in section four hundred seventy-five (e) of the Internal Revenue
   14  Code, (E) principally used in the  ordinary  course  of  the  taxpayer's
   15  trade  or business of providing investment advisory services for a regu-
   16  lated investment company as defined in section eight  hundred  fifty-one
   17  of the Internal Revenue Code, or lending, loan arrangement or loan orig-
   18  ination  services  to  customers in connection with the purchase or sale
   19  (which shall include but not be limited to the issuance, entering  into,
   20  assumption,  offset, assignment, termination, or transfer) of securities
   21  as defined in section four hundred seventy-five (c)(2) of  the  Internal
   22  Revenue  Code, (F) originally used in the ordinary course of the taxpay-
   23  er's business  as  an  exchange  registered  as  a  national  securities
   24  exchange  within the meaning of sections 3(a)(1) and 6(a) of the Securi-
   25  ties Exchange Act of 1934 or a board of  trade  as  defined  in  section
   26  1410(a)(1) of the New York Not-for-Profit Corporation Law or as an enti-
   27  ty  that  is  wholly  owned  by  one  or  more  such national securities
   28  exchanges or boards of trade and that provides automation  or  technical
   29  services  thereto,  [or]  (G)  principally  used  as  a  qualified  film
   30  production  facility  including  qualified  film  production  facilities
   31  having  a situs in an empire zone designated as such pursuant to article
   32  eighteen-B of the general municipal law, where the taxpayer is providing
   33  three or more services to any qualified film  production  company  using
   34  the  facility, including such services as a studio lighting grid, light-
   35  ing and grip equipment, multi-line phone service, broadband  information
   36  technology  access, industrial scale electrical capacity, food services,
   37  security services, and heating, ventilation and air conditioning, OR (H)
   38  PRINCIPALLY USED IN THE ORDINARY COURSE OF ANY TRADE OR BUSINESS OF  THE
   39  TAXPAYER  NOT  OTHERWISE  DESCRIBED  IN  CLAUSES (A) THROUGH (G) OF THIS
   40  SUBPARAGRAPH. Provided, however, a taxpayer shall  not  be  allowed  the
   41  credit  provided by clauses (D), (E) and (F) of this subparagraph unless
   42  (i) eighty percent or more of the employees performing  the  administra-
   43  tive  and  support functions resulting from or related to the qualifying
   44  uses of such equipment are located in this state  or  (ii)  the  average
   45  number  of  employees  that perform the administrative and support func-
   46  tions resulting from or related to the qualifying uses of such equipment
   47  and are located in this state during the  taxable  year  for  which  the
   48  credit is claimed is equal to or greater than ninety-five percent of the
   49  average number of employees that perform these functions and are located
   50  in  this  state  during  the thirty-six months immediately preceding the
   51  year for which the credit is claimed, or (iii) the number  of  employees
   52  located  in  this  state during the taxable year for which the credit is
   53  claimed is equal to or greater than ninety  percent  of  the  number  of
   54  employees  located  in  this  state  on  December thirty-first, nineteen
   55  hundred ninety-eight or, if the taxpayer was not a calendar year taxpay-
   56  er in nineteen hundred ninety-eight, the last day of its  first  taxable
       A. 5215                             3
    1  year  ending after December thirty-first, nineteen hundred ninety-eight.
    2  If the taxpayer becomes subject to tax in this state after  the  taxable
    3  year  beginning  in  nineteen hundred ninety-eight, then the taxpayer is
    4  not  required  to  satisfy the employment test provided in the preceding
    5  sentence of this subparagraph for its first taxable year.  For  purposes
    6  of  clause  (iii) of this subparagraph the employment test will be based
    7  on the number of employees located in this state on the last day of  the
    8  first taxable year the taxpayer is subject to tax in this state.  If the
    9  uses of the property must be aggregated to determine whether the proper-
   10  ty  is  principally  used in qualifying uses, then either each affiliate
   11  using the property must satisfy this employment test or this  employment
   12  test  must  be satisfied through the aggregation of the employees of the
   13  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
   14  investment adviser using the property. For purposes of this subdivision,
   15  the term "goods" shall not include electricity.
