S T A T E O F N E W Y O R K
________________________________________________________________________
9842
I N A S S E M B L Y
February 14, 2018
___________
Introduced by M. of A. WOERNER -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law and the parks, recreation and historic pres-
ervation law, in relation to the tax credit for rehabilitation of
historic properties
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 amended
by chapter 239 of the laws of 2009, paragraph 1 as amended by chapter
472 of the laws of 2010, subparagraph (A) of paragraph 1 and paragraphs
4 and 5 as amended by section 1 of part F of chapter 59 of the laws of
2013, is amended to read as follows:
(oo) Credit for rehabilitation of historic properties. (1) (A) For
taxable years beginning on or after January first, two thousand ten and
before January first, two thousand [twenty] TWENTY-FIVE, a taxpayer
shall be allowed a credit as hereinafter provided, against the tax
imposed by this article, in an amount equal to [one hundred percent of
the amount of credit allowed the taxpayer with respect to a certified
historic structure under subsection (a) (2) of section 47 of the federal
internal revenue code] TWENTY PERCENT OF THE QUALIFIED REHABILITATION
EXPENDITURES with respect to a certified historic structure located
within the state. Provided, however, the credit shall not exceed [five]
SEVEN million dollars IN STATE FISCAL YEAR TWO THOUSAND NINETEEN--TWO
THOUSAND TWENTY, NINE MILLION DOLLARS IN STATE FISCAL YEAR TWO THOUSAND
TWENTY--TWO THOUSAND TWENTY-ONE AND TWELVE MILLION DOLLARS IN STATE
FISCAL YEAR TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO. For taxa-
ble years beginning on or after January first, two thousand [twenty]
TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter
provided, against the tax imposed by this article, in an amount equal to
thirty percent of the [amount of credit allowed the taxpayer with
respect to a certified historic structure under subsection (a)(2) of
section 47 of the federal internal revenue code] QUALIFIED REHABILI-
TATION EXPENDITURES with respect to a certified historic structure
located within the state; provided, however, the credit shall not exceed
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14626-03-8
A. 9842 2
one hundred thousand dollars. FOR PURPOSES OF THIS SUBSECTION THE TERM
"QUALIFIED REHABILITATION EXPENDITURE" MEANS ANY AMOUNT PROPERLY CHARGE-
ABLE TO CAPITAL ACCOUNT IN CONNECTION WITH THE CERTIFIED REHABILITATION
OF A QUALIFIED HISTORIC STRUCTURE, AND FOR PROPERTY FOR WHICH DEPRECI-
ATION WOULD BE ALLOWABLE UNDER SECTION 168 OF THE INTERNAL REVENUE CODE
AND WHICH IS (I) NONRESIDENTIAL REAL PROPERTY, (II) RESIDENTIAL RENTAL
PROPERTY, OR (III) AN ADDITION OR IMPROVEMENT TO NONRESIDENTIAL REAL
PROPERTY OR RESIDENTIAL RENTAL PROPERTY.
(B) If the taxpayer is a partner in a partnership or a shareholder of
a New York S corporation, then the credit cap imposed in subparagraph
(A) of this paragraph shall be applied at the entity level, so that the
aggregate credit allowed to all the partners or shareholders of each
such entity in the taxable year does not exceed the credit cap that is
applicable in that taxable year.
(2) (A) 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] IN
WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH.
(B) FOR PURPOSES OF THIS SUBSECTION THE TERM "CERTIFIED REHABILI-
TATION" MEANS ANY REHABILITATION OF A CERTIFIED HISTORIC STRUCTURE WHICH
HAS BEEN APPROVED AND CERTIFIED AS BEING CONSISTENT WITH THE STANDARDS
ESTABLISHED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRES-
ERVATION FOR REHABILITATION BY THE OFFICE OF PARKS, RECREATION AND
HISTORIC PRESERVATION, A LOCAL GOVERNMENT CERTIFIED PURSUANT TO SECTION
101(C)(1) OF THE NATIONAL HISTORIC PRESERVATION ACT OR A LOCAL LANDMARK
COMMISSION ESTABLISHED PURSUANT TO SECTION NINETY-SIX-A OR ONE HUNDRED
NINETEEN-DD OF THE GENERAL MUNICIPAL LAW.
