Senate Bill S1627

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

                                  1627

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 3, 2009
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN  ACT  to amend the tax law, in relation to providing a tax credit for
  rehabilitation of historic properties; and  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 proper-
  ties relating to repealing certain administrative requirements  relat-
  ing thereto

  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]  FIFTY  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 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07243-01-9
              

S. 1627                             2

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.
  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
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  NINETY

S. 1627                             3

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] FIFTY 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.