Bill Text: NY A05665 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the tax law, in relation to granting a tax credit to business firms for contributions made to neighborhood assistance programs
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2010-01-06 - referred to ways and means [A05665 Detail]
Download: New_York-2009-A05665-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5665 2009-2010 Regular Sessions I N A S S E M B L Y February 17, 2009 ___________ Introduced by M. of A. V. LOPEZ, JOHN, GREENE, WEISENBERG, ENGLEBRIGHT, JACOBS, PERRY, BROOK-KRASNY -- Multi-Sponsored by -- M. of A. CANES- TRARI, CYMBROWITZ, DESTITO, EDDINGTON -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to granting a tax credit to business firms for contributions made to neighborhood assistance programs THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 210 of the tax law is amended by adding a new 2 subdivision 25-b to read as follows: 3 25-B. NEIGHBORHOOD ASSISTANCE PROGRAM CREDIT. (A) FOR THE PURPOSE OF 4 THIS SUBDIVISION A QUALIFYING RECIPIENT SHALL BE A COMPANY UNDER 5 CONTRACT WITH THE DIVISION OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO 6 SECTIONS NINE HUNDRED THREE AND ONE THOUSAND THREE OF THE PRIVATE HOUS- 7 ING FINANCE LAW OR OTHER NON-PROFIT ENTITIES THAT ENGAGE IN HOUSING AND 8 COMMUNITY DEVELOPMENT ACTIVITIES INCLUDING BUT NOT LIMITED TO: PRESERVA- 9 TION AND DEVELOPMENT OF AFFORDABLE HOUSING, HOUSING COUNSELING AND 10 COMMUNITY RENEWAL. THE COMMISSIONER OF THE DIVISION OF HOUSING AND 11 COMMUNITY RENEWAL SHALL ESTABLISH A PROCEDURE TO CERTIFY SUCH OTHER 12 ENTITIES AS QUALIFYING RECIPIENTS. 13 (B) THE COMMISSIONER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL 14 SHALL ESTABLISH A PROCESS FOR APPROVAL OF A CREDIT AGAINST ANY TAX DUE 15 UNDER THIS ARTICLE TO BUSINESSES, WHICH CONTRIBUTE TO A QUALIFYING 16 RECIPIENT. SUCH APPROVAL SHALL BE FORWARDED TO THE DEPARTMENT UNDER 17 PROCEDURES TO BE ESTABLISHED BY THE DIVISION OF HOUSING AND COMMUNITY 18 RENEWAL AND THE DEPARTMENT. THE AMOUNT OF THE TAX CREDIT VOUCHER SHALL 19 NOT EXCEED ONE-HALF THE AMOUNT OF THE CONTRIBUTION. ONLY CASH CONTRIB- 20 UTIONS SHALL BE ELIGIBLE FOR THIS TAX CREDIT. 21 (C) CRITERIA FOR APPROVAL OF TAX CREDIT PROPOSALS SHALL INCLUDE: THE 22 EXTENT OF NEED OF THE COMMUNITY, VISION AND PLANS FOR THE REVITALIZATION EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08366-01-9 A. 5665 2 1 OF THE COMMUNITY; SUCCESSFUL TRACK RECORD OF SERVICE TO THE COMMUNITY; 2 BOARD AND COMMUNITY INVOLVEMENT; AND DEMONSTRATED ABILITY TO UTILIZE 3 RESOURCES EFFECTIVELY. 