(C) A CERTIFIED REHABILITATION SHALL REQUIRE:
(I) AN INITIAL CERTIFICATION THAT THE STRUCTURE MEETS THE DEFINITION
OF THE TERM "CERTIFIED HISTORIC STRUCTURE";
(II) A SECOND CERTIFICATION, TO BE ISSUED PRIOR TO CONSTRUCTION,
CERTIFYING THAT THE PROPOSED REHABILITATION WORK IS CONSISTENT WITH
STANDARDS ESTABLISHED BY THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION FOR REHABILITATION; AND
(III) A FINAL CERTIFICATION ISSUED WHEN CONSTRUCTION IS COMPLETED,
CERTIFYING THAT THE WORK WAS COMPLETED AS PROPOSED AND THAT THE COSTS
ARE CONSISTENT WITH THE WORK COMPLETED. SUCH FINAL CERTIFICATION SHALL
BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO SUCH
CONSTRUCTION QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR
PURPOSES OF THE CREDIT ALLOWED UNDER EITHER SUBPARAGRAPH (A) OR (B) OF
PARAGRAPH ONE OF THIS SUBSECTION.
(D) FOR PURPOSES OF THIS SUBSECTION THE TERM "QUALIFIED HISTORIC
STRUCTURE" MEANS A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN NEW YORK
STATE WHICH HAS BEEN SUBSTANTIALLY REHABILITATED. A CERTIFIED HISTORIC
STRUCTURE SHALL BE CONSIDERED SUBSTANTIALLY REHABILITATED IF THE QUALI-
FIED REHABILITATION EXPENDITURES IN RELATION TO SUCH STRUCTURE TOTAL
FIVE THOUSAND DOLLARS OR MORE.
(E) FOR PURPOSES OF THIS SUBSECTION THE TERM "CERTIFIED HISTORIC
STRUCTURE" MEANS ANY BUILDING AND ITS STRUCTURAL COMPONENTS WHICH:
(I) IS LISTED IN THE STATE OR NATIONAL REGISTER OF HISTORIC PLACES, OR
(II) IS LOCATED IN A STATE OR NATIONAL REGISTERED HISTORIC DISTRICT
AND IS CERTIFIED AS BEING OF HISTORIC SIGNIFICANCE IN THE DISTRICT.
(3) [If the credit allowed the taxpayer pursuant to 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
A. 9842 3
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 the
federal recapture] (A) IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGIN-
NING ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN SUBPARAGRAPH
(C) OF PARAGRAPH TWO OF THIS SUBSECTION, THE TAXPAYER DISPOSES OF SUCH
TAXPAYER'S INTEREST IN A CERTIFIED HISTORIC STRUCTURE, OR SUCH CERTIFIED
HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGIBLE FOR THE CREDIT
ALLOWED UNDER THIS SUBSECTION, THE TAXPAYER'S TAX IMPOSED BY THIS ARTI-
CLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL BE
INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED UNDER THIS
SUBSECTION FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH REHABILI-
TATION.
(B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE
TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO
TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA-
TION OF THE STRUCTURE OCCURRED.
(4) 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]
TAXPAYER MAY CARRY OVER AND APPLY SUCH EXCESS TO THE TAX IMPOSED BY THIS
ARTICLE IN ANY OF THE SUCCEEDING FIVE TAXABLE YEARS, THE PORTION, AS
REDUCED FROM YEAR TO YEAR, OF THE CREDIT WHICH EXCEEDS SUCH TAX FOR THE
TAXABLE YEAR. THE CARRYOVER PERIOD, FOR ANY TAXPAYER, SHALL NOT EXCEED
FIVE TAXABLE YEARS AFTER THE CLOSE OF THE TAXABLE YEAR IN WHICH THE
FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS COMPLETED AS
PROVIDED IN SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION.
