NY State Assembly Bill 2009-A9023

Assembly Bill A9023

Signed By Governor

2009-2010 Legislative Session

Provides a tax credit for rehabilitation of historic properties; repeals section 5 of chapter 547 of the laws of 2006

download bill text pdf

Archive: Last Bill Status - Signed by Governor

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 28, 2009	signed chap.239
Jul 22, 2009	delivered to governor
Jul 16, 2009	returned to assembly passed senate 3rd reading cal.940 substituted for s6056
Jun 22, 2009	referred to rules delivered to senate passed assembly ordered to third reading rules cal.627 rules report cal.627 reported reported referred to rules
Jun 19, 2009	referred to ways and means

Votes

- Jul 16, 2009 - Floor Vote
  A9023
  
  57
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  5
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 16, 2009
      
      aye (57)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (5)
      
      Diaz
      
      Foley
      
      Johnson
      
      Kruger
      
      Squadron

2009-A9023 (ACTIVE) - Details

See Senate Version of this Bill:: S6056
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 210, Tax L; rpld §5, Chap 547 of 2006

2009-A9023 (ACTIVE) - Summary

Provides a tax credit for rehabilitation of historic properties; repeals section 5 of chapter 547 of the laws of 2006, amending the tax law and the parks, recreation and historic preservation law, relating to establishing a credit against income tax for the rehabilitation of historic properties relating to repealing certain administrative requirements relating thereto.

2009-A9023 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A9023

TITLE OF BILL:  An act to amend the tax law, in relation to providing a
tax credit for rehabilitation of historic properties; to repeal section
5 of chapter 547 of the laws of 2006 amending the tax law and the parks,
recreation and historic preservation law, relating to establishing a
credit against income tax for the rehabilitation of historic properties,
in relation to repealing certain administrative requirements relating
thereto; and providing for the repeal of such provisions upon expiration
thereof

PURPOSE: The purpose of this legislation is to create an economic stimu-
lus program in distressed communities by leveraging the state's existing
inventory of vacant, underutilized, and deteriorating historic build-
ings. This economic stimulus will be accomplished by improving the NYS
Rehabilitation Tax Credit programs while limiting program costs and
providing cost certainty to New York State.

SUMMARY OF PROVISIONS: This legislation amends section 606 of the tax
law by adding two new sections (oo) and (pp).

These changes limit the availability of the commercial credit to
distressed areas, increase the percent of qualified rehabilitation costs
that can be claimed for the credit, and increase the cap on credit
value. Proposed changes also limit revenue impacts to New York State by
pushing back the date of program implementation and terminating the

program after five years availability.

The commercial program is limited to qualified buildings located in
distressed areas, defined as located within a census tract which is
identified at or below one hundred percent median family income. The
bill increases the rate of credit for these commercial properties from 6
percent to 20 percent, which allows for a higher percentage of qualified
rehabilitation costs to be eligible for the program, and increases the
credits available for these projects from $100,000 to $5 million.

The cap on the residential credit value is increased from $25,000 to
$50,000. Additionally, the rehabilitation tax credit is also to be
offered as a rebate to make the program a stronger financial incentive
for home-owners without significant income tax liability.  The defi-
nition of "distressed areas" is changed to include those residential
structures located within a census tract which is identified at or below
one hundred percent of the state median family income in the most recent
federal census. This change would allow a greater number of munici-
palities and neighborhoods to make use of the residential rehabilitation
program.

JUSTIFICATION: In 2006, New York State became the 28th state in the
nation to enact a tax incentive (Chapter 547 of the laws of 2006) to
encourage the rehabilitation of historic commercial and residential
properties. While the Legislature's establishment of this program was
welcomed, enhancements are required to assure that this program will

match the notable economic stimulus impacts and community redevelopment
successes achieved by effective programs in other states. These changes
target reinvestment in distressed census tracts and incorporate program
features designed to curtail program costs and provide cost certainty to
New York State. These changes also provide the New York State program
with a level of incentive and flexibility to rehabilitate a significant
number of properties above and beyond those that will be funded by use
of the current state program. Distressed Upstate municipalities will be
a particular beneficiary of the program.

