S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9722
 
                           I N  A S S E M B L Y
 
                               April 3, 2024
                                ___________
 
 Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the tax law and the parks, recreation and historic pres-
   ervation law, in relation to authorizing the pass-through or  transfer
   of the credits 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. Subdivision 26 of section 210-B of the tax law  is  amended
 by adding two new paragraphs (g) and (h) to read as follows:
   (G)  (I)  THE ALLOCATION OF THE CREDIT ESTABLISHED BY THIS SUBDIVISION
 MAY BE MADE WITHOUT REGARD TO AND IN A SEPARATE MANNER FROM ANY  FEDERAL
 REHABILITATION  CREDIT THAT MAY BE ALLOCATED WITH RESPECT TO A CERTIFIED
 HISTORIC STRUCTURE UNDER SECTION FORTY-SEVEN  OF  THE  INTERNAL  REVENUE
 CODE  BY  WRITTEN  AGREEMENT OF THE TAXPAYER OTHERWISE ENTITLED TO CLAIM
 SUCH CREDIT OR BY WRITTEN AGREEMENT OF A PASS-THROUGH  ENTITY  THAT  MAY
 REPORT SUCH CREDIT OR OTHERWISE ELECT TO PASS THE FEDERAL REHABILITATION
 TAX  CREDIT  THROUGH  TO A TENANT TAXPAYER IN ACCORDANCE WITH APPLICABLE
 FEDERAL LAW.
   (II) WITH RESPECT TO CERTIFIED HISTORIC STRUCTURES THAT ARE SUBJECT TO
 A LEASE ARRANGEMENT WHEREBY THE LANDLORD  ELECTS  TO  PASS  THE  FEDERAL
 REHABILITATION  CREDIT  THROUGH TO THE TENANT TAXPAYER, NOT ONLY MAY THE
 NEW YORK STATE REHABILITATION  CREDIT  BE  PASSED  DOWN  TO  THE  TENANT
 TAXPAYER  AND  THEN ALLOCATED WITHOUT REGARD TO AND IN A SEPARATE MANNER
 FROM ANY FEDERAL REHABILITATION CREDIT THAT MAY BE  ALLOCATED,  BUT  THE
 LANDLORD  MAY ALSO OPT TO RETAIN THE NEW YORK STATE REHABILITATION CRED-
 IT. FOR PURPOSES OF THIS SECTION, A "LANDLORD" MEANS THE  OWNER  OF  THE
 CERTIFIED HISTORIC STRUCTURE FOR FEDERAL TAX PURPOSES.
   (III)  THE  NEW YORK STATE REHABILITATION CREDIT MAY BE TRANSFERRED AS
 PROVIDED FOR IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION LAW.
   (H) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY
 OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED PURSUANT TO THIS
 SUBDIVISION ON RETURNS FILED DURING THE PRECEDING  CALENDAR  YEAR.  SUCH
 REPORT  SHALL  BE  PROVIDED  TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10411-05-4
 A. 9722                             2
 
 SENATE, SPEAKER OF THE ASSEMBLY, CHAIRS  OF  THE  SENATE  COMMITTEES  ON
 FINANCE  AND  ON  HOUSING,  CONSTRUCTION  AND COMMUNITY DEVELOPMENT, AND
 CHAIRS OF THE ASSEMBLY COMMITTEES ON WAYS AND MEANS AND ON HOUSING   AND
 SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
   §  2.  Subsection  (oo)  of  section  606 of the tax law is amended by
 adding two new paragraphs 7 and 8 to read as follows:
   (7) (A) THE ALLOCATION OF THE CREDIT ESTABLISHED  BY  THIS  SUBSECTION
 MAY  BE MADE WITHOUT REGARD TO AND IN A SEPARATE MANNER FROM ANY FEDERAL
 REHABILITATION CREDIT THAT MAY BE ALLOCATED WITH RESPECT TO A  CERTIFIED
 HISTORIC  STRUCTURE  UNDER  SECTION  FORTY-SEVEN OF THE INTERNAL REVENUE
 CODE BY WRITTEN AGREEMENT OF THE TAXPAYER OTHERWISE  ENTITLED  TO  CLAIM
 SUCH  CREDIT  OR  BY WRITTEN AGREEMENT OF A PASS-THROUGH ENTITY THAT MAY
 REPORT SUCH CREDIT OR OTHERWISE ELECT TO PASS THE FEDERAL REHABILITATION
 TAX CREDIT THROUGH TO A TENANT TAXPAYER IN  ACCORDANCE  WITH  APPLICABLE
 FEDERAL LAW.
