NY State Assembly Bill 2009-A10168

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
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Delivered to Governor
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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 09, 2010	referred to ways and means

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2009-A10168 (ACTIVE) - Details

See Senate Version of this Bill:: S7042
Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §§606, 210, 1456 & 1511, Tax L

2009-A10168 (ACTIVE) - Summary

Provides a tax credit for rehabilitation of historic properties; and providing for the repeal of such provisions upon expiration thereof.

2009-A10168 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A10168

TITLE  OF BILL:  An act to amend the tax law, in relation to providing
a tax credit for rehabilitation of historic properties; and  providing
for the repeal of certain provisions upon expiration thereof

PURPOSE  OR  GENERAL IDEA OF BILL: To strengthen the existing historic
rehabilitation tax credit program so that the  commercial  tax  credit
can be applied against the bank and insurance tax and to allow for the
allocation  of the state tax credit within a partnership/LLC different
from the federal tax credit.

SUMMARY OF SPECIFIC PROVISIONS:  Section 1 paragraph 1  of  subsection
(oo)  of  section  606 of the tax law is amended by chapter 239 of the
laws of 2009, is amended and a new paragraph 6 is added  to  add  that
tax  credits  shall be allowed to a partnership, LLC or other business
entity and  shall  be  passed  through  to  the  partners,  member  or
shareholders respectively.

Section  2  paragraphs  5 says the credit shall be allowed in whole or
part in a targeted distressed census tract area identified as being at
or below one hundred percent of the state median family income in  the
most recent federal census.

Section  2  paragraph  6  says the tax credit in this section shall be
allowed to a partnership, LLC, subchapter S corp., or  other  business

entity  and  shall  be  passed  through  to  the  partners, members or
shareholders respectively. Credits allowed to these entities shall  be
allocated  among all partners without regard to their sharing of other
tax or economic attributes of the entity.

Section 3 subsection (u) is added to say that on or after Jan. 1, 2010
this bill will allow for a person, firm partnership  or  LLC  shad  be
allowed a tax credit equal to one hundred percent of the amount of the
credit  allowed  for  the  same taxable year with respect to certified
historic structures provided the credit does not  exceed  $5  million.
The   tax  credit  is  allowed  in  the  taxable  year  the  qualified
rehabilitation is placed in service,

Section 4 amends section 1511 of the tax law  to  add  subsection  (y)
that says on or after Jan. 1., 2010 any person, firm, partnership, LLC
or  other  business entity is allowed a credit against the tax imposed
by this article equal to one hundred percent  of  the  amount  of  the
credit allowed such taxpayer for the same taxable year with respect to
certified  historic  structure  under subsection c(2) of section 47 of
the federal internal revenue code provided that the credit  shall  not
exceed  five  million dollars. Credits are allowed in the taxable year
the qualified rehabilitation is placed in  service.    If  the  credit
allowed  such  taxpayer pursuant to section 47 of the federal internal
revenue  code  with  respect  to  the  qualified   rehabilitation   is
recaptured  pursuant  to  subsection  (a) of section 50 of the federal
internal revenue code, a portion of  the  credit  allowed  under  this
subsection must be added back in the same taxable year and in the same
proportion  as the federal recapture. If the allowed credit under this
subsection in a taxable year exceeds the taxpayer's tax for that year,
the excess may be carried over to the following year or years and  may
be applied against the taxpayer's tax for such year.


Section 5 gives the effective date of the act.

JUSTIFICATION:    In 2006, New York State became the 28th state in the
nation to enact a tax incentive (Chapter 547 of the laws of  2006)  to
encourage  the  rehabilitation  of historic commercial and residential
properties. While the Legislature's establishment of this program  was
welcomed, enhancements were required to assure the program matched the
notable   economic   stimulus   impacts  and  community  redevelopment
successes achieved by effective programs in other states. The  changes
were  signed  into  law  in  2009 (Chapter 239 of the laws of 2009) by
Governor Paterson and were once again designed to target  reinvestment
in  distressed  census  tracts. These changes created a successful tax
credit program  for  historic  residential  properties  in  distressed
census  tracts  throughout the state but did not provide the long term
economic development stimulus effect for the commercial  side  of  the
program. This was due to the inability to apply the credit against the
bank  and insurance tax along with the inability to allocate the state
credit within a partnership/LLC different from the federal tax credit.
There are now several hundreds of  millions  of  dollars  in  economic
development  projects  statewide  on hold waiting for these amendments
for the commercial aspect of this tax credit program including several
projects in Harmony Mills in Cohoes, The AM  &A  project  in  Buffalo,
Pike  Block  redevelopment  in  Syracuse  and  The  Mills  in Downtown
Rochester. Passage of this landmark legislation will allow  these  and
other  projects  to  move  forward  creating  hundreds of new jobs and
millions in reinvestment on major time sensitive  projects  that  will
not be completed without immediate action on these changes.

