S T A T E O F N E W Y O R K
________________________________________________________________________
9882
I N A S S E M B L Y
February 15, 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
million dollars. 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 EXPENDITURES with respect to a certified historic struc-
ture located within the state; provided, however, the credit shall not
exceed one hundred thousand dollars. FOR PURPOSES OF THIS SUBSECTION THE
TERM "QUALIFIED REHABILITATION EXPENDITURE" MEANS ANY AMOUNT PROPERLY
CHARGEABLE TO CAPITAL ACCOUNT IN CONNECTION WITH THE CERTIFIED REHABILI-
TATION OF A QUALIFIED HISTORIC STRUCTURE, AND FOR PROPERTY FOR WHICH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14636-02-8
A. 9882 2
DEPRECIATION WOULD BE ALLOWABLE UNDER SECTION 168 OF THE INTERNAL REVEN-
UE 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
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
A. 9882 3
(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.
(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 SUBSECTION 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.
§ 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
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.
A. 9882 4
(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 million dollars.
(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
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
A. 9882 5
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
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 million dollars. For taxable years begin-
ning 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 historic structure located within the state. Provided,
however, the credit shall not exceed one hundred thousand dollars.
A. 9882 6
(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
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.