S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5761
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 15, 2019
                                ___________
 
 Introduced  by  M. of A. RYAN -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to  the  credit  for  rehabili-
   tation of historic properties
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 26 of section 210-B of the tax law  is  amended
 by adding three new paragraphs (f), (g) and (h) to read as follows:
   (F)  IF  A CREDIT IS ALLOWED UNDER THIS SUBDIVISION FOR REHABILITATION
 OF A CERTIFIED HISTORIC STRUCTURE  WITH  MULTIPLE  OWNERS,  SUCH  CREDIT
 SHALL  BE  PASSED THROUGH TO SUCH OWNERS, OR PERSONS DESIGNATED AS PART-
 NERS OR MEMBERS OF SUCH OWNERS, PRO RATA OR  PURSUANT  TO  AN  AGREEMENT
 AMONG  SUCH OWNERS, OR PERSONS DESIGNATED AS PARTNERS OR MEMBERS OF SUCH
 OWNERS, DOCUMENTING AN ALTERNATIVE DISTRIBUTION METHOD WITHOUT REGARD TO
 OTHER TAX OR ECONOMIC ATTRIBUTES OF SUCH OWNERS.
   (G) (I) ANY OWNER ENTITLED TO A  CREDIT  UNDER  THIS  SUBDIVISION  MAY
 SELL, ASSIGN, OR OTHERWISE TRANSFER SUCH CREDIT, IN WHOLE OR IN PART, TO
 ONE  OR  MORE  PERSONS PROVIDED ANY CREDIT, AFTER ISSUANCE, MAY BE SOLD,
 ASSIGNED OR OTHERWISE TRANSFERRED, IN WHOLE OR IN PART,  NOT  MORE  THAN
 THREE  TIMES.  SUCH  PERSON  SHALL BE ENTITLED TO OFFSET THE TAX IMPOSED
 UNDER THIS ARTICLE AS IF SUCH  TRANSFEREE  HAD  INCURRED  THE  QUALIFIED
 REHABILITATION EXPENDITURE.
   (II)  FOR  THE  PURPOSES  OF  THIS SUBDIVISION, (A) "PERSON" MEANS ANY
 INDIVIDUAL, PARTNERSHIP, COMPANY, LIMITED LIABILITY COMPANY,  PUBLIC  OR
 PRIVATE  CORPORATION,  SOCIETY, ASSOCIATION, TRUSTEE, EXECUTOR, ADMINIS-
 TRATOR OR OTHER FIDUCIARY OR CUSTODIAN AND (B) "QUALIFIED REHABILITATION
 EXPENDITURE" MEANS ANY COSTS  INCURRED  FOR  THE  PHYSICAL  CONSTRUCTION
 INVOLVED  IN  THE  REHABILITATION  OF  A  CERTIFIED  HISTORIC STRUCTURE,
 EXCLUDING: (1) THE OWNER'S PERSONAL LABOR, (2) THE COST OF A  NEW  ADDI-
 TION,  EXCEPT  AS  REQUIRED  TO  COMPLY  WITH ANY PROVISION OF THE STATE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07640-01-9
              

