NY State Senate Bill 2019-S6711

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to budget and revenue
Sep 13, 2019	referred to rules

2019-S6711 (ACTIVE) - Details

See Assembly Version of this Bill:: A8491
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in 2021-2022 Legislative Session:: A899

2019-S6711 (ACTIVE) - Summary

Provides for the transferability of the rehabilitation of historic properties tax credit.

2019-S6711 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6711

SPONSOR: KENNEDY
 
TITLE OF BILL:  An act to amend the tax law, in relation to the trans-
ferability of the rehabilitation of historic properties tax credit

 
PURPOSE:

To strengthen the historic properties tax credit by allowing a taxpayer
awarded a rehabilitation of historic properties tax credit the ability
to transfer such credit to another person or entity

 
SUMMARY OF PROVISIONS:

Section 1 amends subsection (oo) of section 606 of the tax law by adding
a new paragraph 6, which states that a taxpayer allowed a credit pursu-
ant to this subsection may transfer the credit, in whole or in part, to
another person or entity. The transferee shall be entitled to apply the
transferred credit to a tax imposed under article nine-A, twenty-two or
thirty-three of this chapter. Section 1 stipulates that the credit may
only be transferred one time; that the taxpayer originally awarded the

credit must enter into a transfer contract with the transferee, accord-
ing to the specifications of this section; that the transfer shall not
be effective unless a transfer statement is filed with and approved by
the commissioner of parks, recreation and historic preservation, accord-
ing to the specifications of this section; that the commissioner shall
forward copies of any transfer statements, attachments, and approval
statements to the department of tax and finance within thirty days; and
that the taxpayer that originally received the credit shall remain sole-
ly liable for all obligations and liabilities imposed on them with
respect to the credit, none of which shall apply to the transferee.

Section 2 establishes the effective date.

 
JUSTIFICATION:

The New York State Historic Tax Credit has been a powerful economic
tool, allowing developers to invest in vacant and underutilized historic
buildings throughout the state, bringing new life to Main Streets,
historic neighborhoods, and industrial corridors in economically chal-
lenged communities.

The enhancements to the NYS Historic Tax Credit proposed by this legis-
lation would allow for the ability to directly transfer NYS Historic Tax
Credits. Of 34 states with State Historic Tax Credits, 18 allow trans-
ferability, including our neighbors in Pennsylvania, Massachusetts and
Connecticut.

Allowing for a single transfer of the credit provides a greater return
on the tax credit dollar, driving more investment into economic develop-
ment rehabilitation programs. The additional equity provided to a
project through transferability will enable more historic rehabili-
tation, reduce the need for local subsidy, and allow greater efficiency
for already expended state resources at no cost to the state treasury.
Beyond that, the mechanism for transferability of a tax credit has
precedent in the state, specifically with regard to the NYS Low-Income
Housing Tax Credit, which was included in the FY 2018-2019 budget.


This legislation will make it easier for organizations, municipalities,
non-profits, religious institutions and their partners to effectively
utilize the Historic Tax Credit to revitalize neighborhoods and jump
start local economies.

 
LEGISLATIVE HISTORY:

This is a new bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2020.

2019-S6711 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6711
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                            September 13, 2019
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law, in relation to the transferability  of  the
   rehabilitation of historic properties tax credit
 
   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,  is  amended
 by adding a new paragraph 6 to read as follows:
   (6)(A)  A  TAXPAYER  ALLOWED  A CREDIT PURSUANT TO THIS SUBSECTION MAY
 TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON  OR  ENTITY,
 WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITH RESPECT TO THE REHABIL-
 ITATED  HISTORIC BUILDING MAY BE ALLOCATED AND NOTWITHSTANDING THAT SUCH
 OTHER PERSON OR ENTITY OWNS NO INTEREST IN  THE  REHABILITATED  HISTORIC
 BUILDING OR IN AN ENTITY WITH AN OWNERSHIP INTEREST IN THE REHABILITATED
 HISTORIC  BUILDING.   TRANSFEREES SHALL BE ENTITLED TO APPLY TRANSFERRED
 CREDIT TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE
 OF THIS CHAPTER, PROVIDED ALL REQUIREMENTS FOR CLAIMING THE  CREDIT  ARE
 MET.  A  TRANSFEREE  MAY  NOT  TRANSFER  ANY CREDIT, OR PORTION THEREOF,
 ACQUIRED BY TRANSFER.
   (B) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS  ARTICLE  MUST  ENTER
 INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE TRANSFER CONTRACT MUST
 SPECIFY  (I)  THE  BUILDING  IDENTIFICATION  NUMBERS  FOR  REHABILITATED
 HISTORIC BUILDINGS IN THE PROJECT;  (II)  THE  DATE  SUCH  REHABILITATED
 HISTORIC  BUILDING  WAS PLACED INTO SERVICE; (III) THE FIVE YEAR COMPLI-
 ANCE PERIOD FOR THE PROJECT; (IV) THE SCHEDULE OF YEARS  FOR  WHICH  THE
 TRANSFER  CREDIT  MAY  BE  CLAIMED  AND  THE AMOUNT OF CREDIT PREVIOUSLY
 CLAIMED; (V) THE AMOUNT OF CONSIDERATION RECEIVED BY  THE  TAXPAYER  FOR
 THE TRANSFER CREDIT; AND (VI) THE AMOUNT OF CREDIT BEING TRANSFERRED.
   (C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
 IT  PURSUANT TO THIS SUBSECTION AND SEEKING TO TRANSFER THE CREDIT FILES
 A TRANSFER STATEMENT WITH THE  COMMISSIONER  OF  PARKS,  RECREATION  AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13530-01-9

