S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10839

                          I N  A S S E M B L Y

                             April 23, 2010
                               ___________

Introduced by M. of A. HOYT, CANESTRARI, FARRELL, DESTITO -- Multi-Spon-
  sored  by -- M. of A.  BENJAMIN, BING, BRENNAN, CAHILL, CLARK, CUSICK,
  ENGLEBRIGHT, ESPAILLAT,  GALEF,  GANTT,  GLICK,  HIKIND,  JOHN,  KOON,
  LUPARDO, MAGNARELLI, McENENY, MILLMAN, ORTIZ, PEOPLES-STOKES, PHEFFER,
  P. RIVERA,  SWEENEY, WEINSTEIN -- (at request of the Governor) -- read
  once and referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to clarifying  the  application
  of  the  credit  for  the  rehabilitation  of  historic properties and
  historic homes; and to amend chapter 239 of the laws of 2009  amending
  the  tax law and other laws relating to providing a tax credit for the
  rehabilitation of historic properties, in relation to making permanent
  the provisions thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  1 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:
  (1)  (A)  For  taxable  years beginning on or after January first, two
thousand ten AND  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN,  [any
person,  firm,  partnership,  limited  liability company, corporation or
other business entity] A TAXPAYER shall be allowed a credit  as  herein-
after  provided,  against  the tax imposed by this article, in an amount
equal to one hundred percent of the amount of credit allowed the taxpay-
er [for the same taxable year] with  respect  to  a  certified  historic
structure  under  subsection  [(c)] (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 FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A CRED-
IT  AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12198-01-0
              

A. 10839                            2

TO A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN  THE  STATE;  PROVIDED,
HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B)  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER OF
A NEW YORK S CORPORATION, THEN THE CREDIT CAP  IMPOSED  IN  SUBPARAGRAPH
(A)  OF THIS PARAGRAPH 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.
  S 2. Subparagraphs (A) and (B) of paragraph 2 of  subsection  (pp)  of
section  606  of  the  tax law, as amended by chapter 239 of the laws of
2009, are amended to read as follows:
  (A) With respect to any particular residence of a taxpayer, the credit
allowed under paragraph one of this subsection shall  not  exceed  fifty
thousand  dollars FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TEN AND BEFORE JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN  AND
TWENTY-FIVE  THOUSAND  DOLLARS  FOR  TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN.  In the case of a husband and wife,
the amount of the credit shall be divided between  them  equally  or  in
such other manner as they may both elect. If a taxpayer incurs qualified
rehabilitation  expenditures  in  relation to more than one residence in
the same year, the total amount of credit allowed under paragraph one of
this subsection for all such expenditures shall not exceed [twenty-five]
FIFTY thousand dollars FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY
FIRST,  TWO  THOUSAND TEN AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN
AND TWENTY-FIVE THOUSAND DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN.
  (B) [If] FOR TAXABLE YEARS BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
THOUSAND  TEN  AND  BEFORE  JANUARY  FIRST, TWO THOUSAND FIFTEEN, IF the
amount of credit  allowable  under  this  subsection  shall  exceed  the
taxpayer's tax for such year, and the taxpayer's New York adjusted gross
income  for such year does not exceed sixty thousand dollars, 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. If
the taxpayer's New York adjusted gross  income  for  such  year  exceeds
sixty  thousand  dollars,  the excess credit that 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  FIFTEEN,  IF THE AMOUNT OF CREDIT ALLOWABLE UNDER
THIS SUBSECTION 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.
  S 3. Paragraphs 1, 3 and 4 of subdivision 40 of section 210 of the tax
law, as amended by chapter 239 of the laws of 2009, are amended to  read
as follows:
  (1)  (A)  For  taxable  years beginning on or after January first, two
thousand ten AND  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN,  [any
person,  firm,  partnership,  limited  liability company, corporation or
other business entity] A TAXPAYER shall be allowed a credit  as  herein-
after  provided,  against  the tax imposed by this article, in an amount
equal to one hundred percent of the amount of credit allowed the taxpay-
er [for the same taxable year] with  respect  to  a  certified  historic
structure  under  subsection  [(c)] (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

