NY State Senate Bill 2019-S1061

Senate Bill S1061

2019-2020 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 Finance 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
Jan 10, 2019	referred to finance

2019-S1061 (ACTIVE) - Details

Current Committee:: Senate Finance
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
2017-2018: S566

2019-S1061 (ACTIVE) - Summary

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

2019-S1061 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1061

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, 2019, 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, 2019. 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, 2019. 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, 2019.  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:

2018: S.566-A Reported and Committed to Rules
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.

2019-S1061 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1061
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2019
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 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 NINETEEN.  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 NINETEEN.  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.
                                                            LBD03738-01-9

 S. 1061                             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  NINETEEN.    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, 2019.

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