S T A T E O F N E W Y O R K
________________________________________________________________________
1905
2009-2010 Regular Sessions
I N A S S E M B L Y
January 14, 2009
___________
Introduced by M. of A. THIELE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to providing a credit against
the franchise tax on corporations and the personal income tax to
employers who provide housing assistance to eligible employees
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 210 of the tax law is amended by adding a new
subdivision 41 to read as follows:
41. COMMUNITY HOUSING OPPORTUNITY CREDIT. (A) A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO
FIFTY PERCENT OF THE QUALIFIED COMMUNITY HOUSING OPPORTUNITY EXPENDI-
TURES MADE BY THE TAXPAYER IN RELATION TO ELIGIBLE EMPLOYEES OF THE
TAXPAYER, AS FURTHER PROVIDED BY THIS SUBDIVISION.
(B) FOR THE PURPOSES OF THIS SUBDIVISION: (1) THE TERM "ELIGIBLE
EMPLOYEE" MEANS AN ANNUAL OR SEASONAL FULL TIME EMPLOYEE WHO WORKS AT
LEAST THIRTY HOURS EACH WEEK. A SEASONAL EMPLOYEE SHALL WORK AT LEAST
THIRTEEN WEEKS DURING THE TAX YEAR BUT NOT MORE THAN THIRTY-NINE WEEKS
IN ORDER TO BE AN ELIGIBLE EMPLOYEE. AN ANNUAL EMPLOYEE SHALL WORK MORE
THAN THIRTY-NINE WEEKS DURING THE TAX YEAR. IN ADDITION, THE GROSS
ADJUSTED INCOME OF SUCH ELIGIBLE EMPLOYEE SHALL BE AT OR BELOW THE MEDI-
AN HOUSEHOLD INCOME FOR THE COUNTY IN WHICH SUCH EMPLOYEE RESIDES. IN
THE CASE OF SEASONAL EMPLOYEE, GROSS ADJUSTED INCOME SHALL BE PRORATED
OVER THE ENTIRE TAX YEAR IN ORDER TO DETERMINE INCOME ELIGIBILITY.
(2) THE TERM "QUALIFIED COMMUNITY HOUSING OPPORTUNITY EXPENDITURES"
MEANS: (I) IN THE CASE OF THE PURCHASE OF A HOUSING UNIT BY AN ELIGIBLE
EMPLOYEE, EXPENDITURES BY THE TAXPAYER FOR DOWN PAYMENTS, MORTGAGE
INTEREST RATE BUY-DOWNS OR OTHER MORTGAGE SUBSIDIES, AND CLOSING COSTS;
(II) IN THE CASE OF THE RENTAL OF A HOUSING UNIT BY AN ELIGIBLE EMPLOY-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03219-01-9
A. 1905 2
EE, EXPENDITURES BY THE TAXPAYER FOR SECURITY DEPOSITS, ADVANCE RENTAL
PAYMENTS, OR OTHER RENT SUBSIDIES.
(C) A HOUSING UNIT FOR WHICH QUALIFIED COMMUNITY HOUSING EXPENDITURES
ARE MADE BY A TAXPAYER PURSUANT TO THIS SUBDIVISION SHALL BE LOCATED
WITHIN THE STATE OF NEW YORK AND SHALL BE THE PRIMARY RESIDENCE OF THE
ELIGIBLE EMPLOYEE.
(D) A HOUSING UNIT FOR WHICH QUALIFIED COMMUNITY HOUSING EXPENDITURES
HAVE BEEN MADE BY THE TAXPAYER PURSUANT TO THIS SUBDIVISION, SHALL
POSSESS A VALID CERTIFICATE OF OCCUPANCY FOR USE AS A RESIDENTIAL HOUS-
ING UNIT, AND SHALL NOT HAVE BEEN THE SUBJECT OF A CONVICTION BY A COURT
OF COMPETENT JURISDICTION DURING THE RELEVANT TAX YEAR OF A VIOLATION OF
ANY ZONING, BUILDING, FIRE, SANITARY OR OTHER HEALTH OR SAFETY CODE. THE
TAXPAYER SHALL CERTIFY COMPLIANCE WITH THIS PARAGRAPH IN ORDER TO BE
ELIGIBLE FOR THE CREDIT PROVIDED BY THIS SUBDIVISION.
(E) THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION
SHALL NOT EXCEED TEN THOUSAND DOLLARS PER ELIGIBLE ANNUAL EMPLOYEE IN
ANY TAX YEAR AND FIVE THOUSAND DOLLARS FOR EACH SEASONAL EMPLOYEE.
CUMULATIVELY, SUCH CREDIT SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND
DOLLARS IN ANY TAX YEAR.
(F) IN THE CASE OF QUALIFIED COMMUNITY HOUSING OPPORTUNITY EXPENDI-
TURES MADE BY THE TAXPAYER WITH REGARD TO THE PURCHASE OF A HOUSING UNIT
BY AN ELIGIBLE EMPLOYEE, THE PURCHASE PRICE OF SUCH HOUSING UNITS SHALL
NOT EXCEED FIVE TIMES THE MEDIAN HOUSEHOLD INCOME OF THE COUNTY IN WHICH
THE HOUSING UNIT IS LOCATED. IN THE CASE OF EXPENDITURES MADE IN
RELATION TO A HOUSING RENTAL, THE ANNUAL RENT SHALL NOT EXCEED ONE-THIRD
OF THE MEDIAN HOUSEHOLD INCOME OF THE COUNTY IN WHICH THE HOUSING UNIT
IS LOCATED.
