senate Bill S4758C

2011-2012 Legislative Session

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded

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Archive: Last Bill Status - Passed Senate


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 21, 2012 referred to ways and means
delivered to assembly
passed senate
Mar 12, 2012 advanced to third reading
Mar 07, 2012 2nd report cal.
Mar 06, 2012 1st report cal.306
Jan 18, 2012 reported and committed to finance
Jan 11, 2012 print number 4758c
amend (t) and recommit to housing, construction and community development
Jan 04, 2012 referred to housing, construction and community development
Jun 24, 2011 committed to rules
Jun 16, 2011 amended on third reading (t) 4758b
Jun 01, 2011 amended on third reading (t) 4758a
May 24, 2011 advanced to third reading
May 23, 2011 2nd report cal.
May 18, 2011 1st report cal.764
Apr 20, 2011 referred to housing, construction and community development

Votes

view votes

Mar 6, 2012 - Finance committee Vote

S4758C
25
0
committee
25
Aye
0
Nay
9
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Finance committee vote details

Jan 18, 2012 - Housing, Construction and Community Development committee Vote

S4758C
5
1
committee
5
Aye
1
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Housing, Construction and Community Development committee vote details

Housing, Construction and Community Development Committee Vote: Jan 18, 2012

nay (1)
aye wr (2)

May 18, 2011 - Housing, Construction and Community Development committee Vote

S4758
6
0
committee
6
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: May 18, 2011

aye wr (2)

Bill Amendments

Original
A
B
C (Active)
Original
A
B
C (Active)

S4758 - Bill Details

See Assembly Version of this Bill:
A7404A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §§210, 606, 1456 & 1511, Tax L
Versions Introduced in 2011-2012 Legislative Session:
A7404A, S4758C

S4758 - Bill Texts

view summary

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

view sponsor memo
BILL NUMBER:S4758

TITLE OF BILL:
An act
to amend the public housing law, in relation to federal low-income
housing credits

PURPOSE:
This bill would provide for the allocation of federal low income
housing tax credits among owners pursuant to an executed agreement.

SUMMARY OF PROVISIONS:
This bill would amend section 25 of the public housing law, relating
to the co-ordination of federal low income housing tax credits with
the state low income housing tax credit program to allow a pass
through of the credit to persons designated, members, or owners
pursuant to a written agreement among the persons designated as
partners, members or owners, which agreement documents an alternative
distribution method without regard to sharing of other tax or
economic attributes of the entity, including how the federal low
income housing tax credit is allocated to the partners, members, or
owners.

JUSTIFICATION:
Tax credit programs are widely seen as the primary mechanism for
successfully producing and preserving affordable rental housing. As a
result of the recent financial crisis, state and federal tax credit
programs have been disrupted, as is the case in New York. The problem
has been further exacerbated in New York where the state tax credit
is not bifurcated, unlike the case in many other states.

New York's low income housing credit tax program was established in
2000 pursuant to Article 2-A of the Public Housing Law and was
designed to encourage the development of low income housing. This
bill would allow the bifurcation of state tax credits from federal
tax credits and permit separate investors and permit separate
investors to purchase the state and federal tax credits. It would not
preclude any single investor from purchasing both the state and
federal tax credits.

The proposed change would open up the existing market to a new class
of investors including banks, corporations, and insurance companies
and would, based upon research conducted in other states which allow
bifurcation, create additional demand on the market for state tax
credits. This demand would drive up pricing among investors as
pricing as competition is increased. This would translate into
greater private investment in affordable housing without any material
cost to the state.

As an example, under the current program, a project awarded a $7.5
million allocation of state low income housing tax credit over a 10
year period would translate into a private equity investment of $3.75
million. It. is estimated that if enacted, this change would allow
the same $3.75 million to be sold to private equity investors for
$4.125 million, or 10% more. The additional investment will help


finance more units, increase affordability, and create more jobs in
New York.

