S T A T E O F N E W Y O R K
________________________________________________________________________
7648--A
I N S E N A T E
February 2, 2018
___________
Introduced by Sens. VALESKY, KENNEDY, O'MARA, YOUNG -- read twice and
ordered printed, and when printed to be committed to the Committee on
Investigations and Government Operations -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the tax law and the parks, recreation and historic pres-
ervation law, in relation to the tax credit for rehabilitation of
historic properties
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 amended
by chapter 239 of the laws of 2009, paragraph 1 as amended by chapter
472 of the laws of 2010, subparagraph (A) of paragraph 1 and paragraphs
3 and 5 as amended by section 1 of part RR of chapter 59 of the laws of
2018, paragraph 4 as amended by section 1 of part F of chapter 59 of the
laws of 2013, is amended to read as follows:
(oo) Credit for rehabilitation of historic properties. (1) (A) For
taxable years beginning on or after January first, two thousand ten and
before January first, two thousand twenty-five, a taxpayer shall be
allowed a credit as hereinafter provided, against the tax imposed by
this article, in an amount equal to [one hundred percent of the amount
of credit allowed the taxpayer with respect to a certified historic
structure under internal revenue code section 47(c)(3), determined with-
out regard to ratably allocating the credit over a five year period as
required by subsection (a) of such section 47,] TWENTY PERCENT OF THE
QUALIFIED REHABILITATION EXPENDITURES with respect to a certified
historic structure located within the state. Provided, however, the
credit shall not exceed five million dollars. For taxable years begin-
ning on or after January first, two thousand twenty-five, a taxpayer
shall be allowed a credit as hereinafter provided, against the tax
imposed by this article, in an amount equal to thirty percent of [the
amount of credit allowed the taxpayer with respect to a certified
historic structure under internal revenue code section 47(c)(3), deter-
mined without regard to ratably allocating the credit over a five year
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14636-03-8
S. 7648--A 2
period as required by subsection (a) of such section 47,] QUALIFIED
REHABILITATION EXPENDITURES with respect to a certified historic struc-
ture located within the state; provided, however, the credit shall not
exceed one hundred thousand dollars. FOR PURPOSES OF THIS SUBSECTION THE
TERM "QUALIFIED REHABILITATION EXPENDITURE" MEANS ANY AMOUNT PROPERLY
CHARGEABLE TO CAPITAL ACCOUNT IN CONNECTION WITH THE CERTIFIED REHABILI-
TATION OF A QUALIFIED HISTORIC STRUCTURE, AND FOR PROPERTY FOR WHICH
DEPRECIATION WOULD BE ALLOWABLE UNDER SECTION 168 OF THE INTERNAL REVEN-
UE CODE AND WHICH IS (I) NONRESIDENTIAL REAL PROPERTY, (II) RESIDENTIAL
RENTAL PROPERTY, OR (III) AN ADDITION OR IMPROVEMENT TO NONRESIDENTIAL
REAL PROPERTY OR RESIDENTIAL RENTAL PROPERTY.
(B) If the taxpayer is a partner in a partnership or a shareholder of
a New York S corporation, then the credit cap imposed in subparagraph
(A) of this paragraph shall be applied at the entity level, so that the
aggregate credit allowed to all the partners or shareholders of each
such entity in the taxable year does not exceed the credit cap that is
applicable in that taxable year.
(2) (A) 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] IN
WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH.
(B) FOR PURPOSES OF THIS SUBSECTION THE TERM "CERTIFIED REHABILI-
TATION" MEANS ANY REHABILITATION OF A CERTIFIED HISTORIC STRUCTURE WHICH
HAS BEEN APPROVED AND CERTIFIED AS BEING CONSISTENT WITH THE STANDARDS
ESTABLISHED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRES-
ERVATION FOR REHABILITATION BY THE OFFICE OF PARKS, RECREATION AND
HISTORIC PRESERVATION, A LOCAL GOVERNMENT CERTIFIED PURSUANT TO SECTION
101(C)(1) OF THE NATIONAL HISTORIC PRESERVATION ACT OR A LOCAL LANDMARK
COMMISSION ESTABLISHED PURSUANT TO SECTION NINETY-SIX-A, AS ADDED BY
CHAPTER FIVE HUNDRED THIRTEEN OF THE LAWS OF NINETEEN HUNDRED SIXTY-
EIGHT, OR ONE HUNDRED NINETEEN-DD OF THE GENERAL MUNICIPAL LAW.