S 2. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
(QQ) COMMUNITY HOUSING OPPORTUNITY CREDIT. (1) A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO
FIFTY PERCENT OF THE QUALIFIED COMMUNITY HOUSING OPPORTUNITY EXPENDI-
TURES MADE BY THE TAXPAYER IN RELATION TO ELIGIBLE EMPLOYEES OF THE
TAXPAYER, AS FURTHER PROVIDED BY THIS SUBSECTION.
(2) FOR THE PURPOSES OF THIS SUBSECTION: (A) THE TERM "ELIGIBLE
EMPLOYEE" MEANS AN ANNUAL OR SEASONAL FULL TIME EMPLOYEE WHO WORKS AT
LEAST THIRTY HOURS EACH WEEK. A SEASONAL EMPLOYEE SHALL WORK AT LEAST
THIRTEEN WEEKS DURING THE TAX YEAR BUT NOT MORE THAN THIRTY-NINE WEEKS
IN ORDER TO BE AN ELIGIBLE EMPLOYEE. AN ANNUAL EMPLOYEE SHALL WORK MORE
THAN THIRTY-NINE WEEKS DURING THE TAX YEAR. IN ADDITION, THE GROSS
ADJUSTED INCOME OF SUCH ELIGIBLE EMPLOYEE SHALL BE AT OR BELOW THE MEDI-
AN HOUSEHOLD INCOME FOR THE COUNTY IN WHICH SUCH EMPLOYEE RESIDES. IN
THE CASE OF A SEASONAL EMPLOYEE, GROSS ADJUSTED INCOME SHALL BE PRORATED
OVER THE ENTIRE TAX YEAR IN ORDER TO DETERMINE INCOME ELIGIBILITY.
(B) THE TERM "QUALIFIED COMMUNITY HOUSING OPPORTUNITY EXPENDITURES"
MEANS: (I) IN THE CASE OF THE PURCHASE OF A HOUSING UNIT BY AN ELIGIBLE
EMPLOYEE, EXPENDITURES BY THE TAXPAYER FOR DOWN PAYMENTS, MORTGAGE
INTEREST RATE BUY-DOWNS OR OTHER MORTGAGE SUBSIDIES, AND CLOSING COSTS;
(II) IN THE CASE OF THE RENTAL OF A HOUSING UNIT BY AN ELIGIBLE EMPLOY-
EE, EXPENDITURES BY THE TAXPAYER FOR SECURITY DEPOSITS, ADVANCE RENTAL
PAYMENTS, OR OTHER RENT SUBSIDIES.
(3) A HOUSING UNIT FOR WHICH QUALIFIED COMMUNITY HOUSING EXPENDITURES
ARE MADE BY A TAXPAYER PURSUANT TO THIS SUBSECTION SHALL BE LOCATED
WITHIN THE STATE OF NEW YORK AND SHALL BE THE PRIMARY RESIDENCE OF THE
ELIGIBLE EMPLOYEE.
A. 1905 3
(4) A HOUSING UNIT FOR WHICH QUALIFIED COMMUNITY HOUSING EXPENDITURES
HAVE BEEN MADE BY THE TAXPAYER PURSUANT TO THIS SUBSECTION, SHALL
POSSESS A VALID CERTIFICATE OF OCCUPANCY FOR USE AS A RESIDENTIAL HOUS-
ING UNIT, AND SHALL NOT HAVE BEEN THE SUBJECT OF A CONVICTION BY A COURT
OF COMPETENT JURISDICTION DURING THE RELEVANT TAX YEAR OF A VIOLATION OF
ANY ZONING, BUILDING, FIRE, SANITARY OR OTHER HEALTH OR SAFETY CODE. THE
TAXPAYER SHALL CERTIFY COMPLIANCE WITH THIS PARAGRAPH IN ORDER TO BE
ELIGIBLE FOR THE CREDIT PROVIDED BY THIS SUBSECTION.
(5) THE AMOUNT OF THE CREDIT PURSUANT TO THIS SUBSECTION SHALL NOT
EXCEED TEN THOUSAND DOLLARS PER ELIGIBLE ANNUAL EMPLOYEE IN ANY TAX YEAR
AND FIVE THOUSAND DOLLARS FOR EACH SEASONAL EMPLOYEE. CUMULATIVELY, SUCH
CREDIT SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS IN ANY TAX
YEAR.
(6) IN THE CASE OF QUALIFIED COMMUNITY HOUSING OPPORTUNITY EXPENDI-
TURES MADE BY THE TAXPAYER WITH REGARD TO THE PURCHASE OF A HOUSING UNIT
BY AN ELIGIBLE EMPLOYEE, THE PURCHASE PRICE OF SUCH HOUSING UNITS SHALL
NOT EXCEED FIVE TIMES THE MEDIAN HOUSEHOLD INCOME OF THE COUNTY IN WHICH
THE HOUSING UNIT IS LOCATED. IN THE CASE OF EXPENDITURES MADE IN
RELATION TO A HOUSING RENTAL, THE ANNUAL RENT SHALL NOT EXCEED ONE-THIRD
OF THE MEDIAN HOUSEHOLD INCOME OF THE COUNTY IN WHICH THE HOUSING UNIT
IS LOCATED.
S 3. If any clause, sentence, paragraph, section or part of this act
shall be adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not affect, impair or invalidate the remainder ther-
eof, but shall be confined in its operation to the clause, sentence,
paragraph, section or part thereof directly involved in the controversy
in which such judgment shall have been rendered.
S 4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.