STATE OF NEW YORK ________________________________________________________________________ 2889 2023-2024 Regular Sessions IN ASSEMBLY January 31, 2023 ___________ Introduced by M. of A. WOERNER, GANDOLFO, McDONOUGH, SEPTIMO, LUPARDO, FAHY, THIELE, BRABENEC -- read once and referred to the Committee on Tourism, Parks, Arts and Sports Development AN ACT to amend the tax law and the parks, recreation and historic pres- ervation law, in relation to establishing the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subsection (oo) of section 606 of the tax law, as amended 2 by chapter 239 of the laws of 2009, paragraph 1 as amended by chapter 3 472 of the laws of 2010, subparagraph (A) of paragraph 1 as amended and 4 paragraph 6 as added by section 1 of part CCC of chapter 59 of the laws 5 of 2021, paragraph 3 as amended by section 1 of part RR of chapter 59 of 6 the laws of 2018, paragraph 4 as amended by section 1 of part F of chap- 7 ter 59 of the laws of 2013 and paragraph 5 as amended by section 2 of 8 part U of chapter 59 of the laws of 2019, is amended to read as follows: 9 (oo) Credit for rehabilitation of historic properties. (1) (A) For 10 taxable years beginning on or after January first, two thousand ten and 11 before January first, two thousand [twenty-five] thirty-five, a taxpayer 12 shall be allowed a credit as hereinafter provided, against the tax 13 imposed by this article, in an amount equal to: 14 (i) one hundred percent of the amount of credit allowed the taxpayer 15 with respect to a certified historic structure, and one hundred fifty 16 percent of the amount of credit allowed the taxpayer with respect to a 17 certified historic structure that is a small project, under internal 18 revenue code section 47(c)(3), determined without regard to ratably 19 allocating the credit over a five year period as required by subsection 20 (a) of such section 47; and 21 (ii) one hundred percent of the amount of credit allowed the taxpayer 22 with respect to a certified historic structure that is a white EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06512-02-3
A. 2889 2 1 elephant project, under internal revenue code section 47(c)(3), with 2 respect to a certified historic structure located within the state. 3 Provided, however, the credit shall not exceed five million dollars, 4 unless such credit is allowed with respect to a certified historic 5 structure that is a white elephant project, in which case, the credit 6 shall not exceed fifteen million dollars. Provided, further, that when- 7 ever the commissioner of parks, recreation and historic preservation 8 receives an application for a white elephant project from an applicant 9 for which such commissioner has previously certified credit for an 10 eligible white elephant project, the commissioner of parks, recreation 11 and historic preservation may deem such subsequent application to be 12 phase II of the original eligible project if such commissioner deter- 13 mines that the two projects are reasonably related, as determined by 14 such commissioner; the previous project qualified as an eligible white 15 elephant project with seventy-five million dollars or less of qualified 16 rehabilitation expenditures; and the phase II application has been 17 submitted within five years of such commissioner's previous certif- 18 ication of credit for the previously eligible white elephant project. 19 (B) For taxable years beginning on or after January first, two thou- 20 sand [twenty-five] thirty-five, a taxpayer shall be allowed a credit as 21 hereinafter provided, against the tax imposed by this article, in an 22 amount equal to thirty percent of the amount of credit allowed the 23 taxpayer with respect to a certified historic structure under internal 24 revenue code section 47(c)(3), determined without regard to ratably 25 allocating the credit over a five year period as required by subsection 26 (a) of such section 47, with respect to a certified historic structure 27 located within the state; provided, however, the credit shall not exceed 28 one hundred thousand dollars, unless such credit is allowed with respect 29 to a certified historic structure that is a white elephant project, in 30 which case, the credit shall not exceed three hundred thousand dollars. 31 [(B)] (C) If the taxpayer is a partner in a partnership or a share- 32 holder of a New York S corporation, then the credit cap imposed in 33 [subparagraph] subparagraphs (A) and (B) of this paragraph shall be 34 applied at the entity level, so that the aggregate credit allowed to all 35 the partners or shareholders of each such entity in the taxable year 36 does not exceed the credit cap that is applicable in that taxable year. 37 (2) Tax credits allowed pursuant to this subsection shall be allowed 38 in the taxable year that the qualified rehabilitation is placed in 39 service under section 167 of the federal internal revenue code. 40 (3) If the taxpayer is allowed a credit pursuant to section 47 of the 41 internal revenue code with respect to a qualified rehabilitation that is 42 also the subject of the credit allowed by this subsection and that cred- 43 it pursuant to such section 47 is recaptured pursuant to subsection (a) 44 of section 50 of the internal revenue code, a portion of the credit 45 allowed under this subsection must be added back in the same taxable 46 year and in the same proportion as the federal recapture. 