(C) A CERTIFIED REHABILITATION SHALL REQUIRE:
(I) AN INITIAL CERTIFICATION THAT THE STRUCTURE MEETS THE DEFINITION
OF THE TERM "CERTIFIED HISTORIC STRUCTURE";
(II) A SECOND CERTIFICATION, TO BE ISSUED PRIOR TO CONSTRUCTION,
CERTIFYING THAT THE PROPOSED REHABILITATION WORK IS CONSISTENT WITH
STANDARDS ESTABLISHED BY THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION FOR REHABILITATION; AND
(III) A FINAL CERTIFICATION ISSUED WHEN CONSTRUCTION IS COMPLETED,
CERTIFYING THAT THE WORK WAS COMPLETED AS PROPOSED AND THAT THE COSTS
ARE CONSISTENT WITH THE WORK COMPLETED. SUCH FINAL CERTIFICATION SHALL
BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO SUCH
CONSTRUCTION QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR
PURPOSES OF THE CREDIT ALLOWED UNDER EITHER SUBPARAGRAPH (A) OR (B) OF
PARAGRAPH ONE OF THIS SUBSECTION.
(D) FOR PURPOSES OF THIS SUBSECTION THE TERM "QUALIFIED HISTORIC
STRUCTURE" MEANS A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN NEW YORK
STATE WHICH HAS BEEN SUBSTANTIALLY REHABILITATED. A CERTIFIED HISTORIC
STRUCTURE SHALL BE CONSIDERED SUBSTANTIALLY REHABILITATED IF THE QUALI-
FIED REHABILITATION EXPENDITURES IN RELATION TO SUCH STRUCTURE TOTAL
FIVE THOUSAND DOLLARS OR MORE.
(E) FOR PURPOSES OF THIS SUBSECTION THE TERM "CERTIFIED HISTORIC
STRUCTURE" MEANS ANY BUILDING AND ITS STRUCTURAL COMPONENTS WHICH:
(I) IS LISTED IN THE STATE OR NATIONAL REGISTER OF HISTORIC PLACES, OR
S. 7648--A 3
(II) IS LOCATED IN A STATE OR NATIONAL REGISTERED HISTORIC DISTRICT
AND IS CERTIFIED AS BEING OF HISTORIC SIGNIFICANCE IN THE DISTRICT.
(3) [If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subsection and that cred-
it pursuant to such section 47 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 the federal recapture.] (A) IF,
BEFORE THE END OF THE TWO-YEAR PERIOD BEGINNING ON THE DATE OF THE FINAL
CERTIFICATION REFERRED TO IN SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS
SUBSECTION, THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN A
CERTIFIED HISTORIC STRUCTURE, OR SUCH CERTIFIED HISTORIC STRUCTURE
OTHERWISE CEASES TO BE ELIGIBLE FOR THE CREDIT ALLOWED UNDER THIS
SUBSECTION, THE TAXPAYER'S TAX IMPOSED BY THIS ARTICLE FOR THE TAXABLE
YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL BE INCREASED BY THE RECAP-
TURE PORTION OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR
TAXABLE YEARS WITH RESPECT TO SUCH REHABILITATION.
(B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE
TAXPAYER OR TRANSFEREE MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH
IS EQUAL TO TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION
OR CESSATION OF THE STRUCTURE OCCURRED. ONLY THE TAXPAYER THAT INITIALLY
RECEIVED THE CREDIT, AND NO SUBSEQUENT GOOD FAITH TRANSFEREE, SHALL BE
RESPONSIBLE IN THE EVENT OF A RECAPTURE, REDUCTION, DISALLOWANCE, OR
OTHER FAILURE RELATED TO SUCH CREDIT.