4 (D) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT TWO OR MORE 5 TAXPAYERS OR TWO OR MORE QUALIFYING RECIPIENTS FROM PARTICIPATING JOINT- 6 LY IN ONE OR MORE PROGRAMS UNDER THE PROVISIONS OF THIS SUBDIVISION NOR 7 SHALL IT BE CONSTRUED TO PREVENT ANY BUSINESS FROM PARTICIPATING IN ONE 8 OR MORE PROGRAMS. 9 (E) THE SUM OF ALL TAX CREDITS GRANTED PURSUANT TO THE PROVISIONS OF 10 THIS SUBDIVISION SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS ANNUALLY 11 FOR ANY ONE TAXPAYER INCLUDING SUCH PARTY'S AFFILIATES AND RELATED ENTI- 12 TIES AS DETERMINED BY THE COMMISSIONER, UNLESS THE COMMISSIONER DETER- 13 MINES THAT THE TOTAL AMOUNT OF THE TAX CREDITS ALLOWED TO TAXPAYERS WILL 14 BE UNDER-UTILIZED IN ANY ONE FISCAL YEAR. 15 (F) NO TAX CREDIT SHALL BE GRANTED TO ANY BUSINESS FOR ACTIVITIES THAT 16 ARE PART OF ITS OR ANY OF ITS AFFILIATES' OR RELATED ENTITIES' ORDINARY 17 COURSE OF BUSINESS. 18 (G) ANY TAX CREDIT NOT USED DURING THE PERIOD WITHIN WHICH THE 19 CONTRIBUTION WAS MADE MAY BE CARRIED FORWARD FOR ONE IMMEDIATELY 20 SUCCEEDING CALENDAR OR FISCAL YEAR UNTIL THE FULL CREDIT HAS BEEN 21 ALLOWED. 22 (H) NO ONE QUALIFYING RECIPIENT SHALL BE ALLOWED TO RECEIVE CAPITAL, 23 WITH RESPECT TO WHICH A TAX CREDIT IS GRANTED PURSUANT TO THIS SUBDIVI- 24 SION, IN EXCESS OF ONE HUNDRED FIFTY THOUSAND DOLLARS IN ANY ONE-YEAR 25 PERIOD. 26 S 2. Section 1456 of the tax law is amended by adding a new subsection 27 (u) to read as follows: 28 (U) NEIGHBORHOOD ASSISTANCE PROGRAM CREDIT. (1) FOR THE PURPOSE OF 29 THIS SUBSECTION A QUALIFYING RECIPIENT SHALL BE A COMPANY UNDER CONTRACT 30 WITH THE DIVISION OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO SECTIONS 31 NINE HUNDRED THREE AND ONE THOUSAND THREE OF THE PRIVATE HOUSING FINANCE 32 LAW OR OTHER NON-PROFIT ENTITIES THAT ENGAGE IN HOUSING AND COMMUNITY 33 DEVELOPMENT ACTIVITIES INCLUDING BUT NOT LIMITED TO: PRESERVATION AND 34 DEVELOPMENT OF AFFORDABLE HOUSING, HOUSING COUNSELING AND COMMUNITY 35 RENEWAL. THE COMMISSIONER OF THE DIVISION OF HOUSING AND COMMUNITY 36 RENEWAL SHALL ESTABLISH A PROCEDURE TO CERTIFY SUCH OTHER ENTITIES AS 37 QUALIFYING RECIPIENTS. 38 (2) THE COMMISSIONER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL 39 SHALL ESTABLISH A PROCESS FOR APPROVAL OF A CREDIT AGAINST ANY TAX DUE 40 UNDER THIS ARTICLE TO BUSINESSES, WHICH CONTRIBUTE TO A QUALIFYING 41 RECIPIENT. SUCH APPROVAL SHALL BE FORWARDED TO THE DEPARTMENT UNDER 42 PROCEDURES TO BE ESTABLISHED BY THE DIVISION OF HOUSING AND COMMUNITY 43 RENEWAL AND THE DEPARTMENT. THE AMOUNT OF THE TAX CREDIT VOUCHER SHALL 44 NOT EXCEED ONE-HALF THE AMOUNT OF THE CONTRIBUTION. ONLY CASH CONTRIB- 45 UTIONS SHALL BE ELIGIBLE FOR THIS TAX CREDIT. 