New York's Re-Opening Phases

Tim Lynn 315-766-2118 tim@ldts-law.com

Save Small Business Fund

The U.S. Chamber of Commerce is rolling out an interesting new program for small employers. The program offers $5,000 grants to small businesses (employing between 3 and 20 people), located in an economically distressed community, and that has been harmed by the COVID-19 pandemic.

The application is coming out on April 20, 2020. It appears it will be an ongoing process, with awards made weekly (but a business need only apply once).

The website for the program, Save Small Business Fund, provides a tool for plugging in your zip code to determine if you are qualified by location. The application is not out yet, but they provide an email list signup for further information as it rolls out on Monday.

The grants may have tax consequences that should be discussed with a business’s attorneys/accountants.

Tim Lynn
315-766-2118
tim@ldts-law.com

Coronavirus: Will Signing and Witnessing in New York During the Pandemic

One issue that is likely to pop up for people affected by COVID-19 is getting their Last Will and Testament signed or updated.  With mandatory quarantines for affected individuals, who are the people most in need of immediate assistance with their Wills, execution of a proper Will in accordance with EPTL 3-2.1 is almost impossible.

We had our first experience with that situation this week.  In the midst of completing planning for a high-risk occupation individual, the person tested positive for coronavirus and entered a mandatory period of isolation.  Fortunately, Governor Cuomo has provided an executive order to help deal with this situation.

As part of Executive Order 202.14, a substitute procedure is provided for remote witnessing of wills (to go along with the prior Executive Order 202.7 that allowed remote notarization).  Although difficult to get the technology to work with a testator homebound and remote witnesses and notary, the procedures worked.  Both our testator and witnesses were tech-savvy enough to perform their tasks.  

Tim Lynn
315-766-2118
tim@ldts-law.com

PREVAILING WAGES IN NEW YORK FOR PUBLICLY SUBSIDIZED PROJECTS

The FY2021 New York State Budget adopts provisions requiring prevailing wages on certain construction projects receiving public benefits.  The law, codified at Section 224-a of the Labor Law, applies to construction work on projects with total construction costs over $5 million with public funds providing at least thirty percent of the total construction costs.  If subject to this section, the project is subject to prevailing wages rules under Sections 220 and 220-b of the Labor Law.  It is generally effective on January 1, 2022.


Public Funds.  Public funds has a broad definition, including:

• Payment of money that is not subject to repayment 
• Below market rate fees, rents, interest rates, other loan costs, or insurance costs
• Loans that have contingent repayment obligation or that have credits against repayment
• Savings from reduced taxes by reason of tax credits, tax abatements, tax exemptions, or tax increment financing (TIF financing)
• Savings from PILOT agreements
• Other savings from reduced, waived or forgiven costs that would have been at a higher cost but for the involvement of a public entity

If thirty percent or more of constructions are subsidized by one of the above with respect to a construction project of $5 million or more, the law may be triggered.


Exempted Projects.  Certain types of projects are exempt from the new law:

• Certified historic rehabilitation projects
• Restore NY projects
• Downtown Revitalization Initiative projects
• Renewable energy projects with a capacity of 5 MW or less
• Construction work on one or two family dwellings where the property is the owner's primary residence, or construction work performed on property where the owner of the property owns no more than four dwelling units
• Not-For-Profit corporations organized under Section 102 of the NY Not-For-Profit Law that (1) have gross annual revenue and support of less than $5 million and (2) that is not formed exclusively for the purpose of holding title to property
• Specific exclusions for certain affordable housing, supportive housing and subsidized housing projects
• Certain manufactured home parks
• Projects that are subject to a collective bargaining agreement, project labor agreement or similar agreements with a bona fide building and construction trade labor organization
• A handful of exceptions for narrow categories of projects in New York City

Incentives that are not treated as Public Funds.  The statute excludes certain incentives from inclusion in the definition of public funds.  Several are very specific, but three could have broader impact:

• Funds that are not provide primarily to promote, incentivize, or ensure that construction work is performed
• Tax benefits provided for projects the length or value of which not able to be calculated at the time the work is to be performed
• Brownfield Cleanup Program tax credits

Covered Agencies.  Public entities that may provide public funding, as defined in the statute, include, but are not limited to, the following:

• The State
• Local Development Corporations
• Industrial Development Agencies
• Municipal Corporations
• Any state, local, interstate or international authority under the Public Authorities Law

Minority Owned Businesses, Women Owned Businesses and Service-Disabled Veterans Businesses.  It is not clear what the requirements are, but owners and developers subject to Section 224-a “shall comply with the  objectives and goals of minority and women-owned business enterprises pursuant to article fifteen-A of the executive law and service-disabled veteran-owned businesses pursuant to article seventeen-B of the executive law.”  The law does permit the Commissioner of Labor to require that owners and developers provide information on the participation of minority and women-owned business enterprises and the diversity practices of contractors and subcontractors involved in the project.

