Bill S2164-2013

Relates to carryovers of the tax credit for the rehabilitation of historic properties and historic homes

Relates to carry overs of the tax credit for the rehabilitation of historic properties and historic homes.

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  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 14, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S2164

TITLE OF BILL: An act to amend the tax law, in relation to carryovers of the tax credit for the rehabilitation of historic properties and historic homes

PURPOSE: This bill makes the New York State rehabilitation tax credit for historic commercial properties also available as a refund to qualified taxpayers.

SUMMARY OF PROVISIONS:

Section i amends Section 210 of the tax code, as amended by chapter 472 of the laws of 2010 to make the New York State rehabilitation tax credit for historic properties also available as a refund to qualified taxpayers.

EFFECT OF PRESENT LAW WHICH THIS BILL WOULD ALTER: By making the New York State rehabilitation tax credit historic properties available as a refund as well as a credit, rehabilitation projects that utilize this program will attract and as a result secure higher value equity investment for these for commercial New York State more investors projects.

JUSTIFICATION: To increase the number of redevelopment projects for historic properties and increase the value of investments into such projects, the New York State rehabilitation tax credit program needs to attract a larger and more diverse pool of investors.

The current state credit program fails to attract a full range of national investors to New York redevelopment projects because the state rehabilitation tax credit value is not an asset to investors with no or limited New York State tax liability. As a result, there is less investment in New York State rehabilitation projects and fewer project starts.

Numerous New York State tax credit programs are fully refundable, and it is appropriate to establish this mechanism for the rehabilitation tax credit program as well. New York State could get more value from this program if it incentivized a more diverse investor pool by establishing refundability.

LEGISLATIVE HISTORY: S6946 of 2011-12

FISCAL IMPLICATIONS: This bill will incentivize investments in a larger number of rehabilitation projects, resulting in more projects utilizing the New York State rehabilitation tax credit program for commercial properties, and thus an increased fiscal cost for this program.

The state's fiscal cost, however, will be offset by the economic stimulus gains generated by increased redevelopment activity, including enhanced local and state tax revenues, part and full-time job creation, and other economic benefits, as documented in numerous national studies

regarding the positive impacts of historic rehabilitation tax credit programs.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 2164 2013-2014 Regular Sessions IN SENATE January 14, 2013 ___________
Introduced by Sens. VALESKY, GRISANTI, MAZIARZ, RANZENHOFER, YOUNG -- 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 carryovers of the tax credit for the rehabilitation of historic properties and historic homes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 4 of subdivision 40 of section 210 of the tax law, as amended by chapter 472 of the laws of 2010, is amended to read as follows: (4) The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the higher of the amounts prescribed in paragraphs (c) and (d) of subdivision one of this section. However, if the amount of the credit allowable under this subdivision for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND FOURTEEN, THE CREDIT AND ANY CARRYOVERS OF SUCH CREDIT SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD- ANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. S 2. Paragraph 4 of subsection (oo) of section 606 of the tax law, as amended by chapter 239 of the laws of 2009, is amended to read as follows: (4) If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years, and may be applied against the taxpayer's tax for such year or years AND, FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, IF THE AMOUNT OF CREDIT AND ANY CARRYOVERS OF SUCH CREDIT FROM PRIOR TAXA- BLE YEARS ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, OF TAX, TO BE CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 3. Paragraph 4 of subsection (u) of section 1456 of the tax law, as added by chapter 472 of the laws of 2010, is amended to read as follows: (4) The credit allowed under this subsection for any taxable year shall not reduce the tax to less than the dollar amount fixed as a mini- mum tax by subsection (b) of section fourteen hundred fifty-five of this article. If the amount of credit allowable under this subsection for any taxable year reduces the tax to such amount, the excess may be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, THE CREDIT AND ANY CARRY- OVERS OF SUCH CREDIT FROM PRIOR TAXABLE YEARS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT- Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER- EON. S 4. Paragraph 4 of subdivision (y) of section 1511 of the tax law, as added by chapter 472 of the laws of 2010, is amended to read as follows: (4) The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two or section fifteen hundred two-a of this article, whichever is applicable. If the amount of the credit allowable under this subdivi- sion for any taxable year reduces the tax to such amount, the excess may be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, THE CREDIT AND ANY CARRYOVERS OF SUCH CREDIT FROM PRIOR TAXABLE YEARS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT- Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER- EON. S 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2014.

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