   16    S  2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
   17  of the tax law, as amended by chapter  637  of  the  laws  of  2008,  is
   18  amended to read as follows:
   19    (A)  A  credit  shall be allowed under this subsection with respect to
   20  tangible personal property and other tangible property, including build-
   21  ings and structural components  of  buildings,  which  are:  depreciable
   22  pursuant  to  section  one  hundred  sixty-seven of the internal revenue
   23  code, have a useful life of four years or more, are acquired by purchase
   24  as defined in section one  hundred  seventy-nine  (d)  of  the  internal
   25  revenue code, have a situs in this state and are (i) principally used by
   26  the  taxpayer  in  the production of goods by manufacturing, processing,
   27  assembling, refining, mining, extracting, farming,  agriculture,  horti-
   28  culture,  floriculture,  viticulture  or commercial fishing, (ii) indus-
   29  trial waste treatment facilities or air  pollution  control  facilities,
   30  used in the taxpayer's trade or business, (iii) research and development
   31  property, (iv) principally used in the ordinary course of the taxpayer's
   32  trade  or business as a broker or dealer in connection with the purchase
   33  or sale (which shall include but not be limited to the issuance,  enter-
   34  ing  into,  assumption, offset, assignment, termination, or transfer) of
   35  stocks, bonds or other securities as defined  in  section  four  hundred
   36  seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
   37  defined in section 475(e) of the Internal Revenue Code, (v)  principally
   38  used  in  the  ordinary  course  of  the taxpayer's trade or business of
   39  providing investment advisory services for a regulated investment compa-
   40  ny as defined in section eight hundred fifty-one of the Internal Revenue
   41  Code, or lending, loan  arrangement  or  loan  origination  services  to
   42  customers  in  connection with the purchase or sale (which shall include
   43  but not be limited to the issuance, entering into,  assumption,  offset,
   44  assignment,  termination,  or  transfer)  of  securities  as  defined in
   45  section four hundred seventy-five (c)(2) of the Internal  Revenue  Code,
   46  [or]  (vi)  principally  used  as  a  qualified film production facility
   47  including qualified film production facilities  having  a  situs  in  an
   48  empire  zone  designated  as  such pursuant to article eighteen-B of the
   49  general municipal law, where the taxpayer is  providing  three  or  more
   50  services  to  any  qualified film production company using the facility,
   51  including such services as a studio lighting  grid,  lighting  and  grip
   52  equipment,  multi-line  phone  service, broadband information technology
   53  access, industrial scale electrical capacity,  food  services,  security
   54  services,  and heating, ventilation and air conditioning, OR (VII) PRIN-
   55  CIPALLY USED IN THE ORDINARY COURSE OF ANY  TRADE  OR  BUSINESS  OF  THE
   56  TAXPAYER  NOT  OTHERWISE  DESCRIBED  IN CLAUSES (I) THROUGH (VI) OF THIS
       A. 5215                             4
    1  SUBPARAGRAPH.  For purposes of clauses (iv) and  (v)  of  this  subpara-
    2  graph,  property  purchased  by  a  taxpayer affiliated with a regulated
    3  broker, dealer, or registered investment adviser  is  allowed  a  credit
    4  under  this  subsection  if the property is used by its affiliated regu-
    5  lated broker, dealer or registered investment adviser in accordance with
    6  this subsection. For purposes of determining if the property is  princi-
    7  pally  used  in  qualifying  uses, the uses by the taxpayer described in
    8  clauses (iv) and (v) of this subparagraph may be  aggregated.  In  addi-
    9  tion,  the uses by the taxpayer, its affiliated regulated broker, dealer
   10  and registered investment adviser under either or both of those  clauses
   11  may  be  aggregated.  Provided, however, a taxpayer shall not be allowed
   12  the credit provided by clauses (iv) and (v) of this subparagraph  unless
   13  (I)  eighty  percent or more of the employees performing the administra-
   14  tive and support functions resulting from or related to  the  qualifying
   15  uses  of  such  equipment are located in this state, or (II) the average
   16  number of employees that perform the administrative  and  support  func-
   17  tions resulting from or related to the qualifying uses of such equipment
   18  and  are  located  in  this  state during the taxable year for which the
   19  credit is claimed is equal to or greater than ninety-five percent of the
   20  average number of employees that perform these functions and are located
   21  in this state during the thirty-six  months  immediately  preceding  the
   22  year  for  which the credit is claimed, or (III) the number of employees
   23  located in this state during the taxable year for which  the  credit  is
   24  claimed  is  equal  to  or  greater than ninety percent of the number of
   25  employees located in  this  state  on  December  thirty-first,  nineteen
   26  hundred ninety-eight or, if the taxpayer was not a calendar year taxpay-
   27  er  in  nineteen hundred ninety-eight, the last day of its first taxable
   28  year ending after December thirty-first, nineteen hundred  ninety-eight.
