Source: https://www.nysenate.gov/legislation/bills/2017/s7648
Timestamp: 2019-01-22 03:56:35
Document Index: 450838991

Matched Legal Cases: ['§606', '§13', '§  2', '§ 3', '§  4', '§  5', '§ 2', '§  3', '§ 4']

NY State Senate Bill S7648A
senate Bill S7648A
Relates to the tax credit for rehabilitation of historic properties
Get Status Alerts for S7648A
Jun 07, 2018 print number 7648a
Jun 07, 2018 amend and recommit to investigations and government operations
Feb 02, 2018 referred to investigations and government operations
S7648 (ACTIVE) - Details
Amd §§606, 210-B & 1511, Tax L; amd §13.15, Pks & Rec L
S7648 (ACTIVE) - Summary
Relates to removing dependence on federal law to receive the historic properties tax credit in New York state.
S7648 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7648
TITLE OF BILL:  An act to amend the tax law and the parks, recreation
and historic preservation law, in relation to the tax credit for reha-
bilitation of historic properties
To extend the historic properties tax credit and decouple it from feder-
The historic properties tax credit is extended from January 1, 2020 to
January 1, 2025. Further, the references to federal law such as defining
the tax credit as 100% of the federal credit are replaced with state law
The existing historic properties tax credit is set to expire on January
The federal tax law changes require investors to spread many tax cred-
its, including the historic properties tax credit, across five years,
reducing its year-to-year value significantly. The way the state credit
is written, a similar diminution in value would occur for the state
credit, doubling the negative impact on investors in historic proper-
Since Governor Cuomo signed the expansion and extension of the Historic
Tax Credit in 2013, significant investment has occurred across the
state, especially upstate in the numerous historic downtowns and neigh-
borhoods. Extension now will ensure projects being planned and already
in developers' pipelines will continue to move forward without losing
the tax benefits that induced the investment in the first place.
Those seeking to renovate, repurpose, and renew historic properties
often must first obtain program eligibility through National Register
Historic District nominations. These nominations can take up to a year
for designation. A key piece of the upstate economic development puzzle,
the historic properties tax credit have been a big part of the invest-
ment in upstate cities and extending the credit and maintaining its
value will ensure the economic revitalization will continue.
None this year, extension of a current program
S7648 (ACTIVE) - Bill Text download pdf
AN ACT to amend the tax law and the parks, recreation and historic pres-
ervation law, in relation to the  tax  credit  for  rehabilitation  of
Section 1. Subsection (oo) of section 606 of the tax law,  as  amended
by  chapter  239  of the laws of 2009, paragraph 1 as amended by chapter
472 of the laws of 2010, subparagraph (A) of paragraph 1 and  paragraphs
4  and  5 as amended by section 1 of part F of chapter 59 of the laws of
(oo) Credit for rehabilitation of historic  properties.  (1)  (A)  For
taxable  years beginning on or after January first, two thousand ten and
before January first, two  thousand  [twenty]  TWENTY-FIVE,  a  taxpayer
imposed by this article, in an amount equal to [one hundred  percent  of
historic structure under subsection (a) (2) of section 47 of the federal
internal revenue code] TWENTY PERCENT OF  THE  QUALIFIED  REHABILITATION
EXPENDITURES  with  respect  to  a  certified historic structure located
within the state. Provided, however, the credit shall  not  exceed  five
million dollars.  For taxable years beginning on or after January first,
two  thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit
as hereinafter provided, against the tax imposed by this article, in  an
amount  equal  to  thirty  percent  of the [amount of credit allowed the
taxpayer with respect to a certified historic structure under subsection
(a)(2) of section 47 of the federal  internal  revenue  code]  QUALIFIED
REHABILITATION  EXPENDITURES with respect to a certified historic struc-
ture located within the state; provided, however, the credit  shall  not
exceed one hundred thousand dollars. FOR PURPOSES OF THIS SUBSECTION THE
TERM  "QUALIFIED  REHABILITATION  EXPENDITURE" MEANS ANY AMOUNT PROPERLY
CHARGEABLE TO CAPITAL ACCOUNT IN CONNECTION WITH THE CERTIFIED REHABILI-
LBD14636-02-8
S. 7648                             2
TATION OF A QUALIFIED HISTORIC STRUCTURE, AND  FOR  PROPERTY  FOR  WHICH
DEPRECIATION WOULD BE ALLOWABLE UNDER SECTION 168 OF THE INTERNAL REVEN-
UE  CODE AND WHICH IS (I) NONRESIDENTIAL REAL PROPERTY, (II) RESIDENTIAL
RENTAL  PROPERTY,  OR (III) AN ADDITION OR IMPROVEMENT TO NONRESIDENTIAL
REAL PROPERTY OR RESIDENTIAL RENTAL PROPERTY.
