Section 22-621. Definitions

When used in this chapter the following terms
  shall have the following meanings:
    (a) "Eligible Business." Any person subject to  a  tax  imposed  under
  chapter  five,  or  subchapter  two  or three of chapter six, or chapter
  eleven, of title eleven of the  code,  that:  (1)  has  been  conducting
  substantial  business  operations  at  one  or  more  business locations
  outside  the  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  part  four  of
  subchapter two of chapter two of title eleven of the code.
    (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."  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." 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." (1) Non-residential premises which are wholly
  contained  in  real  property  which is certified as eligible to receive
  benefits pursuant to part three  or  part  four  of  subchapter  two  of
  chapter  two  of  title  eleven of the code, 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 the eligible area;
    (2) non-residential premises which are: (i)  wholly  contained  in  or
  situated  on  real property which has been leased from the New York city
  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  the  city,  a lease for which was approved in
  accordance with the applicable provisions of the charter, 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
  real property which would be eligible to receive  benefits  pursuant  to
  part  four  of subchapter two of chapter two of title eleven of the code
  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 the eligible
  area; or
    (3) in the case of a relocation, the  date  of  which,  as  determined
  pursuant  to subdivision (j) of this section, is on or after July first,
  two thousand three, non-residential premises,  located  in  an  eligible
  area,  for  which  a minimum expenditure has been made 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  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  22-622  of  this  chapter.  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 eligible 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."  The area of the city excluding that area lying
  south of the center line of 96th Street, in the borough of Manhattan.
    (g) "Employment share." 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." The sum of  all  employment  shares
  maintained by an eligible business in a taxable year.
    (i)  "Eligible  aggregate  employment  shares." The amount, if any, by
  which the  number  of  aggregate  employment  shares  maintained  by  an
  eligible business in the eligible area in the taxable year in which such
  eligible  business  claims  a  credit pursuant to section 22-622 of this
  chapter exceeds the number of aggregate employment shares maintained  by
  an   eligible  business  in  the  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  such  section  22-622,  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 the 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
  and  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."  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 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 is prior to the date of the issuance of a certification
  of eligibility pursuant to section 22-622 of this chapter. 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." 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." 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." For purposes of this chapter, in
  the case of taxpayers  authorized  to  receive  the  credit  allowed  by
  section 22-622 of this chapter against the tax imposed by chapter eleven
  of title eleven of the code, calendar year.
    (n)  "Revitalization  area" means any district in the city of New York
  that is zoned C4, C5, C6, M1, M2 or M3 in  accordance  with  the  zoning
  resolution  of  such city in any area of 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 chapter  and  the  provisions
  for  a credit against a tax imposed under chapter five or subchapter two
  or three of chapter six or chapter eleven of title eleven of the code 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  employment  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  allowed  by  section  22-622  of  this  chapter, 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  chapter
  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 22-622 of this chapter to receive the credit
  provided for in this  chapter,  and  (ii)  with  regard  to  which  such
  eligible  business obtains the certification provided for in subdivision
  (e) of section 22-622 of this chapter.