   29  If  the  taxpayer becomes subject to tax in this state after the taxable
   30  year beginning in nineteen hundred ninety-eight, then  the  taxpayer  is
   31  not  required  to  satisfy the employment test provided in the preceding
   32  sentence of this subparagraph  for  its  first  taxable  year.  For  the
   33  purposes  of  clause (III) of this subparagraph the employment test will
   34  be based on the number of employees located in this state  on  the  last
   35  day  of  the  first  taxable year the taxpayer is subject to tax in this
   36  state. If the uses of the  property  must  be  aggregated  to  determine
   37  whether the property is principally used in qualifying uses, then either
   38  each  affiliate  using the property must satisfy this employment test or
   39  this employment test must be satisfied through the  aggregation  of  the
   40  employees  of the taxpayer, its affiliated regulated broker, dealer, and
   41  registered investment adviser using the property. For purposes  of  this
   42  subsection, the term "goods" shall not include electricity.
   43    S 3. This act shall take effect immediately and apply to taxable years
   44  ending on or after January 1, 2015.
   45                                   PART B
   46    Section  1.  Subparagraph  (vii)  of paragraph (a) of subdivision 1 of
   47  section 210 of the tax law, as amended by section 12 of part A of  chap-
   48  ter 59 of the laws of 2014, is amended to read as follows:
   49    (vii) For a taxpayer that is defined as a qualified emerging technolo-
   50  gy  company under paragraph (c) of subdivision one of section thirty-one
   51  hundred two-e of the  public  authorities  law  regardless  of  the  ten
   52  million  dollar  limitation  expressed in subparagraph one of such para-
   53  graph (c) the AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE  COMPUTED  AT
