171.151 CREDIT FOR AN EMPLOYEE BUYOUT.

   (a)   As used in this section:

      (1)   “GM - Delphi buyout agreement” means any hourly attrition program approved by the United States Bankruptcy Court for the Southern District of New York in Case No. 05-44481 and affiliated cases, jointly administered, and any supplements or addendums thereto, including, but not limited to, the UAW Special Attrition Program Agreement and the IUE- CWA Special Attrition Program Agreement.

      (2)   “Other buyout program” means any employee buyout program or plan, other than a GM - Delphi buyout agreement, resulting in the retirement or resignation of employees.

      (3)   “Qualifying investment” means an investment made during 2007 or 2008 in any of the following:

         A.   Capital stock of an incorporated business that employs the taxpayer and maintains its corporate headquarters in the City.

         B.   Equity ownership interests of a pass-through entity in which the taxpayer is a material participant and in which the majority of the equity ownership interests are owned directly by persons subject to the tax levied under Section 171.03 at the time the taxpayer made the investment.

         C.   Fixed assets of a sole proprietorship owned by the taxpayer and that maintains its principal office in the City.

   (b)   For taxable years beginning in or after 2007 and ending before January 1, 2009, a nonrefundable credit is allowed against the tax imposed by Section 171.03 for a taxpayer who receives amounts pursuant to a GM - Delphi buyout agreement or other buyout program that are subject to the tax imposed by Section 171.03 and who makes a qualifying investment.

   The credit shall be no more than the initial qualifying investment multiplied by the tax rate in effect at the time of the initial qualifying investment. The credit for a taxable year shall not exceed the taxpayer’s amount of tax otherwise due for the taxable year after allowing for any other credit allowed in this Chapter 171. The total amount of credit for all taxable years shall not exceed the tax that would otherwise be due on amounts the taxpayer received pursuant to a GM - Delphi buyout agreement or other buyout program to the extent such amounts are subject to the tax imposed by Section 171.03 for any taxable year before and including the taxable year in which the qualifying investment is made.

   The credit shall be claimed for the taxable year in which the qualifying investment is made. The credit shall apply to taxable income derived from business activity(ies) supported by the qualifying investment. The credit is not, and shall not be, transferable.

   The taxpayer may carry forward any credit amount in excess of the tax otherwise due under Section 171.03 after allowing for all other credits allowed under this Chapter 171. The excess credit, if any, may be carried forward to ensuing tax years (not to exceed ten) until fully used.

   All requests for the credit shall be subject to verification by, and the audit of, the City Treasurer.
(Ord. 12013/07. Passed 1-10-07.)