Bill Text: NY S06979 | 2011-2012 | General Assembly | Introduced

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Bill Title: Establishes a credit against income tax for the rehabilitation of distressed residential properties; allows a credit equal to thirty percent of the qualified rehabilitation expenditures made by the taxpayer with respect to a qualified distressed residential property; requires property that qualifies must be constructed prior to January 1, 1962 in a distressed residential or mixed-use neighborhood.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2012-04-19 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S06979 Detail]

Download: New_York-2011-S06979-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6979
                                   I N  S E N A T E
                                    April 19, 2012
                                      ___________
       Introduced  by  Sen.  RANZENHOFER -- 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  residential
         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 RESIDENTIAL 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  RESIDENTIAL  PROPERTY.
    9  PROVIDED, HOWEVER, THE CREDIT SHALL  NOT  EXCEED  ONE  HUNDRED  THOUSAND
   10  DOLLARS.
   11    (2)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
   12  IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
   13  ITATION.
   14    (3) IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER  THIS  SUBSECTION  FOR
   15  ANY  TAXABLE  YEAR  SHALL  EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, THE
   16  EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS,  AND  MAY  BE
   17  APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
   18  EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   19    (4)  (A)  THE  TERM  "QUALIFIED REHABILITATION EXPENDITURE" MEANS, FOR
   20  PURPOSES OF THIS SUBSECTION, ANY AMOUNT PROPERLY CHARGEABLE TO A CAPITAL
   21  ACCOUNT:
   22    (I) IN CONNECTION WITH THE CERTIFIED  REHABILITATION  OF  A  QUALIFIED
   23  DISTRESSED RESIDENTIAL PROPERTY, AND
   24    (II)  FOR  PROPERTY  FOR  WHICH  DEPRECIATION WOULD BE ALLOWABLE UNDER
   25  SECTION 168 OF THE INTERNAL REVENUE CODE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15277-01-2
       S. 6979                             2
    1    (B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
    2  OR INTEREST THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO  THE  ENLARGE-
    3  MENT  OF  AN  EXISTING  BUILDING, OR (III) ANY EXPENDITURE MADE PRIOR TO
    4  JANUARY FIRST, TWO THOUSAND TWELVE OR AFTER DECEMBER  THIRTY-FIRST,  TWO
    5  THOUSAND SEVENTEEN.
    6    (5)  THE  TERM  "CERTIFIED  REHABILITATION"  MEANS,  FOR  PURPOSES  OF
    7  DISTRESSED RESIDENTIAL PROPERTY IN THIS SUBSECTION,  ANY  REHABILITATION
    8  OF  A  CERTIFIED DISTRESSED RESIDENTIAL PROPERTY WHICH HAS BEEN APPROVED
    9  AND CERTIFIED BY A LOCAL GOVERNMENT AS BEING COMPLETED, WITH  A  CERTIF-
   10  ICATE  OF  OCCUPANCY  ISSUED, AND THAT THE COSTS ARE CONSISTENT WITH THE
   11  WORK COMPLETED. SUCH CERTIFICATION SHALL BE ACCEPTABLE AS PROOF THAT THE
   12  EXPENDITURES RELATED TO SUCH REHABILITATION QUALIFY AS  QUALIFIED  REHA-
   13  BILITATION  EXPENDITURES  FOR PURPOSES OF THE CREDIT ALLOWED UNDER PARA-
   14  GRAPH ONE OF THIS SUBSECTION.
   15    (6) (A) THE TERM "QUALIFIED RESIDENTIAL PROPERTY" MEANS, FOR  PURPOSES
   16  OF THIS SUBSECTION, A DISTRESSED RESIDENTIAL PROPERTY LOCATED WITHIN NEW
   17  YORK STATE:
   18    (I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
   19    (II)  WHICH  WAS  CONSTRUCTED PRIOR TO JANUARY FIRST, NINETEEN HUNDRED
   20  SIXTY-TWO,
   21    (III) WHICH IS OWNED BY THE TAXPAYER, AND
   22    (IV) WHICH IS LOCATED WITHIN A  DISTRESSED  RESIDENTIAL  OR  MIXED-USE
   23  AREA,  AS  IDENTIFIED BY EACH LOCALITY THROUGH LOCAL LAW, THAT IS DEEMED
   24  AN AREA IN NEED OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
   25    (B) IF THE DISTRESSED RESIDENTIAL PROPERTY IS  RENTAL  PROPERTY,  SUCH
   26  PROPERTY  SHALL  HAVE BEEN VACANT FOR AT LEAST SIX MONTHS WHILE ACTIVELY
   27  MARKETED FOR LEASE.
   28    (C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
   29  ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
   30  BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
   31    (7) (A) IF THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S  INTEREST  IN  THE
   32  QUALIFIED DISTRESSED RESIDENTIAL PROPERTY, OR SUCH PROPERTY CEASES TO BE
   33  USED  AS  A  RESIDENTIAL  PROPERTY  OF THE TAXPAYER WITHIN FIVE YEARS OF
   34  RECEIVING THE CREDIT UNDER THIS SUBSECTION, THE TAXPAYER'S  TAX  IMPOSED
   35  BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
   36  TION  OCCURS  SHALL  BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT
   37  ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR TAXABLE YEARS  WITH  RESPECT
   38  TO SUCH REHABILITATION.
   39    (B)  FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
   40  PORTION SHALL BE THE PRODUCT OF THE AMOUNT  OF  CREDIT  CLAIMED  BY  THE
   41  TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
   42  LESS  THE  NUMBER OF MONTHS THE BUILDING IS OWNED OR USED AS RESIDENTIAL
   43  PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
   44    S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
   45  of  the  tax  law  is  amended by adding a new clause (xxxiv) to read as
   46  follows:
   47  (XXXIV) CREDIT FOR REHABILITATION    AMOUNT OF CREDIT
   48  OF DISTRESSED RESIDENTIAL            UNDER SUBDIVISION FORTY-
   49  PROPERTIES UNDER SUBSECTION (UU)     FIVE OF SECTION TWO HUNDRED TEN
   50    S 3. Section 210 of the tax law is amended by adding a new subdivision
   51  45 to read as follows:
   52    45. CREDIT FOR REHABILITATION OF  DISTRESSED  RESIDENTIAL  PROPERTIES.
