New York S 5153: Provides insurance corporations with a tax credit for investments made in rural business growth funds; establishes the New York agriculture and rural jobs fund

Bill Text

STATE OF NEW YORK
        ________________________________________________________________________
                                          5153
                               2021-2022 Regular Sessions
                    IN SENATE
                                    February 25, 2021
                                       ___________
        Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        AN ACT to amend the tax law, in relation to providing  insurance  corpo-
          rations  with  a  tax  credit  for  investments made in rural business
          growth funds; and to amend the  state  finance  law,  in  relation  to
          establishing the New York agriculture and rural jobs fund
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The tax law is amended by adding a new section 45  to  read
     2  as follows:
     3    § 45. New York agriculture and rural jobs credit. (a) Definitions. For
     4  the purpose of this section the following terms shall have the following
     5  meanings:
     6    (1)  "Affiliate"  means  a person that directly, or indirectly through
     7  one or more intermediaries, controls, is  controlled  by,  or  is  under
     8  common  control  with  another person. For the purposes of this subdivi-
     9  sion, a person is "controlled by"  another  person  if  the  controlling
    10  person  holds,  directly or indirectly, the majority voting or ownership
    11  interest in the controlled person or has  control  over  the  day-to-day
    12  operations of the controlled person by contract or by law.
    13    (2)  "Closing  date"  means  the date on which a rural business growth
    14  fund has collected all of the amounts specified by subparagraphs (A) and
    15  (B) of paragraph seven of subdivision (b) of this section.
    16    (3) "Credit-eligible capital contribution" means an investment of cash
    17  by a person in a rural business growth fund that equals the amount spec-
    18  ified on a tax credit certificate issued by the department under subpar-
    19  agraph (B) of paragraph six of subdivision (b) of  this  section.    The
    20  investment  shall  purchase  an  equity  interest  in the rural business
    21  growth fund or purchase, at par value  or  premium,  a  debt  instrument
         EXPLANATION--Matter in  (underscored) is new; matter in bracketsitalics
                              [] is old law to be omitted. 
                                                                   LBD01231-01-1

        S. 5153                             2
     1  issued  by  the rural growth fund that meets all of the following crite-
     2  ria:
     3    (A) The debt instrument has an original maturity date of at least five
     4  years after the date of issuance.
     5    (B)  The  debt  instrument has a repayment schedule that is not faster
     6  than a level principal amortization over five years.
     7    (C) The debt instrument has  no  interest,  distribution,  or  payment
     8  features  dependent on the rural business growth fund's profitability or
     9  the success of the rural growth investments.
    10    (4) "Eligible investment authority" means the  amount  stated  on  the
    11  notice issued under subparagraph (A) of paragraph six of subdivision (b)
    12  of  this  section  certifying  the  rural business growth fund. At least
    13  sixty-five percent of a rural business growth fund's eligible investment
    14  authority shall be comprised of credit-eligible capital contributions.
    15    (5) "Jobs created" means the number of persons  employed  by  a  rural
    16  business  concern having received a growth investment from a rural busi-
    17  ness growth fund during the taxable year which shall  be  determined  by
    18  ascertaining  the  number of such individuals employed full-time by such
    19  rural business concern on the thirty-first day of March,  the  thirtieth
    20  day  of June, the thirtieth day of September and the thirty-first day of
    21  December during each taxable year following its initial  growth  invest-
    22  ment,  by  adding together the number of such individuals ascertained on
    23  each of such dates and dividing the sum so obtained  by  the  number  of
    24  dates  occurring within such taxable year in the amount that such number
    25  exceeds the jobs retained number. An individual employed full-time means
    26  an employee in a job consisting of at least thirty-five hours per  week,
    27  or  two  or  more employees who are in jobs that together constitute the
    28  equivalent of a job of at least thirty-five hours per week.
    29    (6) "Jobs retained" means the number of persons employed  by  a  rural
    30  business  concern having received a growth