Bill Text: NY S06516 | 2011-2012 | General Assembly | Introduced

---

Bill Title: Establishes a credit against income tax for the rehabilitation of distressed commercial properties; allows for 30% of the qualified rehabilitation expenditures up to $100,000; requires that to be eligible, the commercial property is located within a distressed commercial area, as identified by each locality through local law, that is deemed an area in need of community renewal due to dilapidated vacancies; provides that the property shall be substantially rehabilitated which is where the qualified rehabilitation expenditures in relation to such building total ten thousand dollars.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2012-02-21 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S06516 Detail]

Download: New_York-2011-S06516-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6516
                                   I N  S E N A T E
                                   February 21, 2012
                                      ___________
       Introduced  by  Sens.  RANZENHOFER,  JOHNSON,  ZELDIN  -- read twice and
         ordered printed, and when printed to be committed to the Committee  on
         Investigations and Government Operations
       AN  ACT  to  amend  the  tax  law,  in relation to establishing a credit
         against income tax for the  rehabilitation  of  distressed  commercial
         properties
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
    2  subsection (uu) to read as follows:
    3    (UU)  CREDIT  FOR  REHABILITATION OF DISTRESSED COMMERCIAL PROPERTIES.
    4  (1) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO  THOUSAND
    5  TWELVE,  A  TAXPAYER  SHALL BE ALLOWED A CREDIT AS HEREINAFTER PROVIDED,
    6  AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN AN AMOUNT  EQUAL  TO  THIRTY
    7  PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
    8  ER WITH RESPECT TO A QUALIFIED DISTRESSED COMMERCIAL PROPERTY. PROVIDED,
    9  HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
   10    (2)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
   11  IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
   12  ITATION.
   13    (3) IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER  THIS  SUBSECTION  FOR
   14  ANY  TAXABLE  YEAR  SHALL  EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, THE
   15  EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS,  AND  MAY  BE
   16  APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
   17  EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   18    (4)  (A)  THE  TERM  "QUALIFIED REHABILITATION EXPENDITURE" MEANS, FOR
   19  PURPOSES OF THIS SUBSECTION, ANY AMOUNT PROPERLY CHARGEABLE TO A CAPITAL
   20  ACCOUNT:
   21    (I) IN CONNECTION WITH THE CERTIFIED  REHABILITATION  OF  A  QUALIFIED
   22  DISTRESSED COMMERCIAL PROPERTY, AND
   23    (II)  FOR  PROPERTY  FOR  WHICH  DEPRECIATION WOULD BE ALLOWABLE UNDER
   24  SECTION 168 OF THE INTERNAL REVENUE CODE.
   25    (B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
   26  OR INTEREST THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO  THE  ENLARGE-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14336-02-2
       S. 6516                             2
    1  MENT  OF  AN  EXISTING  BUILDING, OR (III) ANY EXPENDITURE MADE PRIOR TO
    2  JANUARY FIRST, TWO THOUSAND TWELVE OR AFTER DECEMBER  THIRTY-FIRST,  TWO
    3  THOUSAND SEVENTEEN.
    4    (5)  THE  TERM  "CERTIFIED REHABILITATION" MEANS, FOR PURPOSES OF THIS
    5  SUBSECTION, ANY REHABILITATION  OF  A  CERTIFIED  DISTRESSED  COMMERCIAL
    6  PROPERTY  WHICH HAS BEEN APPROVED AND CERTIFIED BY A LOCAL GOVERNMENT AS
    7  BEING COMPLETED, WITH A CERTIFICATE OF OCCUPANCY ISSUED,  AND  THAT  THE
    8  COSTS  ARE  CONSISTENT WITH THE WORK COMPLETED. SUCH CERTIFICATION SHALL
    9  BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO  SUCH  REHABILI-
   10  TATION  QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES OF
   11  THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBSECTION.
   12    (6) (A) THE TERM "QUALIFIED DISTRESSED COMMERCIAL PROPERTY" MEANS, FOR
   13  PURPOSES OF THIS SUBSECTION, A DISTRESSED  COMMERCIAL  PROPERTY  LOCATED
   14  WITHIN NEW YORK STATE:
   15    (I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
   16    (II) WHICH IS OWNED BY THE TAXPAYER, AND
   17    (III) WHICH IS LOCATED WITHIN A DISTRESSED COMMERCIAL AREA, AS IDENTI-
   18  FIED  BY EACH LOCALITY THROUGH LOCAL LAW, THAT IS DEEMED AN AREA IN NEED
   19  OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
   20    (B) IF THE DISTRESSED COMMERCIAL PROPERTY  IS  RENTAL  PROPERTY,  SUCH
   21  PROPERTY  SHALL  HAVE  BEEN  MORE  THAN THIRTY PERCENT VACANT FOR TWELVE
   22  MONTHS WHILE ACTIVELY MARKETED FOR LEASE.
   23    (C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
   24  ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
   25  BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
   26    (7) (A) IF THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S  INTEREST  IN  THE
   27  QUALIFIED  DISTRESSED COMMERCIAL PROPERTY, OR SUCH PROPERTY CEASES TO BE
   28  USED AS A COMMERCIAL PROPERTY OF  THE  TAXPAYER  WITHIN  FIVE  YEARS  OF
   29  RECEIVING  THE  CREDIT UNDER THIS SUBSECTION, THE TAXPAYER'S TAX IMPOSED
   30  BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
