NY State Assembly Bill 2009-A10650

Assembly Bill A10650

2009-2010 Legislative Session

Grants tax credit to business firms for contributions of real property made to not-for-profit housing companies

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 11, 2010	held for consideration in housing
Apr 13, 2010	referred to housing

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2009-A10650 (ACTIVE) - Details

Current Committee:: Assembly Housing
Law Section:: Private Housing Finance Law
Laws Affected:: Add §1134, Priv Hous Fin L; amd §606, Tax L
Versions Introduced in 2011-2012 Legislative Session:: A280

2009-A10650 (ACTIVE) - Summary

Grants tax credit to business firms for contributions of real property made to not-for-profit housing companies; such credit shall be equal to one-half the amount of the fair market value of the real property and such credit shall not exceed $250,000.

2009-A10650 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A10650

TITLE  OF BILL:  An act to amend the private housing finance law and the
tax law, in relation to  granting  tax  credit  to  business  firms  for
contributions of real property made to not-for-profit housing companies

PURPOSE  OR  GENERAL  IDEA OF BILL: To provide an incentive for business
firms to donate real property to  not-for-profit  housing  companies  by
providing them with a credit against state taxes.

SUMMARY OF SPECIFIC PROVISIONS: This bill adds a new Section 1134 to the
Private Housing Finance Law to authorize the Commissioner of Housing and
Community Renewal to establish a system of tax credit vouchers for busi-
ness  firms making contributions of real property to any not-for-pro-fit
housing company that develops, sponsors, or manages any housing  project
or  program  which benefits low and moderate income persons or families.
The voucher could be used as a credit against any of the taxes to  which
the  firm  is  subject while the amount of the voucher would be equal to
one-half the amount of the fair market value of the real  property.  The
bill  further  authorizes  the  Commissioner  of Taxation and Finance to
grant a credit against any tax due under the provisions of Articles 9-A,
32, and 33 of the Tax Law in an amount equal to the amount specified  in
the  tax  credit voucher.  The bill further provides that the sum of all
tax credits could not exceed $250,000 annually per business firm and  no
tax  credit  could be granted to any firm for activities that are a part
of its ordinary course of business. In addition, the total amount of tax

credits under this program could not exceed $5 million in any one fiscal
year and any tax credit not used during  the  period  within  which  the
contribution  was made could be carried forward or backward for the five
succeeding or preceding fiscal or calendar years. Also, no  not-for-pro-
fit  housing  company  Would be allowed to receive real property with an
aggregate value in excess of $500,000 for any fiscal year.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:   This bill  adds  a
new Section 1134 to the Private Housing Finance Law and a new subsection
(qq) to Section 606 of the Tax Law.

JUSTIFICATION:  While  conducting its hearings throughout the State, the
Assembly Task Force on Affordable Housing received testimony  from  many
housing  suppliers who complained about the increased cost of real prop-
erty to develop affordable housing. These increased  costs  particularly
hurt  not-for-profit  housing companies who have limited resources. This
bill attempts to provide an incentive  for  business  firms,  especially
banks and other mortgage lenders, to donate real property to these hous-
ing  companies in order to help them bring down the cost of constructing
or rehabilitating affordable housing by providing such firms with a  tax
credit equal to one-half the fair market value of the real property.

PRIOR LEGISLATIVE HISTORY: A10045 of 1992; A3572 of 1996; A5161 of 2004;
A8627 of 2006; A5691 of 2008; A3650 of 2009

FISCAL  IMPLICATIONS  FOR STATE AND LOCAL GOVERNMENTS:  Up to $5 million
in state tax credits.

EFFECTIVE DATE: One hundred twenty (120) days after enactment into law.

2009-A10650 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10650

                          I N  A S S E M B L Y

                             April 13, 2010
                               ___________

Introduced  by  M.  of  A.  MONTESANO  --  read once and referred to the
  Committee on Housing

AN ACT to amend the private housing finance law  and  the  tax  law,  in
  relation to granting tax credit to business firms for contributions of
  real property made to not-for-profit housing companies

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The private housing finance law is amended by adding a  new
section 1134 to read as follows:
  S  1134. AFFORDABLE HOUSING ASSISTANCE PROGRAM. 1. (A) AS USED IN THIS
SECTION, THE TERM "BUSINESS FIRM" SHALL MEAN ANY BUSINESS ENTITY AUTHOR-
IZED TO DO BUSINESS IN THE STATE OF NEW YORK AND WHICH IS SUBJECT TO THE
CORPORATION FRANCHISE TAX IMPOSED UNDER ARTICLE NINE-A OF THE  TAX  LAW,
OR  ANY  BANKING CORPORATION WHICH IS SUBJECT TO THE FRANCHISE TAX UNDER
ARTICLE THIRTY-TWO OF THE TAX LAW, OR ANY INSURANCE CORPORATION WHICH IS
SUBJECT TO THE FRANCHISE TAX UNDER ARTICLE THIRTY-THREE OF THE TAX LAW.
  (B) AS USED IN THIS SECTION, THE TERM "LOW AND MODERATE INCOME PERSONS
OR FAMILIES" SHALL MEAN THOSE PERSONS OR FAMILIES FOR WHOM THERE ARE  NO
OTHER REASONABLE AND AFFORDABLE HOMEOWNERSHIP, RENTAL, REHABILITATION OR
HOME  IMPROVEMENT  ALTERNATIVES,  AS  THE  CASE  MAY  BE, IN THE PRIVATE
MARKET.
  2. THE COMMISSIONER OF TAXATION  AND  FINANCE  SHALL  GRANT  A  CREDIT
AGAINST  ANY TAX DUE UNDER THE PROVISIONS OF ARTICLES NINE-A, THIRTY-TWO
AND THIRTY-THREE OF THE TAX LAW IN AN AMOUNT EQUAL TO THE AMOUNT  SPECI-
FIED  BY  THE  COMMISSIONER  OF HOUSING AND COMMUNITY RENEWAL IN ANY TAX
CREDIT VOUCHER ISSUED BY SUCH  COMMISSIONER  OF  HOUSING  AND  COMMUNITY
RENEWAL PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
  3. THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH A
SYSTEM OF TAX CREDIT VOUCHERS FOR BUSINESS FIRMS MAKING CONTRIBUTIONS OF
REAL  PROPERTY  TO ANY NOT-FOR-PROFIT NEIGHBORHOOD PRESERVATION COMPANY,
RURAL PRESERVATION COMPANY, OR HOUSING  DEVELOPMENT  FUND  COMPANY  THAT
DEVELOPS, SPONSORS OR MANAGES ANY HOUSING PROJECT OR PROGRAM WHICH BENE-
FITS  LOW  AND MODERATE INCOME PERSONS OR FAMILIES. SUCH VOUCHERS MAY BE
USED AS A CREDIT AGAINST ANY OF THE TAXES TO WHICH SUCH BUSINESS FIRM IS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD01601-01-9