   54  THE  rate  [at  which  the  tax  is computed in effect for taxable years
       A. 5215                             5
    1  beginning on or after January first, two thousand  thirteen  and  before
    2  January  first,  two thousand fourteen for such qualified emerging tech-
    3  nology companies shall be reduced by nine  and  two-tenths  percent  for
    4  taxable  years  commencing on or after January first, two thousand four-
    5  teen and before January first, two thousand fifteen, twelve  and  three-
    6  tenths  percent  for taxable years commencing on or after January first,
    7  two thousand fifteen and before January  first,  two  thousand  sixteen,
    8  fifteen and four-tenths percent for taxable years commencing on or after
    9  January  first, two thousand sixteen and before January first, two thou-
   10  sand eighteen, and twenty-five percent for taxable years beginning on or
   11  after January first, two thousand eighteen] OF 5.7 PERCENT  FOR  TAXABLE
   12  YEARS  BEGINNING  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND FIFTEEN AND
   13  BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN,  ZERO  PERCENT  FOR  TAXABLE
   14  YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. IN THE
   15  CASE OF A COMBINED REPORT, EACH CORPORATION  INCLUDED  IN  THE  COMBINED
   16  REPORT  MUST QUALIFY AS A QUALIFIED EMERGING TECHNOLOGY COMPANY IN ORDER
   17  FOR THE TAX RATES PROVIDED BY THIS SUBPARAGRAPH TO APPLY.
   18    S 2. This act shall take effect immediately.
   19                                   PART C
   20    Section 1. The general municipal  law  is  amended  by  adding  a  new
   21  section 959-c to read as follows:
   22    S 959-C. CERTIFIED STARTUP BUSINESS ENTERPRISE. (A) CERTIFICATION. (I)
   23  THE COMMISSIONER SHALL APPROVE APPLICATIONS FOR QUALIFICATION OF A BUSI-
   24  NESS  ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE. AS A CONDI-
   25  TION FOR APPROVAL OF SUCH APPLICATION, THE COMMISSIONER IS AUTHORIZED TO
   26  SPECIFY CERTAIN REQUIREMENTS TO BE SATISFIED AS A CONDITION FOR APPROVAL
   27  OF A BUSINESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS  ENTERPRISE  AS
   28  THE  COMMISSIONER DEEMS NECESSARY TO ENSURE THE QUALIFYING ANGEL INVEST-
   29  MENT WILL MAKE A SUBSTANTIAL CONTRIBUTION TO THE ECONOMIC DEVELOPMENT OF
   30  THIS STATE, INCLUDING THE USE OF  A  SYSTEM  OF  EVALUATION  OF  VARIOUS
   31  APPLICANT BUSINESS ENTERPRISES IN A COMPETITIVE FASHION.
   32    (II)  WITH  RESPECT  TO AN APPROVED APPLICATION FOR QUALIFICATION OF A
   33  BUSINESS ENTERPRISE AS A  CERTIFIED  STARTUP  BUSINESS  ENTERPRISE,  THE
   34  COMMISSIONER  SHALL  ISSUE  TO SUCH BUSINESS ENTERPRISE A CERTIFICATE OF
   35  QUALIFICATION AS A CERTIFIED STARTUP BUSINESS ENTERPRISE  SETTING  FORTH
   36  THE  EFFECTIVE  DATE  OF  THE CERTIFICATION AND THE AMOUNT OF QUALIFYING
   37  ANGEL INVESTMENT AWARDED TO SUCH BUSINESS ENTERPRISE, WHICH AMOUNT SHALL
   38  BE NO LESS THAN ONE HUNDRED  THOUSAND  DOLLARS  AND  NO  MORE  THAN  TWO
   39  MILLION DOLLARS.
   40    (III)  FOR  THE  PERIOD  JULY FIRST, TWO THOUSAND FIFTEEN THROUGH JUNE
   41  THIRTIETH, TWO THOUSAND SIXTEEN, THE  COMMISSIONER  MAY  CERTIFY  UP  TO
   42  TWENTY  MILLION  DOLLARS  IN QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD
   43  JULY FIRST, TWO THOUSAND SIXTEEN THROUGH JUNE  THIRTIETH,  TWO  THOUSAND
   44  SEVENTEEN,  THE COMMISSIONER MAY CERTIFY UP TO TWENTY MILLION DOLLARS IN
   45  QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD  JULY  FIRST,  TWO  THOUSAND
   46  SEVENTEEN THROUGH JUNE THIRTIETH, TWO THOUSAND EIGHTEEN, THE COMMISSION-
   47  ER  MAY CERTIFY UP TO TWENTY MILLION DOLLARS IN QUALIFYING ANGEL INVEST-
   48  MENT.
   49    (B) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
   50  HAVE THE FOLLOWING MEANINGS:
   51    (I)  "CERTIFIED  STARTUP  BUSINESS  ENTERPRISE"  SHALL MEAN A BUSINESS
   52  ENTERPRISE LOCATED IN NEW YORK STATE:
   53    (1) WITH LESS THAN FIVE MILLION DOLLARS IN ANNUAL REVENUES;
