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BILL NUMBER:S1797

TITLE OF BILL:

An act to amend the tax law, in relation to the tax credits for the rehabilitation of historic properties

PURPOSE OR GENERAL IDEA OF BILL:

To exempt the tax credit for rehabilitation of historic properties from the temporary deferral of tax credits found in the 2010-2011 Revenue Bill, S.6610C/A.9710D.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 removes the tax credit for rehabilitation of historic properties from the list of tax credits subject to deferral pursuant to part Y of S.6610C/A.9710D.

Section 2 sets forth the effective date.

JUSTIFICATION:

This bill ensures that the Historic Rehabilitation Tax Credit (HRTC), specifically the credit for the rehabilitation of historic properties, remains a vital tool for economic development in New York state by exempting it from the current proposal to defer certain tax credits. The current deferral plan found in Part Y of the 2010-2011 Revenue bill would defer historic rehabilitation tax credits above $2 million in value until 2013. While this $2 million cap presumably eliminates a number of credits from the impact. of the deferral plan, as applied to the HRTC, the deferral will impede financing for the largest, most catalytic projects capable of spurning economic development. Such projects generate the largest and most sustained construction employment and post-construction jobs and have the most trans formative value, both economically and in terms of community renewal.

The current HRTC program was created in such a way to promote economic growth and development even in the midst of difficult economic times. Thus, the current deferment proposal would significantly . weaken the program as an economic development tool. By carving out the HRTC from the tax credit deferment package, we protect the vitality of a program that catalyzes economic activity and promotes environmental sustainability within communities across the state of New York.

PRIOR LEGISLATIVE HISTORY:

08/11/10 - Referred to Ways and Means

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

 Immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

1797

2011-2012 Regular Sessions

IN SENATE

January 12, 2011
___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to  the  tax  credits  for  the
  rehabilitation of historic properties

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (a) of subdivision 3 of section  33  of  the  tax
law,  as added by section 1 of part Y of chapter 57 of the laws of 2010,
is amended to read as follows:
  (a) This section shall apply to the credits allowed under the  follow-
ing provisions in article [nine-a] NINE-A of this chapter and any appli-
cable  counterpart  provisions  in articles nine, twenty-two, thirty-two
and thirty-three of this chapter:
  Section 210(12) investment tax credit
  Section 210(12-B) empire zone investment tax credit
  Section 210(12-C) empire zone employment incentive credit
  Section 210(12-D) employment incentive credit
  Section 210(12-E) QETC employment credit
  Section 210(12-F) QETC capital tax credit
  Section 210(12-G) QETC facilities, operations, and training credit
  Section 210(17) special additional mortgage recording tax credit
  Section 210(19) empire zone wage tax credit
  Section 210(20) empire zone capital tax credit
  Section 210(21-a) credit for servicing certain mortgages
  Section 210(23) credit for employment of persons with disabilities
  Section 210(24) alternative fuels credit
  Section 210(25) credit for purchase of an automated external defibril-
lator
  Section 210(27) QEZE credit for real property taxes
  Section 210(28) QEZE tax reduction credit

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01164-01-1
S. 1797                             2

  Section 210(30) low income housing credit
  Section 210(31) green building credit
  Section 210(33) brownfield redevelopment tax credit
  Section  210(34)  remediated brownfield credit for real property taxes
for qualified sites
  Section 210(35) environmental remediation insurance credit
  Section 210(37) security training tax credit
  Section 210(37) credit for fuel  cell  electric  generating  equipment
expenditures
  Section 210(38) conservation easement tax credit
  Section 210(38) empire state commercial production credit
  Section 210(38) biofuel production credit
  Section 210(39) clean heating fuel credit
  [Section 210(40) credit for rehabilitation of historic properties]
  Section  210(40)  credit  for  companies who provide transportation to
individuals with disabilities
  S 2. This act shall take effect immediately.