(1) the application is a complete application;

(2) the application is submitted within the filing period and is not untimely;

(3) the applicant is a qualified building owner; and

(4) the qualified building owner certifies and offers proof that the qualified security officers have, in fact, been trained according to an OHS Qualified Security Officer Training Program.

Statutory Authority

Subdivision (n) of subsection (2) of section 709 of the New York State Executive Law — State Office of Homeland Security; Appointment of the director; powers and duties, grants the authority to adopt, promulgate, amend and rescind rules and regulations to effectuate the provisions and purposes of this article and the powers and duties of the office in connection therewith.

Subsection (e) of section 26 of the New York State Tax Law was added by Chapter 537 of the Laws of 2005. It mandates that the Director of the Office of Homeland Security, in consultation with the Commissioner of Taxation and Finance, shall promulgate rules and regulations necessary to implement this program.

Legislative Objectives

Subsection (e) of section 26 of the New York State Tax Law requires that the Director of the Office of Homeland Security promulgate regulations which set forth the process for application and receipt of tax credits under the Security Guard Tax Credit Program and create a process by which qualified building owners can apply for a Security Guard Training Tax Credit. The objectives of the legislature in creating the Security Guard Training Tax Credit included the enhancement of the security guard industry to be better equipped to deal with the emerging terrorism threats not currently accounted for in the standardized training that existed prior to the new legislation.

Needs and Benefits

An application process is mandated by subsection (e) of Section 26 of the New York State Tax Law to be promulgated by the Director of the Office of Homeland Security to provide all eligible taxpayers a necessary framework through which such applicants can apply for the tax credit. Such a structure will benefit building owners and the public because a sound tax credit process will be in place to help guard against misuse of the credits. Security guards will benefit from the additional training received, which is mandatory for the building owners to apply for and receive the tax credit.

Alternatives

The tax credit application process could have taken many forms, such as a submission of copies of all paperwork relating to the training and employment of security guards by the taxpayer. A thorough analysis was conducted by the Office of Homeland Security's Legal, Administrative and Training Divisions, as well as with the Department of Taxation and Finance. Taking into consideration public comment and an informal efficiency analysis, it was determined that the application the Office of Homeland Security drafted was the least burdensome. The application form will consolidate information that would otherwise necessitate the copying of an abundance of paperwork. The information provided on the application may be audited in select cases upon awarding of the tax credit.

Further, for the period of two (2) weeks, the draft of the regulations remained on the Office of Homeland Security's website for comment by the public prior to this submission. There were no comments to directly alter the draft regulations, except in one case whereupon a submitter recommended the addition of language referring to audit of information. The Office of Homeland Security included such language. The other submission included questions relating to the legislation, which were answered by the Office of Homeland Security approach.

Compliance Schedule

The amendment will take effect when the Notice of Adoption is published in the State Register.

Costs to State Government

The costs to the State include administrative and legal functions relating to the implementation of the tax credit program, including development and receipt of applications, as well as determinations on recipients. Additionally, two new positions have been created within the Office of Homeland Security for the purpose of administering the tax credit program.

Costs to Local Government

There are no costs to local government.

Cost to Regulated Parties

Any costs are limited to those qualified building owners who seek to apply for the voluntary tax credit. The proposed rules do not pose a cost to any businesses, local governments or individuals in New York State, except for those qualified taxpayers who wish to apply for the voluntary Security Guard Training Tax Credit in accordance with Section 26 of the New York State Tax Law.

The costs related to this tax credit includes about $400 to $500, estimated from the current cost of security guard training multiplied by 5 days, for the training of the guards in the 40 hour Office of Homeland Security certified training. The cost of backfill is expected to be an estimated $450 to $500 for the position of the guard who will sit in training for the period of one week. These costs are not insignificant, but will be offset by the anticipated $3,000 per full time security guard tax credit. Additionally, the necessary increases in hourly wages, as mandated to qualify for the credit under the law is an indefinite cost, which is naturally commensurate with the additionally training received by the guard. Finally, the administrative costs of preparing the tax credit application, which is unknown at this time, will depend on the individual resources of the taxpayer are anticipated. The Office of Homeland Security developed the application and reporting requirements in such a way as to minimize the applicants' burden and time involved in preparing the application. They are, however, expected to be nominal in comparison to the actual credit.

Local Government Mandates

The proposed regulation does not impose a new program duty or responsibility to any county, city, town, village, school district, fire district or special district.

Paperwork

The paperwork requirement imposed by the rule includes any application and supporting documentation for application of the voluntary tax credit for qualified building owners. As required by subsection (d) of Section 26 of the Tax Law Section, taxpayers seeking to take the credit will need to apply to the State Office of Homeland Security to obtain a credit certification. The taxpayers will need to provide the information necessary to prorate the credit for security officers employed for less than a full year.

