Relates to the tax credits for the rehabilitation of historic properties; makes technical corrections to section.
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 for the first of January of the next succeeding year after it has become a law.
JUSTIFICATION: This bill makes whole the Historic Rehabilitation Tax Credit (HRTC), specifically the credit for the rehabilitation of commercial properties, to assure it is restored in 2012 to serve as a vital tool for economic development in New York State by exempting it from the final year of the deferral imposed in 2010 on certain state tax credits.
The HRTC has been significantly affected by the deferral program, resulting in delayed or abandoned rehabilitation projects in communities across New York State, and the loss of out-of-state investment to fully-functioning rehabilitation tax credit programs in other states. Developer and investor confidence in the recently established HRTC has been severely eroded, further impeding its use.
The deferral threshold of $2 million has effectively exempted many of the thirty credits subject to deferral from significant impacts; however, this threshold impacts the HRTC in unique ways. It prevents large rehabilitation projects from fully utilizing the HRTC program. Such projects generate the largest and most sustained construction employment and post-construction jobs and have the most transformative economic and community renewal value for urban areas. Furthermore, it prevents national investors from capitalizing multiple rehabilitation projects in New York. This has prevented numerous small and medium scale projects in communities throughout the state from securing financing necessary to start reconstruction.
The HRTC program was drafted to promote economic growth and community redevelopment in a fiscally responsible manner. The imposition of a deferral upon the commercial program has significantly weakened the
program as an economic tool. With a program sunset in 2014, restoring program integrity in 2012 will provide developers and municipal offices across New York State with the opportunity to resume project development efforts, which will catalyze economic activity and promote environmental sustainability in communities across the state well in advance of credit issuance by New York State.
PRIOR LEGISLATIVE HISTORY: 08/11/2010 - Referred to Ways and Means (Hoyt)
FISCAL IMPLICATIONS: Because the deferral has severely impeded use of the Historic Rehabilitation Tax Credit program, the original fiscal impacts calculated for this program have not been realized. Projects completed in 2011 will still be subject to the deferral. Only projects placed in service after January 1, 2013 with credit value in excess of $2 million will generate a fiscal impact from this change. Estimated fiscal savings from this program due to the deferral program in 2010 were calculated by the Preservation League of New York State to be no more than $1.8 million in savings across New York State.
EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 1797--B 2011-2012 Regular Sessions IN SENATE January 12, 2011 ___________Introduced by Sens. VALESKY, CARLUCCI, GRISANTI -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 disabilitiesEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01164-07-2 S. 1797--B 2
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 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 on the first of January next succeed- ing the date on which it shall have become a law.