(B) If the taxpayer is a partner in a partnership or a shareholder  of
a  New  York  S corporation, then the credit cap imposed in subparagraph
(A) of this paragraph shall be applied at the entity level, so that  the
such entity in the taxable year does not exceed the credit cap  that  is
applicable in that taxable year.
(2)  (A)  Tax  credits  allowed  pursuant  to this subsection shall be
allowed in the taxable year [that the qualified rehabilitation is placed
in service under section 167 of the federal internal  revenue  code]  IN
WHICH  THE  FINAL  CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH.
(B) FOR PURPOSES OF THIS  SUBSECTION  THE  TERM  "CERTIFIED  REHABILI-
TATION" MEANS ANY REHABILITATION OF A CERTIFIED HISTORIC STRUCTURE WHICH
HAS  BEEN  APPROVED AND CERTIFIED AS BEING CONSISTENT WITH THE STANDARDS
ESTABLISHED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC  PRES-
ERVATION  FOR  REHABILITATION  BY  THE  OFFICE  OF PARKS, RECREATION AND
HISTORIC PRESERVATION, A LOCAL GOVERNMENT CERTIFIED PURSUANT TO  SECTION
101(C)(1)  OF THE NATIONAL HISTORIC PRESERVATION ACT OR A LOCAL LANDMARK
COMMISSION ESTABLISHED PURSUANT TO SECTION NINETY-SIX-A OR  ONE  HUNDRED
NINETEEN-DD OF THE GENERAL MUNICIPAL LAW.
(C) A CERTIFIED REHABILITATION SHALL REQUIRE:
(I)  AN  INITIAL CERTIFICATION THAT THE STRUCTURE MEETS THE DEFINITION
OF THE TERM "CERTIFIED HISTORIC STRUCTURE";
(II) A SECOND CERTIFICATION,  TO  BE  ISSUED  PRIOR  TO  CONSTRUCTION,
CERTIFYING  THAT  THE  PROPOSED  REHABILITATION  WORK IS CONSISTENT WITH
STANDARDS ESTABLISHED BY  THE  COMMISSIONER  OF  PARKS,  RECREATION  AND
HISTORIC PRESERVATION FOR REHABILITATION; AND
(III)  A  FINAL  CERTIFICATION  ISSUED WHEN CONSTRUCTION IS COMPLETED,
CERTIFYING THAT THE WORK WAS COMPLETED AS PROPOSED AND  THAT  THE  COSTS
ARE  CONSISTENT WITH THE WORK COMPLETED.  SUCH FINAL CERTIFICATION SHALL
BE  ACCEPTABLE  AS  PROOF  THAT  THE  EXPENDITURES   RELATED   TO   SUCH
CONSTRUCTION   QUALIFY  AS  QUALIFIED  REHABILITATION  EXPENDITURES  FOR
PURPOSES OF THE CREDIT ALLOWED UNDER EITHER SUBPARAGRAPH (A) OR  (B)  OF
PARAGRAPH ONE OF THIS SUBSECTION.
(D)  FOR  PURPOSES  OF  THIS  SUBSECTION  THE TERM "QUALIFIED HISTORIC
STRUCTURE" MEANS A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN NEW  YORK
STATE  WHICH  HAS BEEN SUBSTANTIALLY REHABILITATED. A CERTIFIED HISTORIC
STRUCTURE SHALL BE CONSIDERED SUBSTANTIALLY REHABILITATED IF THE  QUALI-
FIED  REHABILITATION  EXPENDITURES  IN  RELATION TO SUCH STRUCTURE TOTAL
FIVE THOUSAND DOLLARS OR MORE.
