Sec. 5-10.2. Qualified property

Tax Law, § 210(12-B)(b)

(a) As used in this Subpart, the term qualified property means tangible personal property and other tangible property including buildings and structural components of buildings, which:

(1) the acquisition, construction, reconstruction or erection of which occurred or was commenced on or after the date the economic development zone was designated as such pursuant to article 18-B of the General Municipal Law and prior to the expiration of such designation;

(2) are depreciable pursuant to section 167 of the Internal Revenue Code;

(3) have a useful life of four years or more;

(4) are acquired by the taxpayer by purchase as defined in section 179(d) of the Internal Revenue Code;

(5) have a situs in an economic development zone designated as such pursuant to article 18-B of the General Municipal Law; and

(6)

(i) are:

(a) principally used by the taxpayer in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fishing;

(b) industrial waste treatment facilities or air pollution control facilities used in the taxpayer's trade or business, which meet the applicable certification requirements in section 210(12)(b)(iii) of the Tax Law; or

(c) research and development property.

(ii) For purposes of this paragraph:

(a) The terms research and development property, industrial waste treatment facilities, and air pollution control facilities shall have the same meanings as provided by clauses (B), (C) and (D) of section 210(12)(b)(ii) of the Tax Law. In addition, industrial waste treatment facilities and air pollution control facilities must be certified by the State Commissioner of Environmental Conservation, in accordance with section 210(12)(b)(iii) of the Tax Law.

(b) With respect to property placed in service on or after April 1, 1993, the term goods shall not include electricity except in the case of a newly constructed facility which is placed in service by a taxpayer, for the first time, on or after April 1, 1993, or an addition to such facility, if, with respect to such facility or addition, the following events have occurred before April 1, 1993:

(1) all necessary pre-construction permits, approvals or other authorizations have been obtained by the taxpayer;

(2) construction site clearance and excavation have been commenced by the taxpayer; and

(3) substantially all of the funds necessary for payment of construction costs are available to the taxpayer.

(b) As used in this section, the term useful life means the period of time over which the qualified property may reasonably be expected to be useful to a taxpayer in its trade or business or in the production of income.