Bill Text: NY A09882 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to removing dependence on federal law to receive the historic properties tax credit in New York state.

Spectrum: Moderate Partisan Bill (Democrat 7-2)

Status: (Introduced - Dead) 2018-05-08 - enacting clause stricken [A09882 Detail]

Download: New_York-2017-A09882-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          9882
                   IN ASSEMBLY
                                    February 15, 2018
                                       ___________
        Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
          tee on Ways and Means
        AN ACT to amend the tax law and the parks, recreation and historic pres-
          ervation law, in relation to the  tax  credit  for  rehabilitation  of
          historic properties
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subsection (oo) of section 606 of the tax law,  as  amended
     2  by  chapter  239  of the laws of 2009, paragraph 1 as amended by chapter
     3  472 of the laws of 2010, subparagraph (A) of paragraph 1 and  paragraphs
     4  4  and  5 as amended by section 1 of part F of chapter 59 of the laws of
     5  2013, is amended to read as follows:
     6    (oo) Credit for rehabilitation of historic  properties.  (1)  (A)  For
     7  taxable  years beginning on or after January first, two thousand ten and
     8  before January first, two  thousand  [twenty]  twenty-five,  a  taxpayer
     9  shall  be  allowed  a  credit  as  hereinafter provided, against the tax
    10  imposed by this article, in an amount equal to [one hundred  percent  of
    11  the  amount  of  credit allowed the taxpayer with respect to a certified
    12  historic structure under subsection (a) (2) of section 47 of the federal
    13  internal revenue code] twenty percent of  the  qualified  rehabilitation
    14  expenditures  with  respect  to  a  certified historic structure located
    15  within the state. Provided, however, the credit shall  not  exceed  five
    16  million dollars.  For taxable years beginning on or after January first,
    17  two  thousand [twenty] twenty-five, a taxpayer shall be allowed a credit
    18  as hereinafter provided, against the tax imposed by this article, in  an
    19  amount  equal  to  thirty  percent  of the [amount of credit allowed the
    20  taxpayer with respect to a certified historic structure under subsection
    21  (a)(2) of section 47 of the federal  internal  revenue  code]  qualified
    22  rehabilitation  expenditures with respect to a certified historic struc-
    23  ture located within the state; provided, however, the credit  shall  not
    24  exceed one hundred thousand dollars. For purposes of this subsection the
    25  term  "qualified  rehabilitation  expenditure" means any amount properly
    26  chargeable to capital account in connection with the certified rehabili-
    27  tation of a qualified historic structure, and  for  property  for  which
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14636-02-8
        A. 9882                             2
     1  depreciation would be allowable under section 168 of the internal reven-
     2  ue  code and which is (i) nonresidential real property, (ii) residential
     3  rental property, or (iii) an addition or improvement  to  nonresidential
     4  real property or residential rental property.
     5    (B)  If the taxpayer is a partner in a partnership or a shareholder of
     6  a New York S corporation, then the credit cap  imposed  in  subparagraph
     7  (A)  of this paragraph shall be applied at the entity level, so that the
     8  aggregate credit allowed to all the partners  or  shareholders  of  each
     9  such  entity  in the taxable year does not exceed the credit cap that is
    10  applicable in that taxable year.
    11    (2) (A) Tax credits allowed  pursuant  to  this  subsection  shall  be
    12  allowed in the taxable year [that the qualified rehabilitation is placed
    13  in  service  under  section 167 of the federal internal revenue code] in
    14  which the final certification step of the  certified  rehabilitation  is
    15  completed as provided in subparagraph (C) of this paragraph.
    16    (B)  For  purposes  of  this  subsection the term "certified rehabili-
    17  tation" means any rehabilitation of a certified historic structure which
    18  has been approved and certified as being consistent with  the  standards
    19  established  by the commissioner of parks, recreation and historic pres-
    20  ervation for rehabilitation by  the  office  of  parks,  recreation  and
    21  historic  preservation, a local government certified pursuant to section
    22  101(c)(1) of the national historic preservation act or a local  landmark
    23  commission  established  pursuant to section ninety-six-a or one hundred
    24  nineteen-dd of the general municipal law.
