Bill Text: NY A04163 | 2013-2014 | General Assembly | Amended


Bill Title: Establishes a credit against income tax for the rehabilitation of distressed residential properties; allows a credit equal to thirty percent of the qualified rehabilitation expenditures made by the taxpayer with respect to a qualified distressed residential property; requires property that qualifies must be constructed prior to January 1, 1962 in a distressed residential or mixed-use neighborhood.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2014-06-04 - print number 4163b [A04163 Detail]

Download: New_York-2013-A04163-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4163--B
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 1, 2013
                                      ___________
       Introduced  by  M.  of  A. SCHIMMINGER -- Multi-Sponsored by -- M. of A.
         CYMBROWITZ -- read once and referred to  the  Committee  on  Ways  and
         Means  -- recommitted to the Committee on Ways and Means in accordance
         with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
         ordered  reprinted  as  amended  and  recommitted to said committee --
         again reported from said committee with amendments, ordered  reprinted
         as amended and recommitted to said committee
       AN  ACT  to  amend  the  tax  law,  in relation to establishing a credit
         against income tax for the rehabilitation  of  distressed  residential
         properties
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  Section 606 of the tax law is  amended  by  adding  a  new
    2  subsection (ccc) to read as follows:
    3    (CCC)  CREDIT FOR REHABILITATION OF DISTRESSED RESIDENTIAL PROPERTIES.
    4  (1) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO  THOUSAND
    5  FOURTEEN,  A TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER PROVIDED,
    6  AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN AN AMOUNT  EQUAL  TO  THIRTY
    7  PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
    8  ER   WITH  RESPECT  TO  A  QUALIFIED  DISTRESSED  RESIDENTIAL  PROPERTY.
    9  PROVIDED, HOWEVER, THE CREDIT SHALL  NOT  EXCEED  ONE  HUNDRED  THOUSAND
   10  DOLLARS.
   11    (2)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
   12  IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
   13  ITATION.
   14    (3) IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER  THIS  SUBSECTION  FOR