(4) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, 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.
(5) To be eligible for the credit allowable under this subsection the
rehabilitation project shall be in whole or in part located within a
census tract which is identified as being at or below one hundred
percent of the state median family income as calculated as of April
first of each year using the most recent five year estimate from the
American community survey published by the United States Census bureau.
If there is a change in the most recent five year estimate, a census
tract that qualified for eligibility under this [program] SUBSECTION
before information about the change was released [will] SHALL remain
eligible for a credit under this subsection for an additional [two
calendar years] EIGHTEEN MONTHS.
(6) NOTHING CONTAINED IN THIS SUBSECTION SHALL BE CONSTRUED TO IMPOSE
A DUTY ON A LOCAL LANDMARK COMMISSION ESTABLISHED PURSUANT TO SECTION
NINETY-SIX-A, AS ADDED BY CHAPTER FIVE HUNDRED THIRTEEN OF THE LAWS OF
NINETEEN HUNDRED SIXTY-EIGHT, OR ONE HUNDRED NINETEEN-DD OF THE GENERAL
MUNICIPAL LAW OR A LOCAL GOVERNMENT CERTIFIED PURSUANT TO SECTION
101(C)(1) OF THE NATIONAL HISTORIC PRESERVATION ACT TO UNDERTAKE ANY
REVIEW OR APPROVAL OF AN APPLICATION FOR THE CERTIFICATION OF THE REHA-
BILITATION OF HISTORIC STRUCTURES AND OF REHABILITATION EXPENDITURES
PROVIDED FOR IN THIS SUBSECTION.
(7)(A)(I) ANY TAXPAYER, ELIGIBLE FOR THE CREDIT ALLOWED PURSUANT TO
THIS SUBSECTION MAY TRANSFER SUCH CREDIT, IN WHOLE OR IN PART, TO ANY
INDIVIDUAL OR ENTITY, WITHOUT THE REQUIREMENT OF TRANSFERRING ANY OWNER-
SHIP INTEREST IN THE CERTIFIED HISTORIC STRUCTURE OR ANY INTEREST IN THE
ENTITY WHICH OWNS THE CERTIFIED HISTORIC STRUCTURE. TRANSFEREES ARE
S. 7648--A 4
ENTITLED TO APPLY THE CREDITS AGAINST THE TAX WITH THE SAME EFFECT AS IF
THE TRANSFEREE HAD INCURRED THE QUALIFIED REHABILITATION EXPENDITURES.
SUCH CREDIT MAY BE TRANSFERRED ONLY ON OR AFTER THE FINAL CERTIFICATION
STEP OF THE CERTIFIED REHABILITATION IS COMPLETED AS PROVIDED IN SUBPAR-
AGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION.
(II) A TRANSFEREE SHALL USE SUCH CREDIT IN THE YEAR IT IS TRANSFERRED.
A TRANSFEREE MAY SUBSEQUENTLY TRANSFER SUCH CREDIT, HOWEVER, IN NO CASE,
MAY A CREDIT BE TRANSFERRED MORE THAN ONE TIME AFTER THE INITIAL TRANS-
FER. A SECONDARY TRANSFEREE SHALL USE SUCH CREDIT IN THE YEAR IT IS
TRANSFERRED TO THE SECONDARY TRANSFEREE. IF THE CREDIT ALLOWABLE FOR ANY
TAX YEAR EXCEEDS THE TRANSFEREE'S TAX LIABILITY FOR THAT YEAR, THE
TRANSFEREE MAY CARRY FORWARD AND APPLY IN A SUBSEQUENT TAXABLE YEAR, THE
PORTION, AS REDUCED FROM YEAR TO YEAR, OF THE CREDIT WHICH EXCEEDS SUCH
TAX FOR THE TAXABLE YEAR; PROVIDED, HOWEVER, THAT THE CARRYOVER PERIOD
CANNOT EXCEED FIVE TAXABLE YEARS AFTER THE CLOSE OF THE TAXABLE YEAR IN
WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS
SUBSECTION.
