Bill Text: NY A05761 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to the credit for rehabilitation of historic properties; authorizes the disproportionate allocation of such credit; authorizes the sale or transfer of such credit, in whole or in part, to one or more persons provided any credit may not be sold or transferred more than three times.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-02-15 - referred to ways and means [A05761 Detail]

Download: New_York-2019-A05761-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5761
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    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:
     1    Section 1. Subdivision 26 of section 210-B of the tax law  is  amended
     2  by adding three new paragraphs (f), (g) and (h) to read as follows:
     3    (f)  If  a credit is allowed under this subdivision for rehabilitation
     4  of a certified historic structure  with  multiple  owners,  such  credit
     5  shall  be  passed through to such owners, or persons designated as part-
     6  ners or members of such owners, pro rata or  pursuant  to  an  agreement
     7  among  such owners, or persons designated as partners or members of such
     8  owners, documenting an alternative distribution method without regard to
     9  other tax or economic attributes of such owners.
    10    (g) (i) Any owner entitled to a  credit  under  this  subdivision  may
    11  sell, assign, or otherwise transfer such credit, in whole or in part, to
    12  one  or  more  persons provided any credit, after issuance, may be sold,
    13  assigned or otherwise transferred, in whole or in part,  not  more  than
    14  three  times.  Such  person  shall be entitled to offset the tax imposed
    15  under this article as if such  transferee  had  incurred  the  qualified
    16  rehabilitation expenditure.
    17    (ii)  For  the  purposes  of  this subdivision, (A) "person" means any
    18  individual, partnership, company, limited liability company,  public  or
    19  private  corporation,  society, association, trustee, executor, adminis-
    20  trator or other fiduciary or custodian and (B) "qualified rehabilitation
    21  expenditure" means any costs  incurred  for  the  physical  construction
    22  involved  in  the  rehabilitation  of  a  certified  historic structure,
    23  excluding: (1) The owner's personal labor, (2) the cost of a  new  addi-
    24  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
     1  uniform fire prevention and building code, and (3)  any  nonconstruction
     2  cost such as architectural fees, legal fees and financing fees.
     3    (h)  If a credit under this subdivision is sold, assigned or otherwise
     4  transferred, whether by the owner  or  any  subsequent  transferee,  the
     5  transferor  and  transferee shall jointly submit written notification of
     6  such transfer to the department not later than thirty  days  after  such
     7  transfer.  The notification after each transfer shall include the credit
     8  voucher number, the date of transfer, the amount of such  credit  trans-
     9  ferred,  the  tax  credit balance before and after the transfer, the tax
    10  identification numbers for both the transferor and the  transferee,  and
    11  any other information required by the department. Failure to comply with
    12  this  paragraph  shall  result in a disallowance of the tax credit until
    13  there is full compliance on the part of the transferor and the transfer-
    14  ee, and for a second or third transfer, on the part  of  all  subsequent
    15  transferors and transferees.
    16    §  2.  Subsection  (oo)  of  section  606 of the tax law is amended by
    17  adding three new paragraphs 6, 7 and 8 to read as follows:
    18    (6) If a credit is allowed under this subsection for rehabilitation of
    19  a certified historic structure with multiple owners, such  credit  shall
    20  be  passed  through to such owners, or persons designated as partners or
    21  members of such owners, pro rata or pursuant to an agreement among  such
    22  owners,  or  persons  designated  as partners or members of such owners,
    23  documenting an alternative distribution method without regard  to  other
    24  tax or economic attributes of such owners.
    25    (7) (A) Any owner entitled to a credit under this subsection may sell,
    26  assign,  or  otherwise transfer such credit, in whole or in part, to one
    27  or more persons provided  any  credit,  after  issuance,  may  be  sold,
    28  assigned  or  otherwise  transferred, in whole or in part, not more than
    29  three times. Such person shall be entitled to  offset  the  tax  imposed
    30  under  this  article  as  if  such transferee had incurred the qualified
    31  rehabilitation expenditure.
