New York State Local News Employment Credit

ARTICLE 27

NEWSPAPER AND BROADCAST MEDIA JOBS PROGRAM

Section 490. Short title.

491. Statement of legislative findings and declaration.

492. Definitions.

493. Eligibility criteria.

494. Application and approval process.

495. Newspaper and broadcast media jobs tax credit.

496. Powers and duties of the commissioner.

§ 490. Short title. This article shall be known and may be cited as the “newspaper and broadcast media jobs program”.

§ 491. Statement of legislative findings and declaration. It is hereby found and declared that New York state needs, as a matter of public policy, to provide financial support and incentives for businesses which operate as newspaper and broadcast media, to sustain a productive and effective industry.

§ 492. Definitions. For the purposes of this article:

1. “Average full-time employment” shall mean the average number of full-time positions employed by a business entity in an eligible industry during a given period.

2. “Average starting full-time employment” shall be calculated as the average number of full-time positions employed by a business entity in an eligible industry during a timeframe to be determined by the department of economic development.

3. “Average ending full-time employment” shall be calculated as the average number of full-time positions employed by a business entity in an eligible industry during a timeframe to be determined by the department of economic development.

4. “Certificate of tax credit” means the document issued to a business entity by the department after the department has verified that the business entity has met all applicable eligibility criteria in this article. The certificate shall specify the exact amount of the tax credit under this article that a business entity may claim, pursuant to section four hundred ninety-five and section four hundred ninety-six of this article.

5. “Commissioner” shall mean commissioner of economic development.

6. “Department” shall mean the department of economic development.

7. “Eligible business” shall mean a print media or broadcast media business operating within an eligible industry, which also carries media liability insurance.

8. “Eligible employee” shall mean an employee working full-time at an eligible business, as determined by the department.

9. “Eligible industry” means a business entity operating predominantly in the newspaper publishing sector or the broadcast media sector, as determined by the department.

10. “Net employee increase” means an increase of at least one full-time employee between the average starting full-time employment and the average ending full-time employment of a business entity, as defined by the department.

11. “Newspaper and broadcast media jobs tax credit” shall mean a tax credit which shall provide a credit to eligible businesses operating within eligible industries. The newspaper and broadcast media jobs tax credit shall have two components. The newspaper and broadcast media new job creation component shall allow a credit of five-thousand dollars per net new job created at eligible businesses operating within eligible industries. The newspaper and broadcast media existing jobs component shall allow a tax credit available to support the costs related to retention of existing jobs at eligible businesses operating within eligible industries.

12. (a)”Broadcast media business” means any broadcast station which:

(i) has been broadcasting for at least one year prior to the tax year for which it is applying for a credit;

(ii) owns or operates a broadcast station, as defined by section three of the federal communications act of 1934; and

(iii) discloses its ownership to the public at such times and in such manner as identified by the commissioner.

(b) For purposes of this paragraph each FCC licensed broadcast station serving a separate market shall be treated as a separate broadcast media business.

13. “Independently owned” shall mean a business entity that is not:

(a) a publicly traded entity or no more than five percent of the beneficial ownership of which is owned, directly or indirectly by a publicly traded entity; (b) a subsidiary; and (c) any other criteria that the department shall determine via regulations to ensure the business is not controlled by another business entity.

§ 493. Eligibility criteria. To be eligible for the tax credit established under this section, a business entity must:

1. be an eligible business operating within an eligible industry;

2. be independently owned or, in the case of a print media business, demonstrate a reduction in circulation or in the number of full-time equivalent employees of at least twenty percent over the previous five years; and

3. operate predominantly in an eligible industry, and be located within the state of New York. The department, in its regulations promulgated pursuant to this article, shall have the authority to list certain types of establishments as ineligible.

§ 494. Application and approval process.

1. A business entity must submit a complete application as prescribed by the commissioner.

2. The commissioner shall establish procedures and a timeframe for business entities to submit applications. As part of the application, each business entity must:

(a) provide evidence in a form and manner prescribed by the commissioner of their business eligibility;

(b) agree to allow the department of taxation and finance to share the business entity’s tax information with the department;

(c) agree to allow the department of labor to share its tax and employer information with the department. However, any information shared as a result of this program shall not be available for disclosure or inspection under the state freedom of information law;

(d) allow the department and its agents access to any and all books and records the department may require to monitor compliance; and

(e) agree to provide any additional information required by the department relevant to this article.

3. After reviewing a business entity’s completed final application and determining that the business entity meets the eligibility criteria as set forth in this article, the department may issue to that business entity a certificate of tax credit. A business entity may claim the tax credit.

§ 495. Newspaper and broadcast media jobs tax credit.

1. A business entity that meets the eligibility requirements of section four hundred ninety-three of this article, and meets any additional eligibility criteria as articulated in regulations established pursuant to this section, and demonstrates a net employee increase, may be eligible to claim a credit equal to five thousand dollars per each full-time net employee increase as defined in section four hundred ninety-two of this
article. A business entity, including a partnership, limited liability company and subchapter S corporation, may not receive in excess of twenty thousand dollars in tax credits under this program.

2. A business entity that meets the eligibility requirements of section four hundred ninety-three of this article, and meets any additional eligibility criteria as articulated in regulations established pursuant to this section, may be eligible to claim a credit equal to fifty percent of annual wages of an eligible employee. The calculation of such a credit shall only be applied to up to fifty thousand dollars in wages paid annually per eligible employee. A business entity, including a partnership, limited liability company and subchapter S corporation, may not receive in excess of three hundred thousand dollars in tax credits under this program.