(III) THE PROVISIONS OF PARAGRAPH THREE OF THIS SUBSECTION RELATING TO
THE RECAPTURE OF THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION SHALL
NOT APPLY TO THE TRANSFER OF SUCH CREDIT AS PROVIDED FOR IN THIS PARA-
GRAPH.
(B) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION,
IN CONSULTATION WITH THE DEPARTMENT, SHALL PROMULGATE A FORM OF TRANSFER
STATEMENT TO BE FILED BY THE TRANSFEROR OF THE CREDIT ALLOWED PURSUANT
TO THIS SUBSECTION. THE TRANSFER STATEMENT SHALL BE IN ADDITION TO THE
TRANSFER CONTRACT PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH. TRANS-
FER STATEMENT FORMS MAY BE OBTAINED FROM THE COMMISSIONER. THE TRANSFE-
ROR SHALL FILE A TRANSFER STATEMENT AND A COPY OF THE PROPOSED TRANSFER
CONTRACT WITH THE DEPARTMENT PRIOR TO THE TRANSFER AND SHALL FURTHER
FILE WITH THE DEPARTMENT THE EXECUTED TRANSFER CONTRACT WITHIN THIRTY
DAYS AFTER THE COMPLETED TRANSFER. THE TRANSFER STATEMENT SHALL PROVIDE
THE NAME AND FEDERAL TAXPAYER IDENTIFICATION NUMBER OF EACH TRANSFEROR
AND TRANSFEREE. FURTHER, SUCH STATEMENT SHALL INDICATE THE AMOUNT OF THE
CREDIT TRANSFERRED TO EACH TRANSFEREE. THE STATEMENT SHALL ALSO CONTAIN
SUCH OTHER INFORMATION AS THE DEPARTMENT OR THE COMMISSION MAY FROM TIME
TO TIME REQUIRE.
(C) ANY TAXPAYER TRANSFERRING HIS OR HER CREDIT ALLOWED PURSUANT TO
THIS SUBSECTION SHALL ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFER-
EE. THE TRANSFER CONTRACT SHALL SPECIFY THE FOLLOWING:
(I) A DESCRIPTION AND ADDRESS FOR THE CERTIFIED HISTORIC STRUCTURE OR
STRUCTURES WHICH QUALIFIED THE TAXPAYER FOR SUCH CREDIT;
(II) THE DATE IN WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED
REHABILITATION IS COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF PARAGRAPH
TWO OF THIS SUBSECTION;
(III) THE SCHEDULE OF YEARS DURING WHICH THE CREDIT MAY BE TAKEN AND
THE AMOUNT OF CREDIT PREVIOUSLY TAKEN FOR THE CERTIFIED HISTORIC STRUC-
TURE INCLUDING ALL PREVIOUS TRANSFEREES; AND
(IV) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(D) ANY TAXPAYER WHO IS A TRANSFEREE OF THE CREDIT ALLOWED PURSUANT TO
THIS SUBSECTION MAY, PROVIDED ALL TRANSFER AND OTHER REQUIREMENTS OR
LIMITATIONS ARE MET, APPLY SUCH CREDIT TO THE TAX IMPOSED UNDER THIS
ARTICLE.
§ 2. Subdivision 26 of section 210-B of the tax law, as added by
section 17 of part A of chapter 59 of the laws of 2014, paragraphs (a),
S. 7648--A 5
(c) and (e) as amended by section 2 of part RR of chapter 59 of the laws
of 2018, is amended to read as follows:
26. Credit for rehabilitation of historic properties. (a) Application
of credit. (i) For taxable years beginning on or after January first,
two thousand ten, and before January first, two thousand twenty-five, a
taxpayer shall be allowed a credit as hereinafter provided, against the
tax imposed by this article, in an amount equal to [one hundred percent
of the amount of credit allowed the taxpayer for the same taxable year
with respect to a certified historic structure under internal revenue
code section 47(c)(3), determined without regard to ratably allocating
the credit over a five year period as required by subsection (a) of such
section 47,] TWENTY PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES
with respect to a certified historic structure located within the state.