 A. 5761                             2
 
 UNIFORM FIRE PREVENTION AND BUILDING CODE, AND (3)  ANY  NONCONSTRUCTION
 COST SUCH AS ARCHITECTURAL FEES, LEGAL FEES AND FINANCING FEES.
   (H)  IF A CREDIT UNDER THIS SUBDIVISION IS SOLD, ASSIGNED OR OTHERWISE
 TRANSFERRED, WHETHER BY THE OWNER  OR  ANY  SUBSEQUENT  TRANSFEREE,  THE
 TRANSFEROR  AND  TRANSFEREE SHALL JOINTLY SUBMIT WRITTEN NOTIFICATION OF
 SUCH TRANSFER TO THE DEPARTMENT NOT LATER THAN THIRTY  DAYS  AFTER  SUCH
 TRANSFER.  THE NOTIFICATION AFTER EACH TRANSFER SHALL INCLUDE THE CREDIT
 VOUCHER NUMBER, THE DATE OF TRANSFER, THE AMOUNT OF SUCH  CREDIT  TRANS-
 FERRED,  THE  TAX  CREDIT BALANCE BEFORE AND AFTER THE TRANSFER, THE TAX
 IDENTIFICATION NUMBERS FOR BOTH THE TRANSFEROR AND THE  TRANSFEREE,  AND
 ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. FAILURE TO COMPLY WITH
 THIS  PARAGRAPH  SHALL  RESULT IN A DISALLOWANCE OF THE TAX CREDIT UNTIL
 THERE IS FULL COMPLIANCE ON THE PART OF THE TRANSFEROR AND THE TRANSFER-
 EE, AND FOR A SECOND OR THIRD TRANSFER, ON THE PART  OF  ALL  SUBSEQUENT
 TRANSFERORS AND TRANSFEREES.
   §  2.  Subsection  (oo)  of  section  606 of the tax law is amended by
 adding three new paragraphs 6, 7 and 8 to read as follows:
   (6) IF A CREDIT IS ALLOWED UNDER THIS SUBSECTION FOR REHABILITATION OF
 A CERTIFIED HISTORIC STRUCTURE WITH MULTIPLE OWNERS, SUCH  CREDIT  SHALL
 BE  PASSED  THROUGH TO SUCH OWNERS, OR PERSONS DESIGNATED AS PARTNERS OR
 MEMBERS OF SUCH OWNERS, PRO RATA OR PURSUANT TO AN AGREEMENT AMONG  SUCH
 OWNERS,  OR  PERSONS  DESIGNATED  AS PARTNERS OR MEMBERS OF SUCH OWNERS,
 DOCUMENTING AN ALTERNATIVE DISTRIBUTION METHOD WITHOUT REGARD  TO  OTHER
 TAX OR ECONOMIC ATTRIBUTES OF SUCH OWNERS.
   (7) (A) ANY OWNER ENTITLED TO A CREDIT UNDER THIS SUBSECTION MAY SELL,
 ASSIGN,  OR  OTHERWISE TRANSFER SUCH CREDIT, IN WHOLE OR IN PART, TO ONE
 OR MORE PERSONS PROVIDED  ANY  CREDIT,  AFTER  ISSUANCE,  MAY  BE  SOLD,
 ASSIGNED  OR  OTHERWISE  TRANSFERRED, IN WHOLE OR IN PART, NOT MORE THAN
 THREE TIMES. SUCH PERSON SHALL BE ENTITLED TO  OFFSET  THE  TAX  IMPOSED
 UNDER  THIS  ARTICLE  AS  IF  SUCH TRANSFEREE HAD INCURRED THE QUALIFIED
 REHABILITATION EXPENDITURE.
   (B) FOR THE PURPOSES OF THIS SUBSECTION, (I) "PERSON" MEANS ANY  INDI-
 VIDUAL,  PARTNERSHIP,  COMPANY,  LIMITED  LIABILITY  COMPANY,  PUBLIC OR
 PRIVATE CORPORATION, SOCIETY, ASSOCIATION, TRUSTEE,  EXECUTOR,  ADMINIS-
 TRATOR  OR  OTHER  FIDUCIARY OR CUSTODIAN, AND (II) "QUALIFIED REHABILI-
 TATION  EXPENDITURE"  MEANS  ANY  COSTS  INCURRED   FOR   THE   PHYSICAL
 CONSTRUCTION  INVOLVED  IN  THE  REHABILITATION  OF A CERTIFIED HISTORIC
 STRUCTURE, EXCLUDING: (1) THE OWNER'S PERSONAL LABOR, (2) THE COST OF  A
 NEW  ADDITION,  EXCEPT  AS  REQUIRED TO COMPLY WITH ANY PROVISION OF THE
 STATE UNIFORM FIRE PREVENTION AND BUILDING CODE,  AND  (3)  ANY  NONCON-
 STRUCTION  COST  SUCH  AS  ARCHITECTURAL  FEES, LEGAL FEES AND FINANCING
 FEES.
   (8) IF A CREDIT UNDER THIS SUBSECTION IS SOLD, ASSIGNED  OR  OTHERWISE
 TRANSFERRED,  WHETHER  BY  THE  OWNER  OR ANY SUBSEQUENT TRANSFEREE, THE
 TRANSFEROR AND TRANSFEREE SHALL JOINTLY SUBMIT WRITTEN  NOTIFICATION  OF
 SUCH  TRANSFER  TO  THE DEPARTMENT NOT LATER THAN THIRTY DAYS AFTER SUCH
 TRANSFER. THE NOTIFICATION AFTER EACH TRANSFER SHALL INCLUDE THE  CREDIT
 VOUCHER  NUMBER,  THE DATE OF TRANSFER, THE AMOUNT OF SUCH CREDIT TRANS-
 FERRED, THE TAX CREDIT BALANCE BEFORE AND AFTER THE  TRANSFER,  THE  TAX
 IDENTIFICATION  NUMBERS  FOR BOTH THE TRANSFEROR AND THE TRANSFEREE, AND
 ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. FAILURE TO COMPLY WITH
 THIS PARAGRAPH SHALL RESULT IN A DISALLOWANCE OF THE  TAX  CREDIT  UNTIL
 THERE IS FULL COMPLIANCE ON THE PART OF THE TRANSFEROR AND THE TRANSFER-
 EE,  AND  FOR  A SECOND OR THIRD TRANSFER, ON THE PART OF ALL SUBSEQUENT
 TRANSFERORS AND TRANSFEREES.

