Assembly Bill A10396

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10396
 
                           I N  A S S E M B L Y
 
                                May 4, 2020
                                ___________
 
 Introduced by M. of A. BARCLAY, FITZPATRICK -- read once and referred to
   the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to establishing the rental real
   estate income relief tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 210-B of the tax law is amended  by  adding  a  new
 subdivision 55 to read as follows:
   55.  RENTAL REAL ESTATE INCOME RELIEF TAX CREDIT. (A) FOR THE PURPOSES
 OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING  MEAN-
 INGS:
   (1)  "RESIDENTIAL TENANT" SHALL HAVE THE SAME MEANING AS PARAGRAPH (A)
 OF SUBDIVISION ONE OF SECTION TWO  HUNDRED  THIRTY-FIVE-F  OF  THE  REAL
 PROPERTY  LAW,  THOSE  WHO  OTHERWISE PAY FOR THE USE AND OCCUPANCY OF A
 RESIDENTIAL DWELLING, OR OCCUPANTS AS DEFINED BY PARAGRAPH (B) OF SUBDI-
 VISION ONE OF SECTION TWO HUNDRED THIRTY-FIVE-F  OF  THE  REAL  PROPERTY
 LAW.
   (2) "COMMERCIAL TENANT" SHALL MEAN A PERSON OR ENTITY LAWFULLY OCCUPY-
 ING A COVERED PROPERTY PURSUANT TO A LEASE OR OTHER RENTAL AGREEMENT.
   (3)  "COVERED PROPERTY" SHALL MEAN ANY BUILDING OR PORTION OF A BUILD-
 ING:
   (I) THAT IS LAWFULLY USED FOR BUYING, SELLING OR  OTHERWISE  PROVIDING
 GOODS  OR  SERVICES, OR FOR OTHER LAWFUL BUSINESS, COMMERCIAL OR PROFES-
 SIONAL SERVICES, OR MANUFACTURING ACTIVITIES; AND
   (II) FOR WHICH A CERTIFICATE OF OCCUPANCY AUTHORIZING RESIDENTIAL  USE
 OF SUCH BUILDING OR SUCH PORTION OF A BUILDING HAS NOT BEEN ISSUED.
   (4)  "SMALL  BUSINESS"  SHALL  HAVE  THE  SAME  MEANING AS SECTION ONE
 HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
   (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND TWENTY AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-ONE, A TAXPAY-
 ER  SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED,
 AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT  SHALL
 BE  EQUAL TO THE LOSS OF RENTAL INCOME RELATED TO THE INABILITY OF RESI-
 DENTIAL TENANTS AND SMALL BUSINESS COMMERCIAL TENANTS TO PAY RENT  AS  A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16302-01-0