Duplication

This regulation does not duplicate any existing local, state or federal regulation relating to the Office of Homeland Security.

Federal Standard

No federal law or regulation is applicable.

Effect on Small Businesses and Local Government

The proposed rule will have no negative impact upon small businesses or local government, but rather provides a tax credit to eligible taxpayers.

Compliance Requirements

The proposed rule does not impose compliance requirements on small businesses or local government, except for those qualified taxpayers who wish to apply for the voluntary Security Guard Training Tax Credit in accordance with Section 26 of the New York State Tax Law.

Professional Services

No additional professional services will be required by small businesses or local governments.

Costs

The proposed rule does not pose a cost to small businesses or local government, except for those qualified taxpayers who wish to apply for the voluntary Security Guard Training Tax Credit in accordance with Section 26 of the New York State Tax Law.

The costs related to this tax credit includes about $400 to $500, estimated from the current cost of security guard training multiplied by 5 days, for the training of the guards in the 40 hour Office of Homeland Security certified training. This cost is substantially less than the anticipated $3,000 per full time security guard credit. Additionally, the necessary increases in hourly wages, as mandated to qualify for the credit under the law is an indefinite cost, which is naturally commensurate with the additionally training received by the guard. Finally, the administrative costs of preparing the tax credit application, which is unknown at this time, will depend on the individual resources of the taxpayer are anticipated. The Office of Homeland Security developed the reporting system, so that among other things, would minimize the applicants' burden and time involved in preparing the application. They are, however, expected to be nominal in comparison to the actual credit.

Economic and Technological Feasibility

There is no economic cost associated with the proposed rule and technological feasibility is not a factor in promulgating the proposed rule.

Minimizing Adverse Economic Impact

The proposed rule does not impose compliance mandates on small businesses or local governments, except for those qualified taxpayers who wish to apply for the voluntary Security Guard Training Tax Credit in accordance with Section 26 of the New York State Tax Law.

Small Business Participation

There has been no participation by small business or local government in the proposed rule, except in the case of suggestions and comments offered on the Office of Homeland Security upon posting of the draft for the period of two (2) weeks. There were no comments to directly alter the draft regulations, except in one case whereupon a submitter recommended the addition of language referring to audit of information. The Office of Homeland Security included such language. The other submission included questions relating to the legislation, which were answered by the Office of Homeland Security.

Effect on Rural Areas

There is no expected effect on rural areas throughout the State.

Reporting and Recordkeeping

The proposed rules do not impose any additional reporting or recordkeeping requirements, except for those qualified taxpayers who wish to apply for the voluntary Security Guard Training Tax Credit, including such information as necessary to prove the information included in the application.

Compliance Requirements

The proposed rules do not impose compliance requirements on any businesses, local governments or individuals in New York State, except for those qualified taxpayers who wish to apply for the voluntary Security Guard Training Tax Credit.

Costs

The proposed rules do not pose a cost to any businesses, local governments or individuals in New York State, except for those qualified taxpayers who wish to apply for the voluntary Security Guard Training Tax Credit in accordance with Section 26 of the New York State Tax Law.

The costs related to this tax credit includes about $400 to $500, estimated from the current cost of security guard training multiplied by 5 days, for the training of the guards in the 40 hour Office of Homeland Security certified training. This cost is substantially less than the anticipated $3,000 per full time security guard credit. Additionally, the necessary increases in hourly wages, as mandated to qualify for the credit under the law is an indefinite cost, which is naturally commensurate with the additionally training received by the guard. Finally, the administrative costs of preparing the tax credit application, which is unknown at this time, will depend on the individual resources of the taxpayer are anticipated. They are, however, expected to be nominal in comparison to the actual credit.

Minimizing Adverse Economic Impact on Rural Areas

There is no economic cost associated with the proposed rules, except for those qualified taxpayers who wish to apply for the voluntary Security Guard Training Tax Credit in accordance with Section 26 of the New York State Tax Law.

Rural Area Participation

While the majority of buildings 500,000 square feet or more will generally be in urban areas, there are other buildings throughout the rural areas of the State that would qualify under the definition. Owners of like kind buildings in rural areas were given the same opportunity to comment and will be eligible to apply for the tax credit.

The Office of Homeland Security has determined that this rule will not have a substantial adverse impact on jobs and employment opportunities. Rather, to the contrary, the tax credit may foster increased jobs in the market of training of security guards, which is a requirement to apply for the tax credit. Further, the advancement of training of security guard may also have a positive economic impact on wages in the long run. The overall intent of this rule making is to satisfy the legislative mandate as described in Section 26(e) of the New York State Tax Law to provide an application process for the Security Guard Training Tax Credit.