Provided, however, the credit shall not exceed five million dollars.
(ii) For taxable years beginning on or after January first, two thou-
sand twenty-five, a taxpayer shall be allowed a credit as hereinafter
provided, against the tax imposed by this article, in an amount equal to
thirty percent of the [amount of credit allowed the taxpayer for the
same taxable year determined without regard to ratably allocating the
credit over a five year period as required by subsection (a) of section
47 of the internal revenue code,] QUALIFIED REHABILITATION EXPENDITURES
with respect to a certified historic structure under subsection (c)(3)
of section 47 of the internal revenue code with respect to a certified
historic structure located within the state. Provided, however, the
credit shall not exceed one hundred thousand dollars.
[(B)] (B) If the taxpayer is a partner in a partnership or a share-
holder in a New York S corporation, then the credit caps imposed in
[subparagraph (A)] PARAGRAPH (A) of this [paragraph] SUBDIVISION shall
be applied at the entity level, so that the aggregate credit allowed to
all the partners or shareholders of each such entity in the taxable year
does not exceed the credit cap that is applicable in that taxable year.
[(b)] (C) 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] IN
WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
COMPLETED PURSUANT TO SUBPARAGRAPH (C) OF PARAGRAPH TWO OF SUBSECTION
(OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
[(c) If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subdivision and that
credit pursuant to such section 47 is recaptured pursuant to subsection
(a) of section 50 of the internal revenue code, a portion of the credit
allowed under this subdivision must be added back in the same taxable
year and in the same proportion as the federal credit] (D)(I) IF, BEFORE
THE END OF THE TWO-YEAR PERIOD BEGINNING ON THE DATE OF THE FINAL
CERTIFICATION REFERRED TO IN PARAGRAPH (B) OF THIS SUBDIVISION, THE
TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED STRUCTURE,
OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGIBLE FOR
THE CREDIT ALLOWED UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED BY
THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL
BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED UNDER THIS
PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH REHABILI-
TATION.
(II) FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE RECAPTURE
PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE
TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO
S. 7648--A 6
TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA-
TION OF THE STRUCTURE OCCURRED.
[(d)] (E) The credit allowed under this subdivision for any taxable
year shall not reduce the tax due for such year to less than the amount
prescribed in paragraph (d) of subdivision one of section two hundred
ten of this article. However, if the amount of the credit allowed under
this subdivision for any taxable year reduces the tax to such amount or
if the taxpayer otherwise pays tax based on the fixed dollar minimum
amount, any amount of credit thus not deductible in such taxable year
shall be treated as an overpayment of tax to be recredited or refunded
in accordance with the provisions of section one thousand eighty-six of
this chapter. Provided, however, the provisions of subsection (c) of
section one thousand eighty-eight of this chapter notwithstanding, no
interest shall be paid thereon.
[(e)] (F) To be eligible for the credit allowable under this subdivi-
sion, the rehabilitation project shall be in whole or in part located
within a census tract which is identified as being at or below one
hundred percent of the state median family income as calculated as of
April first of each year using the most recent five year estimate from
the American community survey published by the United States Census
bureau. If there is a change in the most recent five year estimate, a
census tract that qualified for eligibility under this program before
information about the change was released will remain eligible for a
credit under this subdivision for an additional two calendar years.
