NY State Senate Bill 2017-S566A

Senate Bill S566A

2017-2018 Legislative Session

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 05, 2018	reported and committed to rules
Jan 30, 2018	reported and committed to finance
Jan 25, 2018	print number 566a
Jan 25, 2018	amend and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations returned to senate died in assembly
Jun 14, 2017	referred to housing delivered to assembly passed senate
May 15, 2017	advanced to third reading
May 10, 2017	2nd report cal.
May 09, 2017	1st report cal.877
Jan 31, 2017	reported and committed to finance
Jan 04, 2017	referred to investigations and government operations

Votes

- Jun 14, 2017 - Floor Vote
  S566A
  
  54
  
  Aye
  
  9
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 14, 2017
      
      aye (54)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Savino
      
      Serino
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (9)
      
      Alcantara
      
      Bailey
      
      Comrie
      
      Hoylman-Sigal
      
      Krueger
      
      Rivera
      
      Sanders Jr.
      
      Serrano
      
      Squadron
  Jan 30, 2018 - Investigations And Government Operations Committee Vote
  S566A
  
  6
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: Jan 30, 2018
      
      aye (6)
      
      Carlucci
      
      Golden
      
      Lanza
      
      Murphy
      
      O'Mara
      
      Phillips
      
      aye wr (3)
      
      Benjamin
      
      Hoylman-Sigal
      
      Kavanagh
  Jan 31, 2017 - Investigations And Government Operations Committee Vote
  S566A
  
  7
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: Jan 31, 2017
      
      aye (7)
      
      Carlucci
      
      Diaz
      
      Golden
      
      Lanza
      
      Murphy
      
      O'Mara
      
      Phillips
      
      aye wr (2)
      
      Hoylman-Sigal
      
      Squadron
  Jun 5, 2018 - Finance Committee Vote
  S566A
  
  28
  
  Aye
  
  6
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: Jun 5, 2018
      
      aye (28)
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Dilan
      
      Felder
      
      Gallivan
      
      Golden
      
      Griffo
      
      Hannon
      
      Kaminsky
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      O'Mara
      
      Peralta
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Savino
      
      Seward
      
      Stavisky
      
      Valesky
      
      Young
      
      nay (6)
      
      Comrie
      
      Krueger
      
      Montgomery
      
      Parker
      
      Persaud
      
      Rivera
      
      aye wr (3)
      
      Avella
      
      Bailey
      
      Benjamin
  May 9, 2017 - Finance Committee Vote
  S566A
  
  29
  
  Aye
  
  3
  
  Nay
  
  5
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: May 9, 2017
      
      aye (29)
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Diaz
      
      Dilan
      
      Felder
      
      Gallivan
      
      Golden
      
      Griffo
      
      Hannon
      
      Kaminsky
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      O'Mara
      
      Peralta
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Savino
      
      Seward
      
      Stavisky
      
      Valesky
      
      Young
      
      nay (3)
      
      Comrie
      
      Parker
      
      Rivera
      
      aye wr (5)
      
      Avella
      
      Bailey
      
      Krueger
      
      Montgomery
      
      Squadron

Bill Amendments

Original

A (Active)

2017-S566 - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §§210-B, 606 & 1511, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4758
2013-2014: S3848
2015-2016: S2277
2019-2020: S1061

2017-S566 - Summary

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

2017-S566 - Sponsor Memo

                                 BILL NUMBER:  S566

 TITLE OF BILL :

An act to amend the tax law, in relation to providing that the low
income housing credit shall be treated as an overpayment of taxes

 PURPOSE :

This bill would convert the state low income housing tax credit to a
refundable tax credit to help stimulate low income housing investment
in the state.

 SUMMARY OF PROVISIONS :

This bill would amend subdivision 30 of section 210 of the tax law to
provide that for allocations of housing tax credit made pursuant to
law after January 1, 2017, the corporate franchise low income housing
tax credit shall be treated as a refundable tax credit. Paragraph 3 of
subsection (x) of section 606 of the tax law is amended to convert the
existing low income housing tax credit to a refundable low income
housing tax credit for allocations of housing tax credit made after
taxable years beginning after January 1, 2017. Paragraph 3 of
subsection (1) of section 1456 of the tax law is amended to convert
the existing low income housing tax credit to a refundable low income
housing tax credit for allocations of credit made subsequent to

January 1, 2017. Paragraph 3 of subdivision (n) of section 1511 of the
tax law is amended to convert the low income housing tax credit to a
refundable tax credit for purposes of the Insurance Franchise Tax for
allocations of tax credit made after January 1, 2017.  Furthermore, in
order to obtain treatment as a refundable credit for these taxes, a
project must have received an eligibility statement from the
commissioner of housing and community renewal pursuant to article
two-A of the public housing law.