    25    (C) A certified rehabilitation shall require:
    26    (i) an initial certification that the structure meets  the  definition
    27  of the term "certified historic structure";
    28    (ii)  a  second  certification,  to  be  issued prior to construction,
    29  certifying that the proposed  rehabilitation  work  is  consistent  with
    30  standards  established  by  the  commissioner  of  parks, recreation and
    31  historic preservation for rehabilitation; and
    32    (iii) a final certification issued  when  construction  is  completed,
    33  certifying  that  the  work was completed as proposed and that the costs
    34  are consistent with the work completed.  Such final certification  shall
    35  be   acceptable   as   proof  that  the  expenditures  related  to  such
    36  construction  qualify  as  qualified  rehabilitation  expenditures   for
    37  purposes  of  the credit allowed under either subparagraph (A) or (B) of
    38  paragraph one of this subsection.
    39    (D) For purposes of  this  subsection  the  term  "qualified  historic
    40  structure"  means a certified historic structure located within New York
    41  state which has been substantially rehabilitated. A  certified  historic
    42  structure  shall be considered substantially rehabilitated if the quali-
    43  fied rehabilitation expenditures in relation  to  such  structure  total
    44  five thousand dollars or more.
    45    (E)  For  purposes  of  this  subsection  the term "certified historic
    46  structure" means any building and its structural components which:
    47    (i) is listed in the state or national register of historic places, or
    48    (ii) is located in a state or national  registered  historic  district
    49  and is certified as being of historic significance in the district.
    50    (3)  [If the credit allowed the taxpayer pursuant to section 47 of the
    51  internal revenue code with respect  to  a  qualified  rehabilitation  is
    52  recaptured  pursuant  to  subsection  (a)  of section 50 of the internal
    53  revenue code, a portion of the credit allowed under this subsection must
    54  be added back in the same taxable year and in the same proportion as the
    55  federal recapture]  (A) If, before the end of the two-year period begin-
    56  ning on the date of the final certification referred to in  subparagraph
        A. 9882                             3
     1  (C)  of  paragraph two of this subsection, the taxpayer disposes of such
     2  taxpayer's interest in a certified historic structure, or such certified
     3  historic structure otherwise  ceases  to  be  eligible  for  the  credit
     4  allowed  under this subsection, the taxpayer's tax imposed by this arti-
     5  cle for the taxable year in  which  such  disposition  occurs  shall  be
     6  increased  by  the  recapture  portion  of the credit allowed under this
     7  subsection for all prior taxable years with respect  to  such  rehabili-
     8  tation.
     9    (B)  For purposes of subparagraph (A) of this paragraph, the recapture
    10  portion shall be the product of the amount  of  credit  claimed  by  the
    11  taxpayer  multiplied  by  a fraction, the numerator of which is equal to
    12  twenty-four less the number of months before the disposition  or  cessa-
    13  tion of the structure occurred.
    14    (4)  If the amount of the credit allowed under this subsection for any
    15  taxable year shall exceed the taxpayer's tax for such year,  the  excess
    16  shall  be treated as an overpayment of tax to be credited or refunded in
    17  accordance with the provisions of section six hundred eighty-six of this
    18  article, provided, however, that no interest shall be paid thereon.
    19    (5) To be eligible for the credit allowable under this subsection  the
    20  rehabilitation  project  shall  be  in whole or in part located within a
    21  census tract which is identified  as  being  at  or  below  one  hundred
    22  percent  of the state median family income as calculated as of [January]
    23  April first of each year using the most recent five year  estimate  from
    24  the  American  community  survey  published  by the United States Census
    25  bureau. If there is a change in the most recent five  year  estimate,  a
    26  census tract that qualified for eligibility under this subsection before
    27  information  about  the  change was released shall remain eligible for a
    28  credit under this subsection for an additional eighteen months.
    29    (6) Nothing contained in this subsection shall be construed to  impose
    30  a  duty  on  a local landmark commission established pursuant to section
    31  ninety-six-a or one hundred nineteen-dd of the general municipal law  or
    32  a  local  government  certified  pursuant  to  section  101(c)(1) of the
    33  national historic preservation act to undertake any review  or  approval
    34  of an application for the certification of the rehabilitation of histor-
    35  ic  structures  and  of rehabilitation expenditures provided for in this
    36  subsection.
