Bill Text: NY A06630 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes the rental real estate income relief tax credit in response to the loss of rental income related to the inability of residential tenants and small business commercial tenants to pay rent as a result of government ordered restrictions in response to the coronavirus disease 2019 (COVID-19).
Spectrum: Partisan Bill (Republican 31-0)
Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A06630 Detail]
Download: New_York-2021-A06630-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6630 2021-2022 Regular Sessions IN ASSEMBLY March 23, 2021 ___________ Introduced by M. of A. BARCLAY, FITZPATRICK, NORRIS, TAGUE, FRIEND, MORINELLO, BLANKENBUSH, HAWLEY, PALMESANO, M. MILLER, MANKTELOW, B. MILLER, ASHBY, BRABENEC, MONTESANO, J. M. GIGLIO, SMULLEN, GOODELL, SALKA, SCHMITT, BYRNES, DiPIETRO, RA, DeSTEFANO, McDONOUGH, SIMPSON, GALLAHAN, LEMONDES, LAWLER -- Multi-Sponsored by -- M. of A. BROWN, WALSH -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing the rental real estate income relief tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 55 to read as follows: 3 55. Rental real estate income relief tax credit. (a) For the purposes 4 of this subdivision, the following terms shall have the following mean- 5 ings: 6 (1) "Residential tenant" shall have the same meaning as paragraph (a) 7 of subdivision one of section two hundred thirty-five-f of the real 8 property law, those who otherwise pay for the use and occupancy of a 9 residential dwelling, or occupants as defined by paragraph (b) of subdi- 10 vision one of section two hundred thirty-five-f of the real property 11 law. 12 (2) "Commercial tenant" shall mean a person or entity lawfully occupy- 13 ing a covered property pursuant to a lease or other rental agreement. 14 (3) "Covered property" shall mean any building or portion of a build- 15 ing: 16 (i) that is lawfully used for buying, selling or otherwise providing 17 goods or services, or for other lawful business, commercial or profes- 18 sional services, or manufacturing activities; and 19 (ii) for which a certificate of occupancy authorizing residential use 20 of such building or such portion of a building has not been issued. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03006-01-1A. 6630 2 1 (4) "Small business" shall have the same meaning as section one 2 hundred thirty-one of the economic development law. 3 (b) For taxable years beginning on or after January first, two thou- 4 sand twenty-one and before January first, two thousand twenty-two, a 5 taxpayer shall be allowed a credit, to be computed as hereinafter 6 provided, against the tax imposed by this article. The amount of the 7 credit shall be equal to the loss of rental income related to the 8 inability of residential tenants and small business commercial tenants 9 to pay rent as a result of government ordered restrictions in response 10 to the coronavirus disease two thousand nineteen (COVID-19). Such credit 11 shall be granted to any taxpayer with income derived from the rental of 12 a covered property who has seen a partial or total loss of such income. 13 (c) A taxpayer applying for such credit shall do so according to an 14 application as established by the commissioner in consultation with the 15 commissioner of the division of homes and community renewal. Provided, 16 such application would include the requirement of the taxpayer to 17 provide supporting documentation establishing the loss of rental income 18 as prescribed by the commissioner, including, but not limited to, an 19 enforceable residential tenant lease agreement or commercial tenant 20 lease agreement. 21 (d) The credit allowed under this subdivision for any taxable year 22 shall not reduce the tax due for such year to less than the fixed dollar 23 minimum amount prescribed in paragraph (d) of subdivision one of section 24 two hundred ten of this article. However, if the amount of credit 25 allowed under this subdivision for any taxable year reduces the tax to 26 such amount or if the taxpayer otherwise pays tax based on the fixed 27 dollar minimum amount, any amount of credit thus not deductible in such 28 taxable year shall be treated as an overpayment of tax to be credited or 29 refunded in accordance with the provisions of section one thousand 30 eighty-six of this chapter. Provided, however, the provisions of 31 subsection (c) of section one thousand eighty-eight of this chapter 32 notwithstanding, no interest shall be paid thereon. 33 § 2. Section 606 of the tax law is amended by adding a new subsection 34 (mmm) to read as follows: 35 (mmm) Rental real estate income relief tax credit. (a) For the 36 purposes of this subsection, the following terms shall have the follow- 37 ing meanings: 38 (1) "Residential tenant" shall have the same meaning as paragraph (a) 39 of subdivision one of section two hundred thirty-five-f of the real 40 property law, those who otherwise pay for the use and occupancy of a 41 residential dwelling, or occupants as defined by paragraph (b) of subdi- 42 vision one of section two hundred thirty-five-f of the real property 43 law. 44 (2) "Commercial tenant" shall mean a person or entity lawfully occupy- 45 ing a covered property pursuant to a lease or other rental agreement. 46 (3) "Covered property" shall mean any building or portion of a build- 47 ing: 48 (i) that is lawfully used for buying, selling or otherwise providing 49 goods or services, or for other lawful business, commercial or profes- 50 sional services, or manufacturing activities; and 51 (ii) for which a certificate of occupancy authorizing residential use 52 of such building or such portion of a building has not been issued. 53 (4) "Small business" shall have the same meaning as section one 54 hundred thirty-one of the economic development law. 55 (b) For taxable years beginning on or after January first, two thou- 56 sand twenty-one and before January first, two thousand twenty-two, aA. 6630 3 1 taxpayer shall be allowed a credit, to be computed as hereinafter 2 provided, against the tax imposed by this article. The amount of the 3 credit shall be equal to the loss of rental income related to the 4 inability of residential tenants and small business commercial tenants 5 to pay rent as a result of government ordered restrictions in response 6 to the coronavirus disease two thousand nineteen (COVID-19). Such credit 7 shall be granted to any taxpayer with income derived from the rental of 8 a covered property who has seen a partial or total loss of such income. 9 (c) A taxpayer applying for such credit shall do so according to an 10 application as established by the commissioner in consultation with the 11 commissioner of the division of homes and community renewal. Provided, 12 such application would include the requirement of the taxpayer to 13 provide supporting documentation establishing the loss of rental income 14 as prescribed by the commissioner, including, but not limited to, an 15 enforceable residential tenant lease agreement or commercial tenant 16 lease agreement. 17 (d) If the amount of the credit allowed under this subsection for any 18 taxable year shall exceed the taxpayer's tax for such year, the excess 19 shall be treated as an overpayment of tax to be credited or refunded in 20 accordance with the provisions of section six hundred eighty-six of this 21 article, provided, however, that no interest shall be paid thereon. 22 § 3. This act shall take effect immediately.
