senate Bill S4758C

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 20 / Apr / 2011
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 18 / May / 2011
    • 1ST REPORT CAL.764
  • 23 / May / 2011
    • 2ND REPORT CAL.
  • 24 / May / 2011
    • ADVANCED TO THIRD READING
  • 01 / Jun / 2011
    • AMENDED ON THIRD READING (T) 4758A
  • 16 / Jun / 2011
    • AMENDED ON THIRD READING (T) 4758B
  • 24 / Jun / 2011
    • COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 11 / Jan / 2012
    • AMEND (T) AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 11 / Jan / 2012
    • PRINT NUMBER 4758C
  • 18 / Jan / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 06 / Mar / 2012
    • 1ST REPORT CAL.306
  • 07 / Mar / 2012
    • 2ND REPORT CAL.
  • 12 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 21 / Mar / 2012
    • PASSED SENATE
  • 21 / Mar / 2012
    • DELIVERED TO ASSEMBLY
  • 21 / Mar / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

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Bill Details

See Assembly Version of this Bill:
A7404A
Versions:
S4758
S4758A
S4758B
S4758C
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210, 606, 1456 & 1511, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
A7404A, S4758C, A7404A, S4758C

Sponsor Memo

BILL NUMBER:S4758C REVISED 2/14/12

TITLE OF BILL: An act to amend the tax law, in relation to providing
that the low income housing credit shall be treated as an overpayment
of taxes

PURPOSE: This bill would convert the state low income housing tax,
credit to a refundable tax credit to help stimulate low income housing
investment in the state.

SUMMARY OF PROVISIONS: This bill would amend subdivision 30 of
section 210 of the tax law to provide that for allocations of housing
tax credit made pursuant to law after January 1, 2012, the corporate
franchise low income housing tax credit shall be treated as a
refundable tax credit. Paragraph 3 of subsection(x) of section 606 of
the tax law is amended to convert the existing low income housing tax
credit to a refundable low income housing tax credit for allocations
of housing tax credit made after taxable years beginning after January
1, 2012. Paragraph 3 of subsection (1) of section 1456 of the tax law
is amended to convert the existing low income housing tax credit to a
refundable low income housing tax credit for allocations of credit
made subsequent to January 1, 2012. Paragraph 3 of subdivision (n) of
section 1511 of the tax law is amended to convert the low income
housing tax credit to a refundable tax credit for purposes of the
Insurance Franchise Tax for allocations of tax credit made after
January 1, 2012. Furthermore, in order to obtain treatment as a
refundable credit for these taxes, a project must have received an
eligibility statement from the commissioner of housing and community
renewal pursuant to article two-A of the public housing law.

JUSTIFICATION: Tax credit programs are widely seen as the primary
mechanism for successfully producing and preserving affordable rental
housing. As a result of the recent financial crisis, state and federal
tax credit programs have been disrupted, as is the case in New York.
The problem has been further exacerbated in New York where the state
tax credit is less marketable, unlike the case in many other states.

New York's low income housing credit tax program was established in
2000 pursuant to Article 2-A of the Public Housing Law and was
designed to encourage the development of low income housing.
Refundable housing tax credits are more desirable than non refundable
credits and would work to create a greater demand in the marketplace.
This bill would permit investors to obtain a broader class of
investors including banks, corporations, and insurance companies and
would create additional demand on the market for state tax credits.
This demand would drive up pricing among investors as pricing as
competition is increased. This would translate into greater private
investment in affordable housing which will help drive housing
development within the state.

LEGISLATIVE HISTORY: S. 4758B-2011/Senate 3rd reading calendar.

FISCAL IMPLICATIONS: This bill authorizes no additional tax credit
authority and would result in no further reduction in tax receipts.

EFFECTIVE DATE: This act shall take effect immediately.


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

                                 4758--C

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 20, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  --  reported  favorably  from  said committee,
  ordered to first and  second  report,  ordered  to  a  third  reading,
  amended  and  ordered  reprinted,  retaining its place in the order of
  third reading -- again amended and ordered  reprinted,  retaining  its
  place in the order of third reading -- recommitted to the Committee on
  Housing,  Construction  and  Community  Development in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  tax  law, in relation to providing that the low
  income housing credit shall be treated as an overpayment of taxes

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

  Section  1.  Paragraph (c) of subdivision 30 of section 210 of the tax
law is relettered paragraph (d) and a new paragraph (c) is added to read
as follows:
  (C) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
SUBDIVISION  SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED, PROVIDED THAT THE CREDITS: (1) HAVE AN  ELIGIBILITY  STATEMENT
ISSUED  BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO
ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (2) ARE AVAILABLE  PURSUANT
TO  LAW  ENACTED  AFTER  JANUARY  FIRST,  TWO THOUSAND TWELVE. PROVIDED,
HOWEVER, THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE
PAID THEREON.
  S 2. Paragraph 3 of subsection (x) of section 606 of the  tax  law  is
renumbered  paragraph  4  and  a  new  paragraph  3  is added to read as
follows:
  (3) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
SUBSECTION  SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10736-06-2

S. 4758--C                          2

REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS  ARTICLE,
PROVIDED  THAT  THE CREDITS: (I) HAVE AN ELIGIBILITY STATEMENT ISSUED BY
THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL  PURSUANT  TO  ARTICLE
TWO-A  OF THE PUBLIC HOUSING LAW, AND (II) ARE AVAILABLE PURSUANT TO LAW
ENACTED AFTER JANUARY FIRST, TWO  THOUSAND  TWELVE.  PROVIDED,  HOWEVER,
THAT NO INTEREST SHALL BE PAID THEREON.
  S  3.  Paragraph 3 of subsection (1) of section 1456 of the tax law is
renumbered paragraph 4 and a  new  paragraph  3  is  added  to  read  as
follows:
  (3)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBSECTION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE  CREDITED  OR
REFUNDED,  PROVIDED  THAT THE CREDITS: (A) HAVE AN ELIGIBILITY STATEMENT
ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT  TO
ARTICLE  TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE PURSUANT
TO LAW ENACTED AFTER JANUARY FIRST,  TWO  THOUSAND  TWELVE.    PROVIDED,
HOWEVER,  THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C) OF
SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL  BE
PAID THEREON.
  S  4. Paragraph 3 of subdivision (n) of section 1511 of the tax law is
renumbered paragraph 4 and a  new  paragraph  3  is  added  to  read  as
follows:
  (3)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBDIVISION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED,  PROVIDED  THAT THE CREDITS: (A) HAVE AN ELIGIBILITY STATEMENT
ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT  TO
ARTICLE  TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE PURSUANT
TO LAW ENACTED AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWELVE.  PROVIDED,
HOWEVER,  THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C) OF
SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL  BE
PAID THEREON.
  S  5.  This  act  shall take effect immediately and shall apply to tax
years commencing on or after January 1, 2012.

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