 S. 6711                             2
 
 HISTORIC  PRESERVATION PRIOR TO THE TRANSFER AND HE OR SHE APPROVES SUCH
 TRANSFER. THE TRANSFER STATEMENT SHALL  PROVIDE  THE  NAME  AND  FEDERAL
 IDENTIFICATION NUMBERS OF THE FILING TRANSFEROR AND THE TAXPAYER TO WHOM
 THE  FILING  TRANSFEROR TRANSFERRED THE CREDIT, AND THE AMOUNT OF CREDIT
 TRANSFERRED TO EACH SUCH PERSON  OR  ENTITY.  A  COPY  OF  THE  TRANSFER
 CONTRACT  SHALL  BE  ATTACHED  TO  THE TRANSFER STATEMENT. THE STATEMENT
 SHALL ALSO CONTAIN SUCH OTHER INFORMATION AS THE COMMISSIONER OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION MAY REQUIRE. AFTER REVIEWING THE
 TRANSFER CONTRACT AND THE TRANSFER STATEMENT, THE COMMISSIONER OF PARKS,
 RECREATION AND HISTORIC PRESERVATION SHALL APPROVE OR DENY THE  TRANSFER
 AS PROVIDED IN THIS SUBSECTION. IF THE COMMISSIONER OF PARKS, RECREATION
 AND  HISTORIC  PRESERVATION APPROVES THE TRANSFER, HE OR SHE SHALL ISSUE
 AN APPROVAL STATEMENT THAT PROVIDES  THE  NAME  OF  THE  TRANSFEROR  AND
 TRANSFEREE, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFOR-
 MATION  AS  THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA-
 TION AND THE COMMISSIONER  DEEM  NECESSARY.  A  COPY  OF  THE  STATEMENT
 APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA-
 TION MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN. IF THE COMMISSION-
 ER  OF  PARKS, RECREATION AND HISTORIC PRESERVATION DENIES THE TRANSFER,
 HE OR SHE SHALL PROVIDE THE TAXPAYER A WRITTEN  DETERMINATION  FOR  SUCH
 DENIAL. THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION,
 IN  CONSULTATION  WITH THE COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCE-
 DURES AND STANDARDS DEEMED NECESSARY  FOR  THE  TRANSFERABILITY  OF  THE
 REHABILITATION TAX CREDIT.
   (D)  THE  COMMISSIONER  OF PARKS, RECREATION AND HISTORIC PRESERVATION
 SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS AND ATTACHMENTS  THERETO
 AND  APPROVAL  STATEMENTS TO THE DEPARTMENT WITHIN THIRTY DAYS AFTER THE
 TRANSFER IS APPROVED  BY  THE  COMMISSIONER  OF  PARKS,  RECREATION  AND
 HISTORIC PRESERVATION.
   (E)  THE  TAXPAYER  THAT  ORIGINALLY  RECEIVED THE CREDIT SHALL REMAIN
 SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
 ER WITH RESPECT TO THE CREDIT, NONE OF WHICH SHALL APPLY TO A  PARTY  TO
 WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANSFERRED.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2020.

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Senate Bill S6711

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

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2019-S6711 (ACTIVE) - Details

2019-S6711 (ACTIVE) - Summary

2019-S6711 (ACTIVE) - Sponsor Memo

2019-S6711 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Timothy M. Kennedy

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Actions

2019-S6711 (ACTIVE) - Details

2019-S6711 (ACTIVE) - Summary

2019-S6711 (ACTIVE) - Sponsor Memo

2019-S6711 (ACTIVE) - Bill Text download pdf

Comments