S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4636--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 18, 2019
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the tax law, in  relation  to  providing  a  residential
   asbestos remediation tax credit

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (kkk) to read as follows:
   (KKK)  RESIDENTIAL  ASBESTOS  AND ABATEMENT TAX CREDIT. (1) GENERAL. A
 QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT FOR TAXABLE YEARS BEGINNING
 ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY AGAINST THE  TAX  IMPOSED
 BY  THIS ARTICLE FOR THE COSTS OF ABATEMENT OF ASBESTOS CONTAMINATION IN
 CERTAIN RESIDENTIAL REAL PROPERTY, WHEN SUCH REMOVAL IS  RECOMMENDED  BY
 AN ASBESTOS PROFESSIONAL CERTIFIED OR LICENSED PURSUANT TO ARTICLE THIR-
 TY OF THE LABOR LAW.
   (2) CREDIT LIMITATION. THE AMOUNT OF THE CREDIT SHALL BE THE LESSER OF
 TEN THOUSAND DOLLARS OR THIRTY PERCENT OF THE TOTAL COST.
   (3)  ASBESTOS  ABATEMENT COSTS. THE TERM "COSTS OF ABATEMENT" INCLUDES
 THE COST OF AN INSPECTION OR ASSESSMENT FROM A CERTIFIED SPECIALIST, ANY
 INITIAL APPRAISALS OF ASBESTOS, MUNICIPAL OR OTHERWISE, LABOR  COSTS  OF
 REMOVAL,  ANY  DISPOSAL  FEES, AND ANY CLEANUP FEES; EXCEPT ANY STATE OR
 LOCAL SALES TAX APPLICABLE TO THE SERVICES PERFORMED.
   (4) REMOVAL AND ABATEMENT FOR QUALIFIED TAXPAYERS.  A  PROPERTY  OWNER
 WHO  INCURS  COSTS  FOR  REMOVING  OR  REMEDIATING  ASBESTOS  AS IN THIS
 SECTION, ONLY APPLIES TO CERTAIN RESIDENTIAL REAL PROPERTY WHICH IS:
   (A) LOCATED IN THIS STATE;
   (B) OWNED BY THE TAXPAYER;
   (C) USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE,  SECONDARY
 RESIDENCE, OR RENTAL PROPERTY; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10047-03-9

 S. 4636--A                          2
 
   (D) IS LOCATED IN A CITY OR MUNICIPALITY WITH ONE MILLION RESIDENTS OR
 LESS.
   (5)  WHEN  CREDIT  ALLOWED. THE CREDIT PROVIDED FOR IN THIS SUBSECTION
 SHALL BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR IN WHICH  THE  REMOVAL
 WORK IS COMPLETED AND PAID FOR.
   (6)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
 OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION  FOR  ANY  TAXABLE  YEAR
 SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
 CARRIED  OVER  TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR
 WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (7) ALLOCATION OF CREDIT. THE COMMISSIONER, IN CONSULTATION  WITH  THE
 COMMISSIONER  OF  THE DEPARTMENT OF HEALTH, SHALL PROMULGATE REGULATIONS
 BY JANUARY FIRST, TWO THOUSAND TWENTY TO ESTABLISH  PROCEDURES  FOR  THE
 ALLOCATION  OF TAX CREDITS ALLOWED UNDER THIS SUBSECTION. SUCH RULES AND
 REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION  PROCESS
 FOR  THE  CREDIT  ALLOWED  UNDER THIS SUBSECTION, THE DUE DATES FOR SUCH
 APPLICATIONS, THE STANDARDS WHICH SHALL BE USED TO EVALUATE THE APPLICA-
 TIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO TAXPAYERS TO  SUBSTAN-
 TIATE  TO  THE  DEPARTMENT  THE  AMOUNT OF TAX CREDITS ALLOCATED TO SUCH
 TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECESSARY  AND  APPROPRI-
 ATE.  NOTWITHSTANDING  ANY OTHER PROVISIONS TO THE CONTRARY IN THE STATE
 ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGULATIONS MAY BE  ADOPTED
 ON AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH JANUARY FIRST, TWO THOU-
 SAND  TWENTY DEADLINE. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER
 THIS SUBSECTION  IN  ANY  TAXABLE  YEAR  SHALL  BE  TWENTY-FIVE  MILLION
 DOLLARS.  SUCH  AGGREGATE  AMOUNT  OF  CREDITS  SHALL BE ALLOCATED AMONG
 TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICA-
 TION FOR THE CREDIT. IF THE TOTAL AMOUNT OF  ALLOCATED  CREDITS  APPLIED
 FOR  IN  ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL  BE  TREATED
 AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR.
   (8)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law and shall apply to taxable years beginning on
 or after January 1, 2020.  Effective immediately, the  addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.