   53  (1)  FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
   54  TWELVE, A TAXPAYER SHALL BE ALLOWED A CREDIT  AS  HEREINAFTER  PROVIDED,
       S. 6979                             3
    1  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO THIRTY
    2  PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
    3  ER  WITH  RESPECT  TO  A  QUALIFIED  DISTRESSED  RESIDENTIAL   PROPERTY.
    4  PROVIDED,  HOWEVER,  THE  CREDIT  SHALL  NOT EXCEED ONE HUNDRED THOUSAND
    5  DOLLARS.
    6    (2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBDIVISION SHALL BE  ALLOWED
    7  IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
    8  ITATION.
    9    (3)  IF  THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
   10  ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S  TAX  FOR  SUCH  YEAR,  THE
   11  EXCESS  MAY  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE
   12  APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
   13  EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   14    (4) (A) THE TERM "QUALIFIED  REHABILITATION  EXPENDITURE"  MEANS,  FOR
   15  PURPOSES  OF THIS SUBDIVISION, ANY AMOUNT PROPERLY CHARGEABLE TO A CAPI-
   16  TAL ACCOUNT:
   17    (I) IN CONNECTION WITH THE CERTIFIED  REHABILITATION  OF  A  QUALIFIED
   18  RESIDENTIAL PROPERTY, AND
   19    (II)  FOR  PROPERTY  FOR  WHICH  DEPRECIATION WOULD BE ALLOWABLE UNDER
   20  SECTION 168 OF THE INTERNAL REVENUE CODE.
   21    (B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
   22  OR INTEREST THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO  THE  ENLARGE-
   23  MENT  OF  AN  EXISTING  BUILDING, OR (III) ANY EXPENDITURE MADE PRIOR TO
   24  JANUARY FIRST, TWO THOUSAND TWELVE OR AFTER DECEMBER  THIRTY-FIRST,  TWO
   25  THOUSAND SEVENTEEN.
   26    (5)  THE  TERM  "CERTIFIED REHABILITATION" MEANS, FOR PURPOSES OF THIS
   27  SUBDIVISION, ANY REHABILITATION OF A  CERTIFIED  DISTRESSED  RESIDENTIAL
   28  PROPERTY  WHICH HAS BEEN APPROVED AND CERTIFIED BY A LOCAL GOVERNMENT AS
   29  BEING COMPLETED, WITH A CERTIFICATE OF OCCUPANCY ISSUED,  AND  THAT  THE
   30  COSTS  ARE  CONSISTENT WITH THE WORK COMPLETED. SUCH CERTIFICATION SHALL
   31  BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO  SUCH  REHABILI-
   32  TATION  QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES OF
   33  THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBDIVISION.
   34    (6) (A) THE TERM "QUALIFIED RESIDENTIAL PROPERTY" MEANS, FOR  PURPOSES
   35  OF  THIS  SUBDIVISION,  A DISTRESSED RESIDENTIAL PROPERTY LOCATED WITHIN
   36  NEW YORK STATE:
   37    (I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
   38    (II) WHICH WAS CONSTRUCTED PRIOR TO JANUARY  FIRST,  NINETEEN  HUNDRED
   39  SIXTY-TWO,
   40    (III) WHICH IS OWNED BY THE TAXPAYER, AND
   41    (IV)  WHICH  IS  LOCATED  WITHIN A DISTRESSED RESIDENTIAL OR MIXED-USE
   42  AREA, AS IDENTIFIED BY EACH LOCALITY THROUGH LOCAL LAW, THAT  IS  DEEMED
   43  AN AREA IN NEED OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
   44    (B)  IF  THE  DISTRESSED RESIDENTIAL PROPERTY IS RENTAL PROPERTY, SUCH
   45  PROPERTY SHALL HAVE BEEN VACANT FOR AT LEAST SIX MONTHS  WHILE  ACTIVELY
   46  MARKETED FOR LEASE.
   47    (C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
   48  ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
   49  BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
   50    (7)  (A)  IF  THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN THE
   51  QUALIFIED DISTRESSED RESIDENTIAL PROPERTY, OR SUCH PROPERTY CEASES TO BE
   52  USED AS A RESIDENTIAL PROPERTY OF THE  TAXPAYER  WITHIN  FIVE  YEARS  OF
   53  RECEIVING  THE CREDIT UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED
   54  BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
   55  TION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION  OF  THE  CREDIT
       S. 6979                             4
    1  ALLOWED  UNDER THIS SUBDIVISION FOR ALL PRIOR TAXABLE YEARS WITH RESPECT
    2  TO SUCH REHABILITATION.
    3    (B)  FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
    4  PORTION SHALL BE THE PRODUCT OF THE AMOUNT  OF  CREDIT  CLAIMED  BY  THE
    5  TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
    6  LESS  THE  NUMBER OF MONTHS THE BUILDING IS OWNED OR USED AS RESIDENTIAL
    7  PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
    8    S 4. This act shall take effect immediately and shall apply to taxable
    9  years beginning on or after January 1, 2012.