§ 3. Paragraphs 1, 2 and 3 of subdivision (y) of section 1511 of the
tax law, as added by chapter 472 of the laws of 2010, subparagraph (A)
of paragraph 1 and paragraph 3 as amended by section 3 of part RR of
chapter 59 of the laws of 2018, are amended to read as follows:
(1) (A) For taxable years beginning on or after January first, two
thousand ten and before January first, two thousand twenty-five, a
taxpayer shall be allowed a credit as hereinafter provided, against the
tax imposed by this article, in an amount equal to [one hundred percent
of the amount of credit allowed the taxpayer with respect to a certified
historic structure under internal revenue code section 47(c)(3), deter-
mined without regard to ratably allocating the credit over a five year
period as required by subsection (a) of such section 47,] TWENTY PERCENT
OF THE QUALIFIED REHABILITATION EXPENDITURES with respect to a certified
historic structure located within the state. Provided, however, the
credit shall not exceed five million dollars. For taxable years begin-
ning on or after January first, two thousand twenty-five, a taxpayer
shall be allowed a credit as hereinafter provided, against the tax
imposed by this article, in an amount equal to thirty percent of the
[amount of credit allowed the taxpayer with respect to a certified
historic structure under internal revenue code section 47(c)(3), deter-
mined without regard to ratably allocating the credit over a five year
period as required by subsection (a) of such section 47] QUALIFIED REHA-
BILITATION EXPENDITURE with respect to a certified historic structure
located within the state. Provided, however, the credit shall not
exceed one hundred thousand dollars.
(B) If the taxpayer is a partner in a partnership, then the cap
imposed in subparagraph (A) of this paragraph shall be applied at the
entity level, so that the aggregate credit allowed to all the partners
of such partnership in the taxable year does not exceed the credit cap
that is applicable in that taxable year.
(2) Tax credits allowed pursuant to this subsection shall be allowed
in the taxable year [that the qualified rehabilitation is placed in
S. 7648--A 7
service under section 167 of the federal internal revenue code] IN WHICH
THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
COMPLETED PURSUANT TO SUBPARAGRAPH (C) OF PARAGRAPH TWO OF SUBSECTION
(OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
(3) [If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subdivision and that
credit pursuant to such section 47 is recaptured pursuant to subsection
(a) of section 50 of the internal revenue code, a portion of the credit
allowed under this subdivision in the taxable year the credit was
claimed must be added back in the same taxable year and in the same
proportion as the federal recapture.] (A) IF, BEFORE THE END OF THE
TWO-YEAR PERIOD BEGINNING ON THE DATE OF THE FINAL CERTIFICATION
REFERRED TO IN PARAGRAPH TWO OF THIS SUBDIVISION, THE TAXPAYER DISPOSES
OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED STRUCTURE, OR SUCH CERTIFIED
HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGIBLE FOR THE CREDIT
ALLOWED UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED BY THIS ARTI-
CLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL BE
INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED UNDER THIS
PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH REHABILI-
TATION.
(B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE
TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO
TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA-
TION OF THE STRUCTURE OCCURRED.
§ 4. Subdivision 6 of section 13.15 of the parks, recreation and
historic preservation law, as added by chapter 547 of the laws of 2006,
is amended to read as follows:
6. The office may establish a fee or fees for its processing and
review of applications for the certification of the rehabilitation of
historic buildings and the approval of rehabilitation expenditures and
related work pursuant to [subsection] SUBSECTIONS (OO) AND (pp) of
section six hundred six of the tax law. All revenues from these fees
shall be deposited by the comptroller in the miscellaneous special
revenue fund to be credited to the agency's patron services account and
shall be used to support the office's historic preservation program.
Nothing in this subdivision shall be construed to limit the ability of a
local landmark commission established pursuant to section ninety-six-a,
AS ADDED BY CHAPTER FIVE HUNDRED THIRTEEN OF THE LAWS OF NINETEEN
HUNDRED SIXTY-EIGHT, or one hundred nineteen-dd of the general municipal
law or a local government certified pursuant to section 101(c)(1) of the
national historic preservation act to establish and charge fees for its
processing and review of applications for the certification of the reha-
bilitation of historic buildings and the approval of rehabilitation
expenditures.
§ 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2018.