This change will increase demand for and leveraging ability of a
program that has been in existence in New York since 2000, while not
requiring any increase in funding. The proposed changes are
anticipated to generate a substantial (estimated 10%) increase in
equity raised from the state tax credit program and will greatly
enhance its effectiveness in creating and fostering investment in
affordable housing throughout the state.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Minimal.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  4758

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 20, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to amend the public housing law, in relation to federal low-in-
  come housing credits

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

  Section 1. Section 25 of the public housing law is amended by adding a
new subdivision 3 to read as follows:
  3.  ON  AND AFTER JUNE FIRST, TWO THOUSAND ELEVEN, THE CREDITS ALLOWED
TO A PARTNERSHIP, LIMITED LIABILITY COMPANY TAXED AS  A  PARTNERSHIP  OR
MULTIPLE  OWNERS  OF  PROPERTY  SHALL  BE  PASSED THROUGH TO THE PERSONS
DESIGNATED, MEMBERS OR OWNERS PURSUANT TO AN  EXECUTED  AGREEMENT  AMONG
THE  PERSONS  DESIGNATED  AS  PARTNERS, MEMBERS OR OWNERS DOCUMENTING AN
ALTERNATIVE DISTRIBUTION METHOD WITHOUT REGARD TO THEIR SHARING OF OTHER
TAX OR ECONOMIC ATTRIBUTES OF THE ENTITY, INCLUDING BUT NOT  LIMITED  TO
HOW  THE FEDERAL LOW-INCOME HOUSING TAX CREDIT WITH RESPECT TO A PROJECT
IS ALLOCATED TO THE PARTNERS, MEMBERS OR OWNERS.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10736-01-1

S4758A - Bill Details

See Assembly Version of this Bill:
A7404A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §§210, 606, 1456 & 1511, Tax L
Versions Introduced in 2011-2012 Legislative Session:
A7404A, S4758C

S4758A - Bill Texts

view summary

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

view sponsor memo
BILL NUMBER:S4758A

TITLE OF BILL:
An act
to amend the public housing law, in relation to the New York State
low-income housing tax credit program

PURPOSE:
This bill would provide for the allocation of federal low income
housing tax credits among owners pursuant to an executed agreement.

SUMMARY OF PROVISIONS:
This bill would amend section 25 of the public housing law, relating
to the co-ordination of federal low income housing tax credits with
the state low income housing tax credit program to allow a pass
through of the credit to persons designated, members, or owners
pursuant to a written agreement among the persons designated as
partners, members or owners, which agreement documents an alternative
distribution method without regard to sharing of other tax or
economic attributes of the entity, including how the federal low
income housing tax credit is allocated to the partners, members, or
owners.

JUSTIFICATION:
Tax credit programs are widely seen as the primary mechanism for
successfully producing and preserving affordable rental housing. As a
result of the recent financial crisis, state and federal tax credit
programs have been disrupted, as is the case in New York. The problem
has been further exacerbated in New York where the state tax credit
is not bifurcated, unlike the case in many other states.

New York's low income housing credit tax program was established in
2000 pursuant to Article 2-A of the Public Housing Law and was
designed to encourage the development of low income housing. This
bill would allow the bifurcation of state tax credits from federal
tax credits and permit separate investors and permit separate
investors to purchase the state and federal tax credits. It would not
preclude any single investor from purchasing both the state and
federal tax credits.

The proposed change would open up the existing market to a new class
of investors including banks, corporations, and insurance companies
and would, based upon research conducted in other states which allow
bifurcation, create additional demand on the market for state tax
credits. This demand would drive up pricing among investors as
pricing as competition is increased. This would translate into
greater private investment in affordable housing without any material
cost to the state.

As an example, under the current program, a project awarded a $7.5
million allocation of state low income housing tax credit over a 10

year
period would translate into a private equity investment of $3.75
million. It is estimated that if enacted, this change would allow the
same $3.75 million to be sold to private equity investors for $4.125
million, or 10% more. The additional investment will help finance
more units, increase affordability, and create more jobs in New York.

This change will increase demand for and leveraging ability of a
program that has been in existence in New York since 2000, while not
requiring any increase in funding. The proposed changes are
anticipated to generate a substantial (estimated 10%) increase in
equity raised from the state tax credit program and will greatly
enhance its effectiveness in creating and fostering investment in
affordable housing throughout the state.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Minimal.

EFFECTIVE DATE:
This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4758--A
    Cal. No. 764

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 20, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  --  reported  favorably  from  said committee,
  ordered to first and  second  report,  ordered  to  a  third  reading,
  amended  and  ordered  reprinted,  retaining its place in the order of
  third reading

AN ACT to amend the public housing law, in  relation  to  the  New  York
  State low-income housing tax credit program