       A. 5215                             6
    1    (2) WHOSE PRIMARY ACTIVITY CONSISTS  OF  A  QUALIFYING  TECHNOLOGY  OR
    2  INNOVATION ACTIVITY; AND
    3    (3) THAT HAS BEEN CERTIFIED AS A CERTIFIED STARTUP BUSINESS ENTERPRISE
    4  BY THE COMMISSIONER.
    5    (II) "QUALIFYING TECHNOLOGY OR INNOVATION ACTIVITY" SHALL MEAN:
    6    (1)  BIOTECHNOLOGIES, WHICH SHALL BE DEFINED AS TECHNOLOGIES INVOLVING
    7  THE SCIENTIFIC MANIPULATION  OF  LIVING  ORGANISMS,  ESPECIALLY  AT  THE
    8  MOLECULAR  AND/OR  THE  SUB-MOLECULAR GENETIC LEVEL, TO PRODUCE PRODUCTS
    9  CONDUCIVE TO IMPROVING THE LIVES AND  HEALTH  OF  PLANTS,  ANIMALS,  AND
   10  HUMANS; AND THE ASSOCIATED SCIENTIFIC RESEARCH, PHARMACOLOGICAL, MECHAN-
   11  ICAL,  AND  COMPUTATIONAL APPLICATIONS AND SERVICES CONNECTED WITH THESE
   12  IMPROVEMENTS;
   13    (2) INFORMATION AND COMMUNICATION TECHNOLOGIES, EQUIPMENT AND  SYSTEMS
   14  THAT  INVOLVE  ADVANCED  COMPUTER  SOFTWARE  AND HARDWARE, VISUALIZATION
   15  TECHNOLOGIES, AND HUMAN INTERFACE TECHNOLOGIES;
   16    (3) ADVANCED MATERIALS AND PROCESSING TECHNOLOGIES  THAT  INVOLVE  THE
   17  DEVELOPMENT,  MODIFICATION,  OR  IMPROVEMENT OF ONE OR MORE MATERIALS OR
   18  METHODS TO PRODUCE DEVICES  AND  STRUCTURES  WITH  IMPROVED  PERFORMANCE
   19  CHARACTERISTICS  OR SPECIAL FUNCTIONAL ATTRIBUTES, OR TO ACTIVATE, SPEED
   20  UP, OR OTHERWISE ALTER CHEMICAL, BIOCHEMICAL, OR MEDICAL PROCESSES;
   21    (4) ELECTRONIC AND PHOTONIC DEVICES AND COMPONENTS FOR USE IN  PRODUC-
   22  ING  ELECTRONIC,  OPTOELECTRONIC,  MECHANICAL  EQUIPMENT AND PRODUCTS OF
   23  ELECTRONIC DISTRIBUTION WITH INTERACTIVE MEDIA CONTENT;
   24    (5) ENERGY EFFICIENCY, RENEWABLE ENERGY  AND  ENVIRONMENTAL  TECHNOLO-
   25  GIES, PRODUCTS, DEVICES AND SERVICES;
   26    (6) SMALL SCALE SYSTEMS INTEGRATION AND PACKAGING; OR
   27    (7) MANUFACTURING;