 A. 5761                             3
 
   § 3. Subdivision (y) of section 1511 of the tax  law,  is  amended  by
 adding three new paragraphs 6, 7, and 8 to read as follows:
   (6)  IF  A CREDIT IS ALLOWED UNDER THIS SUBDIVISION FOR REHABILITATION
 OF A CERTIFIED HISTORIC STRUCTURE  WITH  MULTIPLE  OWNERS,  SUCH  CREDIT
 SHALL  BE  PASSED THROUGH TO SUCH OWNERS, OR PERSONS DESIGNATED AS PART-
 NERS OR MEMBERS OF SUCH OWNERS, PRO RATA OR  PURSUANT  TO  AN  AGREEMENT
 AMONG  SUCH OWNERS, OR PERSONS DESIGNATED AS PARTNERS OR MEMBERS OF SUCH
 OWNERS, DOCUMENTING AN ALTERNATIVE DISTRIBUTION METHOD WITHOUT REGARD TO
 OTHER TAX OR ECONOMIC ATTRIBUTES OF SUCH OWNERS.
   (7) (A) ANY OWNER ENTITLED TO A  CREDIT  UNDER  THIS  SUBDIVISION  MAY
 SELL, ASSIGN, OR OTHERWISE TRANSFER SUCH CREDIT, IN WHOLE OR IN PART, TO
 ONE  OR  MORE  PERSONS PROVIDED ANY CREDIT, AFTER ISSUANCE, MAY BE SOLD,
 ASSIGNED OR OTHERWISE TRANSFERRED, IN WHOLE OR IN PART,  NOT  MORE  THAN
 THREE  TIMES.  SUCH  PERSON  SHALL BE ENTITLED TO OFFSET THE TAX IMPOSED
 UNDER THIS ARTICLE AS IF SUCH  TRANSFEREE  HAD  INCURRED  THE  QUALIFIED
 REHABILITATION EXPENDITURE.
   (B) FOR THE PURPOSES OF THIS SUBDIVISION, (I) "PERSON" MEANS ANY INDI-
 VIDUAL,  PARTNERSHIP,  COMPANY,  LIMITED  LIABILITY  COMPANY,  PUBLIC OR
 PRIVATE CORPORATION, SOCIETY, ASSOCIATION, TRUSTEE,  EXECUTOR,  ADMINIS-
 TRATOR  OR  OTHER  FIDUCIARY OR CUSTODIAN, AND (II) "QUALIFIED REHABILI-
 TATION  EXPENDITURE"  MEANS  ANY  COSTS  INCURRED   FOR   THE   PHYSICAL
 CONSTRUCTION  INVOLVED  IN  THE  REHABILITATION  OF A CERTIFIED HISTORIC
 STRUCTURE, EXCLUDING: (1) THE OWNER'S PERSONAL LABOR, (2) THE COST OF  A
 NEW  ADDITION,  EXCEPT  AS  REQUIRED TO COMPLY WITH ANY PROVISION OF THE
 STATE UNIFORM FIRE PREVENTION AND BUILDING CODE,  AND  (3)  ANY  NONCON-
 STRUCTION  COST  SUCH  AS  ARCHITECTURAL  FEES, LEGAL FEES AND FINANCING
 FEES.
   (8) IF A CREDIT UNDER THIS SUBDIVISION IS SOLD, ASSIGNED OR  OTHERWISE
 TRANSFERRED,  WHETHER  BY  THE  OWNER  OR ANY SUBSEQUENT TRANSFEREE, THE
 TRANSFEROR AND TRANSFEREE SHALL JOINTLY SUBMIT WRITTEN  NOTIFICATION  OF
 SUCH  TRANSFER  TO  THE DEPARTMENT NOT LATER THAN THIRTY DAYS AFTER SUCH
 TRANSFER. THE NOTIFICATION AFTER EACH TRANSFER SHALL INCLUDE THE  CREDIT
 VOUCHER  NUMBER,  THE DATE OF TRANSFER, THE AMOUNT OF SUCH CREDIT TRANS-
 FERRED, THE TAX CREDIT BALANCE BEFORE AND AFTER THE  TRANSFER,  THE  TAX
 IDENTIFICATION  NUMBERS  FOR BOTH THE TRANSFEROR AND THE TRANSFEREE, AND
 ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. FAILURE TO COMPLY WITH
 THIS PARAGRAPH SHALL RESULT IN A DISALLOWANCE OF THE  TAX  CREDIT  UNTIL
 THERE IS FULL COMPLIANCE ON THE PART OF THE TRANSFEROR AND THE TRANSFER-
 EE,  AND  FOR  A SECOND OR THIRD TRANSFER, ON THE PART OF ALL SUBSEQUENT
 TRANSFERORS AND TRANSFEREES.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2019.