A. 10650                            2

SUBJECT AND WHICH ARE ENUMERATED IN SUBDIVISION TWO OF THIS SECTION. THE
AMOUNT OF THE TAX CREDIT VOUCHER SHALL EQUAL ONE-HALF THE AMOUNT OF  THE
FAIR MARKET VALUE OF THE REAL PROPERTY.
  4.  NOTHING  IN THIS SECTION SHALL BE CONSTRUED TO PREVENT TWO OR MORE
BUSINESS FIRMS FROM PARTICIPATING JOINTLY IN ONE OR MORE PROGRAMS  UNDER
THE PROVISIONS OF THIS SECTION.
  5.  THE  SUM  OF ALL TAX CREDITS GRANTED PURSUANT TO THE PROVISIONS OF
THIS SECTION SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS ANNUAL-
LY PER BUSINESS FIRM.
  6. NO TAX CREDIT SHALL BE GRANTED TO ANY BANK, BANK AND TRUST COMPANY,
INSURANCE COMPANY, TRUST COMPANY, NATIONAL BANK, SAVINGS ASSOCIATION, OR
BUILDING AND LOAN ASSOCIATION OR ANY OTHER BUSINESS  ENTITY  FOR  ACTIV-
ITIES THAT ARE A PART OF ITS ORDINARY COURSE OF BUSINESS.
  7. ANY TAX CREDIT NOT USED DURING THE PERIOD WITHIN WHICH THE CONTRIB-
UTION  WAS  MADE  MAY BE CARRIED FORWARD OR BACKWARD FOR THE FIVE, IMME-
DIATELY SUCCEEDING OR PRECEDING, CALENDAR OR FISCAL YEARS UNTIL THE FULL
CREDIT HAS BEEN ALLOWED.
  8. IN NO EVENT SHALL THE TOTAL AMOUNT OF THE TAX  CREDITS  ALLOWED  TO
BUSINESS  FIRMS, PURSUANT TO THE PROVISIONS OF THIS SECTION, EXCEED FIVE
MILLION DOLLARS IN ANY ONE FISCAL YEAR.
  9. NO NEIGHBORHOOD PRESERVATION COMPANY, RURAL  PRESERVATION  COMPANY,
OR  HOUSING  DEVELOPMENT  FUND  COMPANY, CONDUCTING A HOUSING PROGRAM OR
PROJECT ELIGIBLE FOR FUNDING, WITH RESPECT TO WHICH TAX CREDITS  MAY  BE
ALLOWED  UNDER  THIS  SECTION, SHALL BE ALLOWED TO RECEIVE REAL PROPERTY
WITH AN AGGREGATE VALUE IN EXCESS OF FIVE HUNDRED THOUSAND  DOLLARS  FOR
ANY FISCAL YEAR.
  10.  NOTHING  IN THIS SECTION SHALL BE CONSTRUED TO PREVENT A BUSINESS
FIRM FROM MAKING ANY CONTRIBUTION TO A HOUSING  PROGRAM  OR  PROJECT  TO
WHICH  TAX  CREDITS MAY BE APPLIED, WHICH CONTRIBUTION MAY RESULT IN THE
BUSINESS FIRM HAVING  A  LIMITED  EQUITY  INTEREST  IN  THE  PROGRAM  OR
PROJECT.
  11.  THE  COMMISSIONER  OF  HOUSING  AND  COMMUNITY  RENEWAL, WITH THE
APPROVAL OF THE COMMISSIONER OF TAXATION AND FINANCE, SHALL ADOPT  REGU-
LATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) CREDIT  FOR  CONTRIBUTIONS  OF  REAL  PROPERTY  MADE  TO  CERTAIN
NOT-FOR-PROFIT  HOUSING  COMPANIES. A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY ARTICLES NINE-A, THIRTY-TWO AND  THIRTY-THREE
OF  THIS  CHAPTER  PURSUANT  TO THE PROVISIONS OF SECTION ELEVEN HUNDRED
THIRTY-FOUR OF THE PRIVATE HOUSING FINANCE LAW.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

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Assembly Bill A10650

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Sponsored By

MONTESANO

Archive: Last Bill Status - In Assembly Committee

co-Sponsors

William A. Barclay

Andrew Raia

Joseph Saladino