Bill Text: NY A05761 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the credit for rehabilitation of historic properties; authorizes the disproportionate allocation of such credit; authorizes the sale or transfer of such credit, in whole or in part, to one or more persons provided any credit may not be sold or transferred more than three times.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A05761 Detail]
Download: New_York-2019-A05761-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5761 2019-2020 Regular Sessions IN ASSEMBLY February 15, 2019 ___________ Introduced by M. of A. RYAN -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to the credit for rehabili- tation of historic properties The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 26 of section 210-B of the tax law is amended 2 by adding three new paragraphs (f), (g) and (h) to read as follows: 3 (f) If a credit is allowed under this subdivision for rehabilitation 4 of a certified historic structure with multiple owners, such credit 5 shall be passed through to such owners, or persons designated as part- 6 ners or members of such owners, pro rata or pursuant to an agreement 7 among such owners, or persons designated as partners or members of such 8 owners, documenting an alternative distribution method without regard to 9 other tax or economic attributes of such owners. 10 (g) (i) Any owner entitled to a credit under this subdivision may 11 sell, assign, or otherwise transfer such credit, in whole or in part, to 12 one or more persons provided any credit, after issuance, may be sold, 13 assigned or otherwise transferred, in whole or in part, not more than 14 three times. Such person shall be entitled to offset the tax imposed 15 under this article as if such transferee had incurred the qualified 16 rehabilitation expenditure. 17 (ii) For the purposes of this subdivision, (A) "person" means any 18 individual, partnership, company, limited liability company, public or 19 private corporation, society, association, trustee, executor, adminis- 20 trator or other fiduciary or custodian and (B) "qualified rehabilitation 21 expenditure" means any costs incurred for the physical construction 22 involved in the rehabilitation of a certified historic structure, 23 excluding: (1) The owner's personal labor, (2) the cost of a new addi- 24 tion, except as required to comply with any provision of the state EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07640-01-9A. 5761 2 1 uniform fire prevention and building code, and (3) any nonconstruction 2 cost such as architectural fees, legal fees and financing fees. 3 (h) If a credit under this subdivision is sold, assigned or otherwise 4 transferred, whether by the owner or any subsequent transferee, the 5 transferor and transferee shall jointly submit written notification of 6 such transfer to the department not later than thirty days after such 7 transfer. The notification after each transfer shall include the credit 8 voucher number, the date of transfer, the amount of such credit trans- 9 ferred, the tax credit balance before and after the transfer, the tax 10 identification numbers for both the transferor and the transferee, and 11 any other information required by the department. Failure to comply with 12 this paragraph shall result in a disallowance of the tax credit until 13 there is full compliance on the part of the transferor and the transfer- 14 ee, and for a second or third transfer, on the part of all subsequent 15 transferors and transferees. 16 § 2. Subsection (oo) of section 606 of the tax law is amended by 17 adding three new paragraphs 6, 7 and 8 to read as follows: 18 (6) If a credit is allowed under this subsection for rehabilitation of 19 a certified historic structure with multiple owners, such credit shall 20 be passed through to such owners, or persons designated as partners or 21 members of such owners, pro rata or pursuant to an agreement among such 22 owners, or persons designated as partners or members of such owners, 23 documenting an alternative distribution method without regard to other 24 tax or economic attributes of such owners. 25 (7) (A) Any owner entitled to a credit under this subsection may sell, 26 assign, or otherwise transfer such credit, in whole or in part, to one 27 or more persons provided any credit, after issuance, may be sold, 28 assigned or otherwise transferred, in whole or in part, not more than 29 three times. Such person shall be entitled to offset the tax imposed 30 under this article as if such transferee had incurred the qualified 31 rehabilitation expenditure. 32 (B) For the purposes of this subsection, (i) "person" means any indi- 33 vidual, partnership, company, limited liability company, public or 34 private corporation, society, association, trustee, executor, adminis- 35 trator or other fiduciary or custodian, and (ii) "qualified rehabili- 36 tation expenditure" means any costs incurred for the physical 37 construction involved in the rehabilitation of a certified historic 38 structure, excluding: (1) the owner's personal labor, (2) the cost of a 39 new addition, except as required to comply with any provision of the 40 state uniform fire prevention and building code, and (3) any noncon- 41 struction cost such as architectural fees, legal fees and financing 42 fees. 43 (8) If a credit under this subsection is sold, assigned or otherwise 44 transferred, whether by the owner or any subsequent transferee, the 45 transferor and transferee shall jointly submit written notification of 46 such transfer to the department not later than thirty days after such 47 transfer. The notification after each transfer shall include the credit 48 voucher number, the date of transfer, the amount of such credit trans- 49 ferred, the tax credit balance before and after the transfer, the tax 50 identification numbers for both the transferor and the transferee, and 51 any other information required by the department. Failure to comply with 52 this paragraph shall result in a disallowance of the tax credit until 53 there is full compliance on the part of the transferor and the transfer- 54 ee, and for a second or third transfer, on the part of all subsequent 55 transferors and transferees.A. 5761 3 1 § 3. Subdivision (y) of section 1511 of the tax law, is amended by 2 adding three new paragraphs 6, 7, and 8 to read as follows: 3 (6) If a credit is allowed under this subdivision for rehabilitation 4 of a certified historic structure with multiple owners, such credit 5 shall be passed through to such owners, or persons designated as part- 6 ners or members of such owners, pro rata or pursuant to an agreement 7 among such owners, or persons designated as partners or members of such 8 owners, documenting an alternative distribution method without regard to 9 other tax or economic attributes of such owners. 10 (7) (A) Any owner entitled to a credit under this subdivision may 11 sell, assign, or otherwise transfer such credit, in whole or in part, to 12 one or more persons provided any credit, after issuance, may be sold, 13 assigned or otherwise transferred, in whole or in part, not more than 14 three times. Such person shall be entitled to offset the tax imposed 15 under this article as if such transferee had incurred the qualified 16 rehabilitation expenditure. 17 (B) For the purposes of this subdivision, (i) "person" means any indi- 18 vidual, partnership, company, limited liability company, public or 19 private corporation, society, association, trustee, executor, adminis- 20 trator or other fiduciary or custodian, and (ii) "qualified rehabili- 21 tation expenditure" means any costs incurred for the physical 22 construction involved in the rehabilitation of a certified historic 23 structure, excluding: (1) the owner's personal labor, (2) the cost of a 24 new addition, except as required to comply with any provision of the 25 state uniform fire prevention and building code, and (3) any noncon- 26 struction cost such as architectural fees, legal fees and financing 27 fees. 28 (8) If a credit under this subdivision is sold, assigned or otherwise 29 transferred, whether by the owner or any subsequent transferee, the 30 transferor and transferee shall jointly submit written notification of 31 such transfer to the department not later than thirty days after such 32 transfer. The notification after each transfer shall include the credit 33 voucher number, the date of transfer, the amount of such credit trans- 34 ferred, the tax credit balance before and after the transfer, the tax 35 identification numbers for both the transferor and the transferee, and 36 any other information required by the department. Failure to comply with 37 this paragraph shall result in a disallowance of the tax credit until 38 there is full compliance on the part of the transferor and the transfer- 39 ee, and for a second or third transfer, on the part of all subsequent 40 transferors and transferees. 41 § 4. This act shall take effect immediately and shall apply to taxable 42 years beginning on and after January 1, 2019.