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

  Section 1. Section 25 of the public housing law is amended by adding a
new subdivision 3 to read as follows:
  3. AS OF JUNE FIRST, TWO THOUSAND ELEVEN, THE  CREDITS  ALLOWED  TO  A
PARTNERSHIP,  LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP OR MULTI-
PLE OWNERS OF PROPERTY SHALL BE PASSED THROUGH TO THE PERSONS DESIGNATED
AS PARTNERS, MEMBERS OR OWNERS PURSUANT TO AN EXECUTED  AGREEMENT  AMONG
THE  PERSONS  DESIGNATED  AS  PARTNERS, MEMBERS OR OWNERS DOCUMENTING AN
ALTERNATIVE DISTRIBUTION METHOD WITHOUT REGARD TO THEIR SHARING OF OTHER
TAX OR ECONOMIC ATTRIBUTES OF THE ENTITY, INCLUDING BUT NOT  LIMITED  TO
HOW  THE  FEDERAL  LOW-INCOME  HOUSING  TAX  CREDIT  WITH RESPECT TO THE
PROJECT IS ALLOCATED TO THE PARTNERS, MEMBERS OR OWNERS.
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10736-02-1

S4758B - Bill Details

See Assembly Version of this Bill:
A7404A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §§210, 606, 1456 & 1511, Tax L
Versions Introduced in 2011-2012 Legislative Session:
A7404A, S4758C

S4758B - Bill Texts

view summary

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

view sponsor memo
BILL NUMBER:S4758B

TITLE OF BILL:
An act
to amend the tax law, in relation to providing that the low income
housing credit and any carryover thereof shall be treated as an
overpayment of taxes

PURPOSE:
This bill would convert the state low income housing tax credit to a
refundable tax credit to help stimulate low income housing investment
in the state.

SUMMARY OF PROVISIONS:
This bill would amend subdivision 30 of section 210 of the tax law to
provide that in tax years beginning after July first, two thousand
eleven, the corporate franchise low income housing tax credit and any
credit carryovers shall be treated as a refundable tax credit.
Paragraph 2 of subsection (x) of section 606 of the tax law to
provide a personal income refundable low income housing tax credit
for taxable years beginning after July 1, 2011. Paragraph 2 of
subsection (1) of section 1456 of the tax law is amended to convert
the existing low income housing tax credit to a refundable low income
housing tax credit for tax years subsequent to July 1, 2011.
Paragraph 2 of subdivision (n) of section 1511 of the tax law is
amended to convert the low income housing tax credit to a refundable
tax credit for purposes of the Insurance Franchise Tax for tax years
beginning after

JUSTIFICATION:
Tax credit programs are widely seen as the primary mechanism for
successfully producing and preserving affordable rental housing. As a
result of the recent financial crisis, state and federal tax credit
programs have been disrupted, as is the case in New York. The problem
has been further exacerbated in New York where the state tax credit
is less marketable, unlike the case in many other states.

New York's low income housing credit tax program was established in
2000 pursuant to Article 2-A of the Public Housing Law and was
designed to encourage the development of low income housing.
Refundable housing tax credits are more desirable than non refundable
credits and would work to create a greater demand in the marketplace.
This bill would permit investors to obtain a broader class of
investors including banks, corporations, and insurance companies and
would create additional demand on the market for state tax credits.
This demand would drive up pricing among investors as pricing as
competition is increased. This would translate into greater private
investment in affordable housing without any material cost to the
state.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Undetermined.


EFFECTIVE DATE:
This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4758--B
    Cal. No. 764

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 20, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  --  reported  favorably  from  said committee,
  ordered to first and  second  report,  ordered  to  a  third  reading,
  amended  and  ordered  reprinted,  retaining its place in the order of
  third reading -- again amended and ordered  reprinted,  retaining  its
  place in the order of third reading

AN  ACT  to  amend  the  tax  law, in relation to providing that the low
  income housing credit and any carryover thereof shall be treated as an
  overpayment of taxes

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

  Section  1.  Paragraph (b) of subdivision 30 of section 210 of the tax
law, as added by section 3 of part CC of chapter 63 of the laws of 2000,
is amended to read as follows:
  (b) Application of credit. The credit and carryovers  of  such  credit
allowed  under  this  subdivision for any taxable year shall not, in the
aggregate, reduce the tax due for such year to less than the  higher  of
the  amounts  prescribed in paragraphs (c) and (d) of subdivision one of
this section. However, if the amount of credit  or  carryovers  or  such
credit,  or  both,  allowed  under this subdivision for any taxable year
reduces the tax to such amount, any amount of credit  or  carryovers  of
such credit thus not deductible in such taxable year may be carried over
to the following year or years and may be deducted from the tax for such
year or years.  FOR TAXABLE YEARS BEGINNING ON AND AFTER JULY FIRST, TWO
THOUSAND  ELEVEN,  THE CREDIT AND ANY CARRYOVERS OF SUCH CREDIT SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10736-03-1

