S T A T E O F N E W Y O R K
________________________________________________________________________
3645
2019-2020 Regular Sessions
I N S E N A T E
February 11, 2019
___________
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to the rehabilitation of
historic properties tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (A) of paragraph 1 of subsection (oo) of
section 606 of the tax law, as amended by section 1 of part RR of chap-
ter 59 of the laws of 2018, is amended and two new paragraphs 6 and 7
are added to read as follows:
(A) For taxable years beginning on or after January first, two thou-
sand 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, AND ONE HUNDRED TEN PERCENT OF THE AMOUNT OF CREDIT
ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE THAT
IS A SMALL PROJECT, 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, with respect to
a certified historic structure located within the state. Provided,
however, the credit shall not exceed five million dollars. For taxable
years beginning 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, with respect to
a certified historic structure located within the state; provided,
however, the credit shall not exceed one hundred thousand dollars.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09259-03-9
S. 3645 2
(6) A TAXPAYER IS PERMITTED TO TRANSFER SUCH CREDIT ALLOWED UNDER THIS
SUBSECTION, IN WHOLE OR IN PART, TO ANY INDIVIDUAL OR ENTITY, WITHOUT
THE REQUIREMENT OF TRANSFERRING ANY OWNERSHIP INTEREST IN THE CERTIFIED
HISTORIC STRUCTURE OR ANY INTEREST IN THE ENTITY WHICH OWNS THE CERTI-
FIED HISTORIC STRUCTURE; PROVIDED, HOWEVER, THAT A TAXPAYER MAY ONLY
TRANSFER SUCH CREDIT ONCE. SUCH TRANSFER SHALL NOT AFFECT THE TIME SCHE-
DULE FOR CLAIMING THE CREDIT TRANSFERRED. ANY CREDIT RECAPTURED SHALL BE
THE LIABILITY OF THE TAXPAYER WHO ACTUALLY CLAIMED THE CREDIT. THE CLAIM
OF A TRANSFEREE SHALL BE PERMITTED IN THE SAME MANNER AND SUBJECT TO THE
SAME PROVISIONS OF THIS SUBSECTION AS APPLIED TO THE TAXPAYER TO WHOM
THE CREDIT WAS ORIGINALLY ALLOWED.
(7) FOR PURPOSES OF THIS SUBSECTION THE TERM "SMALL PROJECT" MEANS
QUALIFIED REHABILITATION EXPENDITURES TOTALING FIVE MILLION DOLLARS OR
LESS.
§ 2. 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, clause (iv)
as amended by chapter 239 of the laws of 2009, is amended to read as
follows:
(A) The term "qualified historic home" means, for purposes of this
subsection, a certified historic structure located within New York
state:
(i) which has been substantially rehabilitated,
(ii) which, or any portion of which, is owned, in whole or part, by
the taxpayer,
(iii) in which the taxpayer resides during the taxable year in which
the taxpayer is allowed a credit under this subsection, and
(iv) (1) which is in whole or in part a targeted area residence within
the meaning of section 143(j) of the internal revenue code; or (2) 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; OR (3) WHICH IS LOCATED IN A CITY WITH A POPULATION OF
LESS THAN ONE MILLION WITH A POVERTY RATE GREATER THAN FIFTEEN PERCENT,
ROUNDED TO THE NEAREST WHOLE NUMBER, IN THE TWO THOUSAND SEVENTEEN AMER-
ICAN COMMUNITY SURVEY.
§ 3. Subparagraph (i) of paragraph (a) of subdivision 26 of section
210-B of the tax law, as amended by section 2 of part RR of chapter 59
of the laws of 2018, is amended and a new paragraph (f) is added to read
as follows:
(i) For taxable years beginning on or after January first, two thou-
sand 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, AND ONE HUNDRED TEN PERCENT
OF THE AMOUNT OF CREDIT ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED
HISTORIC STRUCTURE THAT IS A SMALL PROJECT, 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, with respect to a certified historic structure located with-
in the state. Provided, however, the credit shall not exceed five
million dollars.
(F) FOR PURPOSES OF THIS SUBDIVISION "SMALL PROJECT" MEANS QUALIFIED
REHABILITATION EXPENDITURES TOTALING FIVE MILLION DOLLARS OR LESS.
§ 4. Subparagraph (A) of paragraph 1 of subdivision (y) of section
1511 of the tax law, as amended by section 3 of part RR of chapter 59 of
S. 3645 3
the laws of 2018, is amended and a new paragraph 6 is added to read as
follows:
(A) For taxable years beginning on or after January first, two thou-
sand 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, AND ONE HUNDRED TEN PERCENT OF THE AMOUNT OF CREDIT
ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE THAT
IS A SMALL PROJECT, 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, with respect to
a certified historic structure located within the state. Provided,
however, the credit shall not exceed five million dollars. For taxable
years beginning 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 with respect to
a certified historic structure located within the state. Provided,
however, the credit shall not exceed one hundred thousand dollars.
(6) FOR PURPOSES OF THIS SUBDIVISION "SMALL PROJECT" MEANS QUALIFIED
REHABILITATION EXPENDITURES TOTALING FIVE MILLION DOLLARS OR LESS.
§ 5. This act shall take effect immediately.