    37    § 2. Paragraph 2 of subsection (pp) of section 606 of the tax law,  as
    38  added  by  chapter 547 of the laws of 2006, subparagraphs (A) and (B) as
    39  amended by section 1 of part V of chapter 59 of the  laws  of  2013,  is
    40  amended to read as follows:
    41    (2)  (A)  With  respect to any particular residence of a taxpayer, the
    42  credit allowed under paragraph one of this subsection shall  not  exceed
    43  fifty  thousand  dollars for taxable years beginning on or after January
    44  first, two thousand ten and before January first, two thousand  [twenty]
    45  twenty-five and twenty-five thousand dollars for taxable years beginning
    46  on  or  after  January first, two thousand [twenty] twenty-five.  In the
    47  case of a husband and wife, the amount of the credit  shall  be  divided
    48  between  them equally or in such other manner as they may both elect. If
    49  a taxpayer incurs qualified rehabilitation expenditures in  relation  to
    50  more  than  one  residence  in the same year, the total amount of credit
    51  allowed under paragraph one of this subsection for all such expenditures
    52  shall not exceed fifty thousand dollars for taxable years  beginning  on
    53  or  after  January first, two thousand ten and before January first, two
    54  thousand [twenty] twenty-five and twenty-five thousand dollars for taxa-
    55  ble years beginning on or after January  first,  two  thousand  [twenty]
    56  twenty-five.
        A. 9882                             4
     1    (B)  For  taxable years beginning on or after January first, two thou-
     2  sand ten and before January first, two thousand [twenty] twenty-five, if
     3  the amount of credit allowable under this subsection  shall  exceed  the
     4  taxpayer's tax for such year, and the taxpayer's New York adjusted gross
     5  income  for such year does not exceed sixty thousand dollars, the excess
     6  shall be treated as an overpayment of tax to be credited or refunded  in
     7  accordance with the provisions of section six hundred eighty-six of this
     8  article,  provided,  however, that no interest shall be paid thereon. If
     9  the taxpayer's New York adjusted gross  income  for  such  year  exceeds
    10  sixty  thousand  dollars,  the excess credit that may be carried over to
    11  the following year or years and may be deducted from the taxpayer's  tax
    12  for  such year or years. For taxable years beginning on or after January
    13  first, two thousand [twenty] twenty-five, if the amount of credit allow-
    14  able under this subsection shall exceed  the  taxpayer's  tax  for  such
    15  year,  the excess may be carried over to the following year or years and
    16  may be deducted from the taxpayer's tax for such year or years.
    17    § 3. Subdivision 26 of section 210-B of  the  tax  law,  as  added  by
    18  section  17  of  part A of chapter 59 of the laws of 2014, is amended to
    19  read as follows:
    20    26. Credit for rehabilitation of historic properties. (a)  Application
    21  of  credit.  (i)  For taxable years beginning on or after January first,
    22  two thousand ten, and before January first, two thousand [twenty]  twen-
    23  ty-five,  a  taxpayer shall be allowed a credit as hereinafter provided,
    24  against the tax imposed by this article, in  an  amount  equal  to  [one
    25  hundred  percent  of  the  amount of credit allowed the taxpayer for the
    26  same taxable year with respect to a certified historic  structure  under
    27  subsection  (c)(2)  of  section  47 of the internal revenue code] twenty
    28  percent of the qualified rehabilitation expenditures with respect  to  a
    29  certified  historic structure located within the state. Provided, howev-
    30  er, the credit shall not exceed five million dollars.
    31    (ii) For taxable years beginning on or after January first, two  thou-
    32  sand [twenty] twenty-five, a taxpayer shall be allowed a credit as here-
    33  inafter  provided, against the tax imposed by this article, in an amount
    34  equal to thirty percent of the [amount of credit  allowed  the  taxpayer
    35  for the same taxable year with respect to a certified historic structure
    36  under  subsection  (c)(3)  of  section  47 of the internal revenue code]
    37  qualified  rehabilitation  expenditures  with  respect  to  a  certified
    38  historic  structure  located  within the state.   Provided, however, the
    39  credit shall not exceed one hundred thousand dollars.
