§ 22. Allowance of credit, amount and limitations. 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 eligible low-income
buildings, or a transferee 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 housing 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 taxable years in the credit period.

2. Adjustment of first-year credit allowed in eleventh year. The
credit allowable for the first taxable year of the credit period with
respect to any building shall be adjusted using the rules of section
42(f)(2) of the internal revenue code (relating to first-year adjustment
of qualified basis by the weighted average of low-income to total
residential units), and any reduction in first-year credit by reason of
such adjustment shall be allowable for the first taxable year following
the credit period.

3. Amount of credit. Except as provided in subdivisions four and five
of this section, the amount of low-income housing credit shall be the
applicable percentage of the qualified basis of each eligible low-income
building.

* 4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be one hundred fifty-seven million dollars. The
limitation provided by this subdivision applies only to allocation of
the aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an
eligible low-income building for each year of the credit period.

* NB Effective until April 1, 2025

* 4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be one hundred seventy-two million dollars. The
limitation provided by this subdivision applies only to allocation of
the aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an
eligible low-income building for each year of the credit period.

* NB Effective April 1, 2025

5. Building limitation. The dollar amount of credit allocated to any
building shall not exceed the amount the commissioner determines is
necessary for the financial feasibility of the project and the viability
of the building as an eligible low-income building throughout the credit
period. In allocating a dollar amount of credit to any building, the
commissioner shall specify the applicable percentage and the maximum
qualified basis which may be taken into account under this article with
respect to such building. The applicable percentage and the maximum
qualified basis with respect to a building shall not exceed the amounts
determined in subdivisions one and six, respectively, of section
twenty-one of this article.

6. Long-term commitment to low-income housing required. No credit
shall be allowed under this article with respect to a building for the
taxable year unless an extended low-income housing commitment is in
effect as of the end of such taxable year. For purposes of this
subdivision, the term "extended low-income housing commitment" means an
agreement between the taxpayer and the commissioner substantially
similar to the agreement specified in section 42(h)(6)(B) of the
internal revenue code.

7. Credit to successor owner. If a credit is allowed under subdivision
one of this section with respect to an eligible low-income building and
such building (or an interest therein) is sold during the credit period,
the credit for the period after the sale which would have been allowable
under such subdivision one to the prior owner had the building not been
sold shall be allowable to the new owner. Credit for the year of sale
shall be allocated between the parties on the basis of the number of
days during such year that the building or interest was held by each.

8. (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.
Transferees 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 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 all buildings in the
project;

(ii) the date each building was placed into service;

(iii) the fifteen year compliance 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
credit pursuant to this article and seeking to transfer the credit files
a transfer statement with the commissioner prior to the transfer and the
commissioner 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 may require. After reviewing the
transfer contract and the transfer statement, the commissioner shall
approve or deny the transfer as provided in this subdivision. If the
commissioner approves the transfer, the commissioner shall issue an
approval statement that provides the name of the transferor and
transferee, the amount of credit being transferred and such other
information as the commissioner and the commissioner of taxation and
finance deem necessary. A copy of the commissioner's approval statement
must be attached to the transferee's tax return. If the commissioner
denies the transfer, the commissioner shall provide the taxpayer a
written determination for such denial. The commissioner, in consultation
with the commissioner of taxation and finance, may establish such other
procedures and standards deemed necessary for the transferability of the
low-income housing credit.

(d) The commissioner shall forward copies of all transfer statements
and attachments thereto and approval statements to the department of
taxation and finance within thirty days after the transfer is approved
by the commissioner.