PRIOR LEGISLATIVE HISTORY: New Bill

FISCAL  IMPLICATIONS:  Any  fiscal impact to the state would be offset
through new project development in aging historic properties statewide
spurring new job creation and spin off sales  tax  revenue  and  other
revenue to the local economy

EFFECTIVE  DATE:    This  act  shall take effect immediately and shall
apply to  taxable  years  beginning  on  or  after  January  1,  2010;
provided, that the amendments to subsection (oo) of section 606 of the
tax  law  made  by  section  one  of  this  act  shall  not affect the
expiration of such subsection and chill be deemed to expire therewith;
provided, further that the amendments to subdivision 40 of section 210
of the tax law made by section two of this act shall  not  affect  the
expiration   of  such  subdivision  and  shall  be  deemed  to  expire
therewith; and provided, further, however that Sections three and four
of this act shall expire and be deemed repealed.

2009-A10168 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10168

                          I N  A S S E M B L Y

                              March 9, 2010
                               ___________

Introduced  by  M.  of  A.  HOYT,  McENENY, SKARTADOS, DelMONTE, STIRPE,
  MAGEE, DESTITO, CAHILL, PEOPLES-STOKES,  SCHROEDER,  RUSSELL,  HEVESI,
  GABRYSZAK,  LIFTON,  REILLY, KOON, LATIMER, ENGLEBRIGHT -- Multi-Spon-
  sored by -- M. of A. MORELLE -- read once and referred to the  Commit-
  tee on Ways and Means

AN  ACT  to amend the tax law, in relation to providing a tax credit for
  rehabilitation of historic properties; and providing for the repeal of
  certain provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  1 of subsection (oo) of section 606 of the tax
law, as amended by chapter 239 of the laws of 2009, is amended and a new
paragraph 6 is added to read as follows:
  (1) For taxable years beginning on or after January first,  two  thou-
sand  ten,  any  person,  firm,  partnership, limited liability company,
corporation or other business entity shall be allowed a credit as  here-
inafter  provided, against the tax imposed by this article, in an amount
equal to one hundred percent of the amount of credit allowed [the]  SUCH
taxpayer  for the same taxable year with respect to a certified historic
structure under subsection (c) (2) of section 47 of the federal internal
revenue code with respect to  a  certified  historic  structure  located
within  the state.   Provided, however, the credit shall not exceed five
million dollars.
  (6) TAX CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL  BE  ALLOWED
TO  A PARTNERSHIP, LIMITED LIABILITY COMPANY, "SUBCHAPTER S" CORPORATION
OR OTHER BUSINESS ENTITY AND SHALL BE PASSED THROUGH  TO  THE  PARTNERS,
MEMBERS, OR SHAREHOLDERS RESPECTIVELY. CREDITS ALLOWED TO THESE ENTITIES
SHALL  BE ALLOCATED AMONG ALL PARTNERS, MEMBERS, OR SHAREHOLDERS RESPEC-
TIVELY, EITHER IN PROPORTION TO THEIR OWNERSHIP INTEREST IN THE  ENTITY,
OR  AS THE PARTNERS, MEMBERS, OR SHAREHOLDERS MUTUALLY AGREE AS PROVIDED
IN AN EXECUTED DOCUMENT WITHOUT REGARD TO THEIR SHARING OF OTHER TAX  OR
ECONOMIC ATTRIBUTES OF THE ENTITY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16326-02-0