47 (4) If the amount of the credit allowed under this subsection for any 48 taxable year shall exceed the taxpayer's tax for such year, the excess 49 shall be treated as an overpayment of tax to be credited or refunded in 50 accordance with the provisions of section six hundred eighty-six of this 51 article, provided, however, that no interest shall be paid thereon. 52 (5) Except in the case of (A) a qualified rehabilitation project 53 undertaken within a state park, state historic site, or other land owned 54 by the state, that is under the jurisdiction of the office of parks, 55 recreation and historic preservation, or (B) a qualified white elephant 56 rehabilitation project that is also a qualified low-income housing
A. 2889 3 1 project under article two-A of the public housing law, to be eligible 2 for the credit allowable under this subsection the rehabilitation 3 project shall be in whole or in part located within a census tract which 4 is identified as being at or below one hundred percent of the state 5 median family income as calculated as of April first of each year using 6 the most recent five year estimate from the American community survey 7 published by the United States Census bureau. If there is a change in 8 the most recent five year estimate, a census tract that qualified for 9 eligibility under this program before information about the change was 10 released will remain eligible for a credit under this subsection for an 11 additional two calendar years. 12 (6) [For purposes of this subsection the term] As used in this 13 subsection, the following terms shall have the following meanings: 14 ["small] (A) "Small project" means qualified rehabilitation expendi- 15 tures totaling two million five hundred thousand dollars or less[.]; 16 (B) "White elephant project" means qualified rehabilitation expendi- 17 tures totaling fifty million dollars or more with respect to a certified 18 historic structure that has been vacant, as determined by local code 19 enforcement or other reasonable means, for at least ten of fifteen 20 consecutive years preceding the date of the taxpayer's application for 21 the rehabilitation credit; and 22 (C) "Phase II housing project" means a white elephant housing project 23 which the commissioner determines (i) is reasonably related to a prior 24 eligible white elephant project or eligible white elephant housing 25 project by the same applicant, (ii) such prior project qualified as 26 eligible with seventy-five million dollars or less of qualified rehabil- 27 itation expenditures, and (iii) the phase II application has been 28 submitted within five years of the commissioner's previous allowance of 29 credit for the prior eligible white elephant project or eligible white 30 elephant housing project. 31 (7) The allocation of the credit established by this subdivision may 32 be made without regard to and in a separate manner from any federal 33 rehabilitation credit that may be allocated with respect to a qual- 34 ified white elephant project. 35 (8) The commissioner shall report annually, on or before the first day 36 of November, on the aggregate amount of credits claimed and awarded 37 pursuant to this subdivision on returns filed during the preceding 38 calendar year. Such report shall be provided to the governor, temporary 39 president of the senate, speaker of the assembly, chair of the senate 40 finance committee and chair of the assembly ways and means committee and 41 shall be made publicly available on the department's website. 42 § 2. Subdivision 26 of section 210-B of the tax law, as added by 43 section 17 of part A of chapter 59 of the laws of 2014, paragraphs (a) 44 and (c) as amended by section 2 of part RR of chapter 59 of the laws of 45 2018, subparagraph (i) of paragraph (a) as amended and paragraph (f) as 46 added by section 2 of part CCC of chapter 59 of the laws of 2021, and 47 paragraph (e) as amended by section 1 of part U of chapter 59 of the 48 laws of 2019, is amended to read as follows: 49 26. Credit for rehabilitation of historic properties. (a) Application 50 of credit. (i) For taxable years beginning on or after January first, 51 two thousand ten, and before January first, two thousand [twenty-five] 52 thirty-five, a taxpayer shall be allowed a credit as hereinafter 53 provided, against the tax imposed by this article, in an amount equal 54 to: 55 (A) one hundred percent of the amount of credit allowed the taxpayer 56 for the same taxable year with respect to a certified historic struc-
