§ 61-01 — Definitions

§ 61-01 Definitions.

When used in this chapter, the following terms have the following meanings: Aggregate employment shares. The term “aggregate employment shares” means the sum of all employment shares maintained by an eligible business in a taxable year. Commissioner. The term “commissioner” means the commissioner of finance, or such commissioner’s designee. Eligible aggregate employment shares. The term “eligible aggregate employment shares” means, in the case of an eligible business, the amount, if any, of aggregate employment shares maintained by an eligible business in eligible premises in the taxable year in which such eligible business claims a credit pursuant to § 22-628 of the Administrative Code of the City of New York; provided, however, that: (1) such amount shall not exceed the lesser of: (i) the number of aggregate employment shares maintained by such eligible business in eligible premises in the taxable year during which such eligible business relocates; (ii) the maximum approved employment shares for such eligible business; or (iii) an amount equal to the product of multiplying the aggregate employment shares and the linear scalar for such eligible business in such tax year; and (2) a full-time work week or part-time work week at eligible premises prior to the date of relocation shall not be taken into account in determining eligible aggregate employment shares. Eligible business. The term “eligible business” means any person subject to a tax imposed under chapter 5, subchapter 2, 3 or 3-A of chapter 6 of title 11 of the Administrative Code of the City of New York, that: (1) has been conducting substantial business operations at one or more business locations outside of New York state for the 24 consecutive months immediately preceding the taxable year during which such eligible business relocates but has not maintained employment shares at premises in New York state at any time during the period beginning January 1, 2025 and ending on the date such business enters into a lease or a contract to purchase the premises that will qualify as eligible premises pursuant to chapter 6-E of title 22 the Administrative Code of the City of New York; and (2) on or after July 1, 2025 relocates all or part of such business operations. Eligible premises. The term “eligible premises” means one or more non-residential premises that consist of at least 10,000 square feet that: (1) are wholly contained in real property located in the city of New York; and (2) if contained in real property wholly contained in the borough of Manhattan, are premises for which final certificates of occupancy were issued prior to January 1, 2000, regardless of whether such certificates of occupancy were amended after such date. Employment share. The term “employment share” means, 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’s 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’s taxable year divided by an amount equal to twice the number of weeks in the taxable year. Employment share shall not include full-time or part-time work weeks attributable to employees, partners or sole proprietors acquired by an eligible business as a result of a merger with or acquisition of another person, or a transaction having a comparable effect, that occurs after June 30, 2025, and before the end of the taxable year in which a credit is claimed by such eligible business pursuant to this section, or to successors, if any, to those employees, partners or sole proprietors. Full-time work week. The term “full-time work week” means a week during which at least 35 hours of gainful work has been performed by an employee, partner or sole proprietor. Linear scalar. The term “linear scalar” means, for an eligible business in a taxable year, the quotient of dividing the total square footage of an eligible premises by the product of multiplying such business’s aggregate employment shares by 175. Lease or contract submission date. The term “lease or contract submission date” means the date and time at which a business that was issued a notice pursuant to 19 RCNY 61-03(c) submitted to the commissioner a valid lease or contract to purchase an eligible premises. Maximum approved employment shares. The term “maximum approved employment shares” means a limitation on the aggregate employment shares that an eligible business may receive in any taxable year determined by the commissioner pursuant to § 22-628 of the Administrative Code of the City of New York based on documentation submitted by such business demonstrating such business’s intention to relocate, existing workforce and employment plans following relocation. Part-time work week. The term “part-time work week” means a week during which at least 15 but less than 35 hours of gainful work has been performed by an employee, partner or sole proprietor. Person. The term “person” includes any individual, partnership, association, joint-stock company, corporation, estate or trust, limited liability company, and any combination of the foregoing. Preliminary eligibility recording date. The term “preliminary eligibility recording date” means the date and time at which a business submitted a completed preliminary eligibility application. Program total. The term “program total” means the sum of maximum approved aggregate employment shares included in all initial certifications of eligibility issued by the commissioner. Relocate. The term “relocate” means, with respect to an eligible business, to transfer a preexisting business operation to an eligible premises, or to establish a new business operation 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 a preexisting business operation conducted outside the state of New York. The date of relocation shall be the first day on which the individual so transferred commences work at such eligible premises. The taxable year of relocation shall be the taxable year in which the date of relocation occurs. For purposes of this chapter, an eligible business may relocate only once but may add or substitute other eligible premises throughout such period. (Added City Record 11/20/2025, eff. 12/20/2025)