S T A T E O F N E W Y O R K
________________________________________________________________________
280
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. MONTESANO, BARCLAY, RAIA, SALADINO -- Multi-Spon-
sored by -- M. of A. McKEVITT, MOLINARO -- read once and referred to
the Committee on Housing
AN ACT to amend the private housing finance law and the tax law, in
relation to granting tax credit to business firms for contributions of
real property made to not-for-profit housing companies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The private housing finance law is amended by adding a new
section 1134 to read as follows:
S 1134. AFFORDABLE HOUSING ASSISTANCE PROGRAM. 1. (A) AS USED IN THIS
SECTION, THE TERM "BUSINESS FIRM" SHALL MEAN ANY BUSINESS ENTITY AUTHOR-
IZED TO DO BUSINESS IN THE STATE OF NEW YORK AND WHICH IS SUBJECT TO THE
CORPORATION FRANCHISE TAX IMPOSED UNDER ARTICLE NINE-A OF THE TAX LAW,
OR ANY BANKING CORPORATION WHICH IS SUBJECT TO THE FRANCHISE TAX UNDER
ARTICLE THIRTY-TWO OF THE TAX LAW, OR ANY INSURANCE CORPORATION WHICH IS
SUBJECT TO THE FRANCHISE TAX UNDER ARTICLE THIRTY-THREE OF THE TAX LAW.
(B) AS USED IN THIS SECTION, THE TERM "LOW AND MODERATE INCOME PERSONS
OR FAMILIES" SHALL MEAN THOSE PERSONS OR FAMILIES FOR WHOM THERE ARE NO
OTHER REASONABLE AND AFFORDABLE HOMEOWNERSHIP, RENTAL, REHABILITATION OR
HOME IMPROVEMENT ALTERNATIVES, AS THE CASE MAY BE, IN THE PRIVATE
MARKET.
2. THE COMMISSIONER OF TAXATION AND FINANCE SHALL GRANT A CREDIT
AGAINST ANY TAX DUE UNDER THE PROVISIONS OF ARTICLES NINE-A, THIRTY-TWO
AND THIRTY-THREE OF THE TAX LAW IN AN AMOUNT EQUAL TO THE AMOUNT SPECI-
FIED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL IN ANY TAX
CREDIT VOUCHER ISSUED BY SUCH COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
3. THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH A
SYSTEM OF TAX CREDIT VOUCHERS FOR BUSINESS FIRMS MAKING CONTRIBUTIONS OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02299-01-1
A. 280 2
REAL PROPERTY TO ANY NOT-FOR-PROFIT NEIGHBORHOOD PRESERVATION COMPANY,
RURAL PRESERVATION COMPANY, OR HOUSING DEVELOPMENT FUND COMPANY THAT
DEVELOPS, SPONSORS OR MANAGES ANY HOUSING PROJECT OR PROGRAM WHICH BENE-
FITS LOW AND MODERATE INCOME PERSONS OR FAMILIES. SUCH VOUCHERS MAY BE
USED AS A CREDIT AGAINST ANY OF THE TAXES TO WHICH SUCH BUSINESS FIRM IS
SUBJECT AND WHICH ARE ENUMERATED IN SUBDIVISION TWO OF THIS SECTION. THE
AMOUNT OF THE TAX CREDIT VOUCHER SHALL EQUAL ONE-HALF THE AMOUNT OF THE
FAIR MARKET VALUE OF THE REAL PROPERTY.
4. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT TWO OR MORE
BUSINESS FIRMS FROM PARTICIPATING JOINTLY IN ONE OR MORE PROGRAMS UNDER
THE PROVISIONS OF THIS SECTION.
5. THE SUM OF ALL TAX CREDITS GRANTED PURSUANT TO THE PROVISIONS OF
THIS SECTION SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS ANNUAL-
LY PER BUSINESS FIRM.
6. NO TAX CREDIT SHALL BE GRANTED TO ANY BANK, BANK AND TRUST COMPANY,
INSURANCE COMPANY, TRUST COMPANY, NATIONAL BANK, SAVINGS ASSOCIATION, OR
BUILDING AND LOAN ASSOCIATION OR ANY OTHER BUSINESS ENTITY FOR ACTIV-
ITIES THAT ARE A PART OF ITS ORDINARY COURSE OF BUSINESS.
7. ANY TAX CREDIT NOT USED DURING THE PERIOD WITHIN WHICH THE CONTRIB-
UTION WAS MADE MAY BE CARRIED FORWARD OR BACKWARD FOR THE FIVE, IMME-
DIATELY SUCCEEDING OR PRECEDING, CALENDAR OR FISCAL YEARS UNTIL THE FULL
CREDIT HAS BEEN ALLOWED.
8. IN NO EVENT SHALL THE TOTAL AMOUNT OF THE TAX CREDITS ALLOWED TO
BUSINESS FIRMS, PURSUANT TO THE PROVISIONS OF THIS SECTION, EXCEED FIVE
MILLION DOLLARS IN ANY ONE FISCAL YEAR.
9. NO NEIGHBORHOOD PRESERVATION COMPANY, RURAL PRESERVATION COMPANY,
OR HOUSING DEVELOPMENT FUND COMPANY, CONDUCTING A HOUSING PROGRAM OR
PROJECT ELIGIBLE FOR FUNDING, WITH RESPECT TO WHICH TAX CREDITS MAY BE
ALLOWED UNDER THIS SECTION, SHALL BE ALLOWED TO RECEIVE REAL PROPERTY
WITH AN AGGREGATE VALUE IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS FOR
ANY FISCAL YEAR.
10. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT A BUSINESS
FIRM FROM MAKING ANY CONTRIBUTION TO A HOUSING PROGRAM OR PROJECT TO
WHICH TAX CREDITS MAY BE APPLIED, WHICH CONTRIBUTION MAY RESULT IN THE
BUSINESS FIRM HAVING A LIMITED EQUITY INTEREST IN THE PROGRAM OR
PROJECT.
11. THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL, WITH THE
APPROVAL OF THE COMMISSIONER OF TAXATION AND FINANCE, SHALL ADOPT REGU-
LATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
S 2. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
(SS) CREDIT FOR CONTRIBUTIONS OF REAL PROPERTY MADE TO CERTAIN
NOT-FOR-PROFIT HOUSING COMPANIES. A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY ARTICLES NINE-A, THIRTY-TWO AND THIRTY-THREE
OF THIS CHAPTER PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED
THIRTY-FOUR OF THE PRIVATE HOUSING FINANCE LAW.
S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.