3. The total amount of tax credits listed on certificates of tax credit issued by the commissioner pursuant to this article may not exceed thirty million dollars for each year the credit is available. Within this amount, the newspaper and broadcast media new job creation component of the credit may not exceed four million dollars per year and the newspaper and broadcast media existing jobs component of the credit may not exceed twenty-six million dollars per year. Fifty percent of the newspaper and broadcast media existing jobs component credits will be set-aside for eligible business entities with one hundred or fewer employees. Fifty percent of the newspaper and broadcast media existing jobs component credits will be set-aside for eligible business entities with over one hundred employees. In both instances the cap will be three hundred thousand dollars under this program.

4. The credit shall be allowed as provided in section forty-nine of the tax law.

§ 496. Powers and duties of the commissioner.
1. The commissioner shall promulgate regulations establishing an application process and eligibility criteria, that will be applied consistent with the purposes of this article, so as not to exceed the annual cap on tax credits set forth in section four hundred ninety-five of this article which, notwithstanding any provisions to the contrary in the state administrative procedure act, may be adopted on an emergency basis.

2. The commissioner shall, in consultation with the department of taxation and finance, develop a certificate of tax credit that shall be issued by the commissioner to eligible businesses. Such certificate shall contain such information as required by the department of taxation and finance.

3. The commissioner shall solely determine the eligibility of any applicant applying for entry into the program and shall remove any business entity from the program for failing to meet any of the requirements set forth in section four hundred ninety-three of this article, or for failing to meet the requirements set forth in subdivision one of section four hundred ninety-four of this article.

§ 3. The tax law is amended by adding a new section 49 to read as follows:

§ 49. Newspaper and broadcast media jobs tax credit.

(a) Allowance of credit. A taxpayer subject to tax under article nine-A or twenty-two of
this chapter shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (e) of this section. The amount of the credit is equal to the amount determined pursuant to article twenty-seven of the economic development law. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in a subchapter S corporation shall be allowed its pro-rata share of the credit allowed for the partnership, limited liability company or subchapter S corporation. No cost or expense paid or incurred that is included as part of the calculation of this credit shall be the basis of any other tax credit allowed under this chapter.

(b) Eligibility. To be eligible to claim the newspaper and broadcast media jobs tax credit the taxpayer shall have been issued a certificate of tax credit by the department of economic development pursuant to article twenty-seven of the economic development law, which certificate shall set forth the amount of the credit that may be claimed for the taxable year. The taxpayer shall be allowed to claim only the amount listed on the certificate of tax credit for that taxable year.

(c) Tax return requirement. The taxpayer shall be required to attach to its tax return, in the form prescribed by the commissioner, proof of receipt of its certificate of tax credit issued by the commissioner of the department of economic development.

(d) Credit recapture. If a certificate of tax credit issued by the department of economic development under article twenty-seven of the economic development law is revoked by such department, the amount of credit described in this section and claimed by the taxpayer prior to that revocation shall be added back to tax in the taxable year in which any such revocation becomes final.

(e) Cross references. For application of the credit provided in this section see the following provisions of this chapter:

(1) article 9-A: section 210-B, subdivision 60.
(2) article 22: section 606, subsection (ppp).

§ 4. Section 210-B of the tax law is amended by adding a new subdivision 60 to read as follows:

60. Newspaper and broadcast media jobs tax credit.

(a) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section forty-nine of this chapter, against the taxes imposed by this article.

(b) Application of credit. The credit allowed under this subdivision for the taxable year shall not reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of credit allowable under this subdivision for the taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest will be paid thereon.

§ 5. Section 606 of the tax law is amended by adding a new subsection
(ppp) to read as follows: (ppp) Newspaper and broadcast media jobs tax credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section forty-nine of this chapter, against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under this subsection for the taxable year exceeds the taxpayer’s tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest will be paid thereon.

§ 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (li) to read as follows:

(li) Newspaper and broadcast

Amount of credit under subdivision media jobs tax credit under sixty of section two hundred ten-B subsection (ppp)

§ 7. This act shall take effect immediately and shall apply to tax 30 years beginning on or after January 1, 2025 and ending before January 1, 2028.

PART BBB

Section 1. Subsection (c-1) of section 606 of the tax law is amended by adding a new paragraph 5 to read as follows:

(5) (A) For tax year two thousand twenty-three, the commissioner shall issue a payment of a supplemental empire state child credit in the amount of (i) one hundred percent of the empire state child credit calculated and allowed pursuant to this subsection to taxpayers whose federal adjusted gross income was less than ten thousand dollars; (ii) seventy-five percent of the empire state child credit calculated and allowed pursuant to this subsection to taxpayers whose federal adjusted gross income was greater than or equal to ten thousand dollars but less than twenty-five thousand dollars; (iii) fifty percent of the empire state child credit calculated and allowed pursuant to this subsection to taxpayers whose federal adjusted gross income was greater than or equal to twenty-five thousand dollars but less than fifty thousand dollars; and (iv) twenty-five percent of the empire state child credit calculated and allowed pursuant to this subsection to taxpayers whose federal adjusted gross income was greater than or equal to fifty thousand dollars. Provided, however, that no payment shall be issued if it is less than twenty-five dollars.

(B) The supplemental payment pursuant to this paragraph shall be allowed to taxpayers who timely filed returns pursuant to section six hundred fifty-one of this article, determined with regard to extensions pursuant to section six hundred fifty-seven of this article.

§ 2. This act shall take effect immediately.

§ 2. Severability clause. If any clause, sentence, paragraph, subdivision, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein.

§ 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through BBB of this act shall be as specifically set forth in the last section of such Parts.