senate Bill S7513

2013-2014 Legislative Session

Establishes a tax credit for developers utilizing renewable energy sources in affordable housing units

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Archive: Last Bill Status - In Committee


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

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May 15, 2014 referred to investigations and government operations

S7513 - Bill Details

Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Add §42, amd §210 & 606, Tax L

S7513 - Bill Texts

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Establishes a tax credit for developers utilizing renewable energy sources in affordable housing units.

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BILL NUMBER:S7513

TITLE OF BILL: An act to amend the tax law, in relation to
establishing a tax credit for developers utilizing renewable energy
sources in affordable housing units

PURPOSE:

Provides a tax credit to developers using renewable sources of energy,
per unit of an affordable housing facility consisting of 10 or more
units in order to reduce the cost of utilities that render
multi-family housing unaffordable to persons between 30% and less than
100% of the AMI.

JUSTIFICATION:

According to US HUD Secretary Donovan the Home Energy Affordability
Gap Index based on energy bills for persons below 185 percent of the
Federal Poverty Level. Five years ago that gap was at $34 billion and
while the estimates for this past winter have yet to be published, the
range of increase was approximately 30% to 70% over the prior year.
The burden on the poor is more than four times the average 4 percent
others pay. Utility cut-offs frequently result in eviction and
ultimately in foreclosure. HUD's own programs are affected by energy
costs pertaining to heating, lighting, and cooling its portfolio of
public and assisted housing and section 8 vouchers. The cost of
energy for public multi-family, a reliable tracked index, has been
increasing at the rate of $1 billion annually.

In a Harvard study The Relationship Between Home Energy Costs And
Energy-Related Remodeling Activity notes that a significant erosion in
renter incomes over the past decade has pushed the number of
households paying excessive shares of income for housing to record
levels and assistance efforts have failed to keep pace with the
escalating need. As significant numbers of working class individuals
struggle to pay the escalating cost for housing in excess of 30% of
their income, the cost of energy is further depleting income causing a
negative impact on the economy.

LEGISLATIVE HISTORY:

None. New bill.

FISCAL IMPLICATIONS:

TBD

EFFECTIVE DATE:

This act shall take effect as part of the next Unified Funding
Application issued by HCR.

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

                                  7513

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to establishing  a  tax  credit
  for  developers utilizing renewable energy sources in affordable hous-
  ing units

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

  Section  1.  The tax law is amended by adding a new section 42 to read
as follows:
  S 42. CREDIT FOR UTILIZING RENEWABLE ENERGY SOURCES.  (A)  GENERAL.  A
TAXPAYER SUBJECT TO TAX UNDER ARTICLE 9-A OR TWENTY-TWO OF THIS CHAPTER,
WHO IS A DEVELOPER WHO USES RENEWABLE SOURCES OF ENERGY, AS SUCH TERM IS
DEFINED IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW, DURING
THE  CONSTRUCTION  OF AN AFFORDABLE HOUSING FACILITY, SHALL BE ALLOWED A
CREDIT AGAINST SUCH TAXES IN AN AMOUNT OF TWO THOUSAND DOLLARS PER QUAL-
IFIED UNIT AND PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION  (C)
OF THIS SECTION.
  (B) DEFINITIONS. (1) "AFFORDABLE HOUSING FACILITY" SHALL MEAN A BUILD-
ING  CONTAINING TEN OR MORE UNITS, NINETY PERCENT OF WHICH ARE QUALIFIED
UNITS.
  (2) "QUALIFIED UNIT" SHALL MEAN ANY UNIT WITHIN AN AFFORDABLE  HOUSING
FACILITY THAT USES RENEWABLE SOURCES OF ENERGY AND IS OCCUPIED BY ONE OR
MORE  PEOPLE  WHOSE TOTAL INCOME IS LESS THAN ONE HUNDRED PERCENT OF THE
AREA MEDIAN INCOME.
  (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 50
  (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (CCC)
  S 2. Section 210 of the tax law is amended by adding a new subdivision
50 to read as follows:
  50. CREDIT FOR UTILIZING RENEWABLE ENERGY SOURCES. A TAXPAYER SHALL BE
ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IN NO EVENT SHALL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15232-01-4

S. 7513                             2

THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY  TAXABLE  YEAR  REDUCE
THE  TAX  DUE  FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARA-
GRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT  OF
CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE YEAR 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 3. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  CREDIT FOR UTILIZING RENEWABLE ENERGY SOURCES. A TAXPAYER SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED FOR IN SECTION FORTY-TWO
OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IF THE  AMOUNT
OF  THE  CREDIT ALLOWED 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 IN ACCORDANCE WITH THE
PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,  PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
follows:
(XLI) CREDIT FOR UTILIZING RENEWABLE              AMOUNT OF CREDIT UNDER
ENERGY SOURCES UNDER SUBSECTION (CCC)             SUBDIVISION FORTY-TWO
                                                  OF SECTION TWO HUNDRED
                                                  TEN
  S  5.  This act shall take effect immediately; provided, however, that
the amendments made to subparagraph (B) of paragraph 1 of subsection (i)
of section 606 of the tax law made by section four  of  this  act  shall
take  effect  on  the  same date and in the same manner as section 68 of
part A of chapter 59 of the laws of 2014, takes effect.

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