46 (3) CRITERIA FOR APPROVAL OF TAX CREDIT PROPOSALS SHALL INCLUDE: THE 47 EXTENT OF NEED OF THE COMMUNITY, VISION AND PLANS FOR THE REVITALIZATION 48 OF THE COMMUNITY; SUCCESSFUL TRACK RECORD OF SERVICE TO THE COMMUNITY; 49 BOARD AND COMMUNITY INVOLVEMENT; AND DEMONSTRATED ABILITY TO UTILIZE 50 RESOURCES EFFECTIVELY. 51 (4) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT TWO OR MORE 52 TAXPAYERS OR TWO OR MORE QUALIFYING RECIPIENTS FROM PARTICIPATING JOINT- 53 LY IN ONE OR MORE PROGRAMS UNDER THE PROVISIONS OF THIS SUBSECTION NOR 54 SHALL IT BE CONSTRUED TO PREVENT ANY BUSINESS FROM PARTICIPATING IN ONE 55 OR MORE PROGRAMS. A. 5665 3 1 (5) THE SUM OF ALL TAX CREDITS GRANTED PURSUANT TO THE PROVISIONS OF 2 THIS SUBSECTION SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS ANNUALLY 3 FOR ANY ONE TAXPAYER INCLUDING SUCH PARTY'S AFFILIATES AND RELATED ENTI- 4 TIES AS DETERMINED BY THE COMMISSIONER, UNLESS THE COMMISSIONER DETER- 5 MINES THAT THE TOTAL AMOUNT OF THE TAX CREDITS ALLOWED TO TAXPAYERS WILL 6 BE UNDER-UTILIZED IN ANY ONE FISCAL YEAR. 7 (6) NO TAX CREDIT SHALL BE GRANTED TO ANY BUSINESS FOR ACTIVITIES THAT 8 ARE PART OF ITS OR ANY OF ITS AFFILIATES' OR RELATED ENTITIES' ORDINARY 9 COURSE OF BUSINESS. 10 (7) ANY TAX CREDIT NOT USED DURING THE PERIOD WITHIN WHICH THE 11 CONTRIBUTION WAS MADE MAY BE CARRIED FORWARD FOR ONE IMMEDIATELY 12 SUCCEEDING CALENDAR OR FISCAL YEAR UNTIL THE FULL CREDIT HAS BEEN 13 ALLOWED. 14 (8) NO ONE QUALIFYING RECIPIENT SHALL BE ALLOWED TO RECEIVE CAPITAL, 15 WITH RESPECT TO WHICH A TAX CREDIT IS GRANTED PURSUANT TO THIS 16 SUBSECTION, IN EXCESS OF ONE HUNDRED FIFTY THOUSAND DOLLARS IN ANY ONE- 17 YEAR PERIOD. 18 S 3. Section 1511 of the tax law is amended by adding a new subdivi- 19 sion (l-1) to read as follows: 20 (L-1) NEIGHBORHOOD ASSISTANCE PROGRAM CREDIT. (1) FOR THE PURPOSE OF 21 THIS SUBDIVISION A QUALIFYING RECIPIENT SHALL BE A COMPANY UNDER 22 CONTRACT WITH THE DIVISION OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO 23 SECTIONS NINE HUNDRED THREE AND ONE THOUSAND THREE OF THE PRIVATE HOUS- 24 ING FINANCE LAW OR OTHER NON-PROFIT ENTITIES THAT ENGAGE IN HOUSING AND 25 COMMUNITY DEVELOPMENT ACTIVITIES INCLUDING BUT NOT LIMITED TO: PRESERVA- 26 TION AND DEVELOPMENT OF AFFORDABLE HOUSING, HOUSING COUNSELING AND 27 COMMUNITY RENEWAL. THE COMMISSIONER OF THE DIVISION OF HOUSING AND 28 COMMUNITY RENEWAL SHALL ESTABLISH A PROCEDURE TO CERTIFY SUCH OTHER 29 ENTITIES AS QUALIFYING RECIPIENTS. 30 (2) THE COMMISSIONER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL 31 SHALL ESTABLISH A PROCESS FOR APPROVAL OF A CREDIT AGAINST ANY TAX DUE 32 UNDER THIS ARTICLE TO BUSINESSES, WHICH CONTRIBUTE TO A QUALIFYING 33 RECIPIENT. SUCH APPROVAL SHALL BE FORWARDED TO THE DEPARTMENT UNDER 34 PROCEDURES TO BE ESTABLISHED BY THE DIVISION OF HOUSING AND COMMUNITY 35 RENEWAL AND THE DEPARTMENT. THE AMOUNT OF THE TAX CREDIT VOUCHER SHALL 36 NOT EXCEED ONE-HALF THE AMOUNT OF THE CONTRIBUTION. ONLY CASH CONTRIB- 37 UTIONS SHALL BE ELIGIBLE FOR THIS TAX CREDIT. 