S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5109
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 19, 2025
                                ___________
 
 Introduced by Sens. ASHBY, BORRELLO, GRIFFO, MARTINS, MURRAY, OBERACKER,
   RHOADS,  ROLISON,  TEDISCO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to  amend  the  public  housing  law, the tax law and the state
   finance law, in relation  to  establishing  the  shovel-ready  housing
   program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The public housing law is amended by adding a  new  section
 150-a to read as follows:
   § 150-A. SHOVEL-READY HOUSING PROGRAM. 1. NO LATER THAN ONE YEAR AFTER
 THE  EFFECTIVE DATE OF THIS SECTION, AND AFTER CONSULTATION WITH MUNICI-
 PAL GOVERNMENTS THROUGHOUT THE STATE, THE DIVISION OF HOUSING AND COMMU-
 NITY RENEWAL SHALL ESTABLISH  A  "SHOVEL-READY  HOUSING  PROGRAM"  UNDER
 WHICH  MUNICIPALITIES,  EXCLUDING  CITIES  WITH A POPULATION OF OVER ONE
 MILLION, AND PLANNING COMMISSIONS OF SUCH  MUNICIPALITIES,  IF  ANY,  AT
 THEIR OPTION, MAY PRE-AUTHORIZE PARCELS OF PROPERTY FOR THE CONSTRUCTION
 OF HOUSING.
   2. THE COMMISSIONER SHALL PROMULGATE RULES, REGULATIONS, AND REPORTING
 REQUIREMENTS  TO  ESTABLISH  THE  PROGRAM PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION. FACTORS CONSIDERED SHALL INCLUDE, BUT NOT BE  LIMITED  TO,
 ENVIRONMENTAL  REVIEW,  PERMITTING, AND LOCAL ZONING. NOTHING UNDER SUCH
 PROGRAM SHALL SUPERSEDE LOCAL LAWS. THE DIVISION OF HOUSING AND COMMUNI-
 TY RENEWAL SHALL ANNUALLY PUBLISH ON  ITS  WEBSITE  A  LIST  OF  MUNICI-
 PALITIES THAT HAVE OPTED IN TO PARTICIPATE IN SUCH PROGRAM.
   3.  IN  ORDER  FOR  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL TO
 CERTIFY A MUNICIPALITY'S PARTICIPATION IN THE PROGRAM UNDER  SUBDIVISION
 ONE  OF  THIS  SECTION,  SUCH  MUNICIPALITY  SHALL PRE-AUTHORIZE PARCELS
 SUFFICIENT TO INCREASE THE NUMBER OF HOUSING UNITS IN SUCH  MUNICIPALITY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01980-01-5
 S. 5109                             2
              

 
 BY  AT  LEAST  ONE  PER  CENTUM  OR A MINIMUM OF TEN UNITS, WHICHEVER IS
 GREATER.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (n-3) to read as follows:
   (N-3) SHOVEL-READY COMMUNITY TAX  REBATE  CREDIT.  (1)  AN  INDIVIDUAL
 TAXPAYER  WHO  MEETS  THE ELIGIBILITY STANDARDS IN PARAGRAPH TWO OF THIS
 SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED  BY  THIS
 ARTICLE  IN  THE  AMOUNT SPECIFIED IN PARAGRAPH THREE OF THIS SUBSECTION
 FOR THE TAX YEAR FOLLOWING THE YEAR IN THE MUNICIPALITY  IN  WHICH  SUCH
 INDIVIDUAL  RESIDES BEING CERTIFIED AS PARTICIPATING IN THE SHOVEL-READY
 HOUSING PROGRAM ESTABLISHED UNDER SECTION ONE  HUNDRED  FIFTY-A  OF  THE
 PUBLIC HOUSING LAW.