    40    [(B)] (b) If the taxpayer is a partner in a partnership  or  a  share-
    41  holder  in  a  New  York  S corporation, then the credit caps imposed in
    42  [subparagraph (A)] paragraph (a) of this [paragraph]  subdivision  shall
    43  be  applied at the entity level, so that the aggregate credit allowed to
    44  all the partners or shareholders of each such entity in the taxable year
    45  does not exceed the credit cap that is applicable in that taxable year.
    46    [(b)] (c) Tax credits allowed pursuant to this  subdivision  shall  be
    47  allowed in the taxable year [that the qualified rehabilitation is placed
    48  in  service  under section 167 of the federal internal revenue code]  in
    49  which the final certification step of the  certified  rehabilitation  is
    50  completed  pursuant  to  subparagraph (C) of paragraph two of subsection
    51  (oo) of section six hundred six of this chapter.
    52    [(c) If the credit allowed the taxpayer pursuant to section 47 of  the
    53  internal  revenue  code  with  respect  to a qualified rehabilitation is
    54  recaptured pursuant to subsection (a) of  section  50  of  the  internal
    55  revenue code, a portion of the credit allowed under this subsection must
    56  be added back in the same taxable year and in the same proportion as the
        A. 9882                             5

     1  federal  credit] (d)(i) If, before the end of the two-year period begin-
     2  ning on the date of the final certification referred to in paragraph (b)
     3  of this subdivision, the taxpayer disposes of such  taxpayer's  interest
     4  in a certified structure, or such certified historic structure otherwise
     5  ceases to be eligible for the credit allowed under this subdivision, the
     6  taxpayer's  tax  imposed  by  this article for the taxable year in which
     7  such disposition occurs shall be increased by the recapture  portion  of
     8  the credit allowed under this paragraph for all prior taxable years with
     9  respect to such rehabilitation.
    10    (ii) For purposes of subparagraph (i) of this paragraph, the recapture
    11  portion  shall  be  the  product  of the amount of credit claimed by the
    12  taxpayer multiplied by a fraction, the numerator of which  is  equal  to
    13  twenty-four  less  the number of months before the disposition or cessa-
    14  tion of the structure occurred.
    15    [(d)] (e) The credit allowed under this subdivision  for  any  taxable
    16  year  shall not reduce the tax due for such year to less than the amount
    17  prescribed in paragraph (d) of subdivision one of  section  two  hundred
    18  ten  of this article. However, if the amount of the credit allowed under
    19  this subdivision for any taxable year reduces the tax to such amount  or
    20  if  the  taxpayer  otherwise  pays tax based on the fixed dollar minimum
    21  amount, any amount of credit thus not deductible in  such  taxable  year
    22  shall  be  treated as an overpayment of tax to be recredited or refunded
    23  in accordance with the provisions of section one thousand eighty-six  of
    24  this  chapter.  Provided,  however,  the provisions of subsection (c) of
    25  section one thousand eighty-eight of this  chapter  notwithstanding,  no
    26  interest shall be paid thereon.
    27    [(e)]  (f) To be eligible for the credit allowable under this subdivi-
    28  sion, the rehabilitation project shall be in whole or  in  part  located
    29  within  a  census  tract  which  is  identified as being at or below one
    30  hundred percent of the state median family income as  calculated  as  of
    31  January first of each year using the most recent five year estimate from
    32  the  American  community  survey  published  by the United States Census
    33  bureau.
    34    § 4. Paragraphs 1, 2 and 3 of subdivision (y) of section 1511  of  the
    35  tax  law,  as added by chapter 472 of the laws of 2010, subparagraph (A)
    36  of paragraph 1 as amended by section 4 of part F of chapter  59  of  the
    37  laws of 2013, are amended to read as follows:
    38    (1)  (A)  For  taxable  years beginning on or after January first, two
    39  thousand  ten  and  before  January   first,   two   thousand   [twenty]
    40  twenty-five,  a  taxpayer  shall  be  allowed  a  credit  as hereinafter
    41  provided, against the tax imposed by this article, in an amount equal to
    42  [one hundred percent of the amount of credit allowed the  taxpayer  with
    43  respect  to  a  certified  historic structure under subsection (a)(2) of
    44  section 47 of the federal internal revenue code] twenty percent  of  the
    45  qualified  rehabilitation  expenditures  with  respect  to  a  certified
    46  historic structure located within  the  state.  Provided,  however,  the
    47  credit  shall not exceed five million dollars.  For taxable years begin-
    48  ning on or after January first, two  thousand  [twenty]  twenty-five,  a
    49  taxpayer  shall be allowed a credit as hereinafter provided, against the
    50  tax imposed by this article, in an amount equal to thirty percent of the
    51  [amount of credit allowed the  taxpayer  with  respect  to  a  certified
    52  historic  structure under subsection (a)(2) of section 47 of the federal
    53  internal revenue code] qualified rehabilitation expenditure with respect
    54  to a certified historic structure located within  the  state.  Provided,
    55  however, the credit shall not exceed one hundred thousand dollars.