Tim Lynn
315-766-2118
tim@ldts-law.com

Coronavirus: Downtown Syracuse’s biggest apartment construction project halted

From Syracuse.com:

Coronavirus: Downtown Syracuse’s biggest apartment construction project halted

Tim Lynn 

315-766-2118 

tim@ldts-law.com

CARES Act: Emergency EIDL Grants

CARES Act: Emergency EIDL Grants
Under Section 1110 of the CARES Act, Congress authorized certain advances in the amount of $10,000 to small businesses to assist with the impacts of COVID-19.  These $10,000 payments are more in the nature of a grant and are not expected to be repaid by the recipient.

Eligible Entities:

• Businesses with not more than 500 employees
• Sole proprietorships, with or without employees or independent contractors
• Cooperatives with not more than 500 employees
• ESOPs with not more than 500 employees
• Tribal concern or business with not more than 500 employees

Advance:

The payment is a $10,000 advance on a 7(b)(2) loan – disaster relief loans for small businesses under Section 7(b)(2) of the Small Business Act.

Repayment:

The $10,000 advance does not need to be repaid even if the business is turned down for the 7(b)(2) loan.

Use of Funds:

The funds may be used for any purpose allowable under Section 7(b)(2) including:

• Providing sick leave to employees unable to work due to the direct effect of COVID-19
• Maintaining payroll during business interruption or substantial slowdowns
• Meeting increased costs to obtain materials unavailable due to interrupted supply chains
• Making rent or mortgage payments
• Repaying obligations that cannot be met due to revenue losses

Impact on Payroll Protection Program Loan:

The amount of the $10,000 advance is subtracted from the forgiveness available under a 7(a) loan made under the Payroll Protection Program.

Applications are submitted directly to SBA at SBA Emergency EIDL Grant


Tim Lynn
315-766-2118
tim@ldts-law.com

April 5th Update on COVID-19, Rent and Evictions in New York

Effective at 8:00PM on March 22, 2020, Governor Cuomo issued a moratorium on the enforcement of either an eviction of any tenant residential or commercial, or any foreclosure of any residential or commercial property for a period of 90 days.  This moratorium has caused a lot of fear for landlords of both residential and commercial properties that tenants would not make April rent payments.  Now that we are in April, every landlord is seeing the reality of their rent roll for the time-being.


The CARES Act provides no relief for most landlords.  The only relief being provided for landlords comes in the form of lender deferrals.  Many lenders, understanding the scope of the problem and responding to calls from government officials to permit mortgage payments to be deferred, have granted two or three month deferrals to landlords.  However, not all mortgage holders are providing this relief. 


The Governor’s order did not relieve tenants of the obligation to pay rent.  It only defers any action landlords can take for a period of 90 days.  As yet, there is no legal guidance for what will happen when the moratorium expires.  Governor Cuomo’s public statements indicate that he views his action as not abrogating the obligation to pay rent.  It remains to be seen what will happen with respect to tenants who do not pay their April rent, either because they could not or because they merely took advantage of the moratorium on evictions.


In the New York Senate, Senate Bill S8125A would provide for suspension of rent for certain residential tenants and certain small businesses.

• For any residential tenant or small business commercial tenant in the state that has lost income or has been forced to close their place of business as a result of government ordered restrictions in response to COVID-19, all rent payments would be suspended for 90 days.  The language refers to a suspension, but it is really a cancellation – the tenant would never have to pay the suspended rent. 
• The bill goes further and provides for an automatic renewal of any lease that expires during the 90 day period on the same terms as were in effect under the current lease.
• The bill also provides for mortgage relief for landlords affected by the law, but that relief would only apply to mortgages over which New York has authority to issue such relief – a narrow category of mortgages.  Similar to action already taken by the Governor with respect to state-charted institutions, the impact of this relief would be limited.

Another proposal would require landlords to offer tenants the option to use paid security deposits in place of April rent payments.  Tenants would have 30 days to start paying back their security deposits.  This proposal might be limited to New York City.  And tenant advocates continue to press for an across-the-board rent forgiveness. 


It is unclear at this point in time what will happen with unpaid rent.


Tim Lynn
315-766-2118
tim@ldts-law.com

Paycheck Protection Program Application Released

The Treasury Department has released the application for 7(a) loans under the Paycheck Protection Program.  The application is available at:


https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf


Based upon further information provided by the Treasury Department, note the following:

• Due to the expectation that a high number of companies will participate in the program, forgiveness is likely to be capped at 25% for non-payroll costs (e.g., rent, utilities, mortgage interest)
• Deferral of payments of interest and principal will be for only 6 months
• Applications can be submitted beginning Friday April 3^rd.
• The date for applying as an independent contractor or self-employed individual is delayed to Friday April 10^th.
• Applications can be made through any SBA lender or federally insured depository institution.  We advise caution in proceeding with any lender that is not a preferred or express SBA lender.
• Payroll documentation is required to be provided to the lender.