   31  TION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION  OF  THE  CREDIT
   32  ALLOWED  UNDER  THIS SUBSECTION FOR ALL PRIOR TAXABLE YEARS WITH RESPECT
   33  TO SUCH REHABILITATION.
   34    (B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE  RECAPTURE
   35  PORTION  SHALL  BE  THE  PRODUCT  OF THE AMOUNT OF CREDIT CLAIMED BY THE
   36  TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
   37  LESS THE NUMBER OF MONTHS THE BUILDING IS OWNED OR  USED  AS  COMMERCIAL
   38  PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
   39    S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
   40  of the tax law is amended by adding a new  clause  (xxxiv)  to  read  as
   41  follows:
   42  (XXXIV) CREDIT FOR REHABILITATION     AMOUNT OF CREDIT UNDER
   43  OF DISTRESSED COMMERCIAL PROPERTIES   SUBDIVISION FORTY-FIVE
   44  UNDER SUBSECTION (UU)                 OF SECTION TWO HUNDRED TEN
   45    S 3. Section 210 of the tax law is amended by adding a new subdivision
   46  45 to read as follows:
   47    45. CREDIT FOR REHABILITATION OF DISTRESSED COMMERCIAL PROPERTIES. (1)
   48  FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
   49  TWELVE, A TAXPAYER SHALL BE ALLOWED A CREDIT  AS  HEREINAFTER  PROVIDED,
   50  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO THIRTY
   51  PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
   52  ER WITH RESPECT TO A QUALIFIED DISTRESSED COMMERCIAL PROPERTY. PROVIDED,
   53  HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
   54    (2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBDIVISION SHALL BE  ALLOWED
   55  IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
   56  ITATION.
       S. 6516                             3
    1    (3)  IF  THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
    2  ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S  TAX  FOR  SUCH  YEAR,  THE
    3  EXCESS  MAY  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE
    4  APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
    5  EXCEED TWENTY-FIVE THOUSAND DOLLARS.
    6    (4)  (A)  THE  TERM  "QUALIFIED REHABILITATION EXPENDITURE" MEANS, FOR
    7  PURPOSES OF THIS SUBDIVISION, ANY AMOUNT PROPERLY CHARGEABLE TO A  CAPI-
    8  TAL ACCOUNT:
    9    (I)  IN  CONNECTION  WITH  THE CERTIFIED REHABILITATION OF A QUALIFIED
   10  COMMERCIAL PROPERTY, AND
   11    (II) FOR PROPERTY FOR WHICH  DEPRECIATION  WOULD  BE  ALLOWABLE  UNDER
   12  SECTION 168 OF THE INTERNAL REVENUE CODE.
   13    (B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
   14  OR  INTEREST  THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO THE ENLARGE-
   15  MENT OF AN EXISTING BUILDING, OR (III) ANY  EXPENDITURE  MADE  PRIOR  TO
   16  JANUARY  FIRST,  TWO THOUSAND TWELVE OR AFTER DECEMBER THIRTY-FIRST, TWO
   17  THOUSAND SEVENTEEN.
   18    (5) THE TERM "CERTIFIED REHABILITATION" MEANS, FOR  PURPOSES  OF  THIS
   19  SUBDIVISION,  ANY  REHABILITATION  OF  A CERTIFIED DISTRESSED COMMERCIAL
   20  PROPERTY WHICH HAS BEEN APPROVED AND CERTIFIED BY A LOCAL GOVERNMENT  AS
   21  BEING  COMPLETED,  WITH  A CERTIFICATE OF OCCUPANCY ISSUED, AND THAT THE
   22  COSTS ARE CONSISTENT WITH THE WORK COMPLETED. SUCH  CERTIFICATION  SHALL
   23  BE  ACCEPTABLE  AS PROOF THAT THE EXPENDITURES RELATED TO SUCH REHABILI-
   24  TATION QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES  OF
   25  THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBDIVISION.
   26    (6) (A) THE TERM "QUALIFIED DISTRESSED COMMERCIAL PROPERTY" MEANS, FOR
   27  PURPOSES  OF  THIS SUBDIVISION, A DISTRESSED COMMERCIAL PROPERTY LOCATED
   28  WITHIN NEW YORK STATE:
   29    (I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
   30    (II) WHICH IS OWNED BY THE TAXPAYER, AND
   31    (III) WHICH IS LOCATED WITHIN A DISTRESSED COMMERCIAL AREA, AS IDENTI-
   32  FIED BY EACH LOCALITY THROUGH LOCAL LAW, THAT IS DEEMED AN AREA IN  NEED
   33  OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
   34    (B)  IF  THE  DISTRESSED  COMMERCIAL PROPERTY IS RENTAL PROPERTY, SUCH
   35  PROPERTY SHALL HAVE BEEN MORE THAN  THIRTY  PERCENT  VACANT  FOR  TWELVE
   36  MONTHS WHILE ACTIVELY MARKETED FOR LEASE.
   37    (C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
   38  ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
   39  BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
   40    (7)  (A)  IF  THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN THE
   41  QUALIFIED DISTRESSED COMMERCIAL PROPERTY, OR SUCH PROPERTY CEASES TO  BE
   42  USED  AS  A  COMMERCIAL  PROPERTY  OF  THE TAXPAYER WITHIN FIVE YEARS OF
   43  RECEIVING THE CREDIT UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX  IMPOSED
   44  BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
   45  TION  OCCURS  SHALL  BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT
   46  ALLOWED UNDER THIS SUBDIVISION FOR ALL PRIOR TAXABLE YEARS WITH  RESPECT
   47  TO SUCH REHABILITATION.
   48    (B)  FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
   49  PORTION SHALL BE THE PRODUCT OF THE AMOUNT  OF  CREDIT  CLAIMED  BY  THE
   50  TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
   51  LESS  THE  NUMBER  OF MONTHS THE BUILDING IS OWNED OR USED AS COMMERCIAL
   52  PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
   53    S 4. This act shall take effect immediately and shall apply to taxable
   54  years beginning on or after January 1, 2012.