A. 2889 4 1 ture, and one hundred fifty percent of the amount of credit allowed the 2 taxpayer with respect to a certified historic structure that is a small 3 project, under internal revenue code section 47(c)(3), determined with- 4 out regard to ratably allocating the credit over a five year period as 5 required by subsection (a) of such section 47; and 6 (B) one hundred percent of the amount of credit allowed the taxpayer 7 with respect to a certified historic structure that is a "white 8 elephant project", under internal revenue code section 47(c)(3), with 9 respect to a certified historic structure located within the state. 10 Provided, however, the credit shall not exceed five million dollars, 11 unless such credit is allowed with respect to a certified historic 12 structure that is a white elephant project, in which case, the credit 13 shall not exceed fifteen million dollars. Provided, further, that when- 14 ever the commissioner of parks, recreation and historic preservation 15 receives an application for a white elephant project from an applicant 16 for which such commissioner has previously certified credit for an 17 eligible white elephant project, the commissioner of parks, recreation 18 and historic preservation may deem such subsequent application to be 19 phase II of the original eligible project if such commissioner deter- 20 mines that the two projects are reasonably related, as determined by 21 such commissioner; the previous project qualified as an eligible white 22 elephant project with seventy-five million dollars or less of qualified 23 rehabilitation expenditures; and the phase II application has been 24 submitted within five years of such commissioner's previous certif- 25 ication of credit for the previously eligible white elephant project. 26 (ii) For taxable years beginning on or after January first, two thou- 27 sand [twenty-five] thirty-five, a taxpayer shall be allowed a credit as 28 hereinafter provided, against the tax imposed by this article, in an 29 amount equal to thirty percent of the amount of credit allowed the 30 taxpayer for the same taxable year determined without regard to ratably 31 allocating the credit over a five year period as required by subsection 32 (a) of section 47 of the internal revenue code, with respect to a certi- 33 fied historic structure under subsection (c)(3) of section 47 of the 34 internal revenue code with respect to a certified historic structure 35 located within the state. Provided, however, the credit shall not exceed 36 one hundred thousand dollars, unless such credit is allowed with respect 37 to a certified historic structure that is a white elephant project, in 38 which case, the credit shall not exceed three hundred thousand dollars. 39 [(B)] (iii) If the taxpayer is a partner in a partnership or a share- 40 holder in a New York S corporation, then the credit caps imposed in 41 [subparagraph (A)] subparagraphs (i) and (ii) of this paragraph shall be 42 applied at the entity level, so that the aggregate credit allowed to all 43 the partners or shareholders of each such entity in the taxable year 44 does not exceed the credit cap that is applicable in that taxable year. 45 (b) Tax credits allowed pursuant to this subdivision shall be allowed 46 in the taxable year that the qualified rehabilitation is placed in 47 service under section 167 of the federal internal revenue code. 48 (c) If the taxpayer is allowed a credit pursuant to section 47 of the 49 internal revenue code with respect to a qualified rehabilitation that is 50 also the subject of the credit allowed by this subdivision and that 51 credit pursuant to such section 47 is recaptured pursuant to subsection 52 (a) of section 50 of the internal revenue code, a portion of the credit 53 allowed under this subdivision must be added back in the same taxable 54 year and in the same proportion as the federal credit. 55 (d) The credit allowed under this subdivision for any taxable year 56 shall not reduce the tax due for such year to less than the amount
A. 2889 5 1 prescribed in paragraph (d) of subdivision one of section two hundred 2 ten of this article. However, if the amount of the credit allowed under 3 this subdivision for any taxable year reduces the tax to such amount or 4 if the taxpayer otherwise pays tax based on the fixed dollar minimum 5 amount, any amount of credit thus not deductible in such taxable year 6 shall be treated as an overpayment of tax to be recredited or refunded 7 in accordance with the provisions of section one thousand eighty-six of 8 this chapter. Provided, however, the provisions of subsection (c) of 9 section one thousand eighty-eight of this chapter notwithstanding, no 10 interest shall be paid thereon. 11 (e) Except in the case of (A) a qualified rehabilitation project 12 undertaken within a state park, state historic site, or other land owned 13 by the state, that is under the jurisdiction of the office of parks, 14 recreation and historic preservation, or (B) a qualified white elephant 15 rehabilitation project that is also a qualified low-income housing 16 project under article two-A of the public housing law, to be eligible 17 for the credit allowable under this subdivision, the rehabilitation 18 project shall be in whole or in part located within a census tract which 19 is identified as being at or below one hundred percent of the state 20 median family income as calculated as of April first of each year using 21 the most recent five year estimate from the American community survey 22 published by the United States Census bureau. If there is a change in 23 the most recent five year estimate, a census tract that qualified for 24 eligibility under this program before information about the change was 25 released will remain eligible for a credit under this subdivision for an 26 additional two calendar years. 