BILL NUMBER: S248
SPONSOR: SEPULVEDA
 
TITLE OF BILL:
An act to amend the economic development law, in relation to defining
community significant projects and including such projects in the
excelsior jobs program
 
PURPOSE:
This bill would establish community significant projects as eligible to
receive Excelsior Jobs Program tax credits.
 
SUMMARY OF PROVISIONS:
This bill would include demolition and remediation costs as a qualified
investment if the costs were incurred and paid in leased buildings by
businesses in a public housing development. This bill would define a
"community significant project" as: a business creating or retaining
current jobs, with an emphasis on employment and/or training of current
public housing residents; is currently located or to be located in
existing leased space of a building in a public housing development in
the state that is owned and operated by a public housing authority and
which makes significant qualified capital investments to start a busi-
ness, or improve services and working conditions for an existing busi-
ness, when located in such public housing space; and creates at least
five new net jobs or retains current jobs or makes qualified capital
investments to the space of a building of one million dollars or more.
Further, this bill would establish community significant projects as
eligible to receive Excelsior Jobs Program tax credits. Section four
would set an immediate effective date and apply to taxable years begin-
ning on and after January 1, 2026.
 
JUSTIFICATION:
The commercial spaces owned by public housing authorities (PHAs) across
the State provide a platform for local businesses to bring essential
goods and services to their neighborhoods. However, many of these spaces
stand vacant and deteriorating, while occupied units are often in such
dilapidated condition as to leave commercial tenants with much work that
needs to be done and no options for already cash-strapped PHAs.
The significant investment needed to make these spaces safe and commer-
cially viable can be an insurmountable barrier to bringing new business
to communities that need it most. Giving businesses the opportunity to
qualify for a return on their investment in PHA commercial will help
break down this barrier and restore more of these vacant units to sound
profitability and much-needed uses - including grocery stores, child
care centers and other professional services - that benefit local busi-
nesses, communities and the families that live and work in them.
 
LEGISLATIVE HISTORY:
S.458 of 2023-24: Referred to Commerce, Economic Development and Small
business.
S.2232 of 2021-22: Referred to Commerce, Economic Development, and Small
Business;
S.9079 of 2020: Referred to Rules
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2026.

Statutes affected:
S248: 355 economic development law, 355(4) economic development law