S. 4758--B                          2

  S 2. Paragraph 2 of subsection (x) of section 606 of the tax  law,  as
added  by  section  5  of  part CC of chapter 63 of the laws of 2000, is
amended to read as follows:
  (2)  Application  of  credit.  If the amount of 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 the taxpayer's tax for such year or
years AND, FOR TAXABLE YEARS BEGINNING ON  AND  AFTER  JULY  FIRST,  TWO
THOUSAND  ELEVEN, IF THE AMOUNT OF THE CREDIT AND ANY CARRYOVERS OF SUCH
CREDIT FROM PRIOR TAXABLE YEARS ALLOWABLE 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  AS
PROVIDED  IN  SECTION  SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 3. Paragraph 2 of subsection (l) of section 1456 of the tax law,  as
added  by  section  6  of  part CC of chapter 63 of the laws of 2000, is
amended to read as follows:
  (2) Application of credit. The credit and carryovers  of  such  credit
allowed  under  this  subsection  for any taxable year shall not, in the
aggregate, reduce the tax due for such year to less than the minimum tax
fixed by subsection (b) of section fourteen hundred fifty-five  of  this
article.  However, if the amount of credit or carryovers of such credit,
or both, allowed under this subsection for any taxable year reduces  the
tax  to  such  amount,  then  any amount of credit or carryovers of such
credit thus not deductible in such taxable year may be carried  over  to
the  following year or years and may be deducted from the taxpayer's tax
for such year or years.  FOR TAXABLE YEARS BEGINNING ON AND  AFTER  JULY
FIRST, TWO THOUSAND ELEVEN, THE CREDIT AND ANY CARRYOVERS OF SUCH CREDIT
FROM PRIOR TAXABLE YEARS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED  OR  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 4. Paragraph 2 of subdivision (n) of section 1511 of the tax law, as
amended by section 17 of part H-3 of chapter 62 of the laws of 2003,  is
amended to read as follows:
  (2)  Application  of  credit. The credit and carryovers of such credit
allowed under this subdivision for any taxable year shall  not,  in  the
aggregate, reduce the tax due for such year to less than the minimum tax
fixed  by  paragraph  four of subdivision (a) of section fifteen hundred
two of this article or by section fifteen hundred two-a of this article,
whichever is applicable. However, if the amount of credit or  carryovers
of  such credit, or both, allowed under this subdivision for any taxable
year reduces the tax to such amount, then any amount of credit or carry-
overs of such credit thus not deductible in such  taxable  year  may  be
carried over to the following year or years and may be deducted from the
taxpayer's  tax  for such year or years.  FOR TAXABLE YEARS BEGINNING ON
AND AFTER JULY FIRST, TWO THOUSAND ELEVEN, THE CREDIT AND ANY CARRYOVERS
OF SUCH CREDIT FROM PRIOR TAXABLE YEARS SHALL BE TREATED AS AN  OVERPAY-
MENT OF TAX TO BE CREDITED OR 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 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after July 1, 2011.

S4758C (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A7404A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §§210, 606, 1456 & 1511, Tax L
Versions Introduced in 2011-2012 Legislative Session:
A7404A, S4758C

S4758C (ACTIVE) - Bill Texts

view summary

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

view sponsor memo
BILL NUMBER:S4758C REVISED 2/14/12

TITLE OF BILL: An act to amend the tax law, in relation to providing
that the low income housing credit shall be treated as an overpayment
of taxes

PURPOSE: This bill would convert the state low income housing tax,
credit to a refundable tax credit to help stimulate low income housing
investment in the state.

SUMMARY OF PROVISIONS: This bill would amend subdivision 30 of
section 210 of the tax law to provide that for allocations of housing
tax credit made pursuant to law after January 1, 2012, the corporate
franchise low income housing tax credit shall be treated as a
refundable tax credit. Paragraph 3 of subsection(x) of section 606 of
the tax law is amended to convert the existing low income housing tax
credit to a refundable low income housing tax credit for allocations
of housing tax credit made after taxable years beginning after January
1, 2012. Paragraph 3 of subsection (1) of section 1456 of the tax law
is amended to convert the existing low income housing tax credit to a
refundable low income housing tax credit for allocations of credit
made subsequent to January 1, 2012. Paragraph 3 of subdivision (n) of
section 1511 of the tax law is amended to convert the low income
housing tax credit to a refundable tax credit for purposes of the
Insurance Franchise Tax for allocations of tax credit made after
January 1, 2012. Furthermore, in order to obtain treatment as a
refundable credit for these taxes, a project must have received an
eligibility statement from the commissioner of housing and community
renewal pursuant to article two-A of the public housing law.