27 (f) [For purposes of this subdivision] Definitions. As used in this 28 subdivision, the following terms shall have the following meanings: 29 ["small] (A) "Small project" means qualified rehabilitation expendi- 30 tures totaling two million five hundred thousand dollars or less[.]; 31 (B) "White elephant project" means qualified rehabilitation expendi- 32 tures totaling fifty million dollars or more with respect to a certified 33 historic structure that has been vacant, as determined by local code 34 enforcement or other reasonable means, for at least ten of fifteen 35 consecutive years preceding the date of the taxpayer's application for 36 the rehabilitation credit; and 37 (C) "Phase II housing project" means a white elephant housing project 38 which the commissioner determines (i) is reasonably related to a prior 39 eligible white elephant project or eligible white elephant housing 40 project by the same applicant, (ii) such prior project qualified as 41 eligible with seventy-five million dollars or less of qualified rehabil- 42 itation expenditures, and (iii) the phase II application has been 43 submitted within five years of the commissioner's previous allowance of 44 credit for the prior eligible white elephant project or eligible white 45 elephant housing project. 46 (g) The allocation of the credit established by this subdivision 47 may be made without regard to and in a separate manner from any 48 federal rehabilitation credit that may be allocated with respect to 49 a qualified white elephant project. 50 (h) The commissioner shall report annually, on or before the first day 51 of November, on the aggregate amount of credits claimed and awarded 52 pursuant to this subdivision on returns filed during the preceding 53 calendar year. Such report shall be provided to the governor, temporary 54 president of the senate, speaker of the assembly, chair of the senate 55 finance committee and chair of the assembly ways and means committee and 56 shall be made publicly available on the department's website.
A. 2889 6 1 § 3. Subdivision (y) of section 1511 of the tax law, as added by chap- 2 ter 472 of the laws of 2010, subparagraph (A) of paragraph 1 as amended 3 and paragraph 6 as added by section 3 of part CCC of chapter 59 of the 4 laws of 2021, paragraph 3 as amended by section 3 of part RR of chapter 5 59 of the laws of 2018, paragraph 4 as amended by section 4 of part F of 6 chapter 59 of the laws of 2013 and paragraph 5 as amended by section 3 7 of part U of chapter 59 of the laws of 2019, is amended to read as 8 follows: 9 (y) Credit for rehabilitation of historic properties. (1) (A) For 10 taxable years beginning on or after January first, two thousand ten and 11 before January first, two thousand [twenty-five] thirty-five, a taxpayer 12 shall be allowed a credit as hereinafter provided, against the tax 13 imposed by this article, in an amount equal to: 14 (i) one hundred percent of the amount of credit allowed the taxpayer 15 with respect to a certified historic structure, and one hundred fifty 16 percent of the amount of credit allowed the taxpayer with respect to a 17 certified historic structure that is a small project, under internal 18 revenue code section 47(c)(3), determined without regard to ratably 19 allocating the credit over a five year period as required by subsection 20 (a) of such section 47;and 21 (ii) one hundred percent of the amount of credit allowed the taxpayer 22 with respect to a certified historic structure that is a "white 23 elephant project", under internal revenue code section 47(c)(3), with 24 respect to a certified historic structure located within the state. 25 Provided, however, the credit shall not exceed five million dollars, 26 unless such credit is allowed with respect to a certified historic 27 structure that is a "white elephant project", in which case, the credit 28 shall not exceed fifteen million dollars. Provided, further, that when- 29 ever the commissioner of parks, recreation and historic preservation 30 receives an application for a white elephant project from an applicant 31 for which such commissioner has previously certified credit for an 32 eligible white elephant project, the commissioner of parks, recreation 33 and historic preservation may deem such subsequent application to be 34 "phase II" of the original eligible project if such commissioner deter- 35 mines that the two projects are reasonably related, as determined by 36 such commissioner; the previous project qualified as an eligible white 37 elephant project with seventy-five million dollars or less of qualified 38 rehabilitation expenditures; and the "phase II" application has been 39 submitted within five years of such commissioner's previous certif- 40 ication of credit for the previously eligible white elephant project. 