Bill S4758C-2011

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

  • Mar 21, 2012: referred to ways and means
  • Mar 21, 2012: DELIVERED TO ASSEMBLY
  • Mar 21, 2012: PASSED SENATE
  • Mar 12, 2012: ADVANCED TO THIRD READING
  • Mar 7, 2012: 2ND REPORT CAL.
  • Mar 6, 2012: 1ST REPORT CAL.306
  • Jan 18, 2012: REPORTED AND COMMITTED TO FINANCE
  • Jan 11, 2012: PRINT NUMBER 4758C
  • Jan 11, 2012: AMEND (T) AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • Jan 4, 2012: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • Jun 24, 2011: COMMITTED TO RULES
  • Jun 16, 2011: AMENDED ON THIRD READING (T) 4758B
  • Jun 1, 2011: AMENDED ON THIRD READING (T) 4758A
  • May 24, 2011: ADVANCED TO THIRD READING
  • May 23, 2011: 2ND REPORT CAL.
  • May 18, 2011: 1ST REPORT CAL.764
  • Apr 20, 2011: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Votes

VOTE: COMMITTEE VOTE: - Housing, Construction and Community Development - Jan 18, 2012
Ayes (5): Young, Bonacic, Grisanti, Ritchie, Diaz
Ayes W/R (2): Gallivan, Krueger
Nays (1): Espaillat

Memo

BILL NUMBER:S4758C             REVISED 2/14/12

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, 2012, 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, 2012. 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, 2012. 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, 2012. 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: S. 4758B-2011/Senate 3rd reading calendar.

FISCAL IMPLICATIONS: This bill authorizes no additional tax credit authority and would result in no further reduction in tax receipts.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4758--C 2011-2012 Regular Sessions IN SENATE April 20, 2011 ___________
Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading -- again amended and ordered reprinted, retaining its place in the order of third reading -- recommitted to the Committee on Housing, Construction and Community Development 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 TWELVE. 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 TWELVE. 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 TWELVE. 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 TWELVE. 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, 2012.

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