   15  ANY  TAXABLE  YEAR  SHALL  EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, THE
   16  EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS,  AND  MAY  BE
   17  APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
   18  EXCEED TWENTY-FIVE THOUSAND DOLLARS.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05245-07-4
       A. 4163--B                          2
    1    (4)  (A)  THE  TERM  "QUALIFIED REHABILITATION EXPENDITURE" MEANS, FOR
    2  PURPOSES OF THIS SUBSECTION, ANY AMOUNT PROPERLY CHARGEABLE TO A CAPITAL
    3  ACCOUNT:
    4    (I)  IN  CONNECTION  WITH  THE CERTIFIED REHABILITATION OF A QUALIFIED
    5  DISTRESSED RESIDENTIAL PROPERTY, AND
    6    (II) FOR PROPERTY FOR WHICH  DEPRECIATION  WOULD  BE  ALLOWABLE  UNDER
    7  SECTION 168 OF THE INTERNAL REVENUE CODE.
    8    (B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
    9  OR  INTEREST  THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO THE ENLARGE-
   10  MENT OF AN EXISTING BUILDING, OR (III) ANY  EXPENDITURE  MADE  PRIOR  TO
   11  JANUARY FIRST, TWO THOUSAND FOURTEEN OR AFTER DECEMBER THIRTY-FIRST, TWO
   12  THOUSAND NINETEEN.
   13    (5)  THE  TERM  "CERTIFIED  REHABILITATION"  MEANS,  FOR  PURPOSES  OF
   14  DISTRESSED RESIDENTIAL PROPERTY IN THIS SUBSECTION,  ANY  REHABILITATION
   15  OF  A  CERTIFIED DISTRESSED RESIDENTIAL PROPERTY WHICH HAS BEEN APPROVED
   16  AND CERTIFIED BY A LOCAL GOVERNMENT AS BEING COMPLETED, WITH  A  CERTIF-
   17  ICATE  OF  OCCUPANCY  ISSUED, AND THAT THE COSTS ARE CONSISTENT WITH THE
   18  WORK COMPLETED. SUCH CERTIFICATION SHALL BE ACCEPTABLE AS PROOF THAT THE
   19  EXPENDITURES RELATED TO SUCH REHABILITATION QUALIFY AS  QUALIFIED  REHA-
   20  BILITATION  EXPENDITURES  FOR PURPOSES OF THE CREDIT ALLOWED UNDER PARA-
   21  GRAPH ONE OF THIS SUBSECTION.
   22    (6) (A) THE TERM "QUALIFIED RESIDENTIAL PROPERTY" MEANS, FOR  PURPOSES
   23  OF THIS SUBSECTION, A DISTRESSED RESIDENTIAL PROPERTY LOCATED WITHIN NEW
   24  YORK STATE:
   25    (I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
   26    (II)  WHICH  WAS  CONSTRUCTED PRIOR TO JANUARY FIRST, NINETEEN HUNDRED
   27  SIXTY-TWO,
   28    (III) WHICH IS OWNED BY THE TAXPAYER, AND
   29    (IV) WHICH IS LOCATED WITHIN A  DISTRESSED  RESIDENTIAL  OR  MIXED-USE
   30  AREA,  AS  IDENTIFIED BY EACH LOCALITY THROUGH LOCAL LAW, THAT IS DEEMED
   31  AN AREA IN NEED OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
   32    (B) IF THE DISTRESSED RESIDENTIAL PROPERTY IS  RENTAL  PROPERTY,  SUCH
   33  PROPERTY  SHALL  HAVE BEEN VACANT FOR AT LEAST SIX MONTHS WHILE ACTIVELY
   34  MARKETED FOR LEASE.
   35    (C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
   36  ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
   37  BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
   38    (7) (A) IF THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S  INTEREST  IN  THE
   39  QUALIFIED DISTRESSED RESIDENTIAL PROPERTY, OR SUCH PROPERTY CEASES TO BE
   40  USED  AS  A  RESIDENTIAL  PROPERTY  OF THE TAXPAYER WITHIN FIVE YEARS OF
   41  RECEIVING THE CREDIT UNDER THIS SUBSECTION, THE TAXPAYER'S  TAX  IMPOSED
   42  BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
   43  TION  OCCURS  SHALL  BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT
   44  ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR TAXABLE YEARS  WITH  RESPECT
   45  TO SUCH REHABILITATION.
   46    (B)  FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
   47  PORTION SHALL BE THE PRODUCT OF THE AMOUNT  OF  CREDIT  CLAIMED  BY  THE
   48  TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
   49  LESS  THE  NUMBER OF MONTHS THE BUILDING IS OWNED OR USED AS RESIDENTIAL
   50  PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
   51    (8)  ANY  EXPENDITURE  FOR  WHICH  A  CREDIT  IS  CLAIMED  UNDER  THIS
   52  SUBSECTION  SHALL  NOT BE ELIGIBLE FOR ANY OTHER CREDIT UNDER THIS CHAP-
   53  TER.
   54    S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
   55  of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
   56  follows:
       A. 4163--B                          3
    1  (XLI) CREDIT FOR REHABILITATION      AMOUNT OF CREDIT
    2  OF DISTRESSED RESIDENTIAL            UNDER SUBDIVISION FIFTY
    3  PROPERTIES UNDER SUBSECTION (CCC)    OF SECTION TWO HUNDRED TEN
    4    S 3. Section 210 of the tax law is amended by adding a new subdivision
    5  50 to read as follows:
    6    50.  CREDIT  FOR  REHABILITATION OF DISTRESSED RESIDENTIAL PROPERTIES.