Confirmation has been provided regarding layoffs and compensation cuts made through April 26^th – provided the jobs or compensation is restored by June 30^th, loan forgiveness is unaffected.  Note that this exception does not apply to layoffs after April 26^th.


Perhaps most significant: Interest rate is a fixed 0.50% rate.




Tim Lynn
315-766-2118
 tim@ldts-law.com

New York Extends Filing and Payment Date for 2019 Tax Returns

Governor Cuomo issued Executive Order No. 202.12 authorizing the Commissioner of the Department of Taxation & Finance to provide relief from tax filing and payment deadlines.  Pursuant to Notice N-20-2 (https://www.tax.ny.gov/pdf/notices/n20-2.pdf), the Commissioner has exercised his discretion and extended the due date for personal income tax and corporation tax returns originally due on April 15, 2020 to July 15, 2020 (consistent with a prior extension granted by the Secretary of the Treasury for federal tax returns).

• The extension applies to individuals, fiduciaries for estates and trusts, and corporations taxable under Articles 9, 9A and 33.  
• The deferral also applies to payment obligations due April 15, 2020, without penalties or interest.
• The extension is an automatic extension and taxpayers do not need to file any additional forms or requests for extension.
• Extensions filed for the July 15, 2020 deadline will still expire on the ordinary October 15, 2020 extension deadline.
• For taxpayer’s failing to pay their tax as of July 15, 2020, interest and penalties will begin to accrue on July 16, 2020 (so it appears that failure to pay will not remove the relief from penalties and interest granted with the extension to July 15^th).

If you are owed a refund, you can file sooner and (hopefully) have your refund processed sooner.  If you already filed and provided a schedule direct debit from your bank account, the Department should wait until July 15, 2020 to debit your account.

CARES Act - Planning COVID-19 Re-Hires and Paycheck Protection Program Loans

Planning Issues for Re-Hiring Employees and Paycheck Protection Program Loans

It is laudable and noteworthy that the Paycheck Protection Program SBA 7(a) loan program accommodates the many businesses that have been crushed by COVID-19 and the mandatory closures in New York and many other states.  The impact on employees has also been severe.  Over 3 million people laid off, a number that is growing.

As mandatory business closures continue for the foreseeable future, each employer who has been unable to maintain their pre-crisis employment levels should look at a Payroll Protection Program loan as a way to help the business survive or thrive at the eventual end of the crisis and to help get their employees back at work, earning wages and receiving group benefits.

The rules for the timing of closing of a Paycheck Protection Program loan, the definition of expenditures that make a borrower eligible for loan forgiveness, and the rules for re-hiring employees that have been laid off because of COVID-19 are complicated.  Great care should be taken in understanding the rules and planning the timing and use of the loan to maximize the benefit to employers and getting people back on the payroll.

Tim Lynn
315-766-2118
tim@ldts-law.com

CARES Act - Paycheck Protection Program

Paycheck Protection Program

As part of the CARES Act, the SBA 7(a) Loan Program would provide significant assistance to small businesses in the form of potentially forgivable loans.  

Eligibility:  

Eligible businesses include:

1. Small business concerns
2. Any for-profit business with fewer than 500 employees that does not receive Medicaid expenditures
3. Any not-for-profit with fewer than 500 employees that does not receive Medicaid expenditures

To be eligible for a Small Business Interruption Loan, the applicant must have been in operation on February 15, 2020 and had employees for whom applicant paid salaries and payroll taxes or independent contractors to whom it issued a Form 1099-MISC.

Loan Terms:

• These loans are nonrecourse loans.  No personal guarantees are required except for "bad actor" liability for misuse of loan proceeds.
• Interest rate cannot exceed 4%.
• Unavailability of credit from other sources does not apply to loans made during the covered period.
• SBA fees are waived.
• No collateral.
• Maximum maturity of 10 years.  The SBA guarantee continues for the whole term.
• Deferment of payment of principal, interest and fees for no less than 6 months and no more than one year.
• No prepayment penalties.

These Small Business Interruption Loans would be available for a covered period of February 15, 2020 to June 30, 2020.  

Loan Forgiveness:

A borrower for a Paycheck Protection Program Loan is eligible for forgiveness in an amount equal to the sum of the following costs incurred during the 8 weeks after the origination of the loan:

1. Payroll costs (definition below);
2. Payment of interest on a covered mortgage obligation (pre-dating February 15, 2020);
3. Payment of covered rent (lease agreement in force before February 15, 2020);
4. Any covered utility payment (service began before February 15, 2020).

Forgiven amounts are treated as cancelled debt.  SBA covers the full amount forgiven by payment to the lender.  Forgiven amounts are not cancellation of debt income for federal income tax purposes.

