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.
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(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-
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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.