Senate Bill S4682

                                 BILL NUMBER:  S4682

 TITLE OF BILL :  An act to amend the tax law, in relation to the
definition of qualified historic home for the purposes of the historic
homeownership rehabilitation credit

 PURPOSE: :  The purpose of this bill is to expand the purview of the
historic home rehabilitation tax credit to include all homes listed on
the national or state historic registers and all homes of a historical
significance in historic districts.

 SUMMARY OF PROVISIONS: :  The bill amends subparagraph (A) of
paragraph 5 of subsection (pp) of Section 606 of the Tax Law to delete
language in the definition of a "qualified historic home" that
requires such home to be a "targeted area residence within the meaning
of Section 143 G) of the Internal Revenue Code." Thus, the bill
expands the application of the historic home rehabilitation tax credit
to all homes listed as historic under the national and state registers
and any home deemed to be of historical significance located in a
registered historic district.

 JUSTIFICATION: :  Chapter 547 of the laws of 2006 enacted a 20% tax
credit for the rehabilitation of historic homes or homes located in a
historic district provided such homes are located in "distressed
areas" pursuant to the Internal Revenue Code. While Chapter 547
represents a significant first step in implementing a historic home
              

rehabilitation tax credit, it unfortunately would only apply to
approximately 4,100 homes statewide.

Eliminating the "distressed area" or "targeted area" requirement as
provided for in the bill would expand the tax credit program to
include over 50,000 qualified homes, a goal that was envisioned by
original legislation first introduced in 1995.

Extending the incentives contained in Chapter 547 to historic homes
located anywhere in the state will enhance the revitalization of our
neighborhoods by providing an incentive for investment in New York's
rich legacy of historic housing stock.

Primarily, the bill would create a vastly expanded economic
development program targeted at aging residential properties that
would provide increased housing opportunities; however, it would also
have an economic impact on local economies resulting from spending by
homeowners for labor and materials. Rehabilitation of these properties
would also result in tax base growth and will also help foster further
business growth.

 LEGISLATIVE HISTORY: : S.4575 (2007-08) Passed Senate

 FISCAL IMPLICATIONS: :  Undetermined; however, any fiscal impact on
the state would be partially offset by increased local property tax
revenues through increased assessments on rehabilitated properties and
the return to the tax rolls of previously abandoned or delinquent
properties.

 EFFECTIVE DATE: :  This act shall take effect immediately.