A. 10839                            3

JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A CRED-
IT  AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, 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 THE STATE.    PROVIDED,
HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B)  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER IN
A NEW YORK S CORPORATION, THEN THE CREDIT CAPS IMPOSED  IN  SUBPARAGRAPH
(A)  OF THIS PARAGRAPH 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.
  (3) 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 subsection must
be  added  back  in  the same taxable year and in the same proportion as
[such credit] THE FEDERAL RECAPTURE.
  (4) [If] 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 [applied] DEDUCTED from the taxpayer's  tax  for  such
year or years.
  S 4. Subdivision 40 of section 210 of the tax law, as amended by chap-
ter  239  of the laws of 2009, is amended by adding a new paragraph 5 to
read as follows:
  (5) TO BE ELIGIBLE FOR THE CREDIT ALLOWABLE  UNDER  THIS  SUBDIVISION,
THE  REHABILITATION PROJECT SHALL BE IN WHOLE OR IN PART A TARGETED AREA
RESIDENCE WITHIN THE MEANING OF SECTION 143(J) OF THE  INTERNAL  REVENUE
CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW  ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE MOST
RECENT FEDERAL CENSUS.
  S 5. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) CREDIT FOR REHABILITATION OF HISTORIC PROPERTIES. (1)(A) FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  TEN  AND
BEFORE  JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED
A CREDIT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS  ARTI-
CLE,  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  FIRST,  TWO
THOUSAND  FIFTEEN,  A  TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, 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 HISTOR-
IC  STRUCTURE  LOCATED  WITHIN THE STATE.  PROVIDED, HOWEVER, THE CREDIT
SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.

A. 10839                            4

  (B) IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER  OF
A  NEW  YORK S CORPORATION, THEN THE CREDIT CAPS IMPOSED IN SUBPARAGRAPH
(A) OF THIS PARAGRAPH 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.
  (2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL  BE  ALLOWED
IN  THE  TAXABLE  YEAR  THAT  THE  QUALIFIED REHABILITATION IS PLACED IN
SERVICE UNDER SECTION 167 OF THE FEDERAL INTERNAL REVENUE CODE.
  (3) 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 SUBSECTION MUST
BE ADDED BACK IN THE SAME TAXABLE YEAR AND IN THE SAME PROPORTION AS THE
FEDERAL RECAPTURE.
  (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.
  (5)  TO BE ELIGIBLE FOR THE CREDIT ALLOWABLE UNDER THIS SUBSECTION THE
REHABILITATION PROJECT SHALL BE IN WHOLE OR  IN  PART  A  TARGETED  AREA
RESIDENCE  WITHIN  THE MEANING OF SECTION 143(J) OF THE INTERNAL REVENUE
CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE  MOST
RECENT FEDERAL CENSUS.
  S 6. Section 1511 of the tax law is amended by adding a new subsection
(y) to read as follows:
  (Y) CREDIT FOR REHABILITATION OF HISTORIC PROPERTIES. (1)(A) FOR TAXA-
BLE  YEARS  BEGINNING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND TEN AND
BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE  ALLOWED
A  CREDIT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE, 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 FIRST, TWO
THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A  CREDIT  AS  HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, 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 HISTOR-
IC STRUCTURE LOCATED WITHIN THE STATE.   PROVIDED, HOWEVER,  THE  CREDIT
SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B)  IF  THE  TAXPAYER  IS  A  PARTNER  IN A PARTNERSHIP, THEN THE CAP
IMPOSED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE  APPLIED  AT  THE
ENTITY  LEVEL,  SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS
OF SUCH PARTNERSHIP IN THE TAXABLE YEAR DOES NOT EXCEED THE  CREDIT  CAP
THAT IS APPLICABLE IN THAT TAXABLE YEAR.
  (2)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
IN THE TAXABLE YEAR THAT  THE  QUALIFIED  REHABILITATION  IS  PLACED  IN
SERVICE UNDER SECTION 167 OF THE FEDERAL INTERNAL REVENUE CODE.

A. 10839                            5

  (3)  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  SUBSECTION  IN
THE  TAXABLE  YEAR THE CREDIT WAS CLAIMED MUST BE ADDED BACK IN THE SAME
TAXABLE YEAR AND IN THE SAME PROPORTION AS THE FEDERAL RECAPTURE.
  (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 SUBDIVISION
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.
  (5) TO BE ELIGIBLE FOR THE CREDIT ALLOWABLE  UNDER  THIS  SUBDIVISION,
THE  REHABILITATION PROJECT SHALL BE IN WHOLE OR IN PART A TARGETED AREA
RESIDENCE WITHIN THE MEANING OF SECTION 143(J) OF THE  INTERNAL  REVENUE
CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW  ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE MOST
RECENT FEDERAL CENSUS.
  S 7. Section 5 of chapter 239 of the laws of 2009 amending the tax law
and other laws relating to providing a tax credit for the rehabilitation
of historic properties, is amended to read as follows:
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2010 [and shall  expire  and  be
deemed  repealed  December  31, 2014; provided, however, that the credit
shall be applied to any rehabilitation project commenced  on  or  before
the date on which that act shall be deemed repealed].
  S 8. This act shall take effect immediately.