 A. 10396                            2
 
 RESULT OF GOVERNMENT ORDERED RESTRICTIONS IN RESPONSE TO THE CORONAVIRUS
 DISEASE  TWO  THOUSAND NINETEEN (COVID-19). SUCH CREDIT SHALL BE GRANTED
 TO ANY TAXPAYER WITH INCOME DERIVED FROM THE RENTAL OF A COVERED PROPER-
 TY WHO HAS SEEN A PARTIAL OR TOTAL LOSS OF SUCH INCOME.
   (C)  A  TAXPAYER  APPLYING FOR SUCH CREDIT SHALL DO SO ACCORDING TO AN
 APPLICATION AS ESTABLISHED BY THE COMMISSIONER IN CONSULTATION WITH  THE
 COMMISSIONER  OF  THE DIVISION OF HOMES AND COMMUNITY RENEWAL. PROVIDED,
 SUCH APPLICATION WOULD  INCLUDE  THE  REQUIREMENT  OF  THE  TAXPAYER  TO
 PROVIDE  SUPPORTING DOCUMENTATION ESTABLISHING THE LOSS OF RENTAL INCOME
 AS PRESCRIBED BY THE COMMISSIONER, INCLUDING, BUT  NOT  LIMITED  TO,  AN
 ENFORCEABLE  RESIDENTIAL  TENANT  LEASE  AGREEMENT  OR COMMERCIAL TENANT
 LEASE AGREEMENT.
   (D) THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE FIXED DOLLAR
 MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION
 TWO  HUNDRED  TEN  OF  THIS  ARTICLE.  HOWEVER,  IF THE AMOUNT OF 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 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.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (mmm) to read as follows:
   (MMM)  RENTAL  REAL  ESTATE  INCOME  RELIEF  TAX  CREDIT.  (A) FOR THE
 PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE THE  FOLLOW-
 ING MEANINGS:
   (1)  "RESIDENTIAL TENANT" SHALL HAVE THE SAME MEANING AS PARAGRAPH (A)
 OF SUBDIVISION ONE OF SECTION TWO  HUNDRED  THIRTY-FIVE-F  OF  THE  REAL
 PROPERTY  LAW,  THOSE  WHO  OTHERWISE PAY FOR THE USE AND OCCUPANCY OF A
 RESIDENTIAL DWELLING, OR OCCUPANTS AS DEFINED BY PARAGRAPH (B) OF SUBDI-
 VISION ONE OF SECTION TWO HUNDRED THIRTY-FIVE-F  OF  THE  REAL  PROPERTY
 LAW.
   (2) "COMMERCIAL TENANT" SHALL MEAN A PERSON OR ENTITY LAWFULLY OCCUPY-
 ING A COVERED PROPERTY PURSUANT TO A LEASE OR OTHER RENTAL AGREEMENT.
   (3)  "COVERED PROPERTY" SHALL MEAN ANY BUILDING OR PORTION OF A BUILD-
 ING:
   (I) THAT IS LAWFULLY USED FOR BUYING, SELLING OR  OTHERWISE  PROVIDING
 GOODS  OR  SERVICES, OR FOR OTHER LAWFUL BUSINESS, COMMERCIAL OR PROFES-
 SIONAL SERVICES, OR MANUFACTURING ACTIVITIES; AND
   (II) FOR WHICH A CERTIFICATE OF OCCUPANCY AUTHORIZING RESIDENTIAL  USE
 OF SUCH BUILDING OR SUCH PORTION OF A BUILDING HAS NOT BEEN ISSUED.
   (4)  "SMALL  BUSINESS"  SHALL  HAVE  THE  SAME  MEANING AS SECTION ONE
 HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
   (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND TWENTY AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-ONE, A TAXPAY-
 ER  SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED,
 AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT  SHALL
 BE  EQUAL TO THE LOSS OF RENTAL INCOME RELATED TO THE INABILITY OF RESI-
 DENTIAL TENANTS AND SMALL BUSINESS COMMERCIAL TENANTS TO PAY RENT  AS  A
 RESULT OF GOVERNMENT ORDERED RESTRICTIONS IN RESPONSE TO THE CORONAVIRUS
 DISEASE  TWO  THOUSAND NINETEEN (COVID-19). SUCH CREDIT SHALL BE GRANTED
 TO ANY TAXPAYER WITH INCOME DERIVED FROM THE RENTAL OF A COVERED PROPER-
 TY WHO HAS SEEN A PARTIAL OR TOTAL LOSS OF SUCH INCOME.

 A. 10396                            3
 
   (C) A TAXPAYER APPLYING FOR SUCH CREDIT SHALL DO SO  ACCORDING  TO  AN
 APPLICATION  AS ESTABLISHED BY THE COMMISSIONER IN CONSULTATION WITH THE
 COMMISSIONER OF THE DIVISION OF HOMES AND COMMUNITY  RENEWAL.  PROVIDED,
 SUCH  APPLICATION  WOULD  INCLUDE  THE  REQUIREMENT  OF  THE TAXPAYER TO
 PROVIDE  SUPPORTING DOCUMENTATION ESTABLISHING THE LOSS OF RENTAL INCOME
 AS PRESCRIBED BY THE COMMISSIONER, INCLUDING, BUT  NOT  LIMITED  TO,  AN
 ENFORCEABLE  RESIDENTIAL  TENANT  LEASE  AGREEMENT  OR COMMERCIAL TENANT
 LEASE AGREEMENT.
   (D) 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.
   § 3. This act shall take effect immediately.