Qualifies a certain parcel of land commonly known as the Huntley Apartments for a tax credit for rehabilitation of historic property.
Ayes (58): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Rivera, Robach, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Nays (1): Krueger
Excused (4): Adams, Ranzenhofer, Ritchie, Sampson
TITLE OF BILL: An act in relation to qualifying a certain parcel of land located in the city of Syracuse, county of Onondaga for a tax credit for rehabilitation of historic property
PURPOSE: Provides an exception to the census tract requirement for the Huntley Apartment building at 407 Stolp Avenue in Syracuse to qualify for New York State historic property rehabilitation tax credits.
SUMMARY OF PROVISIONS:
Section 1, provides as exception to the requirement in subsection (oo) of section 606 of the tax law that for a property to qualify for historic rehabilitation tax credits it must be located in a qualifying census-tract. This section also provides the legal description of the property.
Section 2, establishes the effective date.
JUSTIFICATION: The purpose of the New York State tax credit for the rehabilitation of historic properties was to provide aid and incentive to restore historic buildings in distressed areas. The Huntley Apartment building in the Strathmore neighborhood of Syracuse, NY is one of those properties. The Huntley was once a vibrant apartment building that has become vacant and a center for crime in recent years. A local group of neighborhood based developers known as the "Strathmore-Huntley Group" is seeking to rehabilitate the property. They are currently seeking funding for the project. Historic preservation tax credits are an important funding aspect for the rehabilitation.
The Huntley Building currently qualifies for Federal Historic Preservation tax credits, but does not qualify for New York historic tax credits because the property is not located in a qualifying census-tract, despite being only a few blocks from a qualifying tract. The Huntley is the type of property the historic preservation tax credits were meant to help. If the property is made eligible for State tax credits, it would be an important step in solidifying the needed funding to make this building a viable taxpaying property again. A technicality in the law should not prevent this important project from going forward. This bill would provide a one-time exception to the census-tract requirement for the Huntley building.
LEGISLATIVE HISTORY: 2012: S.7557 (Passed Senate) A.9532 (Ways and Means)
FISCAL IMPLICATIONS: To be determined
EFFECTIVE DATE: Immediately
STATE OF NEW YORK ________________________________________________________________________ 3701 2013-2014 Regular Sessions IN SENATE February 11, 2013 ___________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 in relation to qualifying a certain parcel of land located in the city of Syracuse, county of Onondaga for a tax credit for rehabili- tation of historic property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding any provision of subsection (oo) of section 606 of the tax law or any other provision of law to the contrary, the owners of all that tract or parcel of land situate in the city of Syra- cuse, county of Onondaga, located at 409 and 419-421 Stolp Avenue, otherwise known and distinguished as section 87, block 12, lots 113, 114 and 115 of the Stolp Addition and commonly known as the "Huntley Apart- ments", shall qualify for a tax credit for rehabilitation of historic real property. For taxable years before January 1, 2016, the owners of all that tract or parcel of land described above shall be allowed a credit as herein- after provided, against the tax imposed by article 22 of the tax law, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under subsection (a) (2) of section 47 of the federal internal revenue code with respect to a certified historic structure located within the state; provided, however, the credit shall not exceed five million dollars. For taxable years beginning on or after January 1, 2016, the owners of all that tract or parcel of land described above shall be allowed a credit as hereinafter provided, against the tax imposed by article 22 of the tax law, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under subsection (a)(2) of section 47 of the federal internal revenue code with respect to a certified historic structure located within theEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04514-01-3 S. 3701 2
state; provided, however, the credit shall not exceed one hundred thou- sand dollars. Tax credits allowed pursuant to this section shall be allowed in the taxable year that the qualified rehabilitation is placed in service under section 167 of the federal internal revenue code. If the taxpayer is a partner in a partnership or a shareholder of a New York S corporation, then the credit cap imposed by this section shall be applied at the entity level, so that the aggregate credit allowed to all the partners or shareholders of each such entity in the taxable year does not exceed the credit cap that is applicable in that taxable year. If the credit allowed the taxpayer pursuant to section 47 of the internal revenue code with respect to a qualified rehabilitation is recaptured pursuant to subsection (a) of section 50 of the internal revenue code, a portion of the credit allowed under this section must be added back in the same taxable year and in the same proportion as the federal recapture. If the amount of the credit allowable under this section 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. S 2. This act shall take effect immediately.