   (2)  TO  BE ELIGIBLE FOR THE CREDIT, THE TAXPAYER (OR TAXPAYERS FILING
 JOINT RETURNS) (I) SHALL OWN  AND  PRIMARILY  RESIDE  IN  REAL  PROPERTY
 RECEIVING  EITHER  THE STAR EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED
 TWENTY-FIVE OF THE REAL PROPERTY TAX LAW OR THE SCHOOL TAX RELIEF CREDIT
 AUTHORIZED BY SUBSECTION (EEE) OF THIS  SECTION,  (II)  SHALL  HAVE  HAD
 QUALIFIED  GROSS  INCOME  NO  GREATER  THAN  TWO  HUNDRED FIFTY THOUSAND
 DOLLARS IN THE TAX YEAR TWO THOUSAND TWENTY-ONE, AND (III) RESIDE  IN  A
 MUNICIPALITY  THAT HAS CERTIFIED PARTICIPATION IN THE SHOVEL-READY HOUS-
 ING PROGRAM ESTABLISHED UNDER SECTION ONE HUNDRED FIFTY-A OF THE  PUBLIC
 HOUSING LAW.
   (3) (I) FOR A TAXPAYER WHO OWNED AND PRIMARILY RESIDED IN REAL PROPER-
 TY  RECEIVING  THE  BASIC  STAR EXEMPTION OR WHO RECEIVED THE BASIC STAR
 CREDIT, THE AMOUNT OF THE CREDIT SHALL EQUAL THE STAR TAX SAVINGS  ASSO-
 CIATED  WITH SUCH BASIC STAR EXEMPTION IN THE TWO THOUSAND TWENTY-FOUR--
 TWO THOUSAND  TWENTY-FIVE  SCHOOL  YEAR,  MULTIPLIED  BY  THE  FOLLOWING
 PERCENTAGE:
   FOR  A TAXPAYER WHOSE PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY OF
 NEW YORK:
 
 QUALIFIED GROSS                         INCOME PERCENTAGE
 NOT OVER $75,000                        163%
 OVER $75,000 BUT NOT OVER $150,000      115%
 OVER $150,000 BUT NOT OVER $200,000     66%
 OVER $200,000 BUT NOT OVER $250,000     18%
 OVER $250,000                           NO CREDIT
 
   (II) FOR A TAXPAYER WHO OWNED AND PRIMARILY RESIDED IN  REAL  PROPERTY
 RECEIVING  THE ENHANCED STAR EXEMPTION OR WHO RECEIVED THE ENHANCED STAR
 CREDIT, THE AMOUNT OF THE CREDIT SHALL EQUAL THE STAR TAX SAVINGS  ASSO-
 CIATED  WITH  SUCH  ENHANCED  STAR EXEMPTION IN THE TWO THOUSAND TWENTY-
 FOUR--TWO THOUSAND TWENTY-FIVE  SCHOOL  YEAR,  MULTIPLIED  BY  SIXTY-SIX
 PERCENT  IF THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY
 OF NEW YORK, OR ONE HUNDRED TEN PERCENT IF THE TAXPAYER'S PRIMARY  RESI-
 DENCE IS LOCATED WITHIN THE CITY OF NEW YORK.
   (III)  IN  NO  CASE  SHALL THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
 SUBSECTION EXCEED THE SCHOOL DISTRICT TAXES  DUE  WITH  RESPECT  TO  THE
 RESIDENCE  FOR  THAT  SCHOOL YEAR, NOR SHALL ANY CREDIT BE ALLOWED UNDER
 THIS SUBSECTION IF THE AMOUNT DETERMINED PURSUANT TO THIS  PARAGRAPH  IS
 LESS THAN ONE HUNDRED DOLLARS.