A. 10168                            2

  S  2.  Paragraph 1 of subdivision 40 of section 210 of the tax law, as
amended by chapter 239 of the laws of 2009, is amended and two new para-
graphs 5 and 6 are added to read as follows:
  (1)  For  taxable years beginning on or after January first, two thou-
sand ten, any person,  firm,  partnership,  limited  liability  company,
corporation  or other business entity shall be allowed a credit as here-
inafter provided, against the tax imposed by this article, in an  amount
equal  to one hundred percent of the amount of credit allowed [the] SUCH
taxpayer for the same taxable year with respect to a certified  historic
structure under subsection (c) (2) of section 47 of the federal internal
revenue  code  with  respect  to  a certified historic structure located
within the state.  Provided, however, the credit shall not  exceed  five
million dollars.
  (5) TO BE ELIGIBLE FOR THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION THE
REHABILITATION  PROJECT  SHALL  BE  IN  WHOLE OR IN PART A TARGETED AREA
RESIDENCE WITHIN THE MEANING OF SECTION 143(J) OF THE  FEDERAL  INTERNAL
REVENUE  CODE  OR  LOCATED  WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS
BEING AT OR BELOW ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY  INCOME
IN THE MOST RECENT FEDERAL CENSUS.
  (6)  TAX CREDITS ALLOWED PURSUANT TO THIS SUBDIVISION SHALL BE ALLOWED
TO A PARTNERSHIP, LIMITED LIABILITY COMPANY, "SUBCHAPTER S"  CORPORATION
OR  OTHER  BUSINESS  ENTITY AND SHALL BE PASSED THROUGH TO THE PARTNERS,
MEMBERS, OR SHAREHOLDERS RESPECTIVELY. CREDITS ALLOWED TO THESE ENTITIES
SHALL BE ALLOCATED AMONG ALL PARTNERS, MEMBERS, OR SHAREHOLDERS  RESPEC-
TIVELY,  EITHER IN PROPORTION TO THEIR OWNERSHIP INTEREST IN THE ENTITY,
OR AS THE PARTNERS, MEMBERS, OR SHAREHOLDERS MUTUALLY AGREE AS  PROVIDED
IN  AN EXECUTED DOCUMENT WITHOUT REGARD TO THEIR SHARING OF OTHER TAX OR
ECONOMIC ATTRIBUTES OF THE ENTITY.
  S 3. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) CREDIT FOR REHABILITATION OF HISTORIC PROPERTIES. (1) FOR  TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, ANY PERSON,
FIRM, PARTNERSHIP, LIMITED LIABILITY COMPANY OR ANY OTHER BUSINESS ENTI-
TY  SHALL  BE  ALLOWED A CREDIT AS HEREINAFTER PROVIDED, AGAINST THE TAX
IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO ONE  HUNDRED  PERCENT  OF
THE AMOUNT OF THE CREDIT ALLOWED SUCH TAXPAYER FOR THE SAME TAXABLE YEAR
WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION C (2) OF
SECTION 47 OF THE FEDERAL INTERNAL REVENUE CODE WITH RESPECT TO A CERTI-
FIED  HISTORIC  STRUCTURE  LOCATED WITHIN THE STATE.  PROVIDED, HOWEVER,
THE CREDIT SHALL NOT EXCEED FIVE MILLION DOLLARS.
  (2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL  BE  ALLOWED
IN  THE  TAXABLE  YEAR  THAT  THE  QUALIFIED REHABILITATION IS PLACED IN
SERVICE UNDER SECTION 167 OF THE FEDERAL INTERNAL REVENUE CODE.
  (3) IF THE CREDIT ALLOWED THE TAXPAYER PURSUANT TO SECTION 47  OF  THE
FEDERAL  INTERNAL  REVENUE  CODE WITH RESPECT TO THE QUALIFIED REHABILI-
TATION IS RECAPTURED PURSUANT TO SUBSECTION (A) OF  SECTION  50  OF  THE
FEDERAL  INTERNAL  REVENUE  CODE,  A PORTION OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION MUST BE ADDED BACK IN THE SAME TAXABLE YEAR AND  IN  THE
SAME PROPORTION AS THE FEDERAL RECAPTURE.
  (4)  IF  THE  AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR
ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S  TAX  FOR  SUCH  YEAR,  THE
EXCESS  MAY  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE
APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (5) TO BE ELIGIBLE FOR THE CREDIT UNDER THIS SUBSECTION THE  REHABILI-
TATION  PROJECT  MUST  BE  IN WHOLE OR IN PART A TARGETED AREA RESIDENCE
WITHIN THE MEANING OF SECTION 143 (J) OF THE  FEDERAL  INTERNAL  REVENUE

