Also Votes to Strengthen Standpipe and Sprinkler Operations as part of Comprehensive Construction, Demolition and Abatement Overhaul

City Hall, September 17, 2009 – At today’s Stated Council meeting, the City Council will vote to create a $3 million biotechnology tax credit encouraging small biotech companies to bring jobs, innovation and new technology to New York City. Biotechnology firms will be provided with a refundable annual credit up to $250,000 for facilities, operations and training and will be eligible for the credit for up to three years. This legislation, which requires State approval, was enacted by the Stated legislature in July and signed into law by Governor Paterson on Tuesday.

The Council will also vote on two bills as part of a comprehensive legislative package in response to the tragic Deutsche Bank fire that killed two New York City Firefighters. These bills will improve standpipe and sprinkler safety on construction sites.

Improving air quality in New York City’s neighborhoods, the Council will also vote on important environmental protection and public health legislation requiring the Department of Education to retrofit all diesel fuel-powered school buses and to retire buses that are 16 years or older.

BIOTECHNOLOGY TAX CREDIT

Generating new jobs and encouraging growth of diverse and emerging industries, the Council will vote to create a $3 million biotechnology tax credit to incentivize emerging biotechnology firms to base their operations in New York City.

Under this legislation, which was authorized by the State Legislature in July and signed into law by Governor Paterson on Tuesday, small biotechnology firms engaged primarily in research and development in New York City would be eligible for a refundable tax credit of up to $250,000 a year against the City’s general corporation and unincorporated business taxes.The credit would help an emerging firm offset costs of equipping laboratories, certain qualified research costs, and training expenses for researchers. The credit is limited to small firms that meet New York State standards as qualified emerging technology companies and is designed to work with New York State’s Qualified Emerging Technologies Credit (QETC).

“During these tough economic times, we are focused on creating new jobs and fostering diverse and emerging industries across the five boroughs,” said Speaker Christine C. Quinn. “Our City has a vast wealth of resources at our disposal – research facilities, medical centers and a tremendously diverse talent pool. Putting this tax credit into action will reenergize our City’s effort to lead the way when it comes to emerging bio-technologies.”

“For far too long, our city has been overly dependent on Wall Street revenues for our fiscal well-being,” said Council Member Jessica Lappin. “This tax credit is a huge step toward building a 21st century economy for New York. We’re taking the time now to position ourselves for the future.”

“I applaud Governor Paterson for signing New York City’s biotechnology tax credit into law. Attracting biotechnology businesses will help diversify and grow our economy in these difficult economic times,” said Senator Thomas K. Duane. “With this tax credit, we are branding New York City as a home for cutting-edge technology. It is a positive step forward for this city that will draw talent and encourage discovery in
a very promising scientific field.”

For biotechnology firms that are either new to the City or who increase their employment in the City by at least 5 percent, this legislation would:

Provide a credit of 18 percent of costs related to purchase or renting of equipment for testing, quality control or research.
Provide a credit of up to 9 percent for qualified research expenses – primarily in-house research related operating costs.
Provide a credit of up to $4,000 per employee for certain training expenses.
Biotechnology firms that are not increasing their employment are still eligible for the credit, but a lower rate.

The biotech tax credit will work in conjunction with the development of laboratory space at the East River Science Park and in BioBAT at the Brooklyn Army Terminal. These spaces, along with existing facilities, will provide approximately 2 million square feet of laboratory space in the City. With 9 world class research institutions, 26 medical centers, 175 hospitals, and an unparalleled talent pool, New York City has a natural advantage in the bioscience industry. Yet it lags behind other cities, such as Boston and San Diego, in commercialization of new technologies.

STRENGTHENING STANDPIPE AND SPRINKLER SAFETY

Following the tragic fire at the former Deutsche Bank building in Lower Manhattan that took the lives of New York City Firefighters Joseph Graffagnino and Robert Beddia, the City Council will vote on the third set of safety bills to improve construction operations and ensure that necessary fire protection systems such as standpipes and sprinklers will always be available to fire fighting personnel.