    7  (1) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO  THOUSAND
    8  FOURTEEN,  A TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER PROVIDED,
    9  AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN AN AMOUNT  EQUAL  TO  THIRTY
   10  PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
   11  ER   WITH  RESPECT  TO  A  QUALIFIED  DISTRESSED  RESIDENTIAL  PROPERTY.
   12  PROVIDED, HOWEVER, THE CREDIT SHALL  NOT  EXCEED  ONE  HUNDRED  THOUSAND
   13  DOLLARS.
   14    (2)  TAX CREDITS ALLOWED PURSUANT TO THIS SUBDIVISION SHALL BE ALLOWED
   15  IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
   16  ITATION.
   17    (3) IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS  SUBDIVISION  FOR
   18  ANY  TAXABLE  YEAR  SHALL  EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, THE
   19  EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS,  AND  MAY  BE
   20  APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
   21  EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   22    (4)  (A)  THE  TERM  "QUALIFIED REHABILITATION EXPENDITURE" MEANS, FOR
   23  PURPOSES OF THIS SUBDIVISION, ANY AMOUNT PROPERLY CHARGEABLE TO A  CAPI-
   24  TAL ACCOUNT:
   25    (I)  IN  CONNECTION  WITH  THE CERTIFIED REHABILITATION OF A QUALIFIED
   26  RESIDENTIAL PROPERTY, AND
   27    (II) FOR PROPERTY FOR WHICH  DEPRECIATION  WOULD  BE  ALLOWABLE  UNDER
   28  SECTION 168 OF THE INTERNAL REVENUE CODE.
   29    (B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
   30  OR  INTEREST  THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO THE ENLARGE-
   31  MENT OF AN EXISTING BUILDING, OR (III) ANY  EXPENDITURE  MADE  PRIOR  TO
   32  JANUARY FIRST, TWO THOUSAND FOURTEEN OR AFTER DECEMBER THIRTY-FIRST, TWO
   33  THOUSAND NINETEEN.
   34    (5)  THE  TERM  "CERTIFIED REHABILITATION" MEANS, FOR PURPOSES OF THIS
   35  SUBDIVISION, ANY REHABILITATION OF A  CERTIFIED  DISTRESSED  RESIDENTIAL
   36  PROPERTY  WHICH HAS BEEN APPROVED AND CERTIFIED BY A LOCAL GOVERNMENT AS
   37  BEING COMPLETED, WITH A CERTIFICATE OF OCCUPANCY ISSUED,  AND  THAT  THE
   38  COSTS  ARE  CONSISTENT WITH THE WORK COMPLETED. SUCH CERTIFICATION SHALL
   39  BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO  SUCH  REHABILI-
   40  TATION  QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES OF
   41  THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBDIVISION.
   42    (6) (A) THE TERM "QUALIFIED RESIDENTIAL PROPERTY" MEANS, FOR  PURPOSES
   43  OF  THIS  SUBDIVISION,  A DISTRESSED RESIDENTIAL PROPERTY LOCATED WITHIN
   44  NEW YORK STATE:
   45    (I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
   46    (II) WHICH WAS CONSTRUCTED PRIOR TO JANUARY  FIRST,  NINETEEN  HUNDRED
   47  SIXTY-TWO,
   48    (III) WHICH IS OWNED BY THE TAXPAYER, AND
   49    (IV)  WHICH  IS  LOCATED  WITHIN A DISTRESSED RESIDENTIAL OR MIXED-USE
   50  AREA, AS IDENTIFIED BY EACH LOCALITY THROUGH LOCAL LAW, THAT  IS  DEEMED
   51  AN AREA IN NEED OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
   52    (B)  IF  THE  DISTRESSED RESIDENTIAL PROPERTY IS RENTAL PROPERTY, SUCH
   53  PROPERTY SHALL HAVE BEEN VACANT FOR AT LEAST SIX MONTHS  WHILE  ACTIVELY
   54  MARKETED FOR LEASE.
       A. 4163--B                          4
    1    (C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
    2  ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
    3  BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
    4    (7)  (A)  IF  THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN THE
    5  QUALIFIED DISTRESSED RESIDENTIAL PROPERTY, OR SUCH PROPERTY CEASES TO BE
    6  USED AS A RESIDENTIAL PROPERTY OF THE  TAXPAYER  WITHIN  FIVE  YEARS  OF
    7  RECEIVING  THE CREDIT UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED
    8  BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
    9  TION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION  OF  THE  CREDIT
   10  ALLOWED  UNDER THIS SUBDIVISION FOR ALL PRIOR TAXABLE YEARS WITH RESPECT
   11  TO SUCH REHABILITATION.
   12    (B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE  RECAPTURE
   13  PORTION  SHALL  BE  THE  PRODUCT  OF THE AMOUNT OF CREDIT CLAIMED BY THE
   14  TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
   15  LESS THE NUMBER OF MONTHS THE BUILDING IS OWNED OR USED  AS  RESIDENTIAL
   16  PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
   17    (8)  ANY EXPENDITURE FOR WHICH A CREDIT IS CLAIMED UNDER THIS SUBDIVI-
   18  SION SHALL NOT BE ELIGIBLE FOR ANY OTHER CREDIT UNDER THIS CHAPTER.
   19    S 4. This act shall take effect immediately and shall apply to taxable
   20  years beginning on or after January 1, 2014.
feedback