   (4) FOR PURPOSES OF THIS SUBSECTION:
   (I)  "QUALIFIED  GROSS  INCOME" MEANS THE ADJUSTED GROSS INCOME OF THE
 QUALIFIED TAXPAYER FOR THE TAXABLE YEAR AS REPORTED FOR  FEDERAL  INCOME
 TAX  PURPOSES,  OR WHICH WOULD BE REPORTED AS ADJUSTED GROSS INCOME IF A
 FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED. IN COMPUTING QUALI-
 S. 5109                             3
 
 FIED GROSS INCOME, THE NET AMOUNT OF LOSS REPORTED ON  FEDERAL  SCHEDULE
 C,  D,  E, OR F SHALL NOT EXCEED THREE THOUSAND DOLLARS PER SCHEDULE. IN
 ADDITION, THE NET AMOUNT OF ANY OTHER SEPARATE CATEGORY  OF  LOSS  SHALL
 NOT  EXCEED  THREE  THOUSAND DOLLARS. THE AGGREGATE AMOUNT OF ALL LOSSES
 INCLUDED IN COMPUTING QUALIFIED GROSS INCOME SHALL  NOT  EXCEED  FIFTEEN
 THOUSAND DOLLARS.
   (II)  "STAR  TAX  SAVINGS"  MEANS  THE TAX SAVINGS ATTRIBUTABLE TO THE
 BASIC OR ENHANCED STAR EXEMPTION,  WHICHEVER  IS  APPLICABLE,  WITHIN  A
 PORTION OF A SCHOOL DISTRICT, AS DETERMINED BY THE COMMISSIONER PURSUANT
 TO SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THE REAL PROPER-
 TY TAX LAW.
   (5)  IF  THE  AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION SHALL
 EXCEED THE TAXPAYER'S TAX FOR THE TAXABLE  YEAR,  THE  EXCESS  SHALL  BE
 TREATED  AS  AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
 CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. FOR EACH
 YEAR THIS CREDIT IS ALLOWED, ON OR  BEFORE  OCTOBER  FIFTEENTH  OF  SUCH
 YEAR,  OR  AS  SOON THEREAFTER AS IS PRACTICABLE, THE COMMISSIONER SHALL
 DETERMINE THE TAXPAYER'S  ELIGIBILITY  FOR  THIS  CREDIT  UTILIZING  THE
 INFORMATION  AVAILABLE  TO  THE  COMMISSIONER ON THE TAXPAYER'S PERSONAL
 INCOME TAX RETURN FILED FOR THE TAXABLE YEAR  TWO  YEARS  PRIOR  TO  THE
 TAXABLE  YEAR  IN  WHICH THE CREDIT IS ALLOWED. FOR THOSE TAXPAYERS WHOM
 THE COMMISSIONER HAS DETERMINED ELIGIBLE FOR THIS  CREDIT,  THE  COMMIS-
 SIONER  SHALL  ADVANCE  A  PAYMENT  IN THE AMOUNT SPECIFIED IN PARAGRAPH
 THREE OF THIS SUBSECTION, WHICH PAYMENT SHALL BE ISSUED, TO THE GREATEST
 EXTENT PRACTICABLE, BY OCTOBER THIRTY-FIRST OF EACH YEAR THE  CREDIT  IS
 ALLOWED.  A  TAXPAYER  WHO HAS FAILED TO RECEIVE AN ADVANCE PAYMENT THAT
 SUCH TAXPAYER BELIEVES WAS DUE TO SUCH TAXPAYER, OR WHO HAS RECEIVED  AN
 ADVANCE PAYMENT THAT SUCH TAXPAYER BELIEVES IS LESS THAN THE AMOUNT THAT
 WAS  DUE TO SUCH TAXPAYER, MAY REQUEST PAYMENT OF THE CLAIMED DEFICIENCY
 IN A MANNER PRESCRIBED BY THE COMMISSIONER.
