Bill Text: NY A10396 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes the rental real estate income relief tax credit.

Spectrum: Partisan Bill (Republican 34-0)

Status: (Introduced) 2020-05-04 - referred to ways and means [A10396 Detail]

Download: New_York-2019-A10396-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          10396

                   IN ASSEMBLY

                                       May 4, 2020
                                       ___________

        Introduced by M. of A. BARCLAY, FITZPATRICK -- 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.
    21    (4)  "Small  business"  shall  have  the  same  meaning as section one
    22  hundred thirty-one of the economic development law.
    23    (b) For taxable years beginning on or after January first,  two  thou-
    24  sand twenty and before January first, two thousand twenty-one, a taxpay-
    25  er  shall  be  allowed a credit, to be computed as hereinafter provided,
    26  against the tax imposed by this article. The amount of the credit  shall
    27  be  equal to the loss of rental income related to the inability of resi-
    28  dential tenants and small business commercial tenants to pay rent  as  a

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16302-01-0

        A. 10396                            2

     1  result of government ordered restrictions in response to the coronavirus
     2  disease  two  thousand nineteen (COVID-19). Such credit shall be granted
     3  to any taxpayer with income derived from the rental of a covered proper-
     4  ty who has seen a partial or total loss of such income.
     5    (c)  A  taxpayer  applying for such credit shall do so according to an
     6  application as established by the commissioner in consultation with  the
     7  commissioner  of  the division of homes and community renewal. Provided,
     8  such application would  include  the  requirement  of  the  taxpayer  to
     9  provide  supporting documentation establishing the loss of rental income
    10  as prescribed by the commissioner, including, but  not  limited  to,  an
    11  enforceable  residential  tenant  lease  agreement  or commercial tenant
    12  lease agreement.
    13    (d) The credit allowed under this subdivision  for  any  taxable  year
    14  shall not reduce the tax due for such year to less than the fixed dollar
    15  minimum amount prescribed in paragraph (d) of subdivision one of section
    16  two  hundred  ten  of  this  article.  However,  if the amount of credit
    17  allowed under this subdivision for any taxable year reduces the  tax  to
    18  such  amount  or  if  the taxpayer otherwise pays tax based on the fixed
    19  dollar minimum amount, any amount of credit thus not deductible in  such
    20  taxable year shall be treated as an overpayment of tax to be credited or
    21  refunded  in  accordance  with  the  provisions  of section one thousand
    22  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    23  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    24  notwithstanding, no interest shall be paid thereon.
    25    § 2. Section 606 of the tax law is amended by adding a new  subsection
    26  (mmm) to read as follows:
    27    (mmm)  Rental  real  estate  income  relief  tax  credit.  (a) For the
    28  purposes of this subsection, the following terms shall have the  follow-
    29  ing meanings:
    30    (1)  "Residential tenant" shall have the same meaning as paragraph (a)
    31  of subdivision one of section two  hundred  thirty-five-f  of  the  real
    32  property  law,  those  who  otherwise pay for the use and occupancy of a
    33  residential dwelling, or occupants as defined by paragraph (b) of subdi-
    34  vision one of section two hundred thirty-five-f  of  the  real  property
    35  law.
    36    (2) "Commercial tenant" shall mean a person or entity lawfully occupy-
    37  ing a covered property pursuant to a lease or other rental agreement.
    38    (3)  "Covered property" shall mean any building or portion of a build-
    39  ing:
    40    (i) that is lawfully used for buying, selling or  otherwise  providing
    41  goods  or  services, or for other lawful business, commercial or profes-
    42  sional services, or manufacturing activities; and
    43    (ii) for which a certificate of occupancy authorizing residential  use
    44  of such building or such portion of a building has not been issued.
    45    (4)  "Small  business"  shall  have  the  same  meaning as section one
    46  hundred thirty-one of the economic development law.
    47    (b) For taxable years beginning on or after January first,  two  thou-
    48  sand twenty and before January first, two thousand twenty-one, a taxpay-
    49  er  shall  be  allowed a credit, to be computed as hereinafter provided,
    50  against the tax imposed by this article. The amount of the credit  shall
    51  be  equal to the loss of rental income related to the inability of resi-
    52  dential tenants and small business commercial tenants to pay rent  as  a
    53  result of government ordered restrictions in response to the coronavirus
    54  disease  two  thousand nineteen (COVID-19). Such credit shall be granted
    55  to any taxpayer with income derived from the rental of a covered proper-
    56  ty who has seen a partial or total loss of such income.

        A. 10396                            3

     1    (c) A taxpayer applying for such credit shall do so  according  to  an
     2  application  as established by the commissioner in consultation with the
     3  commissioner of the division of homes and community  renewal.  Provided,
     4  such  application  would  include  the  requirement  of  the taxpayer to
     5  provide  supporting documentation establishing the loss of rental income
     6  as prescribed by the commissioner, including, but  not  limited  to,  an
     7  enforceable  residential  tenant  lease  agreement  or commercial tenant
     8  lease agreement.
     9    (d) If the amount of the credit allowed under this subsection for  any
    10  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    11  shall be treated as an overpayment of tax to be credited or refunded  in
    12  accordance with the provisions of section six hundred eighty-six of this
    13  article, provided, however, that no interest shall be paid thereon.
    14    § 3. This act shall take effect immediately.
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