senate Bill S1671C

Provides an asbestos remediation tax credit

download pdf

Sponsor

Co-Sponsors

Bill Status


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

actions

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 11 / Jan / 2013
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 11 / Jan / 2013
    • PRINT NUMBER 1671A
  • 21 / May / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 12 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 12 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1308
  • 13 / Jun / 2013
    • PASSED SENATE
  • 13 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 13 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 29 / Apr / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 21 / May / 2014
    • AMEND AND RECOMMIT TO FINANCE
  • 21 / May / 2014
    • PRINT NUMBER 1671B
  • 28 / May / 2014
    • AMEND AND RECOMMIT TO FINANCE
  • 28 / May / 2014
    • PRINT NUMBER 1671C
  • 02 / Jun / 2014
    • 1ST REPORT CAL.1063
  • 03 / Jun / 2014
    • 2ND REPORT CAL.
  • 09 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Provides an asbestos remediation tax credit; allows for a twenty percent credit of all eligible costs which are incurred as a result of asbestos remediation, not to exceed $1,000,000.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A5365B
Versions:
S1671
S1671A
S1671B
S1671C
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Tax Law
Laws Affected:
Add §§23-a & 187-t, amd §§210-B & 606, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S6524A

Sponsor Memo

BILL NUMBER:S1671C

TITLE OF BILL: An act to amend the tax law, in relation to providing
an asbestos remediation tax credit

PURPOSE:

To create an asbestos tax credit to support remediation and economic
development

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the tax law by adding a new section 23-a to provide
an asbestos remediation tax credit. The amount of the credit shall be
20% of all eligible costs which are incurred in the taxable year, as a
result of asbestos remediation with a qualified asbestos project. The
credit shall not exceed one million dollars for the three taxable
years allowed and claimed.

Sections two through five amend the tax law to provide for the
allowance and application of an asbestos tax credit.

Section six provides the effective date.

JUSTIFICATION:

Due to the presence of asbestos, structures in older, established
neighborhoods throughout the State are faced with an uneven playing
field for development and reinvestment. The costs necessary to safely
and legally remediate asbestos from these structures (either for
adaptive reuse or demolition and new build) are unfeasibly high and
therefore perpetuate blight, abandonment and disinvestment.

Some of the larger, and potentially transformational projects in the
State have asbestos remediation costs that are upwards of $4-5
million. Although these projects are not the norm, they represent the
largest catalytic opportunities for economic redevelopment and
reinvestment in our cities and regions. By placing a $1 million cap on
claimable credits for asbestos remediation the State will guide
transformational private capital investment into existing
infrastructure and assets, and begin to address this real public
safety concern and unavoidable hurdle to smart growth redevelopment.

PRIOR LEGISLATIVE HISTORY:

6524A Passed Senate in 2012

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2015.


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

                                 1671--C

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted  as amended and recommitted to said committee -- recommitted
  to the  Committee  on  Investigations  and  Government  Operations  in
  accordance  with Senate Rule 6, sec. 8 -- reported favorably from said
  committee and committed to  the  Committee  on  Finance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  --  committee  discharged,  bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to providing an asbestos  reme-
  diation tax credit

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

  Section 1. The tax law is amended by adding a new section 23-a to read
as follows:
  S 23-A. ASBESTOS REMEDIATION CREDIT. (A) DEFINITIONS. AS USED IN  THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) QUALIFIED STRUCTURE. "QUALIFIED STRUCTURE" SHALL MEAN (I) A BUILD-
ING,  PRINCIPALLY  USED  BY  THE  TAXPAYER  FOR RESIDENTIAL, INDUSTRIAL,
COMMERCIAL, RECREATIONAL OR  ENVIRONMENTAL  CONSERVATION  PURPOSES,  AND
(II)  WHICH  WAS ORIGINALLY PLACED IN SERVICE AT LEAST TWENTY-FIVE YEARS
PRIOR TO THE TAXABLE YEAR IN WHICH THE CREDIT IS CLAIMED.
  (2) ELIGIBLE COSTS. "ELIGIBLE COSTS" SHALL MEAN ALL  AMOUNTS  PROPERLY
CHARGEABLE TO A CAPITAL ACCOUNT, WHICH ARE INCURRED IN DIRECT CONNECTION
TO ASBESTOS REMEDIATION OF A QUALIFIED ASBESTOS PROJECT.
  (3)  QUALIFIED ASBESTOS PROJECT. "QUALIFIED ASBESTOS PROJECT" SHALL BE
AN ASBESTOS PROJECT AS DEFINED IN SECTION NINE HUNDRED ONE OF THE  LABOR
LAW  AND  UNDERTAKEN  BY  THE  TAXPAYER,  ON  A QUALIFIED STRUCTURE, AND
COMPLETED PURSUANT TO THE APPLICABLE REGULATIONS AT  PART  FIFTY-SIX  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04752-06-4