The amount forgiven may be reduced if employment levels decrease or salaries and wages decrease.  Exceptions are provided for employers who laid off workers after February 15, 2020 but brings them back to work before June 30, 2020.

Loan Amount:

Maximum loan amount is determined as follows:

• Average total monthly payments for payroll during the 1 year period before the date on which the loan is made
• Multiplied by 2.5
• This is subject to a cap of $10 million.

Special exceptions are made for seasonal employers and employers not yet in business in 2019.

Payroll Costs means the sum of salary, wage, commission or similar compensation, cash tips or equivalent, vacation, parental, family, medical or sick leave, termination benefits, payments for group health benefits (including premiums), payment of retirement benefits, and state and local payroll taxes.  It can also include compensation to or income of a sole proprietor or independent contractor.

Payroll Costs excludes payment in excess of an annual salary of $100,000 (for employees, sole proprietors and independent contractors).

Permitted Uses of Loan Proceeds:

Small Business Interruption Loans may be used for the following purposes:

1. Payroll costs;
2. Costs for continuing group health benefits during periods of paid sick, medial or family leave (including insurance premiums);
3. Employee salaries or similar compensation;
4. Interest on mortgage obligations (no payment of principal);
5. Rent;
6. Utilities;
7. Payment of interest on other debt obligations incurred before the covered period (i.e., incurred before February 15, 2020).

Express Loans: The limits for express loans is increased to $1 million until January 1, 2021 (at which time it returns to $350,000).

Borrower Certifications:

Required borrower certifications:

1. That the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient; 
2. Acknowledging that funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments;
3. That the eligible recipient does not have an application pending for a loan under this subsection for the same purpose and duplicative of amounts applied for or received under a covered loan; and
4. During the period beginning on February 15, 2020 and ending on December 31, 2020, that the eligible recipient has not received amounts under this subsection for the same purpose and duplicative of amounts applied for or received under a covered loan. 

Tim Lynn 

315-766-2118
tim@ldts-law.com

CARES Act - Temporary exception from excise tax for alcohol used to produce hand sanitizer

CARES Act - Temporary Exception From Excise Tax for Alcohol Used to Produce Hand Sanitizer

The CARES Act includes an exception from the excise tax on distilled spirits for distilled spirits removed from bonded premises between January 1, 2020 and December 31, 2021 for use in or contained in hand sanitizer produced and distributed in accordance with FDA guidance relating to COVID-19.

Furthermore, rules for labeling and bulk sales under the Federal Alcohol Administration Act and Alcoholic Beverage Labeling Act of 1988.

CARES Act – Employee Retention Credit for Employers Subject to Closure Due to COVID-19

CARES Act – Employee Retention Credit for Employers Subject to Closure Due to COVID-19

Employers are potentially eligible for an Employee Retention Credit for 50% of payroll taxes on qualifying wages paid to employees.

Employers eligible include for-profit and not-for-profit organizations that conducted a trade or business during calendar year and the operation of the trade or business is fully or partially suspended pursuant to an order from an appropriate governmental authority due to COVID-19.  For-profit employers can also qualify in gross reciepts in a calendar quarter declined more than 50% from the same quarter in 2019.

The credit is for 50% of payroll taxes paid on qualifying wages pursuant to Section 3111(a) and Section 3221(a) of the Internal Revenue Code.  Qualifying wages for any employee is capped at $10,000.  Determination of the amount of qualified wages depends upon how many employees the employer has:

1. For employers with more than 100 employees (certain aggregation rules apply), the credit is only available for wages continued even though the employer was unable to provide services because of an order from an appropriate governmental authority due to COVID-19 or the employer satisfies the reduction in gross receipts test. 
2. For employers with 100 or fewer employees, all employees are eligible and all wages paid to such employees are eligible.

Any employer taking a Small Business Interruption Loan is not eligible for the Employee Retention Credit.

House Passes CARES Act

Today at 4:45PM, the House of Representatives passed the CARES Act.  Hopefully the President will sign it quickly and get SBA to work.

Tim Lynn
315-766-2118
tim@ldts-law.com

CARES Act - Small Business Interruption Loans

Small Business Interruption Loans


As part of the CARES Act that passed the Senate and is pending in the House, the SBA 7(a) Loan Program would provide significant assistance to small businesses in the form of potentially forgivable loans.  Eligible businesses include:

1. Small business concerns
2. Any for-profit business with fewer than 500 employees that does not receive Medicaid expenditures
3. Any not-for-profit with fewer than 500 employees that does not receive Medicaid expenditures

These Small Business Interruption Loans would be available for a covered period of March 1, 2020 to December 31, 2020.  Maximum loan amount is determined as follows:

• Average total monthly payments for payroll during the 1 year period before the date on which the loan is made
• Multiplied by 2.5
• This is subject to a cap of $10 million.

Special exceptions are made for seasonal employers and employers not yet in business in 2019.