FISCAL IMPLICATIONS: No impact in SFY 2009-10;

LEGISLATIVE HISTORY: 2007-2008: A.3000/S.5425

EFFECTIVE DATE: This act shall take effect immediately and shall apply
to taxable years beginning on and after January 1, 2010. Scheduled to
sunset December 31, 2014, with projects commenced in 2014 eligible for
the credit upon completion.

2009-A9023 (ACTIVE) - Bill Text download pdf

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

                                  9023

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 19, 2009
                               ___________

Introduced  by  M. of A. HOYT -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation to providing a tax  credit  for
  rehabilitation  of historic properties; to repeal section 5 of chapter
  547 of the laws of 2006 amending the tax law and the parks, recreation
  and historic preservation  law,  relating  to  establishing  a  credit
  against  income  tax for the rehabilitation of historic properties, in
  relation to repealing  certain  administrative  requirements  relating
  thereto;  and providing for the repeal of such provisions upon expira-
  tion thereof

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

  Section  1. Subsection (oo) of section 606 of the tax law, as added by
chapter 547 of the laws of 2006, is amended to read as follows:
  (oo) Credit for rehabilitation of historic properties. (1) For taxable
years beginning on or after January first, two thousand [seven] TEN,  [a
taxpayer]  ANY  PERSON,  FIRM,  PARTNERSHIP,  LIMITED LIABILITY COMPANY,
CORPORATION OR OTHER BUSINESS ENTITY shall be allowed a credit as  here-
inafter  provided, against the tax imposed by this article, in an amount
equal to [thirty] ONE HUNDRED percent of the amount  of  credit  allowed
the  taxpayer  for  the  same  taxable  year with respect to a certified
historic structure under subsection (c)[(3)](2) of  section  47  of  the
federal  internal  revenue  code  with  respect  to a certified historic
structure located within the state. Provided, however, the credit  shall
not exceed [one hundred thousand] FIVE MILLION dollars.
  (2)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
IN THE TAXABLE YEAR THAT  THE  QUALIFIED  REHABILITATION  IS  PLACED  IN
SERVICE UNDER SECTION 167 OF THE FEDERAL INTERNAL REVENUE CODE.
  (3)  If the credit allowed the taxpayer pursuant to [subsection (c)(3)
of] section 47 of the internal revenue code WITH RESPECT TO A  QUALIFIED
REHABILITATION is recaptured pursuant to subsection (a) of section 50 of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09868-06-9

A. 9023                             2

the  internal  revenue  code, a portion of the credit allowed under this
subsection must be added back in the same taxable year AND IN  THE  SAME
PROPORTION  as  [such recapture equal to thirty percent times the amount
of] the federal recapture.
  [(3)]  (4) If the amount of the credit allowable under this subsection
for any taxable year shall exceed the taxpayer's tax for such year,  the
excess  may  be  carried over to the following year or years, and may be
[deducted from] APPLIED AGAINST the taxpayer's  tax  for  such  year  or
years.
  (5)  TO BE ELIGIBLE FOR THE CREDIT ALLOWABLE UNDER THIS SUBSECTION THE
REHABILITATION PROJECT SHALL BE IN WHOLE OR  IN  PART  A  TARGETED  AREA
RESIDENCE  WITHIN  THE MEANING OF SECTION 143(J) OF THE INTERNAL REVENUE
CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE  MOST
RECENT FEDERAL CENSUS.
  S  2.  Subparagraphs  (A)  and  (B)  of paragraph 2 and clause (iv) of
subparagraph (A) of paragraph 5 of subsection (pp) of section 606 of the
tax law, as added by chapter 547 of the laws of  2006,  are  amended  to
read as follows:
  (A) With respect to any particular residence of a taxpayer, the credit
allowed  under  paragraph one of this subsection shall not exceed [twen-
ty-five] FIFTY thousand dollars. In the case of a husband and wife,  the
amount  of  the  credit shall be divided between them equally or in such
other manner as they may both elect.  If  a  taxpayer  incurs  qualified
rehabilitation  expenditures  in  relation to more than one residence in
the same year, the total amount of credit allowed under paragraph one of
this subsection for all such expenditures shall not  exceed  twenty-five
thousand dollars.
  (B)  If  the  amount  of  credit allowable under this subsection shall
exceed the taxpayer's tax for such year, AND  THE  TAXPAYER'S  NEW  YORK
ADJUSTED  GROSS  INCOME  FOR  SUCH  YEAR  DOES NOT EXCEED SIXTY THOUSAND
DOLLARS, the excess SHALL BE TREATED AS AN  OVERPAYMENT  OF  TAX  TO  BE
CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
SHALL  BE PAID THEREON. IF THE TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME
FOR SUCH YEAR EXCEEDS SIXTY THOUSAND DOLLARS, THE EXCESS CREDIT THAT may
be carried over to the following year or years and may be deducted  from
the taxpayer's tax for such year or years.
  (iv) which is in whole or in part a targeted area residence within the
meaning  of  section  143(j)  of  the internal revenue code [and located
within an area of a city, town or village whose governing body has iden-
tified by resolution that such area is  in  need  of  community  renewal
because  of  deteriorated and/or vacant buildings and, by local law, has
adopted  a  historic  preservation  and  community  renewal  program  to
preserve and/or revitalize such area. A historic preservation and commu-
nity  renewal  program  is  a  program  that  coordinates all applicable
governmental benefits and programs with the aims  of  preserving  and/or
revitalizing  neighborhoods,  encouraging  property  owners  to complete
substantial rehabilitation projects and promoting smart growth  economic
development.  Such  local  laws shall be filed with the office of parks,
recreation and historic preservation. The office  of  parks,  recreation
and  historic  preservation shall assist local governments in developing
historic preservation and community  renewal  programs]  OR  IS  LOCATED
WITHIN  A  CENSUS  TRACT  WHICH  IS  IDENTIFIED AS BEING AT OR BELOW ONE
HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME  IN  THE  MOST  RECENT
FEDERAL CENSUS.