   28    (III)  "QUALIFYING  ANGEL INVESTMENT" SHALL MEAN A CONTRIBUTION TO THE
   29  CAPITAL OF A CERTIFIED STARTUP BUSINESS ENTERPRISE, PROVIDED  THAT  SUCH
   30  CONTRIBUTION TO CAPITAL IS MADE WITHIN TWELVE MONTHS AFTER THE EFFECTIVE
   31  DATE  OF THE CERTIFIED TECHNOLOGY VENTURE'S CERTIFICATE OF QUALIFICATION
   32  AS A CERTIFIED TECHNOLOGY VENTURE AND SUCH CONTRIBUTION  IS  APPLIED  BY
   33  THE  CERTIFIED  STARTUP  BUSINESS  ENTERPRISE  AGAINST ITS ALLOCATION OF
   34  QUALIFYING ANGEL INVESTMENT. TOGETHER WITH ALL  OTHER  QUALIFYING  ANGEL
   35  INVESTMENTS  MADE TO A SINGLE CERTIFIED STARTUP BUSINESS ENTERPRISE, THE
   36  TOTAL QUALIFYING ANGEL INVESTMENT MAY NOT EXCEED  TWO  MILLION  DOLLARS.
   37  NOTHING HEREIN SHALL PROHIBIT A PERSON MAKING A QUALIFYING ANGEL INVEST-
   38  MENT  FROM  MAKING ADDITIONAL CONTRIBUTIONS TO THE CAPITAL OF THE CERTI-
   39  FIED STARTUP BUSINESS ENTERPRISE OR MAKING LOANS TO OR OTHER INVESTMENTS
   40  IN THE CERTIFIED STARTUP BUSINESS ENTERPRISE,  PROVIDED,  HOWEVER,  THAT
   41  SUCH  OTHER CONTRIBUTIONS, LOANS AND INVESTMENTS SHALL NOT BE TREATED AS
   42  QUALIFYING ANGEL INVESTMENTS.
   43    S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
   44  sion 49 to read as follows:
   45    49.  ANGEL  TAX  CREDIT.  (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
   46  MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
   47  (III) OF SUBDIVISION (B) OF SECTION NINE  HUNDRED  FIFTY-NINE-C  OF  THE
   48  GENERAL  MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO FIFTY PERCENT
   49  OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
   50    (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
   51  FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
   52  THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
   53  SECTION  TWO  HUNDRED  TEN  OF THIS ARTICLE.   HOWEVER, IF THE AMOUNT OF
   54  CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
   55  TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
   56  TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
       A. 5215                             7
    1  REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
    2  EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
    3  SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
    4  NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
    5    S  3. Section 606 of the tax law is amended by adding a new subsection
    6  (ccc) to read as follows:
    7    (CCC) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER  THAT  HAS
    8  MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
    9  (III)  OF  SUBDIVISION  (B)  OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
   10  GENERAL MUNICIPAL LAW, OR THAT IS A MEMBER OF  A  PARTNERSHIP  THAT  HAS
   11  MADE  A  QUALIFYING ANGEL INVESTMENT, SHALL BE ALLOWED A CREDIT EQUAL TO
   12  FIFTY PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT  OR,  IN
   13  THE  CASE OF A TAXPAYER WHO IS A MEMBER OF A PARTNERSHIP THAT HAS MADE A
   14  QUALIFYING ANGEL INVESTMENT, A PORTION OF SUCH QUALIFYING ANGEL  INVEST-
   15  MENT  EQUAL  TO THE PORTION OF ITEMS OF INCOME, GAIN, LOSS AND DEDUCTION
   16  ASSOCIATED WITH THE QUALIFYING ANGEL INVESTMENT  PROPERLY  ALLOCABLE  TO
   17  SUCH  TAXPAYER  UNDER  SECTION  704 OF THE INTERNAL REVENUE CODE FOR THE
   18  TAXABLE YEAR.
   19    (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
   20  THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
   21  SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
   22  CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
   23  HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
   24  SHALL BE PAID THEREON.
   25    S 4. Section 1511 of the tax law is amended by adding a  new  subdivi-
   26  sion (dd) to read as follows:
   27    (DD)  ANGEL  TAX  CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
   28  MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
   29  (III) OF SUBDIVISION (B) OF SECTION NINE  HUNDRED  FIFTY-NINE-C  OF  THE
   30  GENERAL  MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO FIFTY PERCENT
   31  OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
   32    (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
   33  FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
   34  THAN THE MINIMUM TAX FIXED BY  PARAGRAPH  FOUR  OF  SUBDIVISION  (A)  OF
   35  SECTION  FIFTEEN  HUNDRED  TWO  OF  THIS  ARTICLE  OR BY SECTION FIFTEEN
   36  HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF  THE
   37  AMOUNT  OF  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
   38  REDUCES THE TAX TO SUCH AMOUNT, THEN  ANY  AMOUNT  OF  CREDIT  THUS  NOT
   39  DEDUCTIBLE  IN  SUCH  TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF
   40  TAX TO BE CREDITED OR REFUNDED IN  ACCORDANCE  WITH  THE  PROVISIONS  OF
   41  SECTION  ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE
   42  PROVISIONS OF SUBSECTION (C) OF SECTION  ONE  THOUSAND  EIGHTY-EIGHT  OF
   43  THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   44    S 5. This act shall take effect immediately and apply to taxable years
   45  after January 1, 2015.
   46    S 2. Severability. If any clause, sentence, paragraph, section or part
   47  of  this act shall be adjudged by any court of competent jurisdiction to
   48  be invalid and after exhaustion of  all  further  judicial  review,  the
   49  judgment  shall not affect, impair, or invalidate the remainder thereof,
   50  but shall be confined in its operation to the  clause,  sentence,  para-
   51  graph,  section or part of this act directly involved in the controversy
   52  in which the judgment shall have been rendered.
   53    S 3. This act shall take effect immediately  provided,  however,  that
   54  the  applicable effective date of Parts A through C of this act shall be
   55  as specifically set forth in the last section of such Parts.