New York Introduces Security-Training Tax Credit

By Mark H. Levin

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MAY 2006 - On August 16, 2005, Governor Pataki signed Chapter 537 of the Laws of 2005 (A8410/S5431-B), an act creating a new “security training tax credit” for New York State. A qualified building owner who is subject to any of the following taxes shall be allowed a security-training credit against such tax:

  • Article 9, Corporation Tax
  • Article 9-A, Business Corporation Franchise Tax
  • Article 22, Personal Income Tax
  • Article 32, Banking Corporation Franchise Tax
  • Article 33, Insurance Corporation Franchise Tax.

This credit is effective for tax years beginning on or after January 1, 2005.

The security-training credit shall equal the sum of the number of qualified security officers providing protection to a building or buildings owned by the taxpayer, multiplied by $3,000. If any qualified security officer is employed less than a year, the credit shall be prorated to reflect the length of employment.

For Articles 9, 9-A, 32, and 33, the credit cannot reduce the tax payable to an amount less than the applicable fixed dollar minimum tax. For Article 22, the credit cannot reduce the tax payable to less than zero. If, however, the amount of the credit allowable for any taxable year reduces the tax to the applicable fixed dollar minimum tax for Articles 9, 9-A, 32, or 33, or to zero for Article 22, any amount of credit not deductible in that year shall be treated as an overpayment of tax to be refunded with no interest payable thereon.


  • A qualified building owner is a building owner whose building’s entrances, exits, and common areas are protected by security personnel, licensed under the General Business Law Article 7-A, whether such security personnel are employed directly by the building owner or indirectly through a contractor.
  • A qualified security-training program is a program for residential and commercial building security officers, that is designed to: improve observation, detection, and reporting skills; improve coordination with local police, fire, and emergency services; provide and improve skills and working knowledge of advanced security technology, including surveillance systems and access-control procedures; that requires at least 40 hours of training, including three hours devoted to terrorism awareness; and has been certified as a qualified program and that approved by the New York State Office of Homeland Security (OHS) pursuant to Executive Law section 709.
  • A security officer, as registered under General Business Law Article 7-A, is responsible for the safety and security of tenants and occupants of commercial buildings over 500,000 square feet, whether such security officer is employed directly by the building owner or indirectly through a contractor.
  • A qualified security officer is a security officer who has completed a qualified security-training program and is employed in positions which are under a legally binding written agreement (including a service contract between qualified building owners and security contractors) that provides for a minimum hourly wage as follows:
    • For 2005, at least $9.50 per hour;
    • For 2006, at least $9.85 per hour; and
    • For 2007 and thereafter, at least $10.85 per hour.
  • Scope of the credit: The credit is allowed for any taxable year in which costs relating to security personnel are paid or incurred.
  • Credit certification: Upon application by a taxpayer, the OHS may issue a credit certification where the taxpayers meet the standards established by this law and have demonstrated that they have provided the appropriate training, or will provide the appropriate training within the year, to all employees for whom they will claim the credit.

While an OHS certification is required, as of this writing, the OHS, along with the Department of Taxation and Finance, is still developing the training requirements, applicable regulations, and application procedures necessary for the implementation of the security training tax credit.

Taxpayers and preparers should keep abreast of any further developments in this area. It is the author’s understanding that the OHS has promulgated draft regulations. For more information, center the Office of Homeland Security at or 518-402-2227.

Mark H. Levin, CPA, is manager, state and local taxes, at H.J. Behrman & Company, LLP, New York, N.Y.




















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