(5) To be eligible for the credit allowable under this subsection the
rehabilitation project shall be in whole or in part located within a
census tract which is identified as being at or below one hundred
percent of the state median family income as calculated as of [January]
APRIL first of each year using the most recent five year estimate from
the American community survey published by the United States Census
bureau. IF THERE IS A CHANGE IN THE MOST RECENT FIVE YEAR ESTIMATE, A
CENSUS TRACT THAT QUALIFIED FOR ELIGIBILITY UNDER THIS PROGRAM BEFORE
INFORMATION ABOUT THE CHANGE WAS RELEASED SHALL REMAIN ELIGIBLE FOR A
CREDIT UNDER THIS SUBSECTION FOR AN ADDITIONAL EIGHTEEN MONTHS.
(6) NOTHING CONTAINED IN THIS SUBSECTION SHALL BE CONSTRUED TO IMPOSE
A DUTY ON A LOCAL LANDMARK COMMISSION ESTABLISHED PURSUANT TO SECTION
NINETY-SIX-A OR ONE HUNDRED NINETEEN-DD OF THE GENERAL MUNICIPAL LAW OR
A LOCAL GOVERNMENT CERTIFIED PURSUANT TO SECTION 101(C)(1) OF THE
NATIONAL HISTORIC PRESERVATION ACT TO UNDERTAKE ANY REVIEW OR APPROVAL
OF AN APPLICATION FOR THE CERTIFICATION OF THE REHABILITATION OF HISTOR-
IC STRUCTURES AND OF REHABILITATION EXPENDITURES PROVIDED FOR IN THIS
SUBSECTION.
(7)(A)(I) ANY TAXPAYER, ELIGIBLE FOR THE CREDIT ALLOWED PURSUANT TO
THIS SUBSECTION MAY TRANSFER SUCH CREDIT, IN WHOLE OR IN PART, TO ANY
INDIVIDUAL OR ENTITY, WITHOUT THE REQUIREMENT OF TRANSFERRING ANY OWNER-
SHIP INTEREST IN THE CERTIFIED HISTORIC STRUCTURE OR ANY INTEREST IN THE
ENTITY WHICH OWNS THE CERTIFIED HISTORIC STRUCTURE. TRANSFEREES ARE
ENTITLED TO APPLY THE CREDITS AGAINST THE TAX WITH THE SAME EFFECT AS IF
THE TRANSFEREE HAD INCURRED THE QUALIFIED REHABILITATION EXPENDITURES.
SUCH CREDIT MAY BE TRANSFERRED ONLY ON OR AFTER THE FINAL CERTIFICATION
A. 9842 4
STEP OF THE CERTIFIED REHABILITATION IS COMPLETED AS PROVIDED IN SUBPAR-
AGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION.
(II) A TRANSFEREE SHALL USE SUCH CREDIT IN THE YEAR IT IS TRANSFERRED.
IF THE CREDIT ALLOWABLE FOR ANY TAX YEAR EXCEEDS THE TRANSFEREE'S TAX
LIABILITY FOR THAT YEAR, THE TRANSFEREE MAY CARRY FORWARD AND APPLY IN A
SUBSEQUENT TAXABLE YEAR, THE PORTION, AS REDUCED FROM YEAR TO YEAR, OF
THE CREDIT WHICH EXCEEDS SUCH TAX FOR THE TAXABLE YEAR; PROVIDED, HOWEV-
ER, THAT THE CARRYOVER PERIOD CANNOT EXCEED FIVE TAXABLE YEARS AFTER THE
CLOSE OF THE TAXABLE YEAR IN WHICH THE FINAL CERTIFICATION STEP OF THE
CERTIFIED REHABILITATION IS COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF
PARAGRAPH TWO OF THIS SUBSECTION.
