New York Assembly Bill A10366

New York 2025-2026 Regular Session

• Introduced: 3/2/26
• Refer: 3/2/26

Caption

Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.

Impact

The bill is expected to have a substantial impact on New York's urban development and historical preservation efforts. By offering such robust tax incentives, the government aims not only to restore historic structures but also to spur economic activity in areas that may be economically distressed. The eligibility criteria ensure that projects take place in census tracts where median family incomes are at or below the state average, thereby potentially enhancing community development and increasing affordable housing availability. Such measures can help revive neighborhoods that have been struggling due to population decline or economic stagnation.

Summary

Bill A10366 focuses on amending New York tax law to introduce a new tax credit program specifically aimed at the rehabilitation of historic properties, particularly highlighting large projects classified as 'white elephant' housing projects. The intent behind the bill is to stimulate the rehabilitation of certified historic structures while providing significant financial incentives to taxpayers involved in these projects. The bill proposes that for eligible projects, taxpayers can benefit from a rehabilitation tax credit that can reach up to $15 million, depending on the nature of the project. Furthermore, 'white elephant projects', which have been vacant for a significant period, will be eligible for higher credit amounts.

Contention

While many lawmakers support the bill for its potential to encourage restoration and development of historic properties, there are also points of contention. Critics argue that the bill may divert funds away from other critical public services or programs. Moreover, the question of whether tax credits adequately achieve community revitalization goals remains a contentious issue. There are concerns about the effectiveness of tax credits in truly addressing housing shortages and whether they merely serve to enrich developers rather than benefiting the communities they are intended to help. The debate continues about how best to balance historical preservation with immediate community housing needs.