JUSTIFICATION: Tax credit programs are widely seen as the primary
mechanism for successfully producing and preserving affordable rental
housing. As a result of the recent financial crisis, state and federal
tax credit programs have been disrupted, as is the case in New York.
The problem has been further exacerbated in New York where the state
tax credit is less marketable, unlike the case in many other states.

New York's low income housing credit tax program was established in
2000 pursuant to Article 2-A of the Public Housing Law and was
designed to encourage the development of low income housing.
Refundable housing tax credits are more desirable than non refundable
credits and would work to create a greater demand in the marketplace.
This bill would permit investors to obtain a broader class of
investors including banks, corporations, and insurance companies and
would create additional demand on the market for state tax credits.
This demand would drive up pricing among investors as pricing as
competition is increased. This would translate into greater private
investment in affordable housing which will help drive housing
development within the state.

LEGISLATIVE HISTORY: S. 4758B-2011/Senate 3rd reading calendar.

FISCAL IMPLICATIONS: This bill authorizes no additional tax credit
authority and would result in no further reduction in tax receipts.

EFFECTIVE DATE: This act shall take effect immediately.


view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4758--C

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 20, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  --  reported  favorably  from  said committee,
  ordered to first and  second  report,  ordered  to  a  third  reading,
  amended  and  ordered  reprinted,  retaining its place in the order of
  third reading -- again amended and ordered  reprinted,  retaining  its
  place in the order of third reading -- recommitted to the Committee on
  Housing,  Construction  and  Community  Development in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  tax  law, in relation to providing that the low
  income housing credit shall be treated as an overpayment of taxes

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

  Section  1.  Paragraph (c) of subdivision 30 of section 210 of the tax
law is relettered paragraph (d) and a new paragraph (c) is added to read
as follows:
  (C) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
SUBDIVISION  SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED, PROVIDED THAT THE CREDITS: (1) HAVE AN  ELIGIBILITY  STATEMENT
ISSUED  BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO
ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (2) ARE AVAILABLE  PURSUANT
TO  LAW  ENACTED  AFTER  JANUARY  FIRST,  TWO THOUSAND TWELVE. PROVIDED,
HOWEVER, THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE
PAID THEREON.
  S 2. Paragraph 3 of subsection (x) of section 606 of the  tax  law  is
renumbered  paragraph  4  and  a  new  paragraph  3  is added to read as
follows:
  (3) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
SUBSECTION  SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10736-06-2

S. 4758--C                          2

REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS  ARTICLE,
PROVIDED  THAT  THE CREDITS: (I) HAVE AN ELIGIBILITY STATEMENT ISSUED BY
THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL  PURSUANT  TO  ARTICLE
TWO-A  OF THE PUBLIC HOUSING LAW, AND (II) ARE AVAILABLE PURSUANT TO LAW
ENACTED AFTER JANUARY FIRST, TWO  THOUSAND  TWELVE.  PROVIDED,  HOWEVER,
THAT NO INTEREST SHALL BE PAID THEREON.
  S  3.  Paragraph 3 of subsection (1) of section 1456 of the tax law is
renumbered paragraph 4 and a  new  paragraph  3  is  added  to  read  as
follows:
  (3)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBSECTION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE  CREDITED  OR
REFUNDED,  PROVIDED  THAT THE CREDITS: (A) HAVE AN ELIGIBILITY STATEMENT
ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT  TO
ARTICLE  TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE PURSUANT
TO LAW ENACTED AFTER JANUARY FIRST,  TWO  THOUSAND  TWELVE.    PROVIDED,
HOWEVER,  THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C) OF
SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL  BE
PAID THEREON.
  S  4. Paragraph 3 of subdivision (n) of section 1511 of the tax law is
renumbered paragraph 4 and a  new  paragraph  3  is  added  to  read  as
follows:
  (3)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBDIVISION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED,  PROVIDED  THAT THE CREDITS: (A) HAVE AN ELIGIBILITY STATEMENT
ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT  TO
ARTICLE  TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE PURSUANT
TO LAW ENACTED AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWELVE.  PROVIDED,
HOWEVER,  THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C) OF
SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL  BE
PAID THEREON.
  S  5.  This  act  shall take effect immediately and shall apply to tax
years commencing on or after January 1, 2012.

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