(E) FOR PURPOSES OF  THIS  SUBSECTION  THE  TERM  "CERTIFIED  HISTORIC
STRUCTURE" MEANS ANY BUILDING AND ITS STRUCTURAL COMPONENTS WHICH:
(I) IS LISTED IN THE STATE OR NATIONAL REGISTER OF HISTORIC PLACES, OR
(II)  IS  LOCATED  IN A STATE OR NATIONAL REGISTERED HISTORIC DISTRICT
AND IS CERTIFIED AS BEING OF HISTORIC SIGNIFICANCE IN THE DISTRICT.
(3) [If the credit allowed the taxpayer pursuant to section 47 of  the
internal  revenue  code  with  respect  to a qualified rehabilitation is
recaptured pursuant to subsection (a) of  section  50  of  the  internal
revenue code, a portion of the credit allowed under this subsection must
be added back in the same taxable year and in the same proportion as the
federal recapture]  (A) IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGIN-
S. 7648                             3
NING  ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN SUBPARAGRAPH
(C) OF PARAGRAPH TWO OF THIS SUBSECTION, THE TAXPAYER DISPOSES  OF  SUCH
TAXPAYER'S INTEREST IN A CERTIFIED HISTORIC STRUCTURE, OR SUCH CERTIFIED
HISTORIC  STRUCTURE  OTHERWISE  CEASES  TO  BE  ELIGIBLE  FOR THE CREDIT
ALLOWED UNDER THIS SUBSECTION, THE TAXPAYER'S TAX IMPOSED BY THIS  ARTI-
CLE  FOR  THE  TAXABLE  YEAR  IN  WHICH SUCH DISPOSITION OCCURS SHALL BE
INCREASED BY THE RECAPTURE PORTION OF  THE  CREDIT  ALLOWED  UNDER  THIS
SUBSECTION  FOR  ALL  PRIOR TAXABLE YEARS WITH RESPECT TO SUCH REHABILI-
TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH  IS  EQUAL  TO
TWENTY-FOUR  LESS  THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA-
TION OF THE STRUCTURE OCCURRED.
(5)  To be eligible for the credit allowable under this subsection the
rehabilitation project shall be in whole or in  part  located  within  a
census  tract  which  is  identified  as  being  at or below one hundred
percent of the state median family income as calculated as of  [January]
APRIL  first  of each year using the most recent five year estimate from
the American community survey published  by  the  United  States  Census
bureau.  IF  THERE  IS A CHANGE IN THE MOST RECENT FIVE YEAR ESTIMATE, A
CENSUS TRACT THAT QUALIFIED FOR ELIGIBILITY UNDER THIS SUBSECTION BEFORE
INFORMATION ABOUT THE CHANGE WAS RELEASED SHALL REMAIN  ELIGIBLE  FOR  A
CREDIT UNDER THIS SUBSECTION FOR AN ADDITIONAL EIGHTEEN MONTHS.
(6)  NOTHING CONTAINED IN THIS SUBSECTION SHALL BE CONSTRUED TO IMPOSE
A DUTY ON A LOCAL LANDMARK COMMISSION ESTABLISHED  PURSUANT  TO  SECTION
NINETY-SIX-A  OR ONE HUNDRED NINETEEN-DD OF THE GENERAL MUNICIPAL LAW OR
A LOCAL GOVERNMENT  CERTIFIED  PURSUANT  TO  SECTION  101(C)(1)  OF  THE
NATIONAL  HISTORIC  PRESERVATION ACT TO UNDERTAKE ANY REVIEW OR APPROVAL
OF AN APPLICATION FOR THE CERTIFICATION OF THE REHABILITATION OF HISTOR-
IC STRUCTURES AND OF REHABILITATION EXPENDITURES PROVIDED  FOR  IN  THIS
§  2. Paragraph 2 of subsection (pp) of section 606 of the tax law, as
added by chapter 547 of the laws of 2006, subparagraphs (A) and  (B)  as
amended  by  section  1  of part V of chapter 59 of the laws of 2013, is
(2) (A) With respect to any particular residence of  a  taxpayer,  the
credit  allowed  under paragraph one of this subsection shall not exceed
fifty thousand dollars for taxable years beginning on or  after  January
first,  two thousand ten and before January first, two thousand [twenty]
TWENTY-FIVE and twenty-five thousand dollars for taxable years beginning
on or after January first, two thousand [twenty] TWENTY-FIVE.    In  the
case  of  a  husband and wife, the amount of the credit shall be divided
between them equally or in such other manner as they may both elect.  If
a  taxpayer  incurs qualified rehabilitation expenditures in relation to
more than one residence in the same year, the  total  amount  of  credit
allowed under paragraph one of this subsection for all such expenditures
shall  not  exceed fifty thousand dollars for taxable years beginning on
or after January first, two thousand ten and before January  first,  two
thousand [twenty] TWENTY-FIVE and twenty-five thousand dollars for taxa-
S. 7648                             4
ble  years  beginning  on  or after January first, two thousand [twenty]
(B)  For  taxable years beginning on or after January first, two thou-