Payroll Costs means the sum of salary, wage, commission or similar compensation, cash tips or equivalent, vacation, parental, family, medical or sick leave, termination benefits, payments for group health benefits (including premiums), payment of retirement benefits, and state and local payroll taxes.  It can also include compensation to or income of a sole proprietor or independent contractor.

Payroll Costs excludes payment in excess of an annual salary of $100,000 (for employees, sole proprietors and independent contractors).

Small Business Interruption Loans may be used for the following purposes:

1. Payroll support, including paid sick, medical or family leave and costs related to the continuation of group health care benefits during those periods of leave;
2. Employee salaries;
3. Mortgage payments;
4. Rent;
5. Utilities;
6. Payment of other debt obligations incurred before the covered period (i.e., incurred before March 1, 2020).

To be eligible for a Small Business Interruption Loan, the applicant must have been in operation on March 1, 2020 and had employees for whom applicant paid salaries and payroll taxes.

The loans potentially include a one year deferral of all payments.

A key aspect of these Small Business Interruption Loans is the potential for loan forgiveness.  The loan forgiveness applies to loans made between March 1, 2020 and June 30, 2020.  Some of the rules are:

• The amount potentially eligible for forgiveness is the cost of maintaining payroll during the period March 1, 2020 to June 30, 2020.  It appears that the cost of maintaining payroll includes payroll expenses and payments on eligible debt obligations.  There is some ambiguity in the Act that needs clarification.
• Forgiveness is reduced if employment levels have dropped compared to the same period in 2019.
• Forgiveness may be reduced if employee compensation has been reduced by more than 25% (with a formula for determination).
• To help the restaurant and hotel industry employees, there are exceptions for tipped workers to allow forgiveness for additional wages paid to tipped workers.

Congress would allocate $299.4 billion to fund these loans.

Tim Lynn

tim@ldts-law.com

315-766-2118

Rep. Katko Announces $130K in Emergency COVID-19 Funding to Support Community Health Centers in Central New York

Link to the announcement:

https://katko.house.gov/media-center/press-releases/rep-katko-announces-130k-emergency-covid-19-funding-support-community

Tim Lynn
tim@ldts-law.com
315-766-2118

CARES Act

The following is a link to a good blog entry from the GOP Ways & Means Committee and follow up entries regarding the CARES Act.

https://gop-waysandmeans.house.gov/the-senate-cares-bill-protecting-americans-livelihoods/

Paycheck Protection Program

[UPDATE: SEE POST REGARDING CARES ACT]

From the Senate Committee on Small Business and Entrepreneurship:

Paycheck Protection Program

The stimulus includes nearly $350 billion in funding for a provision to create a Paycheck Protection Program (PPP) that will provide small businesses and other entities with zero-fee loans of up to $10 million. Up to 8 weeks of average payroll and other costs will be forgiven if the business retains its employees and their salary levels. Principal and interest is deferred for up to a year and all borrower fees are waived. This temporary emergency assistance through the U.S. Small Business Administration (SBA) and the Department of Treasury can be used in coordination with other COVID-financing assistance established in the bill or any other existing SBA loan program.

The bill requires the SBA Administrator to set a cap on how much a bank can earn to process loan applications and prioritize underserved borrowers, including those in rural communities, minorities, women and veterans.

More to follow.

Tim Lynn
tim@ldts-law.com
315-766-2118

Facebook Rolling out Small Business Grants Program in Response to COVID-19

Facebook indicates that they will provide up to 30,000 small businesses in 30 countries a total of $100 million in grants and ad credits.  The awards are intended to help with maintaining workforce, rent costs, customer connection and operational costs.

The program has not been rolled out yet, but interested businesses can sign up for updates at https://www.facebook.com/business/boost/grants?ref=eml

Tim Lynn
tim@ldts-law.com
(315) 766-2118

SBA Disaster Assistance in Response to COVID-19

Designated states, parts of states and territories -- including New York State -- are being offered low-interest federal disaster loans for businesses.  The program is coordinated with the respective state.

These SBA administered loans are for up to $2 million, interest rate is 3.75%, and long-term (up to 30 years) repayment terms are available.  The exact terms are determined on a case-by-case basis by SBA.

The application is available at SBA Disaster Loan Assistance.

For more information, contact Tim Lynn at tim@ldts-law.com or (315) 766-2118.

Coronavirus Bill Introduced in Albany Affecting Employers

In New York, Senate Bill S8090 was introduced at the request of the Governor.  It is expected to be adopted an signed by Governor Cuomo this week.  The law would create sick leave relating to the Coronavirus pandemic and would implement permanent sick leave provisions affecting all employers.