S. 1671--C                          2

TITLE TWELVE OF THE OFFICIAL COMPILATION OF RULES AND REGULATIONS OF THE
STATE.
  (B)  ASBESTOS  REMEDIATION CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
WHO HAS UNDERTAKEN A QUALIFIED ASBESTOS PROJECT ON  A  QUALIFIED  STRUC-
TURE, AND WHO IS SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A OR TWENTY-TWO
OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO
THE PROVISIONS REFERENCED IN SUBDIVISION (C) OF THIS SECTION.
  (2) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE TWENTY PERCENT
OF  ALL  ELIGIBLE  COSTS  WHICH  ARE  INCURRED IN THE TAXABLE YEAR, AS A
RESULT OF ASBESTOS  REMEDIATION  WITH  A  COMPLETED  QUALIFIED  ASBESTOS
PROJECT.  THE  CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH THE
QUALIFIED ASBESTOS PROJECT IS FIRST  COMMENCED  AND  FOR  THE  NEXT  TWO
SUCCEEDING TAXABLE YEARS. THE CREDIT AUTHORIZED PURSUANT TO THIS SECTION
SHALL  NOT  EXCEED  THE  TOTAL  SUM OF ONE MILLION DOLLARS FOR THE THREE
TAXABLE YEARS ALLOWED AND CLAIMED. THE COSTS, EXPENSES AND OTHER AMOUNTS
FOR WHICH A CREDIT IS ALLOWED AND CLAIMED UNDER THIS  SUBDIVISION  SHALL
NOT  BE  USED  IN THE CALCULATION OF ANY OTHER CREDIT ALLOWED UNDER THIS
CHAPTER.
  (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  ARTICLE 9: SECTION 187-T.
  ARTICLE 9-A: SECTION 210-B, SUBDIVISION 49.
  ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (CCC).
  S  2.  The tax law is amended by adding a new section 187-t to read as
follows:
  S 187-T. ASBESTOS  REMEDIATION  CREDIT.  1.  ALLOWANCE  OF  CREDIT.  A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
SECTION TWENTY-THREE-A OF THIS CHAPTER, AGAINST  THE  TAXES  IMPOSED  BY
THIS  ARTICLE.  PROVIDED, HOWEVER, THAT THE AMOUNT OF SUCH CREDIT ALLOW-
ABLE AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-FOUR OF  THIS
ARTICLE SHALL BE THE EXCESS OF THE AMOUNT OF SUCH CREDIT OVER THE AMOUNT
OF ANY CREDIT ALLOWED BY THIS SECTION AGAINST THE TAX IMPOSED BY SECTION
ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.
  2.  APPLICATION OF CREDIT. THE CREDIT UNDER THIS SECTION FOR ANY TAXA-
BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS  THAN  THE
APPLICABLE  MINIMUM  TAX  PRESCRIBED  BY  THIS ARTICLE. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER  THIS  SECTION  FOR  ANY  TAXABLE  YEAR
REDUCES  THE  TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR SHALL BE TREATED  AS  AN  OVERPAYMENT  OF  TAX  TO  BE
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 3. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 49 to read as follows:
  49.  ASBESTOS  REMEDIATION CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
WHO HAS UNDERTAKEN A QUALIFIED ASBESTOS PROJECT ON AN EXISTING STRUCTURE
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  TWEN-
TY-THREE-A OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN THE HIGHER AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
THIS  SECTION.  HOWEVER,  IF  THE  AMOUNT  OF CREDITS ALLOWED UNDER THIS
SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX  TO  SUCH  AMOUNT,  ANY
AMOUNT  OF  CREDIT  THUS  NOT  DEDUCTIBLE  IN SUCH TAXABLE YEAR SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-

S. 1671--C                          3

ANCE  WITH  THE  PROVISIONS  OF  SECTION ONE THOUSAND EIGHTY-SIX OF THIS
CHAPTER.  PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION
ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING,  NO  INTEREST
SHALL BE PAID THEREON.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
follows:

(XLI) ASBESTOS REMEDIATION           AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (CCC)        SUBDIVISION FORTY-NINE OF
                                     SECTION TWO HUNDRED TEN-B
  S  5. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) ASBESTOS REMEDIATION CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
WHO HAS UNDERTAKEN A QUALIFIED ASBESTOS PROJECT ON AN EXISTING STRUCTURE
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  TWEN-
TY-THREE-A OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, 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.
  S  6.  This  act  shall  take  effect on the same date and in the same
manner as section 17 of part A of chapter 59 of the laws of 2014,  takes
effect  and  shall  apply  to  taxable years commencing on or after such
date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.