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

                                  7556

                            I N  S E N A T E

                             April 21, 2010
                               ___________

Introduced by Sen. VALESKY -- (at request of the Governor) -- 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 clarifying the application
  of the credit  for  the  rehabilitation  of  historic  properties  and
  historic  homes; and to amend chapter 239 of the laws of 2009 amending
  the tax law and other laws relating to providing a tax credit for  the
  rehabilitation of historic properties, in relation to making permanent
  the provisions 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 to read
as follows:
  (1) (A) For taxable years beginning on or  after  January  first,  two
thousand  ten  AND  BEFORE  JANUARY  FIRST,  TWO  THOUSAND FIFTEEN, [any
person, firm, partnership, limited  liability  company,  corporation  or
other  business  entity] A TAXPAYER shall be allowed a credit as herein-
after provided, against the tax imposed by this article,  in  an  amount
equal to one hundred percent of the amount of credit allowed the taxpay-
er  [for  the  same  taxable  year] with respect to a certified historic
structure under subsection [(c)] (A) (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.   FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A CRED-
IT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE,  IN
AN  AMOUNT  EQUAL  TO THIRTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE
TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION
(A)(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 ONE HUNDRED THOUSAND DOLLARS.
  (B) IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER  OF
A  NEW  YORK  S CORPORATION, THEN THE CREDIT CAP IMPOSED IN SUBPARAGRAPH

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

                                                           LBD12198-01-0

S. 7556                             2

(A) OF THIS PARAGRAPH SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT  THE
AGGREGATE  CREDIT  ALLOWED  TO  ALL THE PARTNERS OR SHAREHOLDERS OF EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED THE CREDIT CAP  THAT  IS
APPLICABLE IN THAT TAXABLE YEAR.
  S  2.  Subparagraphs  (A) and (B) of paragraph 2 of subsection (pp) of
section 606 of the tax law, as amended by chapter 239  of  the  laws  of
2009, are amended to read as follows:
  (A) With respect to any particular residence of a taxpayer, the credit
allowed  under  paragraph  one of this subsection shall not exceed fifty
thousand dollars FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST,
TWO  THOUSAND  TEN  AND  BEFORE  JANUARY FIRST, TWO THOUSAND FIFTEEN AND
TWENTY-FIVE THOUSAND DOLLARS FOR TAXABLE YEARS  BEGINNING  ON  OR  AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN.  In the case of a husband and wife,
the  amount  of  the  credit shall be divided between them equally or in
such other manner as they may both elect. If a taxpayer incurs qualified
rehabilitation expenditures in relation to more than  one  residence  in
the same year, the total amount of credit allowed under paragraph one of
this subsection for all such expenditures shall not exceed [twenty-five]
FIFTY  thousand  dollars FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TEN AND BEFORE JANUARY FIRST, TWO  THOUSAND  FIFTEEN
AND TWENTY-FIVE THOUSAND DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN.
  (B)  [If]  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TEN AND BEFORE JANUARY FIRST,  TWO  THOUSAND  FIFTEEN,  IF  the
amount  of  credit  allowable  under  this  subsection  shall exceed the
taxpayer's tax for such year, and the taxpayer's New York adjusted gross
income for such year does not exceed sixty thousand dollars, the  excess
shall  be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid  thereon.  If
the  taxpayer's  New  York  adjusted  gross income for such year exceeds
sixty thousand dollars, the excess credit that may be  carried  over  to
the  following year or years and may be deducted from the taxpayer's tax
for such year or years.  FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND FIFTEEN, IF THE AMOUNT  OF  CREDIT  ALLOWABLE  UNDER
THIS  SUBSECTION  SHALL  EXCEED  THE  TAXPAYER'S  TAX FOR SUCH YEAR, THE
EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR  YEARS  AND  MAY  BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 3. Paragraphs 1, 3 and 4 of subdivision 40 of section 210 of the tax
law,  as amended by chapter 239 of the laws of 2009, are amended to read
as follows:
  (1) (A) For taxable years beginning on or  after  January  first,  two
thousand  ten  AND  BEFORE  JANUARY  FIRST,  TWO  THOUSAND FIFTEEN, [any
person, firm, partnership, limited  liability  company,  corporation  or
other  business  entity] A TAXPAYER shall be allowed a credit as herein-
after provided, against the tax imposed by this article,  in  an  amount
equal to one hundred percent of the amount of credit allowed the taxpay-
er  [for  the  same  taxable  year] with respect to a certified historic
structure under subsection [(c)] (A) (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.   FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A CRED-
IT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE,  IN
AN  AMOUNT  EQUAL  TO THIRTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE
TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION

S. 7556                             3

(A)(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 ONE HUNDRED THOUSAND DOLLARS.
  (B)  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER IN
A NEW YORK S CORPORATION, THEN THE CREDIT CAPS IMPOSED  IN  SUBPARAGRAPH
(A)  OF THIS PARAGRAPH SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS  OR  SHAREHOLDERS  OF  EACH
SUCH  ENTITY  IN THE TAXABLE YEAR DOES NOT EXCEED THE CREDIT CAP THAT IS
APPLICABLE IN THAT TAXABLE YEAR.
  (3) If the credit allowed the taxpayer pursuant to section 47  of  the
internal  revenue  code  with  respect  to a qualified rehabilitation is
recaptured pursuant to subsection (a) of  section  50  of  the  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
[such credit] THE FEDERAL RECAPTURE.
  (4) [If] THE CREDIT ALLOWED UNDER THIS  SUBDIVISION  FOR  ANY  TAXABLE
YEAR  SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER
OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF  SUBDIVISION  ONE
OF  THIS SECTION.   HOWEVER, IF the amount of the credit allowable under
this subdivision 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] DEDUCTED from the taxpayer's  tax  for  such
year or years.
  S 4. Subdivision 40 of section 210 of the tax law, as amended by chap-
ter  239  of the laws of 2009, is amended by adding a new paragraph 5 to
read as follows:
  (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  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 5. 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)(A) FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  TEN  AND
BEFORE  JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED
A CREDIT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS  ARTI-
CLE,  IN  AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE AMOUNT OF CREDIT
ALLOWED THE TAXPAYER WITH RESPECT  TO  A  CERTIFIED  HISTORIC  STRUCTURE
UNDER  SUBSECTION  (A)(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. FOR TAXABLE YEARS BEGINNING ON  OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND  FIFTEEN,  A  TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO
THIRTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE TAXPAYER WITH RESPECT
TO A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION (A)(2) OF SECTION  47
OF THE FEDERAL INTERNAL REVENUE CODE WITH RESPECT TO A CERTIFIED HISTOR-
IC  STRUCTURE  LOCATED  WITHIN THE STATE.  PROVIDED, HOWEVER, THE CREDIT
SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B) IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER  OF
A  NEW  YORK S CORPORATION, THEN THE CREDIT CAPS IMPOSED IN SUBPARAGRAPH
(A) OF THIS PARAGRAPH SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT  THE
AGGREGATE  CREDIT  ALLOWED  TO  ALL THE PARTNERS OR SHAREHOLDERS OF EACH

S. 7556                             4

SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED THE CREDIT CAP  THAT  IS
APPLICABLE IN THAT TAXABLE YEAR.
  (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
INTERNAL REVENUE CODE WITH RESPECT  TO  A  QUALIFIED  REHABILITATION  IS
RECAPTURED  PURSUANT  TO  SUBSECTION  (A)  OF SECTION 50 OF THE 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) THE CREDIT ALLOWED UNDER THIS  SUBSECTION  FOR  ANY  TAXABLE  YEAR
SHALL NOT REDUCE THE TAX TO LESS THAN THE DOLLAR AMOUNT FIXED AS A MINI-
MUM TAX BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS
ARTICLE.    IF  THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR
ANY TAXABLE YEAR REDUCES THE TAX TO  SUCH  AMOUNT,  THE  EXCESS  MAY  BE
CARRIED  OVER  TO  THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (5) TO BE ELIGIBLE FOR THE CREDIT ALLOWABLE UNDER THIS SUBSECTION  THE
REHABILITATION  PROJECT  SHALL  BE  IN  WHOLE OR IN PART A TARGETED AREA
RESIDENCE WITHIN THE MEANING OF SECTION 143(J) OF THE  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 6. 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)(A) FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  TEN  AND
BEFORE  JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED
A CREDIT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS  ARTI-
CLE,  IN  AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE AMOUNT OF CREDIT
ALLOWED THE TAXPAYER WITH RESPECT  TO  A  CERTIFIED  HISTORIC  STRUCTURE
UNDER  SUBSECTION  (A)(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. FOR TAXABLE YEARS BEGINNING ON  OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND  FIFTEEN,  A  TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO
THIRTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE TAXPAYER WITH RESPECT
TO A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION (A)(2) OF SECTION  47
OF THE FEDERAL INTERNAL REVENUE CODE WITH RESPECT TO A CERTIFIED HISTOR-
IC  STRUCTURE  LOCATED  WITHIN THE STATE.  PROVIDED, HOWEVER, THE CREDIT
SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B) IF THE TAXPAYER IS A  PARTNER  IN  A  PARTNERSHIP,  THEN  THE  CAP
IMPOSED  IN  SUBPARAGRAPH  (A) OF THIS PARAGRAPH SHALL BE APPLIED AT THE
ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL  THE  PARTNERS
OF  SUCH  PARTNERSHIP IN THE TAXABLE YEAR DOES NOT EXCEED THE CREDIT CAP
THAT IS APPLICABLE IN THAT TAXABLE YEAR.
  (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
INTERNAL  REVENUE  CODE  WITH  RESPECT  TO A QUALIFIED REHABILITATION IS
RECAPTURED PURSUANT TO SUBSECTION (A) OF  SECTION  50  OF  THE  INTERNAL
REVENUE  CODE,  A PORTION OF THE CREDIT ALLOWED UNDER THIS SUBSECTION IN

S. 7556                             5

THE TAXABLE YEAR THE CREDIT WAS CLAIMED MUST BE ADDED BACK IN  THE  SAME
TAXABLE YEAR AND IN THE SAME PROPORTION AS THE FEDERAL RECAPTURE.
  (4)  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS  THAN  THE  MINIMUM
FIXED  BY  PARAGRAPH  FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
TWO OR SECTION FIFTEEN HUNDRED  TWO-A  OF  THIS  ARTICLE,  WHICHEVER  IS
APPLICABLE. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION
FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS MAY BE
CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY  BE  DEDUCTED  FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (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 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 7. Section 5 of chapter 239 of the laws of 2009 amending the tax law
and other laws relating to providing a tax credit for the rehabilitation
of historic properties, is amended to read as follows:
  S 5. This act shall take effect immediately and shall apply to taxable
years  beginning  on  and after January 1, 2010 [and 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
the date on which that act shall be deemed repealed].
  S 8. This act shall take effect immediately.