“Taken together, these measures we are passing today and others that we have recently passed represent a significant overhaul of the City’s construction, demolition and asbestos abatement procedures,” said Speaker Quinn. “As soon as these bills are implemented, they will take us another major step forward in making sure that conditions in this industry never lead to another event like the one that took the lives of Joseph Graffagnino and Robert Beddia.”

Specifically, today’s package of sprinkler and standpipe legislation will:

Require the use of air-pressurized alarm systems for dry standpipes during construction or demolition. These alarm systems detect breaches in a standpipe and sound an alarm to notify firefighters or designated safety personnel that the standpipe’s integrity has been compromised. Whenever a standpipe alarm is activated, the fire department must be notified and work at the site must cease with limited exception until the standpipe system is repaired and appropriate pressure restored. Once stopped, construction and demolition work can not resume unless authorized by the Fire Department.

Require new or altered sprinkler systems in buildings to undergo successful hydrostatic pressure testing by a licensed master plumber or licensed fire suppression piping contractor. The bill also requires hydrostatic pressure testing of standpipes for new buildings under construction when they exceed 75 feet and at 100 foot intervals thereafter, for enlargements or additions to an existing standpipe system at 75 foot intervals, and for buildings being partially or fully demolished prior to the commencement of work.
“Our firefighters risk their lives every day doing one of the most dangerous and important jobs in this city,” said Fire and Criminal Justice Committee Chair James Vacca. “We have to make sure that when these brave men and women put their lives on the line and run into a burning building, they have every tool at their disposal to complete their rescue operation and get out safely. These bills, and similar reforms the Council has passed over the past two years, are the least we can do to honor the sacrifice of Firefighters Graffagnino and Beddia, and make sure such a senseless tragedy never happens again.”

“Regrettably the tragedy of Deutsche Bank taught us a valuable lesson and it cost us the lives of firefighters Robert Beddia and Joseph Graffagnino. Never again will we send our firefighters in to harm’s way without ensuring they are protected. Today we are setting a new standard of safety that will prevent incidents such as this from occurring again hopefully,” said Councilman James Sanders Jr.

“Today’s legislation will make sure that one of the leading contributors to Joey Graffagnino and Robert Beddia’s deaths is safeguarded against in the months and years to come,” said Councilman Vincent Gentile. “Large buildings – as well as those undergoing construction or alterations – must have their standpipes checked for flaws or leaks. The guarantee of effective and sufficient water flow to help our city’s firefighters combat fires as safely and quickly as possible is crucial to making sure that brave men like Joey and Bobby are protected. This bill, as part of a larger package of 12, is a major step in taking responsibility for New York City’s Bravest and ensuring their safety as they work to protect residents and property. Speaker Christine Quinn should be commended for her commitment to making sure the loss of lives, like Joey and Bobby’s in the Deutsche Bank fire, never has to be mourned again.”

RETROFITTING CITY SCHOOL BUSES

Improving air quality for New York City’s schoolchildren, the Council will vote to require the Department of Education to retrofit all diesel-powered school buses by September 1, 2011 as well as retire buses older than 16 years. Diesel-powered replacement buses must meetFederal diesel engine emissions standards that are the most current at the time of replacement or replacement must be with an all-electric, gasoline-powered, compressed natural gas, or hybrid school bus, as long as the particulate emissions from these buses meet the federal diesel emission standards.

“I am proud to be voting on this important piece of legislation today,” said Council member Sara Gonzales. “I would like to especially thank the Speaker, Chair Gennaro, and my colleagues for their support and hard work on this bill. In addition to recent Council efforts to make New York City idle free, promote bicycle use, and ensure that we all do our part to recycle, this legislation proves that this City continues to be at the forefront of the green movement. Representing a District with high asthma rates and increased truck traffic, I feel this is a bill that makes sense and will contribute to making our City a healthier place to live.”

Buses manufactured prior to 1994, when new federal diesel emissions standards came into effect, are responsible for a significant amount of pollution produced by New York City school buses. This legislation will impose a maximum retirement age of 16 years for all diesel fuel-powered school buses so children who ride these buses everyday travel in a cleaner, more healthful environment.