41 (B) For taxable years beginning on or after January first, two thou- 42 sand [twenty-five] thirty-five, a taxpayer shall be allowed a credit as 43 hereinafter provided, against the tax imposed by this article, in an 44 amount equal to thirty percent of the amount of credit allowed the 45 taxpayer with respect to a certified historic structure under internal 46 revenue code section 47(c)(3), determined without regard to ratably 47 allocating the credit over a five year period as required by subsection 48 (a) of such section 47 with respect to a certified historic structure 49 located within the state. Provided, however, the credit shall not 50 exceed one hundred thousand dollars, unless such credit is allowed with 51 respect to a certified historic structure that is a white elephant 52 project, in which case, the credit shall not exceed three hundred thou- 53 sand dollars. 54 [(B)] (C) If the taxpayer is a partner in a partnership, then the cap 55 imposed in [subparagraph] subparagraphs (A) and (B) of this paragraph 56 shall be applied at the entity level, so that the aggregate credit
A. 2889 7 1 allowed to all the partners of such partnership in the taxable year does 2 not exceed the credit cap that is applicable in that taxable year. 3 (2) Tax credits allowed pursuant to this subsection shall be allowed 4 in the taxable year that the qualified rehabilitation is placed in 5 service under section 167 of the federal internal revenue code. 6 (3) If the taxpayer is allowed a credit pursuant to section 47 of the 7 internal revenue code with respect to a qualified rehabilitation that is 8 also the subject of the credit allowed by this subdivision and that 9 credit pursuant to such section 47 is recaptured pursuant to subsection 10 (a) of section 50 of the internal revenue code, a portion of the credit 11 allowed under this subdivision in the taxable year the credit was 12 claimed must be added back in the same taxable year and in the same 13 proportion as the federal recapture. 14 (4) The credit allowed under this subdivision for any taxable year 15 shall not reduce the tax due for such year to less than the minimum 16 fixed by paragraph four of subdivision (a) of section fifteen hundred 17 two or section fifteen hundred two-a of this article, whichever is 18 applicable. However, if the amount of credits allowed under this subdi- 19 vision for any taxable year reduces the tax to such amount, any amount 20 of credit thus not deductible in such taxable year shall be treated as 21 an overpayment of tax to be credited or refunded in accordance with the 22 provisions of section one thousand eighty-six of this chapter. Provided, 23 however, the provisions of subsection (c) of section one thousand eight- 24 y-eight of this chapter notwithstanding, no interest shall be paid ther- 25 eon. 26 (5) Except in the case of a (A) qualified rehabilitation project 27 undertaken within a state park, state historic site, or other land owned 28 by the state, that is under the jurisdiction of the office of parks, 29 recreation and historic preservation, or (B) a qualified white elephant 30 rehabilitation project that is also a qualified low-income housing 31 project under article two-A of the public housing law, to be eligible 32 for the credit allowable under this subdivision, the rehabilitation 33 project shall be in whole or in part located within a census tract which 34 is identified as being at or below one hundred percent of the state 35 median family income as calculated as of April first of each year using 36 the most recent five year estimate from the American community survey 37 published by the United States Census bureau. If there is a change in 38 the most recent five year estimate, a census tract that qualified for 39 eligibility under this program before information about the change was 40 released will remain eligible for a credit under this subdivision for an 41 additional two calendar years. 42 (6) [For purposes of this subdivision] As used in this subdivision, 43 the following terms shall have the following meanings: 44 ["small] (A) "Small project" means qualified rehabilitation expendi- 45 tures totaling two million five hundred thousand dollars or less[.]; 46 (B) "White elephant project" means qualified rehabilitation expendi- 47 tures totaling fifty million dollars or more with respect to a certified 48 historic structure that has been vacant, as determined by local code 49 enforcement or other reasonable means, for at least ten of fifteen 50 consecutive years preceding the date of the taxpayer's application for 51 the rehabilitation credit; and 52 (C) "Phase II housing project" means a white elephant housing project 53 which the commissioner determines (1) is reasonably related to a prior 54 eligible white elephant project or eligible white elephant housing 55 project by the same applicant, (2) such prior project qualified as 56 eligible with seventy-five million dollars or less of qualified rehabil-