38 (3) CRITERIA FOR APPROVAL OF TAX CREDIT PROPOSALS SHALL INCLUDE: THE 39 EXTENT OF NEED OF THE COMMUNITY, VISION AND PLANS FOR THE REVITALIZATION 40 OF THE COMMUNITY; SUCCESSFUL TRACK RECORD OF SERVICE TO THE COMMUNITY; 41 BOARD AND COMMUNITY INVOLVEMENT; AND DEMONSTRATED ABILITY TO UTILIZE 42 RESOURCES EFFECTIVELY. 43 (4) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT TWO OR MORE 44 TAXPAYERS OR TWO OR MORE QUALIFYING RECIPIENTS FROM PARTICIPATING JOINT- 45 LY IN ONE OR MORE PROGRAMS UNDER THE PROVISIONS OF THIS SUBDIVISION NOR 46 SHALL IT BE CONSTRUED TO PREVENT ANY BUSINESS FROM PARTICIPATING IN ONE 47 OR MORE PROGRAMS. 48 (5) THE SUM OF ALL TAX CREDITS GRANTED PURSUANT TO THE PROVISIONS OF 49 THIS SUBDIVISION SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS ANNUALLY 50 FOR ANY ONE TAXPAYER INCLUDING SUCH PARTY'S AFFILIATES AND RELATED ENTI- 51 TIES AS DETERMINED BY THE COMMISSIONER, UNLESS THE COMMISSIONER DETER- 52 MINES THAT THE TOTAL AMOUNT OF THE TAX CREDITS ALLOWED TO TAXPAYERS WILL 53 BE UNDER-UTILIZED IN ANY ONE FISCAL YEAR. 54 (6) NO TAX CREDIT SHALL BE GRANTED TO ANY BUSINESS FOR ACTIVITIES THAT 55 ARE PART OF ITS OR ANY OF ITS AFFILIATES' OR RELATED ENTITIES' ORDINARY 56 COURSE OF BUSINESS. A. 5665 4 1 (7) ANY TAX CREDIT NOT USED DURING THE PERIOD WITHIN WHICH THE 2 CONTRIBUTION WAS MADE MAY BE CARRIED FORWARD FOR ONE IMMEDIATELY 3 SUCCEEDING CALENDAR OR FISCAL YEAR UNTIL THE FULL CREDIT HAS BEEN 4 ALLOWED. 5 (8) NO ONE QUALIFYING RECIPIENT SHALL BE ALLOWED TO RECEIVE CAPITAL, 6 WITH RESPECT TO WHICH A TAX CREDIT IS GRANTED PURSUANT TO THIS SUBDIVI- 7 SION, IN EXCESS OF ONE HUNDRED FIFTY THOUSAND DOLLARS IN ANY ONE-YEAR 8 PERIOD. 9 S 4. In no event shall the total amount of the tax credits allowed to 10 taxpayers pursuant to the provisions of subdivision 25-b of section 210, 11 subsection (u) of section 1456 and subdivision (1-1) of section 1511 of 12 the tax law, in the aggregate, exceed ten million dollars in any one 13 fiscal year. No more than fifty percent of the total amount of the tax 14 credits shall be granted for contributions made to neighborhood organ- 15 izations located within a city with a population of one million or more. 16 S 5. This act shall take effect on the one hundred twentieth day after 17 it shall have become a law. Effective immediately, the commissioner of 18 the division of housing and community renewal shall promulgate any rules 19 and regulations necessary for the timely implementation of this act on 20 or before such date.