(III) THE PROVISIONS OF PARAGRAPH THREE OF THIS SUBSECTION RELATING TO
THE RECAPTURE OF THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION SHALL
ALSO APPLY TO THE TRANSFER OF SUCH CREDIT AS PROVIDED FOR IN THIS PARA-
GRAPH.
(B) THE COMMISSION, IN CONSULTATION WITH THE DEPARTMENT, SHALL PROMUL-
GATE A FORM OF TRANSFER STATEMENT TO BE FILED BY THE TRANSFEROR OF THE
CREDIT ALLOWED PURSUANT TO THIS SUBSECTION. THE TRANSFER STATEMENT SHALL
BE IN ADDITION TO THE TRANSFER CONTRACT PROVIDED IN SUBPARAGRAPH (C) OF
THIS PARAGRAPH. TRANSFER STATEMENT FORMS MAY BE OBTAINED FROM THE
COMMISSION. THE TRANSFEROR SHALL FILE A TRANSFER STATEMENT AND A COPY OF
THE PROPOSED TRANSFER CONTRACT WITH THE DEPARTMENT PRIOR TO THE TRANSFER
AND SHALL FURTHER FILE WITH THE DEPARTMENT THE EXECUTED TRANSFER
CONTRACT WITHIN THIRTY DAYS AFTER THE COMPLETED TRANSFER. THE TRANSFER
STATEMENT SHALL PROVIDE THE NAME AND FEDERAL TAXPAYER IDENTIFICATION
NUMBER OF EACH TRANSFEROR AND TRANSFEREE. FURTHER, SUCH STATEMENT SHALL
INDICATE THE AMOUNT OF THE CREDIT TRANSFERRED TO EACH TRANSFEREE. THE
STATEMENT SHALL ALSO CONTAIN SUCH OTHER INFORMATION AS THE DEPARTMENT OR
THE COMMISSION MAY FROM TIME TO TIME REQUIRE.
(C) ANY TAXPAYER TRANSFERRING HIS OR HER CREDIT ALLOWED PURSUANT TO
THIS SUBSECTION SHALL ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFER-
EE. THE TRANSFER CONTRACT SHALL SPECIFY THE FOLLOWING:
(I) A DESCRIPTION AND ADDRESS FOR THE CERTIFIED HISTORIC STRUCTURE OR
STRUCTURES WHICH QUALIFIED THE TAXPAYER FOR SUCH CREDIT;
(II) THE DATE IN WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED
REHABILITATION IS COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF PARAGRAPH
TWO OF THIS SUBSECTION;
(III) THE SCHEDULE OF YEARS DURING WHICH THE CREDIT MAY BE TAKEN AND
THE AMOUNT OF CREDIT PREVIOUSLY TAKEN FOR THE CERTIFIED HISTORIC STRUC-
TURE INCLUDING ALL PREVIOUS TRANSFEREES; AND
(IV) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(D) ANY TAXPAYER WHO IS A TRANSFEREE OF THE CREDIT ALLOWED PURSUANT TO
THIS SUBSECTION MAY, PROVIDED ALL TRANSFER AND OTHER REQUIREMENTS OR
LIMITATIONS ARE MET, APPLY SUCH CREDIT TO THE TAX IMPOSED UNDER THIS
ARTICLE.
§ 2. Paragraph 2 of subsection (pp) of section 606 of the tax law, as
added by chapter 547 of the laws of 2006, subparagraphs (A) and (B) as
amended by section 1 of part V of chapter 59 of the laws of 2013, is
amended to read as follows:
(2) (A) With respect to any particular residence of a taxpayer, the
credit allowed under paragraph one of this subsection shall not exceed
fifty thousand dollars for taxable years beginning on or after January
first, two thousand ten and before January first, two thousand [twenty]
TWENTY-FIVE and twenty-five thousand dollars for taxable years beginning
on or after January first, two thousand [twenty] TWENTY-FIVE. In the
case of a husband and wife, the amount of the credit shall be divided
A. 9842 5
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 fifty thousand dollars for taxable years beginning on
or after January first, two thousand ten and before January first, two
thousand [twenty] TWENTY-FIVE and twenty-five thousand dollars for taxa-
ble years beginning on or after January first, two thousand [twenty]
TWENTY-FIVE.