A. 2889 8 1 itation expenditures, and (3) the phase II application has been submit- 2 ted within five years of the commissioner's previous allowance of credit 3 for the prior eligible white elephant project or eligible white elephant 4 housing project. 5 (7) The allocation of the credit established by this subdivision 6 may be made without regard to and in a separate manner from any 7 federal rehabilitation credit that may be allocated with respect to 8 a qualified white elephant project. 9 (8) The commissioner shall report annually, on or before the first day 10 of November, on the aggregate amount of credits claimed and awarded 11 pursuant to this subdivision on returns filed during the preceding 12 calendar year. Such report shall be provided to the governor, temporary 13 president of the senate, speaker of the assembly, chair of the senate 14 finance committee and chair of the assembly ways and means committee and 15 shall be made publicly available on the department's website. 16 § 4. The parks, recreation and historic preservation law is amended by 17 adding a new article 14-A to read as follows: 18 ARTICLE 14-A 19 WHITE ELEPHANT HOUSING HISTORIC REHABILITATION PROJECTS TAX 20 CREDIT PROGRAM 21 Section 14.15 Definitions. 22 14.16 Allowance of credit, amount and limitations. 23 14.17 Project monitoring. 24 14.18 Regulations, coordination with federal rehabilitation 25 credit provisions. 26 § 14.15 Definitions. As used in this article, the following terms 27 shall have the following meanings: 28 1. "Eligibility statement" means a statement issued by the commission- 29 er, in consultation with the commissioner of the division of community 30 housing and renewal, certifying that a white elephant housing project is 31 eligible for white elephant housing project historic rehabilitation 32 credits under this article and low income housing tax credits under 33 article two-A of the public housing law. Such statement shall set forth 34 the taxable year in which the building is placed in service, the dollar 35 amount of rehabilitation credit certified by the commissioner to such 36 building as provided in section 14.16 of this article, the dollar amount 37 of low income housing tax credit allocated by the commissioner of commu- 38 nity housing and renewal to such building as provided in section twen- 39 ty-two of the public housing law, sufficient information to identify 40 each such building and the taxpayer or taxpayers with respect to each 41 such building, whether the project is a phase II housing project, and 42 such other information as the commissioner, in consultation with the 43 commissioner of taxation and finance and commissioner of community hous- 44 ing and renewal, shall prescribe. Such eligibility statement shall be 45 first issued following the close of the first taxable year, and there- 46 after, to the extent required by the commissioner of taxation and 47 finance, following the close of each of the following four taxable 48 years. 49 2. "Eligible white elephant project" means a white elephant project as 50 defined in section two hundred ten-B, six hundred six or one thousand 51 five hundred eleven of the tax law that qualifies for historic rehabili- 52 tation tax credit. 53 3. "Eligible white elephant housing project" means an eligible white 54 elephant project as defined in this section that also qualifies for low 55 income housing tax credit under article two-A of the public housing law.
A. 2889 9 1 4. "Phase II housing project" means a white elephant housing project 2 which the commissioner determines (a) is reasonably related to a prior 3 eligible white elephant project or eligible white elephant housing 4 project by the same applicant, (b) such prior project qualified as 5 eligible with less than seventy-five million dollars of qualified reha- 6 bilitation expenditures, and (c) the phase II application has been 7 submitted within five years of the commissioner's previous allowance of 8 credit for the prior eligible white elephant project or eligible white 9 elephant housing project. 10 5. "Qualified rehabilitation expenditures" shall have the same meaning 11 as in section 47 of the internal revenue code. 12 6. "White elephant project" means a project as defined in section two 13 hundred ten-B, six hundred six or one thousand five hundred eleven of 14 the tax law. 15 7. "White elephant housing project" means a "white elephant project" 16 as defined in section two hundred ten-B, six hundred six or one thousand 17 five hundred eleven of the tax law that is also a housing project. 18 8. References in this article to section 47 of the internal revenue 19 code shall mean such section as amended from time to time. 20 § 14.16 Allowance of credit, amount and limitations. 1. A taxpayer 21 subject to tax under article nine-A, twenty-two, or thirty-three of the 22 tax law which owns an interest in one or more eligible white elephant 23 housing projects, or a transferee of such a taxpayer as described in 24 subdivision two of this section, shall be allowed a credit against such 25 tax for the amount of white elephant housing project historic rehabili- 26 tation credit certified by the commissioner to each such structure. 