Coronavirus (COVID-19) Provisions:

Employers are split into four categories:

• Employers with 10 or fewer employees and less than $1 million in net income would be required to provide unpaid sick leave during the entire duration of a government ordered quarantine or isolation for an employee.  
• Employers with 10 or fewer employees but with $1 million or more in net income (in the prior tax year) must provide 5 days of paid sick leave and unpaid leave until the quarantine or isolation is lifted.
• Employers with between 11 and 99 employees must provide at least 5 days of paid sick leave and unpaid sick leave until the quarantine or isolation is lifted.
• Employers with 100 or more employees must provide 14 days of paid sick leave and unpaid sick leave until the quarantine or isolation is lifted.

The paid sick leave is in addition to any other sick leave created by the law and the sick leave does not count against an employee's fringe benefit sick time off.  

Upon completion of the sick leave, the employee must be reinstated to the same position, pay and other terms and conditions of employment.

For more information on this section of the law, contact Tim Lynn at tim@ldts-law.com or (315) 766-2118.

Permanent Sick Leave Provisions:

Every employer will be required to provide sick leave.  Employers are divided into four categories:

• Employers with less than five employees must provide every employee with up to 40 hours of unpaid sick leave in each calendar year.
• Employers with less than five employees but net income of more than $1 million in the prior tax year must provide up to 40 hours of paid sick leave.
• Employers with between five and 99 employees must provide up to 40 hours of paid sick leave.
• Employers with 100 or more employees must provide up to 56 hours of paid sick leave.

The sick leave accrues at a rate of not less than one hour for every 30 hours worked.  There is an option to accrue all of it at the beginning of the year, but once done it cannot be undone based upon the number of hours worked through the course of the year.

The law provides definitions of what constitutes a basis for sick leave and limitations on employers' ability to gather information confirming the underlying qualification for sick leave.

The law provides that unused sick leave carries over to the following calendar year, but an employer with fewer than 100 employees cannot be required to pay for more than 40 hours in a calendar year not can employers with more than 100 employees be required to pay for more than 56 hours in any calendar year.  Upon termination of employment, the law does not require payment to an employee for any unused sick leave under the law.

For more information on this section of the law, contact Tim Lynn at tim@ldts-law.com or (315) 766-2118.

Century-old former Syracuse knitting mill to be turned into apartments

Century-old former Syracuse knitting mill to be turned into apartments


Tim Lynn
www.ldts-law.com
www.morrisroelynn.com
315.766.2118

Peek inside long-vacant Addis department store in Syracuse as redevelopment starts (photos)

Peek inside long-vacant Addis department store in Syracuse as redevelopment starts (photos)

Tim Lynn
tim@ldts-law.com
tim@morrisroelynn.com
315-766-2118

IRS Issues Rehabilitation Tax Credit 50(d) Income Temporary Regulations

The IRS has clarified its position on the treatment of 50(d) income in lease pass-through structured historic rehabilitation projects through publication of Treas. Reg. 1.50-1T.  These temporary regulations are effective for projects placed in service on or after September 19, 2016 and remain in effect until July 19, 2019. 

By determining that the 50(d) income associated with the pass-through of the rehabilitation tax credit is a partner item (rather than a partnership item), the temporary regulations will impact on the future structure of investments in historic rehabilitation projects, likely resulting in smaller investments being made available for preservation of historic buildings and neighborhoods.

Treas. Reg. 1.50-1T

Tim Lynn
(315) 766-2118
tim@centolellalaw.com

2015 Consolidated Funding Application

The 2015 Consolidated Funding Application competition has begun.  The application became available on May 1, 2015, and applications must be submitted by 4:00PM on July 31, 2015.

This year's competition covers two funding pools -- the recurring $750 million in economic development funds and $1.5 billion in Upstate Revitalization Initiative funds.

Three regions will receive awards from the Upstate Revitalization Initiative funds in the amount of $500 million each, funded $100 million per year for five years.  Those regions will not be eligible for ESD Capital Grants or Excelsior tax credits awarded in the 2015 competition.

For the remaining regions, those not receiving the $500 million, the three top performers will receive up to $30 million in ESD Capital Grants and up to $15 million in Excelsior tax credits.  The other four regions will receive up to $15 million in ESD Capital Grants and up to $15 million in Excelsior tax credits.

All ten regions are eligible for the remaining $530 million in other state agency funds.

Tim Lynn
(315) 766-2118
tim@centolellalaw.com

Company news: Michael T. Stanczyk joined Centolella Lynn D'Elia & Temes

http://www.syracuse.com/news/index.ssf/2015/02/company_news_michael_t_stanczyk_joined_centolella_lynn_delia_ternes.html

Tim Lynn
315-766-2118
tim@centolellalaw.com

Consolidated Funding Application Announcement Day

At the Egg for the CFA announcements.



