S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4635--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 18, 2019
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   reported  favorably from said committee and committed to the Committee
   on Finance -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT to amend the tax law, in relation to providing a residential lead
   remediation tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (kkk) to read as follows:
   (KKK) RESIDENTIAL LEAD ABATEMENT TAX CREDIT. (1) GENERAL. A  QUALIFIED
 TAXPAYER  SHALL  BE  ALLOWED  A CREDIT FOR TAXABLE YEARS BEGINNING ON OR
 AFTER JANUARY FIRST, TWO THOUSAND TWENTY AGAINST THE TAX IMPOSED BY THIS
 ARTICLE FOR THE COSTS OF ABATEMENT OF LEAD CONTAMINATION IN A RESIDENCE,
 WHEN SUCH REMOVAL IS RECOMMENDED BY A  LEAD  PROFESSIONAL  CERTIFIED  OR
 LICENSED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.
   (2) CREDIT LIMITATION. THE AMOUNT OF THE CREDIT SHALL BE THE LESSER OF
 TEN THOUSAND DOLLARS OR THIRTY PERCENT OF THE TOTAL COST.
   (3)  LEAD  ABATEMENT COSTS. THE TERM "COSTS OF ABATEMENT" INCLUDES THE
 COST OF AN INSPECTION OR ASSESSMENT FROM  A  CERTIFIED  SPECIALIST,  ANY
 INITIAL  APPRAISALS  OF  LEAD,  MUNICIPAL  OR  OTHERWISE, LABOR COSTS OF
 REMOVAL, ANY DISPOSAL FEES, AND ANY CLEANUP FEES; EXCEPT  ANY  STATE  OR
 LOCAL SALES TAX APPLICABLE TO THE SERVICES PERFORMED.
   (4)  REMOVAL  AND  ABATEMENT FOR QUALIFIED TAXPAYERS. A PROPERTY OWNER
 WHO INCURS COSTS FOR REMOVING OR REMEDIATING LEAD AS  IN  THIS  SECTION,
 ONLY APPLIES TO A RESIDENCE WHICH IS:
   (A) LOCATED IN THIS STATE;
   (B) OWNED BY THE TAXPAYER;
   (C)  USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE, SECONDARY
 RESIDENCE, OR RENTAL PROPERTY; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10100-02-9

 S. 4635--A                          2
 
   (D) IS LOCATED IN A CITY OR MUNICIPALITY WITH ONE MILLION RESIDENTS OR
 LESS.
   (5)  WHEN  CREDIT  ALLOWED. THE CREDIT PROVIDED FOR IN THIS SUBSECTION
 SHALL BE ALLOWED WITH RESPECT TO  THE  TAXABLE  YEAR,  COMMENCING  AFTER
 JANUARY  FIRST  AFTER ITS PASSAGE IN WHICH THE REMOVAL WORK IS COMPLETED
 AND PAID FOR.
   (6) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT,  AND  CARRYOVERS
 OF  SUCH  CREDIT,  ALLOWABLE  UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR
 SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
 CARRIED OVER TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE  TAXABLE  YEAR
 WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (7)  ALLOCATION  OF  CREDIT.  THE  COMMISSIONER SHALL PROMULGATE REGU-
 LATIONS BY JANUARY FIRST, TWO THOUSAND TWENTY  TO  ESTABLISH  PROCEDURES
 FOR  THE  ALLOCATION  OF TAX CREDITS ALLOWED UNDER THIS SUBSECTION. SUCH
 RULES AND REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING  THE  APPLICA-
 TION PROCESS FOR THE CREDIT ALLOWED UNDER THIS SUBSECTION, THE DUE DATES
 FOR SUCH APPLICATIONS, THE STANDARDS WHICH SHALL BE USED TO EVALUATE THE
 APPLICATIONS,  THE  DOCUMENTATION  THAT WILL BE PROVIDED TO TAXPAYERS TO
 SUBSTANTIATE TO THE DEPARTMENT THE AMOUNT OF TAX  CREDITS  ALLOCATED  TO
 SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECESSARY AND APPRO-
 PRIATE.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  TO THE CONTRARY IN THE
 STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND  REGULATIONS  MAY  BE
 ADOPTED  ON  AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH JANUARY FIRST,
 TWO THOUSAND TWENTY  DEADLINE.  THE  AGGREGATE  AMOUNT  OF  TAX  CREDITS
 ALLOWED  UNDER  THIS SUBSECTION IN ANY TAXABLE YEAR SHALL BE TWENTY-FIVE
 MILLION DOLLARS.  SUCH AGGREGATE AMOUNT OF CREDITS  SHALL  BE  ALLOCATED
 AMONG  TAXPAYERS  IN  ORDER OF PRIORITY BASED UPON THE DATE OF FILING AN
 APPLICATION FOR THE CREDIT. IF THE TOTAL  AMOUNT  OF  ALLOCATED  CREDITS
 APPLIED  FOR  IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX
 CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS  SHALL  BE
 TREATED  AS  HAVING  BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT
 YEAR.
   (8) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law and shall apply to taxable years beginning on
 or  after  January 1, 2020.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.