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.