27 2. (a) A taxpayer allowed a credit pursuant to this article may trans- 28 fer the credit, in whole or in part, to another person or entity, who 29 shall be referred to as the transferee, notwithstanding that such other 30 person or entity owns no interest in the eligible white elephant housing 31 project or in an entity with an ownership interest in the eligible white 32 elephant housing project. Transferees shall be entitled to apply trans- 33 ferred credit to a tax imposed under article nine-A, twenty-two or thir- 34 ty-three of the tax law, provided all requirements for claiming the 35 credit are met. A transferee may not transfer any credit, or portion 36 thereof, acquired by transfer. 37 (b) A taxpayer allowed a credit pursuant to this article must enter 38 into a transfer contract with the transferee. The transfer contract must 39 specify: 40 (i) the building identification numbers for all buildings in the white 41 elephant housing project; 42 (ii) the date each building was placed into service; 43 (iii) the five year ownership period for the project; 44 (iv) the schedule of years for which the transfer credit may be 45 claimed and the amount of credit previously claimed; 46 (v) the amount of consideration received by the taxpayer for the 47 transfer credit; and 48 (vi) the amount of credit being transferred. 49 (c) No transfer shall be effective unless the taxpayer allowed a cred- 50 it pursuant to this article and seeking to transfer the credit files a 51 transfer statement with the commissioner prior to the transfer and the 52 commissioner approves such transfer. The transfer statement shall 53 provide the name and federal identification numbers of the filing 54 transferor and the taxpayer to whom the filing transferor transferred 55 the credit, and the amount of credit transferred to each such person or 56 entity. A copy of the transfer contract shall be attached to the trans-
A. 2889 10 1 fer statement. The statement shall also contain such other information 2 as the commissioner may require. After reviewing the transfer contract 3 and the transfer statement, the commissioner shall approve or deny the 4 transfer as provided in this subdivision. If the commissioner approves 5 the transfer, the commissioner shall issue an approval statement that 6 provides the name of the transferor and transferee, the amount of credit 7 being transferred and such other information as the commissioner and the 8 commissioner of taxation and finance deem necessary. A copy of the 9 commissioner's approval statement must be attached to the transferee's 10 tax return. If the commissioner denies the transfer, the commissioner 11 shall provide the taxpayer a written determination for such denial. The 12 commissioner, in consultation with the commissioner of taxation and 13 finance, may establish such other procedures and standards deemed neces- 14 sary for the transferability of the white elephant housing project 15 historic rehabilitation credit. 16 (d) The commissioner shall forward copies of all transfer statements 17 and attachments thereto and approval statements to the department of 18 taxation and finance within thirty days after the transfer is approved 19 by the commissioner. 20 § 14.17 Project monitoring. The commissioner shall establish such 21 procedures deemed necessary for monitoring compliance of an eligible 22 white elephant housing project with the provisions of this article, and 23 for notifying the commissioner of taxation and finance of any such 24 noncompliance. 25 § 14.18 Regulations, coordination with federal rehabilitation credit 26 provisions. 1. The commissioner shall promulgate rules and regulations 27 necessary to administer the provisions of this article. 28 2. The provisions of section 47 of the internal revenue code shall 29 apply to the credit under this article, provided however, to the extent 30 such provisions are inconsistent with this article, the provisions of 31 this article shall control. 32 3. The allocation of the credit established by this article may be 33 made without regard to and in a separate manner from any federal reha- 34 bilitation credit that may be allocated with respect to an eligible 35 white elephant housing project. 36 § 5. Paragraph 2 of subsection (pp) of section 606 of the tax law, as 37 amended by section 4 of part RR of chapter 59 of the laws of 2018, is 38 amended and a new paragraph 13 is added to read as follows: 39 (2) (A) With respect to any particular residence of a taxpayer, the 40 credit allowed under paragraph one of this subsection shall not exceed 41 fifty thousand dollars for taxable years beginning on or after January 42 first, two thousand ten and before January first, two thousand [twenty- 43 five] thirty-five and twenty-five thousand dollars for taxable years 44 beginning on or after January first, two thousand [twenty-five] thirty- 45 five. In the case of a husband and wife, the amount of the credit shall 46 be divided between them equally or in such other manner as they may both 47 elect. If a taxpayer incurs qualified rehabilitation expenditures in 48 relation to more than one residence in the same year, the total amount 49 of credit allowed under paragraph one of this subsection for all such 50 expenditures shall not exceed fifty thousand dollars for taxable years 51 beginning on or after January first, two thousand ten and before January 52 first, two thousand [twenty-five] thirty-five and twenty-five thousand 53 dollars for taxable years beginning on or after January first, two thou- 54 sand [twenty-five] thirty-five. 55 (B) For taxable years beginning on or after January first, two thou- 56 sand ten and before January first, two thousand [twenty-five] thirty-
