Bill S3848A-2013

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

Details

Actions

  • Jun 11, 2014: referred to housing
  • Jun 11, 2014: DELIVERED TO ASSEMBLY
  • Jun 11, 2014: PASSED SENATE
  • Jun 9, 2014: ADVANCED TO THIRD READING
  • Jun 3, 2014: 2ND REPORT CAL.
  • Jun 2, 2014: 1ST REPORT CAL.1069
  • May 13, 2014: REPORTED AND COMMITTED TO FINANCE
  • Jan 22, 2014: PRINT NUMBER 3848A
  • Jan 22, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 13, 2013: referred to housing
  • Jun 13, 2013: DELIVERED TO ASSEMBLY
  • Jun 13, 2013: PASSED SENATE
  • Jun 12, 2013: ORDERED TO THIRD READING CAL.1331
  • Jun 12, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • May 21, 2013: REPORTED AND COMMITTED TO FINANCE
  • Feb 22, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 13, 2014
Ayes (7): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin, Diaz
Ayes W/R (2): Hoylman, Squadron

Memo

BILL NUMBER:S3848A

TITLE OF BILL: An act to amend the tax law, in relation to providing that the low income housing credit shall be treated as an overpayment of taxes

PURPOSE:

This bill would convert the state low income housing tax credit to a refundable tax credit to help stimulate low income housing investment in the state.

SUMMARY OF PROVISIONS:

This bill would amend subdivision 30 of section 210 of the tax law to provide that for allocations of housing tax credit made pursuant to law after January 1, 2013, the corporate franchise low income housing tax credit shall be treated as a refundable tax credit. Paragraph 3 of subsection (x) of section 606 of the tax law is amended to convert the existing low income housing tax credit to a refundable low income housing tax credit for allocations of housing tax credit made after taxable years beginning after January 1, 2014. Paragraph 3 of subsection (1) of section 1456 of the tax law is amended to convert the existing low income housing tax credit to a refundable low income housing tax credit for allocations of credit made subsequent to January 1, 2014. Paragraph 3 of subdivision (n) of section 1511 of the tax law is amended to convert the low income housing tax credit to a refundable tax credit for purposes of the Insurance Franchise Tax for allocations of tax credit made after January 1, 2014. Furthermore, in order to obtain treatment as a refundable credit for these taxes, a project must have received an eligibility statement from the commissioner of housing and community renewal pursuant to article two-A of the public housing law.

JUSTIFICATION:

Tax credit programs are widely seen as the primary mechanism for successfully producing and preserving affordable rental housing. As a result of the recent financial crisis, state and federal tax credit programs have been disrupted, as is the case in New York. The problem has been further exacerbated in New York where the state tax credit is less marketable, unlike the case in many other States.

New York's low income housing credit tax program was established in 2000 pursuant to Article 2-A of the Public Housing Law and was designed to encourage the development of low income housing. Refundable housing tax credits are more desirable than non refundable credits and would work to create a greater demand in the marketplace. This bill would permit investors to obtain a broader class of investors including banks, corporations, and insurance companies and would create additional demand on the market for state tax credits. This demand would drive up pricing among investors as pricing as competition is increased. This would translate into greater private investment in affordable housing which will help drive housing development within the state.

LEGISLATIVE HISTORY:

2013: S.3848 Passed the Senate 2012: S.4738-C Passed the Senate 2011: S.4768-B Advanced to third reading

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3848--A 2013-2014 Regular Sessions IN SENATE February 22, 2013 ___________
Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- 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 providing that the low income housing credit shall be treated as an overpayment of taxes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (c) of subdivision 30 of section 210 of the tax law is relettered paragraph (d) and a new paragraph (c) is added to read as follows: (C) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED, PROVIDED THAT THE CREDITS: (1) HAVE AN ELIGIBILITY STATEMENT ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (2) ARE AVAILABLE PURSUANT TO LAW ENACTED AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN. PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON. S 2. Paragraph 3 of subsection (x) of section 606 of the tax law is renumbered paragraph 4 and a new paragraph 3 is added to read as follows: (3) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION 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 THAT THE CREDITS: (I) HAVE AN ELIGIBILITY STATEMENT ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (II) ARE AVAILABLE PURSUANT TO LAW
ENACTED AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN. PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 3. Paragraph 3 of subsection (1) of section 1456 of the tax law is renumbered paragraph 4 and a new paragraph 3 is added to read as follows: (3) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED, PROVIDED THAT THE CREDITS: (A) HAVE AN ELIGIBILITY STATEMENT ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE PURSUANT TO LAW ENACTED AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN. PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON. S 4. Paragraph 3 of subdivision (n) of section 1511 of the tax law is renumbered paragraph 4 and a new paragraph 3 is added to read as follows: (3) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED, PROVIDED THAT THE CREDITS: (A) HAVE AN ELIGIBILITY STATEMENT ISSUED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE PURSUANT TO LAW ENACTED AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN. PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON. S 5. This act shall take effect immediately and shall apply to tax years commencing on or after January 1, 2014.

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