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

                                  3850

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2009
                               ___________

Introduced  by  M.  of  A. WALKER, BARRA, SALADINO, McDONOUGH, McKEVITT,
  RAIA, KOLB -- Multi-Sponsored by -- M. of A.  CONTE,  THIELE  --  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,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01601-01-9
              

A. 3850                             2

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
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.