A. 2889 11 1 five, if the amount of credit allowable under this subsection shall 2 exceed the taxpayer's tax for such year, and the taxpayer's New York 3 adjusted gross income for such year does not exceed sixty thousand 4 dollars, the excess shall be treated as an overpayment of tax to be 5 credited or refunded in accordance with the provisions of section six 6 hundred eighty-six of this article, provided, however, that no interest 7 shall be paid thereon. If the taxpayer's New York adjusted gross income 8 for such year exceeds sixty thousand dollars, the excess credit that may 9 be carried over to the following year or years and may be deducted from 10 the taxpayer's tax for such year or years. For taxable years beginning 11 on or after January first, two thousand [twenty-five] thirty-five, if 12 the amount of credit allowable under this subsection shall exceed the 13 taxpayer's tax for such year, the excess may be carried over to the 14 following year or years and may be deducted from the taxpayer's tax for 15 such year or years. 16 (13) The commissioner shall report annually, on or before the first 17 day of November, on the aggregate amount of credits claimed and awarded 18 pursuant to this subdivision on returns filed during the preceding 19 calendar year. Such report shall be provided to the governor, temporary 20 president of the senate, speaker of the assembly, chair of the senate 21 finance committee and chair of the assembly ways and means committee, 22 shall be made publicly available on the department's website. 23 § 6. Section 14.05 of the parks, recreation and historic preservation 24 law is amended by adding a new subdivision 5 to read as follows: 25 5. (a) The commissioner shall report annually, on or before the first 26 day of November, on the tax credit projects applied for in accordance 27 with subdivision twenty-six of section two hundred ten-B, subsection 28 (oo) of section six hundred six, and subdivision (y) of section fifteen 29 hundred eleven of the tax law on returns filed during the preceding 30 calendar year. Such report shall be provided to the governor, temporary 31 president of the senate, speaker of the assembly, chair of the senate 32 finance committee and chair of the assembly ways and means committee, 33 shall be made publicly available on the department's website and shall 34 include the following information: 35 (i) the number and value of tax credit projects applied for during the 36 state fiscal year, organized by municipality and county, and project 37 size; 38 (ii) the number and value of tax credit projects certified by the 39 national park service during the state fiscal year, organized by munici- 40 pality and county, and project size; 41 (iii) the total value of credits certified annually for each of the 42 taxable years beginning on or after January first, two thousand seven to 43 the present, by municipality and county; 44 (iv) the number of housing units before and after rehabilitation; 45 (v) the number of low-moderate housing units before and after rehabil- 46 itation; and 47 (vi) the number of projects certified for both federal and state cred- 48 its, and the number of projects certified for federal credits only. 49 (b) The commissioner shall report annually, on or before the first day 50 of November, on the tax credit projects applied for pursuant to subdivi- 51 sion (pp) of section six hundred six of the tax law on returns filed 52 during the preceding calendar year. Such report shall be provided to the 53 governor, temporary president of the senate, speaker of the assembly, 54 chair of the senate finance committee and chair of the assembly ways and 55 means committee, shall be made publicly available on the office's 56 website and shall include the following information:
A. 2889 12 1 (i) the number and value of tax credit projects applied for during the 2 state fiscal year, organized by municipality and county, and project 3 size; 4 (ii) the number and value of tax credit projects certified by the 5 office during the state fiscal year, organized by municipality and coun- 6 ty, and project size; 7 (iii) the total value of credits certified annually for each of the 8 taxable years beginning on or after January first, two thousand seven to 9 the present, by municipality and county; 10 (iv) the number of housing units before and after rehabilitation; and 11 (v) the number of projects certified for state credits by the office. 12 § 7. This act shall take effect immediately and shall apply to taxable 13 years beginning on or after January 1, 2024.