Revenue Article VII Bill | NYS FY 2023 Executive Budget

1 FY 2023 NEW YORK STATE Executive Budget Revenue Article VII LEGISLATION FY 2023 NEW YORK STATE Executive Budget Revenue Article VII LEGISLATION CONTENTS PART DESCRIPTION STARTING PAGE NUMBER A Accelerate the Middle-Class Tax Cut 6 B Enhances Tax Credits for Farmers 15 C Provide Small Business Tax Relief 21 D Create a Tax Exemption for Student Loan Forgiveness Awards 25 E Create a Tax Credit for Small Business COVID-19 -Related Expenses 25 F Extend the New York City Musical and Theatrical Production Tax Credit 34 G Establish a Permanent Rate for the Article 9-A MTA Surcharge 38 H Extend and Enhance the Hire-A-Vet Tax Credit for Three Years 40 I Provide Tax Credits for the Phase Out of a Certain Grade of Fuel Oil 47 J Increase the State Low-Income Housing Tax Credit Aggregate Cap Growth 51 K Extend the Clean Heating Fuel Tax Credit for Three Years 53 L Extend the Tax Credit for Companies who Provide Transportation to Individuals with Disabilities an Additional Six Years 54 M Extend the Film Tax Credit for Three Years 55 N Extend the New York Youth Jobs Program Tax Credit for an Additional Five Years 64 PART DESCRIPTION STARTING PAGE NUMBER O Extend the Empire State Apprenticeship Tax Credit for an Additional Five Years 68 P Extend the Alternative Fuels and Electric Vehicle Recharging Property Credit for Five Years 68 Q Extend the Workers with Disabilities Tax Credit for Six Years 69 R Require S-Corporation Conformity with Federal Return 70 S Eliminate the Investment Tax Credit for Production of Master Tapes 90 T Exempt Certain Water Vessels from the Petroleum Business Tax 97 U Make Local Sales Tax Rate Authorizations Permanent 98 V Modernize Tax Law to Include the Vacation Rental Industry 109 W Streamline the Withholding Table and Quarterly Interest

2 Rate Publication Process 122 X Expand the Financial Institution Data Management Program 124 Y Extend and Amend the Telecommunications Assessment Ceiling Program for Four Years 124 Z Enact STAR Administrative Reforms 126 AA Solar and Wind Valuation Program Technical Corrections 134 BB Provide a Homeowner Tax Rebate Credit 135 CC Authorize Casino Licenses 139 DD Extend Authorized Use of Capital Funds by Certain Off-track Betting Corporations for One Year 151 EE Extend Pari-Mutuel Tax Rates and simulcast Provisions For One Year 153 IN SENATE_____Senate introducer's signatureIN ASSEMBLY_____Assembly introducer's signatureThe senators whose names are circled below wish to join me in the sponsorshipof this proposal:s15 Addabbos17 Felders07 Kaplans58 O'Maras10 Sanderss52 Akshars59 Gallivans26 Kavanaghs62 Ortts23 Savinos36 Baileys05 Gaughrans63 Kennedys01 Palumbos32 Sepulvedas34 Biaggis12 Gianariss28 Kruegers21 Parkers41 Serinos57 Borrellos22 Gounardess24 Lanzas19 Persauds29 Serranos04 Boyles47 Griffos11 Lius13 Ramoss39 Skoufiss44 Breslins40 Harckhams50 Mannions61 Raths16 Staviskys25 Brisports54 Helmings42 Martuccis38 Reichlin-s45 Stecs08 Brookss46 Hincheys02 MatteraMelnicks35 Stewart-s55 Brouks27 Hoylmans53 Mays48 RitchieCousinss30 Cleares31 Jacksons37 Mayers33 Riveras49 Tediscos14 Comries43 Jordans20 Myries60 Ryans06 Thomass56 Cooneys09 Kaminskys51 Oberackers18 Salazars03 WeikThe Members of the Assembly whose names are circled below wish to join me in themulti-sponsorship of this proposal.