 JUSTIFICATION :

Tax credit programs are widely seen as the primary mechanism for
successfully producing and preserving affordable rental housing. As a
result of the recent financial crisis, state and federal tax credit
programs have been disrupted, as is the case in New York. The problem
has been further exacerbated in New York where the state tax credit is
less marketable, unlike the case in many other states.

New York's low income housing credit tax program was established in
2000 pursuant to Article 2-A of the Public Housing Law and was
designed to encourage the development of low income housing.
Refundable housing tax credits are more desirable than non-refundable
credits and would work to create a greater demand in the marketplace.
This bill would permit investors to obtain a broader class of
investors including banks, corporations, and insurance companies and
would create additional demand on the market for state tax credits.
This demand would drive up pricing among investors as pricing as
competition is increased.  This would translate into greater private
investment in affordable housing which will help drive housing
development within the state.

 LEGISLATIVE HISTORY :

2016: S.2277-A Passed Senate
2015: S.2277 Passed Senate
2014: S.3848-A Passed Senate
2013: S.3848 Passed Senate
2012: S.4758-C Passed Senate
2011: S.4768 Advanced to Third Reading

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S566 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    566
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in  relation  to  providing  that  the  low
   income housing credit shall be treated as an overpayment of taxes
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (c) of subdivision 15 of section 210-B of the tax
 law is relettered paragraph (d) and a new paragraph (c) is added to read
 as follows:
   (C) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
 SUBDIVISION  SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
 REFUNDED, PROVIDED THAT THE CREDITS: (1) HAVE AN  ELIGIBILITY  STATEMENT
 ISSUED  BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO
 ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (2) ARE AVAILABLE  PURSUANT
 TO  LAW  ENACTED AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN.  PROVIDED,
 HOWEVER, THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C)  OF
 SECTION  ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE
 PAID THEREON.
   § 2. Paragraph 3 of subsection (x) of section 606 of the  tax  law  is
 renumbered  paragraph  4  and  a  new  paragraph  3  is added to read as
 follows:
   (3) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
 SUBSECTION  SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
 REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS  ARTICLE,
 PROVIDED  THAT  THE CREDITS: (I) HAVE AN ELIGIBILITY STATEMENT ISSUED BY
 THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL  PURSUANT  TO  ARTICLE
 TWO-A  OF THE PUBLIC HOUSING LAW, AND (II) ARE AVAILABLE PURSUANT TO LAW
 ENACTED AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN.  PROVIDED, HOWEVER,
 THAT NO INTEREST SHALL BE PAID THEREON.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD05776-01-7

 S. 566                              2
 
   § 3. Paragraph 3 of subdivision (n) of section 1511 of the tax law  is
 renumbered  paragraph  4  and  a  new  paragraph  3  is added to read as
 follows:
   (3)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
 REFUNDED,  PROVIDED  THAT THE CREDITS: (A) HAVE AN ELIGIBILITY STATEMENT
 ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT  TO
 ARTICLE  TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE PURSUANT
 TO LAW ENACTED AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN.    PROVIDED,
 HOWEVER,  THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C) OF
 SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL  BE
 PAID THEREON.
   §  4.  This  act  shall take effect immediately and shall apply to tax
 years commencing on or after January 1, 2017.

2017-S566A (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §§210-B, 606 & 1511, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4758
2013-2014: S3848
2015-2016: S2277
2019-2020: S1061

2017-S566A (ACTIVE) - Summary

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

2017-S566A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S566A

SPONSOR: YOUNG
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing that the low
income housing credit shall be treated as an overpayment of taxes

 
PURPOSE:

This bill would convert the state low income housing tax credit to a
refundable tax credit to help stimulate low income housing investment in
the state.

