Senate Bill S9571

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9571
 
                             I N  S E N A T E
 
                              March 25, 2026
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN ACT to amend the public housing law, in relation to permitting multi-
   ple transfers of low-income housing tax credits
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 and paragraph (a) of subdivision 8 of section
 22 of the public housing law, subdivision 1 as amended by section 1  and
 paragraph (a) of subdivision 8 as added by section 2 of part PP of chap-
 ter 59 of the laws of 2018, are amended to read as follows:
   1.  A  taxpayer  subject  to  tax under article nine-A, twenty-two, or
 thirty-three of the tax law which owns an interest in one or more eligi-
 ble low-income buildings, or [a transferee] ONE OR MORE  TRANSFEREES  of
 such a taxpayer as described in subdivision eight of this section, shall
 be  allowed a credit against such tax for the amount of low-income hous-
 ing credit allocated by the commissioner to each such  building.  Except
 as  provided  in  subdivision  two of this section, the credit amount so
 allocated shall be allowed as a credit against the tax for the ten taxa-
 ble years in the credit period.
   (a) A taxpayer allowed a credit pursuant to this article may  transfer
 the  credit, in whole or in part, to another person or entity, who shall
 be referred to as the transferee, without  regard  to  how  any  federal
 low-income  housing  tax  credit with respect to the low-income building
 may be allocated and notwithstanding that such other  person  or  entity
 owns  no  interest  in  the eligible low-income building or in an entity
 with an ownership interest in the eligible low-income building.   Trans-
 ferees  shall  be  entitled to apply transferred credit to a tax imposed
 under article  nine-A,  twenty-two  or  thirty-three  of  the  tax  law,
 provided  all requirements for claiming the credit are met. A transferee
 may [not] transfer [any] ALL OR A PORTION OF A credit[, or portion ther-
 eof, acquired] RECEIVED by transfer TO ANOTHER PERSON OR ENTITY, SUBJECT
 TO APPROVAL BY THE AGENCY AND IN ACCORDANCE WITH  RULES  PROMULGATED  BY
 THE  AGENCY, PROVIDED THAT EACH TRANSFER IS PROPERLY DOCUMENTED AND DOES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15209-01-6
 S. 9571                             2
 
 NOT AFFECT THE ELIGIBILITY OF THE UNDERLYING LOW-INCOME HOUSING  PROJECT
 FOR PROGRAM BENEFITS.
   §  2.  This  act  shall take effect immediately and shall apply to any
 low-income housing tax credit allocated under article 2-A of the  public
 housing law, whether allocated before, on, or after such effective date,
 including  credits  associated  with  projects  that have been placed in
 service, are under construction, or  are  in  pre-development,  provided
 that  any transfer occurring on or after the effective date shall comply
 with the provisions of paragraph (a) of subdivision 8 of section  22  of
 the public housing law, as amended by section one of this act.