3 A049 Abbatea045 Cymbrowitz a100 Gunthera015 Montesano a076 Seawrighta092 Abinantia018 Darlinga139 Hawleya145 Morinelloa084 Septimoa031 Andersona053 Davilaa083 Heastiea065 Nioua016 Sillittia122 Angelinoa003 DeStefano a028 Hevesia037 Nolana052 Simona107 Ashbya070 Dickensa128 Huntera144 Norrisa114 Simpsona035 Aubrya054 Dilana029 Hyndmana069 O'Donnell a005 Smitha120 Barclaya081 Dinowitza079 Jacksona091 Otisa118 Smullena030 Barnwella147 DiPietroa104 Jacobsona132 Palmesano a022 Solagesa106 Barretta009 Dursoa011 Jean-Pierre a088 Paulina110 Stecka082 Benedetto a048 Eichenstein a134 Jensena141 Peoples-a010 Sterna042 Bichottea004 Englebright a115 JonesStokesa127 StirpeHermelyn a074 Epsteina077 Joynera058 Perrya102 Taguea117 Blankenbush a109 Fahya125 Kellesa023 Pheffera064 Tannousisa098 Brabeneca061 Falla040 KimAmatoa086 Tapiaa026 Braunstein a080 Fernandez a105 Lalora089 Pretlowa071 Taylora138 Bronsona008 Fitzpatrick a013 Lavinea073 Quarta001 Thielea012 Browna057 Forresta097 Lawlera019 Raa033 Vanela093 Burdicka124 Frienda126 Lemondes a038 Rajkumara116 Walczyka085 Burgosa046 Frontusa135 Lunsforda006 Ramosa055 Walkera142 Burkea095 Galefa123 Lupardoa062 Reillya143 Wallacea119 Buttenschon a050 Gallaghera129 Magnarelli a087 Reyesa112 Walsha094 Byrnea131 Gallahana036 Mamdania043 Richardson a041 Weinsteina133 Byrnesa007 Gandolfoa130 Manktelow a078 Rivera, Weprina103 Cahilla002 Giglio, a108 McDonald a149 Rivera, a059 Williamsa044 Carrolla148 Giglio, a014 McDonough a027 Rosenthal, D.

4 A113 Woernera136 Clarka066 Glicka146 McMahon a067 Rosenthal, L. a096 Zebrowskia047 Coltona034 Gonzalez- a137 Meeksa025 Rozica056 Zinermana140 ConradRojasa017 Mikulina121 Salkaa060a032 Cooka150 Goodella101 Miller, Santabarbara a068a039 Cruza075 Gottfrieda020 Miller, M. a090 Sayegha072a063 Cusicka021 Griffina051 Mitaynesa099 Schmitt1) Single House Bill (introduced and printed separately in either orboth houses). Uni-Bill (introduced simultaneously in both houses and printedas one bill. Senate and Assembly introducer sign the same copy of the bill).2) Circle names of co-sponsors and return to introduction clerk with 2signed copies of bill and: in Assembly 2 copies of memorandum in support, inSenate 4 copies of memorandum in support (single house); or 4 signed copiesof bill and 6 copies of memorandum in support (uni-bill).LBDC 01/03/22 Legislative Bill Drafting Commission12674-01-2S.

5 --------Senate--------IN SENATE--Introduced by Sen--read twice and ordered printed,and when printed to be committedto the Committee on-------- ASSEMBLY--Introduced by M. of M. of A. as co-sponsors--read once and referred to theCommittee on*BUDGBI*(Enacts into law major components oflegislation which are necessary toimplement the state fiscal plan forthe 2022-2023 state fiscal year)--------BUDGBI. REV GovernorAN ACTto amend the tax law, in relation toaccelerating the middle-class taxcut (Part A); to amend the tax law,in relation to providing an enhancedinvestment tax credit to farmers(Subpart A); to amend the tax lawand chapter 60 of the laws of 2016amending the tax law relating tocreating a farm workforce retentioncredit, in relation to the effec-tiveness of such credit (Subpart B);and to amend the tax law, in01/18/22 2 12674-01-2relation to establishing a farmemployer overtime credit (Subpart C)(Part B); to amend the tax law andthe administrative code of the cityof New York, in relation to expand-ing the small business subtractionmodification (Part C); to amend thetax law, in relation to excludingcertain loan forgiveness awards fromstate income tax (Part D).