(B) For taxable years beginning on or after January first, two thou-
sand ten and before January first, two thousand [twenty] TWENTY-FIVE, 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. For taxable years beginning on or after January
first, two thousand [twenty] TWENTY-FIVE, if the amount of credit allow-
able under this subsection 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.
§ 3. Subdivision 26 of section 210-B of the tax law, as added by
section 17 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
26. Credit for rehabilitation of historic properties. (a) Application
of credit. (i) For taxable years beginning on or after January first,
two thousand ten, and before January first, two thousand [twenty] TWEN-
TY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided,
against the tax imposed by this article, in an amount equal to [one
hundred percent of the amount of credit allowed the taxpayer for the
same taxable year with respect to a certified historic structure under
subsection (c)(2) of section 47 of the internal revenue code] TWENTY
PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES with respect to a
certified historic structure located within the state. Provided, howev-
er, the credit shall not exceed [five] SEVEN million dollars IN STATE
FISCAL YEAR TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY, NINE MILLION
DOLLARS IN STATE FISCAL YEAR TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-
ONE AND TWELVE MILLION DOLLARS IN STATE FISCAL YEAR TWO THOUSAND TWEN-
TY-ONE--TWO THOUSAND TWENTY-TWO.
(ii) For taxable years beginning on or after January first, two thou-
sand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as here-
inafter provided, against the tax imposed by this article, in an amount
equal to thirty 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) of section 47 of the internal revenue code]
QUALIFIED REHABILITATION EXPENDITURES with respect to a certified
historic structure located within the state. Provided, however, the
credit shall not exceed one hundred thousand dollars.
[(B)] (B) If the taxpayer is a partner in a partnership or a share-
holder in a New York S corporation, then the credit caps imposed in
[subparagraph (A)] PARAGRAPH (A) of this [paragraph] SUBDIVISION shall
be applied at the entity level, so that the aggregate credit allowed to
A. 9842 6
all the partners or shareholders of each such entity in the taxable year
does not exceed the credit cap that is applicable in that taxable year.
[(b)] (C) 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] IN
WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
COMPLETED PURSUANT TO SUBPARAGRAPH (C) OF PARAGRAPH TWO OF SUBSECTION
(OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
[(c) If the credit allowed the taxpayer pursuant to 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 the
federal credit] (D)(I) IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGIN-
NING ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN PARAGRAPH (B)
OF THIS SUBDIVISION, THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST
IN A CERTIFIED STRUCTURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE
CEASES TO BE ELIGIBLE FOR THE CREDIT ALLOWED UNDER THIS SUBDIVISION, THE
TAXPAYER'S TAX IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH
SUCH DISPOSITION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF
THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH
RESPECT TO SUCH REHABILITATION.
(II) FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE RECAPTURE
PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE
TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO
TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA-
TION OF THE STRUCTURE OCCURRED.
[(d)] (E) The credit allowed under this subdivision for any taxable
year shall not reduce the tax due for such year to less than the amount
prescribed in paragraph (d) of subdivision one of section two hundred
ten of this article. However, if the amount of the credit allowed under
this subdivision for any taxable year reduces the tax to such amount or
if the taxpayer otherwise pays tax based on the fixed dollar minimum
amount, any amount of credit thus not deductible in such taxable year
shall be treated as an overpayment of tax to be recredited 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.