   (B)  WITH RESPECT TO CERTIFIED HISTORIC STRUCTURES THAT ARE SUBJECT TO
 A LEASE ARRANGEMENT WHEREBY THE LANDLORD  ELECTS  TO  PASS  THE  FEDERAL
 REHABILITATION  CREDIT  THROUGH TO THE TENANT TAXPAYER, NOT ONLY MAY THE
 NEW YORK STATE REHABILITATION  CREDIT  BE  PASSED  DOWN  TO  THE  TENANT
 TAXPAYER  AND  THEN ALLOCATED WITHOUT REGARD TO AND IN A SEPARATE MANNER
 FROM ANY FEDERAL REHABILITATION CREDIT THAT MAY BE  ALLOCATED,  BUT  THE
 LANDLORD  MAY ALSO OPT TO RETAIN THE NEW YORK STATE REHABILITATION CRED-
 IT. FOR PURPOSES OF THIS SECTION, A "LANDLORD" MEANS THE  OWNER  OF  THE
 CERTIFIED HISTORIC STRUCTURE FOR FEDERAL TAX PURPOSES.
   (C)  THE  NEW  YORK  STATE REHABILITATION CREDIT MAY BE TRANSFERRED AS
 PROVIDED FOR IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION LAW.
   (8) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY
 OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED PURSUANT TO THIS
 SUBSECTION ON RETURNS FILED DURING THE PRECEDING CALENDAR  YEAR.    SUCH
 REPORT  SHALL  BE  PROVIDED  TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE
 SENATE, SPEAKER OF THE ASSEMBLY, CHAIRS  OF  THE  SENATE  COMMITTEES  ON
 FINANCE  AND  ON  HOUSING,  CONSTRUCTION  AND COMMUNITY DEVELOPMENT, AND
 CHAIRS OF THE ASSEMBLY COMMITTEES ON WAYS AND MEANS AND ON  HOUSING  AND
 SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
   § 3. Subdivision (y) of section 1511 of the tax law, as added by chap-
 ter  472  of the laws of 2010, is amended by adding two new paragraphs 7
 and 8 to read as follows:
   (7) (A) THE ALLOCATION OF THE CREDIT ESTABLISHED BY  THIS  SUBDIVISION
 MAY  BE MADE WITHOUT REGARD TO AND IN A SEPARATE MANNER FROM ANY FEDERAL
 REHABILITATION CREDIT THAT MAY BE ALLOCATED WITH RESPECT TO A  CERTIFIED
 HISTORIC  STRUCTURE  UNDER  SECTION  FORTY-SEVEN OF THE INTERNAL REVENUE
 CODE BY WRITTEN AGREEMENT OF THE TAXPAYER OTHERWISE  ENTITLED  TO  CLAIM
 SUCH  CREDIT  OR  BY WRITTEN AGREEMENT OF A PASS-THROUGH ENTITY THAT MAY
 REPORT SUCH CREDIT OR OTHERWISE ELECT TO PASS THE FEDERAL REHABILITATION
 TAX CREDIT THROUGH TO A TENANT TAXPAYER IN  ACCORDANCE  WITH  APPLICABLE
 FEDERAL LAW.
   (B)  WITH RESPECT TO CERTIFIED HISTORIC STRUCTURES THAT ARE SUBJECT TO
 A LEASE ARRANGEMENT WHEREBY THE LANDLORD  ELECTS  TO  PASS  THE  FEDERAL
 REHABILITATION  CREDIT  THROUGH TO THE TENANT TAXPAYER, NOT ONLY MAY THE
 NEW YORK STATE REHABILITATION  CREDIT  BE  PASSED  DOWN  TO  THE  TENANT
 TAXPAYER  AND  THEN ALLOCATED WITHOUT REGARD TO AND IN A SEPARATE MANNER
 FROM ANY FEDERAL REHABILITATION CREDIT THAT MAY BE  ALLOCATED,  BUT  THE
 LANDLORD  MAY ALSO OPT TO RETAIN THE NEW YORK STATE REHABILITATION CRED-
 IT. FOR PURPOSES OF THIS SECTION, A "LANDLORD" MEANS THE  OWNER  OF  THE
 CERTIFIED HISTORIC STRUCTURE FOR FEDERAL TAX PURPOSES.
