BILL NUMBER: S8578

SPONSOR: HELMING
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a housing
infrastructure tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide a tax credit of up to ten percent of the cost for infrastruc-
ture projects related to the construction of new homes or multiple
dwellings.

 
SUMMARY OF SPECIFIC PROVISIONS:

Sections 1: The tax law is amended to add a new section 49 establishing
the housing infrastructure tax credit. The credit will be worth up to
ten percent of the cost of infrastructure projects related to the
construction of new homes or multiple dwellings and can be applied to
personal income tax or the franchise tax on business corporations. The
housing infrastructure tax credit will apply to projects commenced on or
              

after 1/1/2025 and completed on or before 12/31/2030.

Section 2: Section 210-B of the tax law is amended by adding a new
subdivision 60. This subdivision allows the housing infrastructure tax
credit to be applied to franchise tax on business corporations.

Section 3: Section 606 of the tax law is amended by adding a new
subsection ppp. This subsection allows the housing infrastructure tax
credit to be applied to personal income tax.

Section 4: Provides an immediate effective date.

 
JUSTIFICATION:

It is widely acknowledged that New York State is facing a severe short-
age of housing. While several factors contribute to the lack of avail-
able workforce housing in the state, one key factor is the lack of
infrastructure required to construct new housing, including electric,
gas, water, sewer, and septic system infrastructure. Especially in rural
and suburban areas, communities seeking to expand their housing stock
are prevented from doing so due to the lack of this critical infrastruc-
ture and the costs associated with developing it.

The cost of infrastructure investments has only increased in recent
years. This has been driven partially by an increase in the price of
needed materials. Between 2021 and 2022, the cost of copper pipe
increased by over twenty percent, and the price of PVC pipe increased by
over thirty five percent. In addition, the price of fabricated steel
rose by almost forty percent. Some estimates forecast an overall
increase in construction material prices of as much as twenty percent
from 2021 to 2024.

This bill would help address these issues by providing individuals and
businesses involved in the expansion of required housing infrastructure
with a tax credit of up to ten percent of costs associated with these
projects. This will incentivize further development and help offset the
rising costs of materials.
 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.