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.