A. 9023                             3

  S 3. Subdivision 40 of section 210 of the tax law, as added by chapter
547 of the laws of 2006, is amended to read as follows:
  40.  Credit for rehabilitation of historic properties. (1) For taxable
years beginning on or after January first, two thousand [seven] TEN,  [a
taxpayer]  ANY  PERSON,  FIRM,  PARTNERSHIP,  LIMITED LIABILITY COMPANY,
CORPORATION OR OTHER BUSINESS ENTITY shall be allowed a credit as  here-
inafter  provided, against the tax imposed by this article, in an amount
equal to [thirty] ONE HUNDRED percent of the amount  of  credit  allowed
the  taxpayer  for  the  same  taxable  year with respect to a certified
historic structure under subsection (c)[(3)](2) of  section  47  of  the
federal  internal  revenue  code  with  respect  to a certified historic
structure located within the state. Provided, however, the credit  shall
not exceed [one hundred thousand] FIVE MILLION dollars.
  (2)  TAX CREDITS ALLOWED PURSUANT TO THIS SUBDIVISION SHALL BE ALLOWED
IN THE TAXABLE YEAR THAT  THE  QUALIFIED  REHABILITATION  IS  PLACED  IN
SERVICE UNDER SECTION 167 OF THE FEDERAL INTERNAL REVENUE CODE.
  (3)  If the credit allowed the taxpayer pursuant to [subsection (c)(3)
of] section 47 of the internal revenue code WITH RESPECT TO A  QUALIFIED
REHABILITATION is recaptured pursuant to subsection (a) of section 50 of
the  internal  revenue  code, a portion of the credit allowed under this
subsection must be added back in the same taxable year AND IN  THE  SAME
PROPORTION  as [such recapture equal to thirty percent times] such cred-
it.
  [(3)] (4) If the amount of the credit allowable under this subdivision
for any taxable year shall exceed the taxpayer's tax for such year,  the
excess  may  be  carried over to the following year or years, and may be
[deducted from] APPLIED FROM the taxpayer's tax for such year or years.
  S 4. Section 5 of chapter 547 of the laws of 2006,  amending  the  tax
law and the parks, recreation and historic preservation law, relating to
establishing  a  credit  against  income  tax  for the rehabilitation of
historic properties is REPEALED.
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2010 and  shall  expire  and  be
deemed  repealed  December  31, 2014; provided, however, that the credit
shall be applied to any rehabilitation project commenced  on  or  before
the date on which that act shall be deemed repealed.

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