 
SUMMARY OF PROVISIONS:

This bill would amend subdivision 30 of section 210 of the tax law to
provide that for allocations of housing tax credit made pursuant to law
after January 1, 2018, the corporate franchise low income housing tax
credit shall be treated as a refundable tax credit. Paragraph 3 of
subsection (x) of section 606 of the tax law is amended to convert the

existing low income housing tax credit to a refundable low income hous-
ing tax credit for allocations of housing tax credit made after taxable
years beginning after January 1, 2018. Paragraph 3 of subsection (1) of
section 1456 of the tax law is amended to convert the existing low
income housing tax credit to a refundable low income housing tax credit
for allocations of credit made subsequent to January 1, 2018. Paragraph
3 of subdivision (n) of section 1511 of the tax law is amended to
convert the low income housing tax credit to a refundable tax credit for
purposes of the Insurance Franchise Tax for allocations of tax credit
made after January 1, 2018.  Furthermore, in order to obtain treatment
as a refundable credit for these taxes, a project must have received an
eligibility statement from the commissioner of housing and community
renewal pursuant to article two-A of the public housing law.

 
JUSTIFICATION:

Tax credit programs are widely seen as the primary mechanism for
successfully producing and preserving affordable rental housing. As a
result of the recent financial crisis, state and federal tax credit
programs have been disrupted, as is the case in New York. The problem
has been further exacerbated in New York where the state tax credit is
less marketable, unlike the case in many other states.

New York's low income housing credit tax program was established in 2000
pursuant to Article 2-A of the Public Housing Law and was designed to
encourage the development of low income housing.  Refundable housing tax
credits are more desirable than non-refundable credits and would work to
create a greater demand in the marketplace. This bill would permit
investors to obtain a broader class of investors including banks, corpo-
rations, and insurance companies and would create additional demand on
the market for state tax credits. This demand would drive up pricing
among investors as pricing as competition is increased.  This would
translate into greater private investment in affordable housing which
will help drive housing development within the state.

 
LEGISLATIVE HISTORY:

2017: S.566 Passed Senate
2016: S.2277-A Passed Senate
2015: S.2277 Passed Senate
2014: S.3848-A Passed Senate
2013: S.3848 Passed Senate
2012: S.4758-C Passed Senate
2011: S.4768 Advanced to Third Reading

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S566A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  566--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations -- recommitted to the Committee on Investigations  and
   Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT  to  amend  the  tax  law, in relation to providing that the low
   income housing credit shall be treated as an overpayment of taxes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (c) of subdivision 15 of section 210-B of the tax
 law is relettered paragraph (d) and a new paragraph (c) is added to read
 as follows:
   (C)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
 REFUNDED,  PROVIDED  THAT THE CREDITS: (1) HAVE AN ELIGIBILITY STATEMENT
 ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT  TO
 ARTICLE  TWO-A OF THE PUBLIC HOUSING LAW, AND (2) ARE AVAILABLE PURSUANT
 TO LAW ENACTED AFTER JANUARY FIRST, TWO THOUSAND  EIGHTEEN.    PROVIDED,
 HOWEVER,  THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C) OF
 SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL  BE
 PAID THEREON.
   §  2.  Paragraph  3 of subsection (x) of section 606 of the tax law is
 renumbered paragraph 4 and a  new  paragraph  3  is  added  to  read  as
 follows:
   (3)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
 SUBSECTION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE  CREDITED  OR
 REFUNDED  AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,
 PROVIDED THAT THE CREDITS: (I) HAVE AN ELIGIBILITY STATEMENT  ISSUED  BY
 THE  COMMISSIONER  OF  HOUSING AND COMMUNITY RENEWAL PURSUANT TO ARTICLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD05776-02-8

 S. 566--A                           2
 
 TWO-A OF THE PUBLIC HOUSING LAW, AND (II) ARE AVAILABLE PURSUANT TO  LAW
 ENACTED  AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN.  PROVIDED, HOWEVER,
 THAT NO INTEREST SHALL BE PAID THEREON.
   §  3. Paragraph 3 of subdivision (n) of section 1511 of the tax law is
 renumbered paragraph 4 and a  new  paragraph  3  is  added  to  read  as
 follows:
   (3)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
 REFUNDED,  PROVIDED  THAT THE CREDITS: (A) HAVE AN ELIGIBILITY STATEMENT
 ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT  TO
 ARTICLE  TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE PURSUANT
 TO LAW ENACTED AFTER JANUARY FIRST, TWO THOUSAND  EIGHTEEN.    PROVIDED,
 HOWEVER,  THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C) OF
 SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL  BE
 PAID THEREON.
   §  4.  This  act  shall take effect immediately and shall apply to tax
 years commencing on or after January 1, 2018.

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