6 To amendthe economic development law and thetax law, in relation to creating theCOVID-19 capital costs tax creditprogram (Part E); to amend the taxlaw and the state finance law, inrelation to extending and expandingthe New York city musical and theat-rical production tax credit and thepurposes of the New York state coun-cil on the arts cultural programsfund; and to amend subpart B of partPP of chapter 59 of the laws of 2021amending the tax law and the statefinance law relating to establishingthe New York city musical and theat-rical production tax credit andestablishing the New York statecouncil on the arts cultural programfund, in relation to the effective-ness thereof (Part F); to amend thetax law, in relation to establishinga permanent rate for the metropol-itan transportation business taxsurcharge (Part G); to amend the taxlaw, in relation to extending andmodifying the hire a vet credit(Part H); to amend the tax law, inrelation to establishing a tax cred-it for the conversion from grade heating oil usage to biodieselheating oil and geothermal systems(Part I); to amend the public hous-ing law, in relation to extendingthe credit against income tax forpersons or entities investing inlow-income housing (Part J); toamend the tax law, in relation toextending the clean heating fuelcredit for three years (Part K);to amend chapter 604 of the laws of2011 amending the tax law relatingto the credit for companies whoprovide transportation to peoplewith disabilities, in relation tothe effectiveness thereof.

7 And toamend the tax law, in relation to01/18/22 3 12674-01-2the application of a credit forcompanies who provide transportationto individuals with disabilities(Part L); to amend the tax law, inrelation to the empire state filmproduction credit and the empirestate film post production credit(Part M); to amend the labor law, inrelation to extending the New Yorkyouth jobs program tax credit (PartN); to amend the labor law, inrelation to extending the empirestate apprenticeship tax creditprogram (Part O); to amend the taxlaw, in relation to extending thealternative fuels and electric vehi-cle recharging property credit (PartP); to amend the labor law, inrelation to the program period forthe workers with disabilities taxcredit program; and to amend part MMof chapter 59 of the laws of 2014amending the labor law and the taxlaw relating to the creation of theworkers with disabilities tax creditprogram, in relation to the effec-tiveness thereof (Part Q); to amendthe tax law, in relation to makingchanges conforming to the federaltaxation of S corporations; and torepeal certain provisions of suchlaw relating thereto (Part R); toamend the tax law, in relation tothe investment tax credit (Part S);to amend the tax law, in relation toexempting certain fuels used bytugboats and towboats from thepetroleum business tax (Part T); toamend the tax law, in relation tothe authority of counties to imposesales and compensating use taxes;and to repeal certain provisions ofsuch law relating thereto (Part U).

8 To amend the tax law, in relation torequiring vacation rental market-place providers collect sales tax(Part V); to amend the tax law inrelation to requiring publication ofchanges in withholding tables andinterest rates (Part W); to amendthe tax law, in relation to expand-ing the definition of financialinstitution under the financialinstitution data match program (PartX); to amend the real property taxlaw and chapter 475 of the laws of01/18/22 4 12674-01-22013, relating to assessment ceil-ings for local public utility massreal property, in relation toextending the assessment ceiling forlocal public utility mass real prop-erty to January 1, 2027 (Part Y); toamend the real property tax law, inrelation to good cause refunds forthe STAR program (Subpart A); toamend the real property tax law, inrelation to moving up the deadlinefor taxpayers to switch from theSTAR exemption to the STAR credit(Subpart B); to amend the tax law,in relation to clarifying the appli-cable income tax year for the basicSTAR credit (Subpart C); to amendthe tax law, in relation to allowingnames of STAR credit recipients tobe shared with assessors outside ofNew York state (Subpart D); and toamend the tax law and the real prop-erty tax law, in relation to allow-ing decedent reports to be given toassessors and improving the taxenforcement process as it relates todecedents (Subpart E) (Part Z); toamend the real property tax law, inrelation to the grievance processwith respect to the valuation ofsolar and wind energy systems (PartAA).

9 To amend the tax law, inrelation to establishing a homeownertax rebate credit (Part BB); toamend the racing, pari-mutuel wager-ing and breeding law, in relation togaming facility determinations andlicensing (Part CC); to amend theracing, pari-mutuel wagering andbreeding law, in relation to theutilization of funds in the Catskilland Capital regions off-trackbetting corporation's capital acqui-sition funds; and to amend chapter59 of the laws of 2021 amending theracing, pari-mutuel wagering andbreeding law, relating to the utili-zation of funds in the Catskill andCapital regions off-track bettingcorporation's capital acquisitionfunds, in relation to the effective-ness thereof (Part DD); and to amendthe racing, pari-mutuel wagering andbreeding law, in relation tolicenses for simulcast facilities,sums relating to track simulcast ,01/18/22 5 12674-01-2simulcast of out-of-state thorough-bred races, simulcasting of racesrun by out-of-state harness tracksand distributions of wagers; toamend chapter 281 of the laws of1994 amending the racing, pari-mutu-el wagering and breeding law andother laws relating to simulcasting;to amend chapter 346 of the laws of1990 amending the racing, pari-mutu-el wagering and breeding law andother laws relati