A. 10168                            3

CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW  ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE MOST
RECENT FEDERAL CENSUS.
  (6)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
TO A PARTNERSHIP, LIMITED LIABILITY COMPANY, "SUBCHAPTER S"  CORPORATION
OR  OTHER  BUSINESS  ENTITY  SHALL  BE  PASSED  THROUGH TO THE PARTNERS,
MEMBERS, OR SHAREHOLDERS RESPECTIVELY. CREDITS ALLOWED TO THESE ENTITIES
SHALL BE ALLOCATED AMONG ALL PARTNERS, MEMBERS, OR SHAREHOLDERS  RESPEC-
TIVELY,  EITHER IN PROPORTION TO THEIR OWNERSHIP INTEREST IN THE ENTITY,
OR AS THE PARTNERS, MEMBERS, OR SHAREHOLDERS MUTUALLY AGREE AS  PROVIDED
IN  AN EXECUTED DOCUMENT WITHOUT REGARD TO THEIR SHARING OF OTHER TAX OR
ECONOMIC ATTRIBUTES OF THE ENTITY.
  S 4. Section 1511 of the tax law is amended by adding a new subsection
(y) to read as follows:
  (Y) CREDIT FOR REHABILITATION OF HISTORIC PROPERTIES. (1) FOR  TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, ANY PERSON,
FIRM, PARTNERSHIP, LIMITED LIABILITY COMPANY OR ANY OTHER BUSINESS ENTI-
TY  SHALL  BE  ALLOWED A CREDIT AS HEREINAFTER PROVIDED, AGAINST THE TAX
IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO ONE  HUNDRED  PERCENT  OF
THE AMOUNT OF THE CREDIT ALLOWED SUCH TAXPAYER FOR THE SAME TAXABLE YEAR
WITH  RESPECT TO A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION C(2) OF
SECTION 47 OF THE FEDERAL INTERNAL REVENUE CODE WITH RESPECT TO A CERTI-
FIED HISTORIC STRUCTURE LOCATED WITHIN THE STATE.    PROVIDED,  HOWEVER,
THE CREDIT SHALL NOT EXCEED FIVE MILLION DOLLARS.
  (2)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
IN THE TAXABLE YEAR THAT  THE  QUALIFIED  REHABILITATION  IS  PLACED  IN
SERVICE UNDER SECTION 167 OF THE FEDERAL INTERNAL REVENUE CODE.
  (3)  IF  THE CREDIT ALLOWED THE TAXPAYER PURSUANT TO SECTION 47 OF THE
FEDERAL INTERNAL REVENUE CODE WITH RESPECT TO  THE  QUALIFIED  REHABILI-
TATION  IS  RECAPTURED  PURSUANT  TO SUBSECTION (A) OF SECTION 50 OF THE
FEDERAL INTERNAL REVENUE CODE, A PORTION OF  THE  CREDIT  ALLOWED  UNDER
THIS  SUBSECTION  MUST BE ADDED BACK IN THE SAME TAXABLE YEAR AND IN THE
SAME PROPORTION AS THE FEDERAL RECAPTURE.
  (4) IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER  THIS  SUBSECTION  FOR
ANY  TAXABLE  YEAR  SHALL  EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, THE
EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS,  AND  MAY  BE
APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (5)  TO BE ELIGIBLE FOR THE CREDIT UNDER THIS SUBSECTION THE REHABILI-
TATION PROJECT MUST BE IN WHOLE OR IN PART  A  TARGETED  AREA  RESIDENCE
WITHIN  THE  MEANING  OF SECTION 143 (J) OF THE FEDERAL INTERNAL REVENUE
CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE  MOST
RECENT FEDERAL CENSUS.
  (6)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
TO A PARTNERSHIP, LIMITED LIABILITY COMPANY, "SUBCHAPTER S"  CORPORATION
OR  OTHER  BUSINESS  ENTITY AND SHALL BE PASSED THROUGH TO THE PARTNERS,
MEMBERS, OR SHAREHOLDERS RESPECTIVELY. CREDITS ALLOWED TO THESE ENTITIES
SHALL BE ALLOCATED AMONG ALL PARTNERS, MEMBERS, OR SHAREHOLDERS  RESPEC-
TIVELY,  EITHER IN PROPORTION TO THEIR OWNERSHIP INTEREST IN THE ENTITY,
OR AS THE PARTNERS, MEMBERS, OR SHAREHOLDERS MUTUALLY AGREE AS  PROVIDED
IN  AN EXECUTED DOCUMENT WITHOUT REGARD TO THEIR SHARING OF OTHER TAX OR
ECONOMIC ATTRIBUTES OF THE ENTITY.
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2010; provided, that the  amend-
ments  to  subsection (oo) of section 606 of the tax law made by section
one of this act shall not affect the expiration of such  subsection  and

A. 10168                            4

shall  be  deemed to expire therewith; provided, further that the amend-
ments to subdivision 40 of section 210 of the tax law  made  by  section
two  of this act shall not affect the expiration of such subdivision and
shall be deemed to expire therewith; and provided, further, however that
sections  three and four of this act shall expire and be deemed repealed
December 31, 2014; provided, however, that the credit shall  be  applied
to any rehabilitation project commenced on or before December 31, 2014.

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Assembly Bill A10168

Sponsored By

Archive: Last Bill Status - In Assembly Committee

co-Sponsors

multi-Sponsors

2009-A10168 (ACTIVE) - Details

2009-A10168 (ACTIVE) - Summary

2009-A10168 (ACTIVE) - Sponsor Memo

2009-A10168 (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A10168

Share this bill

Sponsored By

HOYT

Archive: Last Bill Status - In Assembly Committee

co-Sponsors

John McEneny

Frank Skartados

Francine DelMonte

Albert A. Stirpe

multi-Sponsors

James Bacalles

William A. Barclay

Michael Benjamin

Jane Corwin

2009-A10168 (ACTIVE) - Details

2009-A10168 (ACTIVE) - Summary

2009-A10168 (ACTIVE) - Sponsor Memo

2009-A10168 (ACTIVE) - Bill Text download pdf

Comments