Tim Lynn
315-766-2118
tim@centolellalaw.com

Public Policy Institute issue brief reports saving from design build project delivery method

Public Policy Institute issue brief reports saving from design build project delivery method

Tim Lynn
(315) 766-2118
tim@centolellalaw.com

Public Policy Institute issue brief reports saving from design build project delivery method

Public Policy Institute issue brief reports saving from design build project delivery method

Tim Lynn
(315) 766-2118
tim@centolellalaw.com

Public Policy Institute issue brief reports saving from design build project delivery method

Public Policy Institute issue brief reports saving from design build project delivery method

Tim Lynn
(315) 766-2118
tim@centolellalaw.com

Historic Syracuse warehouse to be turned into apartments | syracuse.com

Historic Syracuse warehouse to be turned into apartments | syracuse.com

Tim Lynn(315) 701-6426lynn.skan@gmail.com

Developers plan $4.8 million facelift for Addis building, where broken window fell | syracuse.com

Developers plan $4.8 million facelift for Addis building, where broken window fell | syracuse.com

Tim Lynn(315) 701-6426lynn.skan@gmail.com

New York Issues Guidance re: Minimum Wage Reimbursement Credit

The Minimum Wage Reimbursement Credit is available to employers who hire full-time or part-time students age 16 to 20 who are paid the minimum wage.  The credit is intended to offset the difference between the federal minimum wage and New York minimum wage.

The credit is available to Article 9, 9-A, 22, 32 and 33 taxpayers and the credit is fully refundable.

TSB-M-13(8)C, (7)I
Tim Lynn
(315) 701-6426
lynn.skan@gmail.com

Allies: Change cleanup program - Times Union

Allies: Change cleanup program - Times Union

Tim Lynn
(315) 701-6426
lynn.skan@gmail.com

IRS Issues Safe Harbor Guidance For Rehabilitation Tax Credit

The IRS has finally issued the long awaited and anticipated safe harbor rules for historic rehabilitation projects using the rehabilitation tax credit under Section 47 of the Internal Revenue Code.  More to follow.

Rev. Proc. 2014-12

Tim Lynn 
(315) 701-6426 
Email Me

WHAT EMPLOYERS & INDIVIDUALS NEED TO KNOW ABOUT THE AFFORDABLE HEALTH CARE ACT

Some helpful information on the Affordable Care Act from our friends at Grossman St. Amour CPAs.

archive.constantcontact.com/fs122/1102593417058/archive/1114968533399.html

Tim Lynn(315) 701-6426lynn.skan@gmail.com

New York - A Bad Role Model for California

Indicative of the legislative and judicial temperaments in New York and California, in NY the legislature tried to retroactively change the tax rules and the courts protected taxpayers.  In Cali, the courts are trying to retroactively change the tax rules and the legislature is trying to protect taxpayers.

From foxnews.com:

California small business owners ordered to pay back millions in tax breaks
http://www.foxnews.com/politics/2013/08/21/calif-small-business-owners-ordered-to-pay-back-millions-in-tax-breaks/


Tim Lynn
(315) 701-6426
lynn.skan@gmail.com

If You Owe NYS Taxes You Can Now Lose Your NYS Driver’s License

http://www.gslaw.com/resources/pdf/Owe%20NYS%20Taxes%20-%20Lose%20your%20License.pdf

Tim Lynn
(315) 701-6426
lynn.skan@gmail.com

$3M tax dispute may be settled - Deal between Albany IDA, developer would spare school, county, city cash payments

http://www.timesunion.com/local/article/Accord-could-end-677-high-rise-tax-dispute-4673203.php

Tim Lynn
(315) 701-6426
lynn.skan@gmail.com

IRS Announces Compliance Check for 457(b)

www.gslaw.com/resources/pdf/IRS Announces Compliance Check for 457(b).pdf

LEGAL ALERT - Brownfield Cleanup Program Sunset Looms Closer

www.gslaw.com/resources/pdf/LEGAL ALERT - BCP Sunset Looms Closer.pdf

Summary of Draft Tax-Free NY Proposed Legislation

Proposed Tax‐Free NY Summary of Provisions in Gov. Cuomo’s June 7, 2013 Draft Legislation

6/15/2013

TaFNY Tax Benefits

• Credit to eliminate income tax (personal/partnership)

• Credit to eliminate corporate franchise tax

• Real property tax exemption (treated as exempt educational institution property). Limited to property with educational exemption as of June 1, 2013.

