NY State Senate Bill 2009-S7042

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 09, 2010	referred to investigations and government operations

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2009-S7042 (ACTIVE) - Details

See Assembly Version of this Bill:: A10168
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§606, 210, 1456 & 1511, Tax L

2009-S7042 (ACTIVE) - Summary

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

2009-S7042 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7042

 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 January 1,
2010 this bill will allow for a person, firm partnership or LLC shall
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 January 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 reinvestrnent 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 reinvestrnent 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 shall 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-S7042 (ACTIVE) - Bill Text download pdf

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

                                  7042

                            I N  S E N A T E

                              March 9, 2010
                               ___________

Introduced  by  Sens.  VALESKY,  STACHOWSKI, AUBERTINE, THOMPSON -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Investigations and Government Operations

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.
  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:

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

S. 7042                             2

  (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
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.

S. 7042                             3

  (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
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

S. 7042                             4

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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Senate Bill S7042

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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co-Sponsors

2009-S7042 (ACTIVE) - Details

2009-S7042 (ACTIVE) - Summary

2009-S7042 (ACTIVE) - Sponsor Memo

2009-S7042 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

co-Sponsors

2009-S7042 (ACTIVE) - Details

2009-S7042 (ACTIVE) - Summary

2009-S7042 (ACTIVE) - Sponsor Memo

2009-S7042 (ACTIVE) - Bill Text download pdf

Comments