 A. 9722                             3
 
   (C)  THE  NEW  YORK  STATE REHABILITATION CREDIT MAY BE TRANSFERRED AS
 PROVIDED FOR IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION LAW.
   (8) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY
 OF    NOVEMBER,  ON  THE AGGREGATE AMOUNT OF CREDITS CLAIMED PURSUANT TO
 THIS SUBDIVISION ON RETURNS FILED DURING THE  PRECEDING  CALENDAR  YEAR.
 SUCH  REPORT  SHALL  BE PROVIDED TO THE GOVERNOR, TEMPORARY PRESIDENT OF
 THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIRS OF THE SENATE COMMITTEES  ON
 FINANCE  AND  ON  HOUSING,  CONSTRUCTION  AND COMMUNITY DEVELOPMENT, AND
 CHAIRS OF THE ASSEMBLY COMMITTEES ON WAYS AND MEANS AND ON  HOUSING  AND
 SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
   § 4. The parks, recreation and historic preservation law is amended by
 adding a new article 14-A to read as follows:
                                ARTICLE 14-A
            HISTORIC REHABILITATION TAX CREDIT TRANSFER PROGRAM
 SECTION 14.15 DEFINITIONS.
         14.16 TRANSFER OF REHABILITATION CREDIT.
         14.17 REPORTING.
         14.18  REGULATIONS,  COORDINATION  WITH  FEDERAL  REHABILITATION
                 CREDIT PROVISIONS.
   § 14.15 DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "FEDERAL  REHABILITATION CREDIT" MEANS THE FEDERAL CREDIT THAT MAY
 BE ALLOCATED WITH  RESPECT  TO  A  CERTIFIED  HISTORIC  STRUCTURE  UNDER
 SECTION  FORTY-SEVEN  OF  THE  INTERNAL REVENUE CODE. REFERENCES IN THIS
 ARTICLE TO SECTION FORTY-SEVEN OF THE INTERNAL REVENUE CODE  SHALL  MEAN
 SUCH SECTION AS AMENDED FROM TIME TO TIME.
   2.  "PASS-THROUGH ENTITY" MEANS AN ENTITY THAT IS NOT A TAXPAYER UNDER
 FEDERAL OR STATE TAX LAW, SUCH AS A LIMITED LIABILITY COMPANY,  A  PART-
 NERSHIP,  AN  S  CORPORATION,   OR ANY OTHER ENTITY AS DETERMINED BY THE
 COMMISSIONER OF TAXATION AND FINANCE WHICH IS DEEMED TO BE  A  REPORTING
 ENTITY  FOR  INCOME  TAX  PURPOSES AND FILES ANNUAL  INFORMATION RETURNS
 PASSING THROUGH ITEMS OF INCOME, LOSS, CREDITS  AND  CERTAIN  OTHER  TAX
 ATTRIBUTES TO EACH PARTNER, MEMBER OR SHAREHOLDER AS APPLICABLE.
   3. "QUALIFIED REHABILITATION EXPENDITURES" SHALL HAVE THE SAME MEANING
 AS IN SECTION FORTY-SEVEN OF THE INTERNAL REVENUE CODE.
   4.  "REGULATIONS"  MEANS  REGULATIONS  ADOPTED BY THE COMMISSIONER, IN
 CONSULTATION WITH THE COMMISSIONER OF THE  DEPARTMENT  OF  TAXATION  AND
 FINANCE, PURSUANT TO SECTION 14.18 OF THIS ARTICLE.
   5.  "REHABILITATION CREDIT" MEANS THE CREDIT PROVIDED FOR UNDER SUBDI-
 VISION TWENTY-SIX OF SECTION  TWO  HUNDRED  TEN-B,  SUBSECTION  (OO)  OF
 SECTION  SIX  HUNDRED  SIX OR SUBDIVISION (Y) OF SECTION FIFTEEN HUNDRED
 ELEVEN OF THE TAX LAW.
   6. "TRANSFEREE"  MEANS  A  TAXPAYER  OR  A  PASS-THROUGH  ENTITY  THAT
 RECEIVES  A TRANSFER OF THE REHABILITATION CREDIT. A TRANSFEREE NEED NOT
 OWN AN INTEREST IN THE CERTIFIED HISTORIC STRUCTURE OR IN AN ENTITY WITH
 AN OWNERSHIP INTEREST IN THE CERTIFIED HISTORIC STRUCTURE TO  RECEIVE  A
 TRANSFER OF A REHABILITATION CREDIT.