• Credit/refund of sales and use tax for 120 month period

• Lease is exempt from real estate transfer taxes

• For a period of up to 10 years, eligible employees working at the site are exempt from state/NYC/Yonkers income taxes

• Also an exemption for MCTD payroll tax

Eligible Sites – SUNY/Community Colleges

• SUNY campuses, with the exception of Empire State College (except Saratoga), any property of  Downstate Medical Center (except incubator property), the College of Optometry and the Maritime College

• Community colleges, except a community college whose main campus is in NYC 

• Sites allowed consists of:

– vacant space and vacant land on campus

– Up to 200,000sf of vacant land owned or leased by the SUNY located within one mile of campus

– Potential certification by ommissioner of ESD of land located more than one mile from campus

Eligible Sites – CUNY

• Five CUNY campuses (one in each borough)

• Limitations on selecting campus located in area with high poverty

• Up to 200,000sf of land adjacent to the campus that is owned or leased by the CUNY

Eligible Sites – Private Colleges/Universities

• Up to 3 million sf of vacant space or vacant land on a campus of a private university or college located outside Nassau, Suffolk, Westchester, or NYC

• However, each of Nassau, Suffolk, Westchester, Brooklyn,Bronx, Queens and Staten Island will have 30,000 sf in high poverty areas

• The locations for the 30,000sf sites must be owned or leased by one of the following:

– Private college or university whose campus is in Nassau, Suffolk, Westchester or NYC

– One of the SUNY institutions excluded from the SUNY category

– A community college whose main campus in is NYC

– A CUNY excluded from the five sites

Eligible Sites – Educational Institutions

• All of the educational institutions are prohibited relocating academic, administrative, housing, dining athletics or any other facilities serving students in order to create vacant space

Eligible Sites – Strategic State Assets

• The TaFNY approval board may designate up to 20 strategic state assets as designated sites

• Each site must be affiliated with and supported by an educational institution]

• No limit on the size of the designated site 

• A strategic state asset does not include land or buildings located in NYC 

• Includes only land and buildings which are, as of June 15, 2013, closed, vacant or for which notice

of closure has been authorized by law 

Eligible Businesses

• Businesses that align with university mission

• Create and maintain net new jobs (including first year of operation)

• If a business has current operations in NYS or had operations in the last 5 years, it must apply for permission from the Commissioner of ESD to participate in TaFNY

• Excluded businesses:

– businesses providing utilities

– businesses engaged in generation or distribution of electricity, the distribution of natural gas, or the production of steam

– Retail/wholesale, restaurants, hotels

– Medical or dental practices

– Real estate brokers, accountants, attorneys

– Personal service businesses

– Finance and financial services

Approval Procedures

• The draft bill would providefor a process by which an educational institution would apply to have some

of its property designated as a TaFNY area

• The application requires a plan for the types of businesses and how these businesses align with the

educational mission of the institution

• A business desiring to participate in the program will apply first to the academic institution, which application, if approved, must be approved by the Commissioner of ESD

Welcome to the Utica Comets

Following up on the noteworthy success of Gary Heenan and the Utica College Pioneers at the refurbished Utica Aud (I miss the artwork of the bell-bottomed guitarist), we all welcome the Utica Comets to the AHL.  Perfect timing with the Syracuse Crunch playoff run.  Will it replace the Devils???

TheAHL.com | The American Hockey League | Home Page

State Announces CFA Round 3

www.gslaw.com/resources/pdf/State Announces CFA Round 3.pdf

New York Department of Taxation and Finance Issues Guidance Regarding Annual Beer Tax Return Filing

The New York State Department of Taxation and Finance issued guidance on June 10, 2013 regarding technical amendments that permit farm breweries to file annual beer tax returns (rather than monthly filings).  These changes bring consistent treatment for farm brewers, micro-breweries and restaurant breweries.  To take advantage of annual filing, a farm brewer must file an election -- Application for Annual Filing Status for Certain Beer and Wine Manufacturers.

For further information, contact:

Tim Lynn
tim@bhlawpllc.com
(315) 701-6426

New York Consolidated Funding Application (CFA) Round 3 Announced

New York State has commenced Round 3 of the Consolidated Funding Application (CFA) process.  Pursuant to this process, approximately $750 million will be awarded to projects located in the various economic development regions, as administered by the Regional Councils.  More information can be found at CFA Application Manual 2013.

The deadline for submission is August 12, 2013.

For more information, please contact:

Tim Lynn

tim@bhlawpllc.com

(315) 701-6426

Split Up New York?

In response to Gov. Cuomo's Tax-Free NY plan, James Banks, writing in policymic.com, asserts that Upstate New York's problems won't be solved by tax-free zones -- the real problem is that Upstate New York cannot thrive in a tax and regulatory environment designed for NYC:

Tax-Free NY Isn't Upstate New York's Solution

While his thoughts and critiques about the problem are convincing, I am not sure, at this point, Upstate New York could survive secession.  At one time, Upstate probably did fund the NYC morass.  That day has passed.  Would a state of 7 million residents with a struggling economy, exodus of population and loss of identity thrive in the 21st century?  Would the residents accept Medicaid cuts, decreases in hospital funding, additional prison closures, management of a massive complex of state facilities and a myriad of other financial problems?

Legislative Criticism of Tax-Free NY

Lalor says Tax-Free NY plan is ‘corporate welfare’

Law360.com - NY High Court Nixes Clawback

Court Strikes Retroactive Decertification

www.gslaw.com/resources/pdf/Court Strikes Retroactive Decertification.pdf