    32    (B) For the purposes of this subsection, (i) "person" means any  indi-
    33  vidual,  partnership,  company,  limited  liability  company,  public or
    34  private corporation, society, association, trustee,  executor,  adminis-
    35  trator  or  other  fiduciary or custodian, and (ii) "qualified rehabili-
    36  tation  expenditure"  means  any  costs  incurred   for   the   physical
    37  construction  involved  in  the  rehabilitation  of a certified historic
    38  structure, excluding: (1) the owner's personal labor, (2) the cost of  a
    39  new  addition,  except  as  required to comply with any provision of the
    40  state uniform fire prevention and building code,  and  (3)  any  noncon-
    41  struction  cost  such  as  architectural  fees, legal fees and financing
    42  fees.
    43    (8) If a credit under this subsection is sold, assigned  or  otherwise
    44  transferred,  whether  by  the  owner  or any subsequent transferee, the
    45  transferor and transferee shall jointly submit written  notification  of
    46  such  transfer  to  the department not later than thirty days after such
    47  transfer. The notification after each transfer shall include the  credit
    48  voucher  number,  the date of transfer, the amount of such credit trans-
    49  ferred, the tax credit balance before and after the  transfer,  the  tax
    50  identification  numbers  for both the transferor and the transferee, and
    51  any other information required by the department. Failure to comply with
    52  this paragraph shall result in a disallowance of the  tax  credit  until
    53  there is full compliance on the part of the transferor and the transfer-
    54  ee,  and  for  a second or third transfer, on the part of all subsequent
    55  transferors and transferees.

        A. 5761                             3
     1    § 3. Subdivision (y) of section 1511 of the tax  law,  is  amended  by
     2  adding three new paragraphs 6, 7, and 8 to read as follows:
     3    (6)  If  a credit is allowed under this subdivision for rehabilitation
     4  of a certified historic structure  with  multiple  owners,  such  credit
     5  shall  be  passed through to such owners, or persons designated as part-
     6  ners or members of such owners, pro rata or  pursuant  to  an  agreement
     7  among  such owners, or persons designated as partners or members of such
     8  owners, documenting an alternative distribution method without regard to
     9  other tax or economic attributes of such owners.
    10    (7) (A) Any owner entitled to a  credit  under  this  subdivision  may
    11  sell, assign, or otherwise transfer such credit, in whole or in part, to
    12  one  or  more  persons provided any credit, after issuance, may be sold,
    13  assigned or otherwise transferred, in whole or in part,  not  more  than
    14  three  times.  Such  person  shall be entitled to offset the tax imposed
    15  under this article as if such  transferee  had  incurred  the  qualified
    16  rehabilitation expenditure.
    17    (B) For the purposes of this subdivision, (i) "person" means any indi-
    18  vidual,  partnership,  company,  limited  liability  company,  public or
    19  private corporation, society, association, trustee,  executor,  adminis-
    20  trator  or  other  fiduciary or custodian, and (ii) "qualified rehabili-
    21  tation  expenditure"  means  any  costs  incurred   for   the   physical
    22  construction  involved  in  the  rehabilitation  of a certified historic
    23  structure, excluding: (1) the owner's personal labor, (2) the cost of  a
    24  new  addition,  except  as  required to comply with any provision of the
    25  state uniform fire prevention and building code,  and  (3)  any  noncon-
    26  struction  cost  such  as  architectural  fees, legal fees and financing
    27  fees.
    28    (8) If a credit under this subdivision is sold, assigned or  otherwise
    29  transferred,  whether  by  the  owner  or any subsequent transferee, the
    30  transferor and transferee shall jointly submit written  notification  of
    31  such  transfer  to  the department not later than thirty days after such
    32  transfer. The notification after each transfer shall include the  credit
    33  voucher  number,  the date of transfer, the amount of such credit trans-
    34  ferred, the tax credit balance before and after the  transfer,  the  tax
    35  identification  numbers  for both the transferor and the transferee, and
    36  any other information required by the department. Failure to comply with
    37  this paragraph shall result in a disallowance of the  tax  credit  until
    38  there is full compliance on the part of the transferor and the transfer-
    39  ee,  and  for  a second or third transfer, on the part of all subsequent
    40  transferors and transferees.
    41    § 4. This act shall take effect immediately and shall apply to taxable
    42  years beginning on and after January 1, 2019.
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