S T A T E O F N E W Y O R K
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2960--B
Cal. No. 369
2009-2010 Regular Sessions
I N S E N A T E
March 6, 2009
___________
Introduced by Sens. VALESKY, AUBERTINE, BRESLIN, STACHOWSKI, THOMPSON --
read twice and ordered printed, and when printed to be committed to
the Committee on Investigations and Government Operations -- 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 -- reported favorably from
said committee, ordered to first report, amended on first report,
ordered to a second report and ordered reprinted, retaining its place
in the order of second report
AN ACT to amend the tax law, in relation to providing a tax credit for
rehabilitation of historic properties; to repeal section 5 of chapter
547 of the laws of 2006 amending the tax law and the parks, recreation
and historic preservation law, relating to establishing a credit
against income tax for the rehabilitation of historic properties, in
relation to repealing certain administrative requirements relating
thereto; and providing for the repeal of such provisions upon expira-
tion thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (oo) of section 606 of the tax law, as added by
chapter 547 of the laws of 2006, is amended to read as follows:
(oo) Credit for rehabilitation of historic properties. (1) For taxable
years beginning on or after January first, two thousand [seven] TEN, [a
taxpayer] 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 [thirty] ONE HUNDRED percent of the amount of credit allowed
the taxpayer for the same taxable year with respect to a certified
historic structure under subsection (c)[(3)](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] FIVE MILLION dollars.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09868-04-9
S. 2960--B 2
(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) CREDITS ALLOWED TO A PARTNERSHIP, A LIMITED LIABILITY COMPANY
TAXED AS A PARTNERSHIP OR MULTIPLE OWNERS OF PROPERTY SHALL BE PASSED
THROUGH TO THE PERSONS DESIGNATED, MEMBERS OR OWNERS, RESPECTIVELY PRO
RATA OR PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PERSONS DESIGNATED
AS PARTNERS, MEMBERS OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION
METHOD WITHOUT REGARD TO THEIR SHARING OF OTHER TAX OR ECONOMIC ATTRI-
BUTES OF THE ENTITY.
(4) If the credit allowed the taxpayer pursuant to [subsection (c)(3)
of] 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 recapture equal to thirty percent times the amount
of] the federal recapture.
[(3)] (5) 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
[deducted from] APPLIED AGAINST the taxpayer's tax for such year or
years.
(6) 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 2. Subparagraphs (A) and (B) of paragraph 2 and clause (iv) of
subparagraph (A) of paragraph 5 of subsection (pp) of section 606 of the
tax law, as added by chapter 547 of the laws of 2006, 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 [twen-
ty-five] FIFTY thousand dollars. 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
thousand dollars.
(B) 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.
(iv) which is in whole or in part a targeted area residence within the
meaning of section 143(j) of the internal revenue code [and located
within an area of a city, town or village whose governing body has iden-
tified by resolution that such area is in need of community renewal
because of deteriorated and/or vacant buildings and, by local law, has
S. 2960--B 3
adopted a historic preservation and community renewal program to
preserve and/or revitalize such area. A historic preservation and commu-
nity renewal program is a program that coordinates all applicable
governmental benefits and programs with the aims of preserving and/or
revitalizing neighborhoods, encouraging property owners to complete
substantial rehabilitation projects and promoting smart growth economic
development. Such local laws shall be filed with the office of parks,
recreation and historic preservation. The office of parks, recreation
and historic preservation shall assist local governments in developing
historic preservation and community renewal programs] OR IS 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 3. Subdivision 40 of section 210 of the tax law, as added by chapter
547 of the laws of 2006, is amended to read as follows:
40. Credit for rehabilitation of historic properties. (1) For taxable
years beginning on or after January first, two thousand [seven] TEN, [a
taxpayer] 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 [thirty] ONE HUNDRED percent of the amount of credit allowed
the taxpayer for the same taxable year with respect to a certified
historic structure under subsection (c)[(3)](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] FIVE MILLION dollars.
(2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBDIVISION 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) CREDITS ALLOWED TO A PARTNERSHIP, A LIMITED LIABILITY COMPANY
TAXED AS A PARTNERSHIP OR MULTIPLE OWNERS OF PROPERTY SHALL BE PASSED
THROUGH TO THE PERSONS DESIGNATED, MEMBERS OR OWNERS, RESPECTIVELY PRO
RATA OR PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PERSONS DESIGNATED
AS PARTNERS, MEMBERS OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION
METHOD WITHOUT REGARD TO THEIR SHARING OF OTHER TAX OR ECONOMIC ATTRI-
BUTES OF THE ENTITY.
(4) If the credit allowed the taxpayer pursuant to [subsection (c)(3)
of] 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 recapture equal to thirty percent times] such cred-
it.
[(3)] (5) 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
[deducted from] APPLIED FROM the taxpayer's tax for such year or years.
S 4. Section 5 of chapter 547 of the laws of 2006, amending the tax
law and the parks, recreation and historic preservation law, relating to
establishing a credit against income tax for the rehabilitation of
historic properties is REPEALED.
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.