   (6) A TAXPAYER SHALL NOT BE ELIGIBLE FOR THE CREDIT ALLOWED UNDER THIS
 SUBSECTION IF THE SCHOOL DISTRICT TAXES LEVIED UPON THE RESIDENCE DURING
 THE TAXABLE YEAR REMAIN UNPAID SIXTY DAYS AFTER THE LAST DATE  ON  WHICH
 THEY  COULD  HAVE BEEN PAID WITHOUT INTEREST, OR IN THE CASE OF A SCHOOL
 DISTRICT WHERE SUCH TAXES ARE PAYABLE IN  INSTALLMENTS,  IF  SUCH  TAXES
 REMAIN UNPAID SIXTY DAYS AFTER THE LAST DATE ON WHICH THE FINAL INSTALL-
 MENT  COULD  HAVE BEEN PAID WITHOUT INTEREST. IF THE TAXES REMAIN UNPAID
 ON SUCH SIXTIETH DAY, THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER UNDER
 THIS SUBSECTION OR THE AMOUNT OF ADVANCE PAYMENT OF CREDIT  RECEIVED  BY
 THE  TAXPAYER  PURSUANT  TO  PARAGRAPH  FIVE OF THIS SUBSECTION SHALL BE
 ADDED BACK AS TAX ON THE INCOME TAX RETURN FOR THE TAXABLE YEAR IN WHICH
 SUCH SIXTIETH DAY OCCURS.
   (7) ONLY ONE CREDIT PER RESIDENCE SHALL BE ALLOWED  PER  TAXABLE  YEAR
 UNDER  THIS SUBSECTION. WHEN TWO OR MORE MEMBERS OF A RESIDENCE ARE ABLE
 TO MEET THE QUALIFICATIONS FOR A QUALIFIED TAXPAYER, THE CREDIT SHALL BE
 EQUALLY DIVIDED BETWEEN OR AMONG SUCH INDIVIDUALS. IN THE CASE OF SPOUS-
 ES WHO FILE A JOINT FEDERAL RETURN BUT WHO  ARE  REQUIRED  TO  DETERMINE
 THEIR  NEW  YORK  TAXES  SEPARATELY, THE CREDIT ALLOWED PURSUANT TO THIS
 SUBSECTION MAY BE APPLIED AGAINST THE TAX OF EITHER OR  DIVIDED  BETWEEN
 THEM AS THEY MAY ELECT.
   §  3. The state finance law is amended by adding a new section 54-n to
 read as follows:
   § 54-N. GRANTS  TO  SHOVEL-READY  HOUSING  MUNICIPALITIES.  1.  ANNUAL
 APPORTIONMENT.  DURING  EACH  FISCAL  YEAR  OF THE STATE, THERE SHALL BE
 APPORTIONED AND PAID TO CITIES, TOWNS AND VILLAGES, THAT HAVE  CERTIFIED
 S. 5109                             4
 
 PARTICIPATION  IN  THE  SHOVEL-READY  HOUSING  PROGRAM ESTABLISHED UNDER
 SECTION ONE HUNDRED FIFTY-A OF THE PUBLIC HOUSING LAW FROM MONEYS APPRO-
 PRIATED BY THE STATE, INFRASTRUCTURE GRANTS FOR THE  SUPPORT  OF  SHOVEL
 READY  HOUSING MUNICIPALITIES. SUCH FUNDING APPORTIONED AND PAID TO EACH
 QUALIFIED MUNICIPALITY SHALL BE  EQUAL  TO  DOUBLE  THE  MUNICIPALITIES'
 ALLOTMENT  OF  THE  CONSOLIDATED  LOCAL  STREET  AND HIGHWAY IMPROVEMENT
 PROGRAM (CHIPS) FUNDS IN THE PREVIOUS FISCAL YEAR ENACTED BUDGET.
   2. USE OF FUNDS. GRANTS TO SHOVEL-READY HOUSING  MUNICIPALITIES  SHALL
 BE  USED FOR INFRASTRUCTURE PURPOSES INCLUDING, BUT NOT LIMITED TO ROAD,
 BRIDGE,  SEWER,  POWER  GENERATION  AND  DISTRIBUTION,   AND   BROADBAND
 PROJECTS.    ALL  OTHER PURPOSES SHALL BE CERTIFIED BY THE OFFICE OF THE
 STATE COMPTROLLER TO ENSURE FUNDS ARE USED FOR PROJECTS THAT  FACILITATE
 THE CONSTRUCTION OF ADDITIONAL HOUSING.
   § 4. This act shall take effect immediately.