   7.  "NON-PROFIT  TRANSFEREE" MEANS A NON-PROFIT ENTITY THAT RECEIVES A
 TRANSFER OF THE REHABILITATION CREDIT.
   § 14.16 TRANSFER OF REHABILITATION CREDIT. EITHER  A  1.  TAXPAYER  OR
 PASS-THROUGH  ENTITY THAT MAY REPORT THE REHABILITATION CREDIT OR OTHER-
 WISE ELECT TO PASS THE FEDERAL REHABILITATION CREDIT THROUGH TO A TENANT
 TAXPAYER IN ACCORDANCE WITH APPLICABLE FEDERAL LAW  OR  2.    NON-PROFIT
 TRANSFEREE  MAY,  WITH  PRIOR NOTICE IN ACCORDANCE WITH THE REGULATIONS,
 TRANSFER THE REHABILITATION CREDIT, IN WHOLE OR IN PART, TO  ANY  TRANS-
 A. 9722                             4
 
 FEREE OR NON-PROFIT TRANSFEREE WITH THE SAME EFFECT AS IF THE TRANSFEREE
 OR  NON-PROFIT  TRANSFEREE  HAD  INCURRED  THE  QUALIFIED REHABILITATION
 EXPENDITURES ITSELF; PROVIDED THAT NO PARTIAL TRANSFER OF THE  REHABILI-
 TATION CREDIT MAY BE FOR LESS THAN TWENTY-FIVE PERCENT OF THE FULL REHA-
 BILITATION  CREDIT  CLAIMED  BY  THE TAXPAYER. A TRANSFEREE SHALL USE OR
 REPORT THE REHABILITATION CREDIT IN THE YEAR IT IS ALLOWED AND  MAY  NOT
 TRANSFER  THE  REHABILITATION  CREDIT  ON  TO  YET ANOTHER TRANSFEREE. A
 TRANSFER OF REHABILITATION CREDIT TO A NON-PROFIT TRANSFEREE, WHERE  THE
 NON-PROFIT TRANSFEREE IS SOLELY ACTING AS A GO-BETWEEN TO FURTHER TRANS-
 FER  THE  REHABILITATION  CREDIT TO A TRANSFEREE, SHALL NOT CONSTITUTE A
 TRANSFER FOR PURPOSES OF DETERMINING THE SINGLE TRANSFER  LIMITATION  OF
 THIS SECTION.
   §  14.17  REPORTING.  IF  A TAXPAYER OR A PASS-THROUGH ENTITY THAT MAY
 REPORT THE CREDIT OR OTHERWISE ELECT TO PASS THE FEDERAL  REHABILITATION
 CREDIT THROUGH TO A TENANT TAXPAYER IN ACCORDANCE WITH APPLICABLE FEDER-
 AL LAW ELECTS TO TRANSFER THE CREDIT AS PROVIDED FOR IN SECTION 14.16 OF
 THIS  ARTICLE,  PRIOR  TO  FILING ANY TAX RETURNS CLAIMING THE REHABILI-
 TATION CREDIT, A TAXPAYER OR A PASS-THROUGH ENTITY THAT MAY  REPORT  THE
 REHABILITATION  CREDIT  OR OTHERWISE ELECT TO PASS THE FEDERAL REHABILI-
 TATION CREDIT THROUGH TO A TENANT TAXPAYER IN ACCORDANCE WITH APPLICABLE
 FEDERAL LAW SHALL PROVIDE AN INFORMATION STATEMENT TO  THE  COMMISSIONER
 IN ACCORDANCE WITH THE DEPARTMENT'S REGULATIONS. SUCH INFORMATION STATE-
 MENT  SHALL  INCLUDE,  BUT  MAY  NOT BE LIMITED TO, THE IDENTITY AND TAX
 IDENTIFICATION INFORMATION OF ANY NON-PROFIT TRANSFEREE AND THE IDENTITY
 AND TAX IDENTIFICATION INFORMATION OF ANY TRANSFEREE THAT WILL CLAIM THE
 CREDIT.
   § 14.18 REGULATIONS, COORDINATION WITH FEDERAL  REHABILITATION  CREDIT
 PROVISIONS.  THE  COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF
 THE DEPARTMENT OF TAXATION AND FINANCE, SHALL PROMULGATE RULES AND REGU-
 LATIONS NECESSARY TO ADMINISTER THE PROVISIONS OF THIS ARTICLE.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2025.