        A. 9882                             6
     1    (B)  If  the  taxpayer  is  a  partner  in a partnership, then the cap
     2  imposed in subparagraph (A) of this paragraph shall be  applied  at  the
     3  entity  level,  so that the aggregate credit allowed to all the partners
     4  of such partnership in the taxable year does not exceed the  credit  cap
     5  that is applicable in that taxable year.
     6    (2)  Tax  credits allowed pursuant to this subsection shall be allowed
     7  in the taxable year [that the  qualified  rehabilitation  is  placed  in
     8  service under section 167 of the federal internal revenue code] in which
     9  the   final  certification  step  of  the  certified  rehabilitation  is
    10  completed pursuant to subparagraph (C) of paragraph  two  of  subsection
    11  (oo) of section six hundred six of this chapter.
    12    (3)  [If the credit allowed the taxpayer pursuant to section 47 of the
    13  internal revenue code with respect  to  a  qualified  rehabilitation  is
    14  recaptured  pursuant  to  subsection  (a)  of section 50 of the internal
    15  revenue code, a portion of the credit allowed under this  subsection  in
    16  the  taxable  year the credit was claimed must be added back in the same
    17  taxable year and in the same proportion as the  federal  recapture]  (A)
    18  If,  before  the end of the two-year period beginning on the date of the
    19  final certification referred to in paragraph two  of  this  subdivision,
    20  the  taxpayer disposes of such taxpayer's interest in a certified struc-
    21  ture, or such certified historic structure otherwise ceases to be eligi-
    22  ble for the credit allowed under this subdivision,  the  taxpayer's  tax
    23  imposed  by  this article for the taxable year in which such disposition
    24  occurs shall be increased by the recapture portion of the credit allowed
    25  under this paragraph for all prior taxable years with  respect  to  such
    26  rehabilitation.
    27    (B)  For purposes of subparagraph (A) of this paragraph, the recapture
    28  portion shall be the product of the amount  of  credit  claimed  by  the
    29  taxpayer  multiplied  by  a fraction, the numerator of which is equal to
    30  twenty-four less the number of months before the disposition  or  cessa-
    31  tion of the structure occurred.
    32    §  5.  Subdivision  6  of  section  13.15 of the parks, recreation and
    33  historic preservation law, as added by chapter 547 of the laws of  2006,
    34  is amended to read as follows:
    35    6.  The  office  may  establish  a  fee or fees for its processing and
    36  review of applications for the certification of  the  rehabilitation  of
    37  historic  buildings  and the approval of rehabilitation expenditures and
    38  related work pursuant to  [subsection]  subsections  (oo)  and  (pp)  of
    39  section  six  hundred  six  of the tax law. All revenues from these fees
    40  shall be deposited by  the  comptroller  in  the  miscellaneous  special
    41  revenue  fund to be credited to the agency's patron services account and
    42  shall be used to support the  office's  historic  preservation  program.
    43  Nothing in this subdivision shall be construed to limit the ability of a
    44  local  landmark  commission established pursuant to section ninety-six-a
    45  or one hundred nineteen-dd of the  general  municipal  law  or  a  local
    46  government  certified  pursuant  to  section  101(c)(1)  of the national
    47  historic preservation act to establish and charge fees for its  process-
    48  ing  and  review  of applications for the certification of the rehabili-
    49  tation of historic buildings and the approval of rehabilitation expendi-
    50  tures.
    51    § 6. This act shall take effect immediately and shall apply to taxable
    52  years beginning on and after January 1, 2018.