Bill S7513-2013

Establishes a tax credit for developers utilizing renewable energy sources in affordable housing units

Establishes a tax credit for developers utilizing renewable energy sources in affordable housing units.

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  • May 15, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S7513

TITLE OF BILL: An act to amend the tax law, in relation to establishing a tax credit for developers utilizing renewable energy sources in affordable housing units

PURPOSE:

Provides a tax credit to developers using renewable sources of energy, per unit of an affordable housing facility consisting of 10 or more units in order to reduce the cost of utilities that render multi-family housing unaffordable to persons between 30% and less than 100% of the AMI.

JUSTIFICATION:

According to US HUD Secretary Donovan the Home Energy Affordability Gap Index based on energy bills for persons below 185 percent of the Federal Poverty Level. Five years ago that gap was at $34 billion and while the estimates for this past winter have yet to be published, the range of increase was approximately 30% to 70% over the prior year. The burden on the poor is more than four times the average 4 percent others pay. Utility cut-offs frequently result in eviction and ultimately in foreclosure. HUD's own programs are affected by energy costs pertaining to heating, lighting, and cooling its portfolio of public and assisted housing and section 8 vouchers. The cost of energy for public multi-family, a reliable tracked index, has been increasing at the rate of $1 billion annually.

In a Harvard study The Relationship Between Home Energy Costs And Energy-Related Remodeling Activity notes that a significant erosion in renter incomes over the past decade has pushed the number of households paying excessive shares of income for housing to record levels and assistance efforts have failed to keep pace with the escalating need. As significant numbers of working class individuals struggle to pay the escalating cost for housing in excess of 30% of their income, the cost of energy is further depleting income causing a negative impact on the economy.

LEGISLATIVE HISTORY:

None. New bill.

FISCAL IMPLICATIONS:

TBD

EFFECTIVE DATE:

This act shall take effect as part of the next Unified Funding Application issued by HCR.


Text

STATE OF NEW YORK ________________________________________________________________________ 7513 IN SENATE May 15, 2014 ___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to establishing a tax credit for developers utilizing renewable energy sources in affordable hous- ing units THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The tax law is amended by adding a new section 42 to read as follows: S 42. CREDIT FOR UTILIZING RENEWABLE ENERGY SOURCES. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE 9-A OR TWENTY-TWO OF THIS CHAPTER, WHO IS A DEVELOPER WHO USES RENEWABLE SOURCES OF ENERGY, AS SUCH TERM IS DEFINED IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW, DURING THE CONSTRUCTION OF AN AFFORDABLE HOUSING FACILITY, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAXES IN AN AMOUNT OF TWO THOUSAND DOLLARS PER QUAL- IFIED UNIT AND PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (C) OF THIS SECTION. (B) DEFINITIONS. (1) "AFFORDABLE HOUSING FACILITY" SHALL MEAN A BUILD- ING CONTAINING TEN OR MORE UNITS, NINETY PERCENT OF WHICH ARE QUALIFIED UNITS. (2) "QUALIFIED UNIT" SHALL MEAN ANY UNIT WITHIN AN AFFORDABLE HOUSING FACILITY THAT USES RENEWABLE SOURCES OF ENERGY AND IS OCCUPIED BY ONE OR MORE PEOPLE WHOSE TOTAL INCOME IS LESS THAN ONE HUNDRED PERCENT OF THE AREA MEDIAN INCOME. (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 50 (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (CCC) S 2. Section 210 of the tax law is amended by adding a new subdivision 50 to read as follows: 50. CREDIT FOR UTILIZING RENEWABLE ENERGY SOURCES. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IN NO EVENT SHALL
THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARA- GRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR 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 EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. S 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) CREDIT FOR UTILIZING RENEWABLE ENERGY SOURCES. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED FOR IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IF THE AMOUNT OF THE CREDIT ALLOWED 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 IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xli) to read as follows: (XLI) CREDIT FOR UTILIZING RENEWABLE AMOUNT OF CREDIT UNDER ENERGY SOURCES UNDER SUBSECTION (CCC) SUBDIVISION FORTY-TWO OF SECTION TWO HUNDRED TEN S 5. This act shall take effect immediately; provided, however, that the amendments made to subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law made by section four of this act shall take effect on the same date and in the same manner as section 68 of part A of chapter 59 of the laws of 2014, takes effect.

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