NY State Senate Bill 2025-S2124

Senate Bill S2124

2025-2026 Legislative Session

Authorizes the pass-through or transfer of the credits for rehabilitation of historic properties

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Current Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 15, 2025	referred to budget and revenue

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2025-S2124 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B, 606 & 1511, Tax L; add Art 14-A §§14.15 - 14.18, Pks & Rec L
Versions Introduced in 2023-2024 Legislative Session:: S9071

2025-S2124 (ACTIVE) - Summary

Authorizes the pass-through or transfer of the credits for rehabilitation of historic properties; authorizes the allocation of the credit in a separate manner from any federal certified historic tax credit.

2025-S2124 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2124

SPONSOR: KAVANAGH
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow for greater allocation of the New York State Historic Tax Cred-
it to parties or investors currently ineligible to receive this credit,
and to permit non-profit entities to serve as a Historic Tax Credit
conduit to reduce the state capital needed to generate affordable hous-
ing.

 
SUMMARY OF PROVISIONS:

Sections one through three of this bill amend three separate provisions
of the New York Tax Law by adding the same language to each provision,
respectively.

Section one of the bill amends subdivision 26 of section 210-B of the
tax law by adding new paragraphs (g) and (h). Subsection (i) of para-
graph (g) permits bifurcation of the federal rehabilitation credit and
New York State historic rehabilitation tax credit (HTC), as it author-
izes the allocation of HTC with respect to a federally certified histor-
ic structure to investors and pass-through entities other than those to
which the federal tax credit has been allocated on said property.

Subsection (ii) of paragraph (g) permits tenants of certified historic
structures subject to a lease arrangement to receive a transfer of the
HTC from a landlord. Where the landlord of a certified historic struc-
ture under a lease arrangement elects to pass the federal rehabilitation
credit through to the tenant taxpayer, the landlord may opt to either
retain the HTC or to also pass it down to the tenant taxpayer.
Subsection (ii) also defines the term "landlord" for purposes of this
subdivision. Subsection (iii) of paragraph (g) identifies article 14-A
of the parks, recreation and historic preservation law as setting forth
the parameters for transferring the HTC.

Paragraph (h) directs the commissioner to annually report on the aggre-
gate amount of credits claimed pursuant to this subdivision on returns
filed during the preceding calendar year and to make such report public-
ly available on the department's website.

Section two of the bill amends subsection (oo) of section 606 of the tax
law by adding new paragraphs 7 and 8 with the same language as in

Section three of the bill amends subsection (y) of section 1511 of the
tax law by adding new paragraphs 7 and 8 with the same language as in

Section four of the bill amends the parks, recreation and historic pres-
ervation law by adding new Article 14-A, Historic Rehabilitation Tax
Credit Transfer Program.

Section 14.15 of Article 14-A defines key terms, including "federal
rehabilitation credit," "pass-through entity," "qualified rehabilitation
expenditures," "regulations," "rehabilitation credit," "transferee," and
"non-profit transferee."

Section 14.16 of Article 14-A authorizes a single transfer of the HTC,
in whole or in part, from one taxpayer, or from a pass-through entity
that may report the rehabilitation credit or otherwise elect to pass the
federal rehabilitation tax credit through to a tenant taxpayer, to
another taxpayer, provided that a transfer conducted through a non-pro-
fit conduit to another taxpayer shall be deemed to satisfy the single-
transfer limit. A partial transfer of the HTC may be for no less than
twenty-five percent of the full HTC claimed by the taxpayer, and a
transferee shall use or report the rehabilitation credit in the year it
is allowed.

Section 14.17 of Article 14-A directs the 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 federal law, to provide an information statement to the
commissioner which includes specified threshold information.

Section 14.18 of Article 14-A authorizes the commissioner to promulgate
rules and regulations.

Section five of the bill sets forth the effective date.

 
JUSTIFICATION:

The Federal Historic Rehabilitation Tax Credit provides for a 20% feder-
al income tax credit to support substantial rehabilitation of buildings
that are on the National Register of Historic Places, if the project is
approved by the National Park Service. The New York State Historic Tax
Credit (HTC) is similarly designed to subsidize rehabilitation of
historic income-producing properties, providing a credit for 20% of
qualified expenditures under $5 million, or 30% of qualified expendi-
tures under $2.5 million. The Legislature and the Governor extended the
State program for five additional years in the State budget enacted in
May 2023.

Current State law requires the NYS HTC to be allocated in the same
manner and to the same parties as the federal credit, such that projects
may get a total credit of 40% for projects with expenditures under $5
million or 50% for projects with expenditures under $2.5 million. Howev-
er, when both the federal and state HTC are allocated to the same inves-
tor, the pricing of the credits is typically less than if the NYS HTC
could be allocated and sold separately from the federal HTC, because
there is a smaller number of investors willing to competitively purchase
both. This problem is compounded in affordable housing historic rehabil-
itation projects, where the federal and NYS HTC are combined with the
federal Low-Income Housing Tax Credit (LIHTC). In these cases, the same
credit investor must take the federal HTC, the NYS HTC, and the federal
LIHTC together. This depresses the pricing of all three credits, as the
investor pool for such projects, especially in those areas most in need
of housing investment, is extremely limited.

As federal LIHTC is one of the largest sources of funding for affordable
housing projects, the inability for New York to attract different inves-
tors for federal and state HTC hurts affordable housing development in
historic buildings statewide and creates funding gaps in such projects
because of the depressed pricing across all credits. State taxpayers end
up picking up the tab for these funding gaps, as the state housing agen-
cy, New York State Homes and Community Renewal (HCR), must then fill
these gaps with limited state capital money. And with limited available
capital, some projects competing for resources may not happen, meaning
affordable units do not get developed and buildings would not be
preserved. The bifurcation of federal and NYS HTC investments is there-
fore critical to the generation of affordable housing in New York.

This legislation also increases the value of the HTC by allowing a non-
profit entity like a non-profit affordable developer or a historic pres-
ervation organization to sell the credits on behalf of the project. As
non-profit entities are tax exempt, this means that the credit sale will
be exempt from federal tax, resulting in more capital for the project,
which in turn lowers the need for any HCR subsidies to fully finance a
historic preservation and affordable housing project.

 
PRIOR LEGISLATIVE HISTORY:

2024: S9071 (Kavanagh) - PASSED SENATE /A9722 (Woerner) - referred to
ways and means

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2025.

2025-S2124 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2124
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sens.  KAVANAGH,  MAY, SERRANO -- 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 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05760-01-5

 S. 2124                             2
 
   (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
 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
 S. 2124                             3
 
 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  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-
 S. 2124                             4
 
 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-
 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, 2026.

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Senate Bill S2124

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Sponsored By

Brian Kavanagh