[(e)] (F) To be eligible for the credit allowable under this subdivi-
sion, the rehabilitation project shall be in whole or in part located
within a census tract which is identified as being at or below one
hundred percent of the state median family income as calculated as of
January first of each year using the most recent five year estimate from
the American community survey published by the United States Census
bureau.
§ 4. Paragraphs 1, 2 and 3 of subdivision (y) of section 1511 of the
tax law, as added by chapter 472 of the laws of 2010, subparagraph (A)
of paragraph 1 as amended by section 4 of part F of chapter 59 of the
laws of 2013, are amended to read as follows:
(1) (A) For taxable years beginning on or after January first, two
thousand ten and before January first, two thousand [twenty]
TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter
provided, against the tax imposed by this article, in an amount equal to
[one hundred percent of the amount of credit allowed the taxpayer with
respect to a certified historic structure under subsection (a)(2) of
A. 9842 7
section 47 of the federal internal revenue code] TWENTY PERCENT OF THE
QUALIFIED REHABILITATION EXPENDITURES with respect to a certified
historic structure located within the state. Provided, however, the
credit shall not exceed [five] SEVEN million dollars IN STATE FISCAL
YEAR TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY, NINE MILLION DOLLARS IN
STATE FISCAL YEAR TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE AND
TWELVE MILLION DOLLARS IN STATE FISCAL YEAR TWO THOUSAND TWENTY-ONE--TWO
THOUSAND TWENTY-TWO. For taxable years beginning on or after January
first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a
credit as hereinafter provided, against the tax imposed by this article,
in an amount equal to thirty percent of the [amount of credit allowed
the taxpayer with respect to a certified historic structure under
subsection (a)(2) of section 47 of the federal internal revenue code]
QUALIFIED REHABILITATION EXPENDITURE with respect to a certified histor-
ic structure located within the state. Provided, however, the credit
shall not exceed one hundred thousand dollars.
(B) If the taxpayer is a partner in a partnership, then the cap
imposed in subparagraph (A) of this paragraph shall be applied at the
entity level, so that the aggregate credit allowed to all the partners
of such partnership in the taxable year does not exceed the credit cap
that is applicable in that taxable year.
(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] IN WHICH
THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
COMPLETED PURSUANT TO SUBPARAGRAPH (C) OF PARAGRAPH TWO OF SUBSECTION
(OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
(3) [If the credit allowed the taxpayer pursuant to 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 in
the taxable year the credit was claimed must be added back in the same
taxable year and in the same proportion as the federal recapture] (A)
IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGINNING ON THE DATE OF THE
FINAL CERTIFICATION REFERRED TO IN PARAGRAPH TWO OF THIS SUBDIVISION,
THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED STRUC-
TURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGI-
BLE FOR THE CREDIT ALLOWED UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX
IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION
OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED
UNDER THIS PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH
REHABILITATION.
(B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE
TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO
TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA-
TION OF THE STRUCTURE OCCURRED.
§ 5. Subdivision 6 of section 13.15 of the parks, recreation and
historic preservation law, as added by chapter 547 of the laws of 2006,
is amended to read as follows:
6. The office may establish a fee or fees for its processing and
review of applications for the certification of the rehabilitation of
historic buildings and the approval of rehabilitation expenditures and
related work pursuant to [subsection] SUBSECTIONS (OO) AND (pp) of
section six hundred six of the tax law. All revenues from these fees
shall be deposited by the comptroller in the miscellaneous special
A. 9842 8
revenue fund to be credited to the agency's patron services account and
shall be used to support the office's historic preservation program.
Nothing in this subdivision shall be construed to limit the ability of a
local landmark commission established pursuant to section ninety-six-a
or one hundred nineteen-dd of the general municipal law or a local
government certified pursuant to section 101(c)(1) of the national
historic preservation act to establish and charge fees for its process-
ing and review of applications for the certification of the rehabili-
tation of historic buildings and the approval of rehabilitation expendi-
tures.
§ 6. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2018.