sand ten and before January first, two thousand [twenty] TWENTY-FIVE, if
the amount of credit allowable under this subsection  shall  exceed  the
taxpayer's tax for such year, and the taxpayer's New York adjusted gross
income  for such year does not exceed sixty thousand dollars, the excess
article,  provided,  however, that no interest shall be paid thereon. If
the taxpayer's New York adjusted gross  income  for  such  year  exceeds
sixty  thousand  dollars,  the excess credit that may be carried over to
the following year or years and may be deducted from the taxpayer's  tax
for  such year or years. For taxable years beginning on or after January
first, two thousand [twenty] TWENTY-FIVE, if the amount of credit allow-
able under this subsection shall exceed  the  taxpayer's  tax  for  such
year,  the excess may be carried over to the following year or years and
§ 3. Subdivision 26 of section 210-B of  the  tax  law,  as  added  by
26. Credit for rehabilitation of historic properties. (a)  Application
of  credit.  (i)  For taxable years beginning on or after January first,
two thousand ten, and before January first, two thousand [twenty]  TWEN-
TY-FIVE,  a  taxpayer shall be allowed a credit as hereinafter provided,
against the tax imposed by this article, in  an  amount  equal  to  [one
hundred  percent  of  the  amount of credit allowed the taxpayer for the
same taxable year with respect to a certified historic  structure  under
subsection  (c)(2)  of  section  47 of the internal revenue code] TWENTY
PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES with respect  to  a
certified  historic structure located within the state. Provided, howev-
er, the credit shall not exceed five million dollars.
sand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as here-
inafter  provided, against the tax imposed by this article, in an amount
equal to thirty percent of the [amount of credit  allowed  the  taxpayer
for the same taxable year with respect to a certified historic structure
under  subsection  (c)(3)  of  section  47 of the internal revenue code]
QUALIFIED  REHABILITATION  EXPENDITURES  with  respect  to  a  certified
historic  structure  located  within the state.   Provided, however, the
credit shall not exceed one hundred thousand dollars.
[(B)] (B) If the taxpayer is a partner in a partnership  or  a  share-
holder  in  a  New  York  S corporation, then the credit caps imposed in
[subparagraph (A)] PARAGRAPH (A) of this [paragraph]  SUBDIVISION  shall
be  applied at the entity level, so that the aggregate credit allowed to
all the partners or shareholders of each such entity in the taxable year
does not exceed the credit cap that is applicable in that taxable year.
[(b)] (C) Tax credits allowed pursuant to this  subdivision  shall  be
in  service  under section 167 of the federal internal revenue code]  IN
WHICH THE FINAL CERTIFICATION STEP OF THE  CERTIFIED  REHABILITATION  IS
COMPLETED  PURSUANT  TO  SUBPARAGRAPH (C) OF PARAGRAPH TWO OF SUBSECTION
(OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
[(c) If the credit allowed the taxpayer pursuant to section 47 of  the
S. 7648                             5
federal  credit] (D)(I) IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGIN-
NING ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN PARAGRAPH (B)
OF  THIS  SUBDIVISION, THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST
IN A CERTIFIED STRUCTURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE
CEASES TO BE ELIGIBLE FOR THE CREDIT ALLOWED UNDER THIS SUBDIVISION, THE
TAXPAYER'S TAX IMPOSED BY THIS ARTICLE FOR THE  TAXABLE  YEAR  IN  WHICH
SUCH  DISPOSITION  OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF
THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH
RESPECT TO SUCH REHABILITATION.
(II) FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE RECAPTURE
TAXPAYER  MULTIPLIED  BY  A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO
TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION  OR  CESSA-
[(d)]  (E)  The  credit allowed under this subdivision for any taxable
year shall not reduce the tax due for such year to less than the  amount
prescribed  in  paragraph  (d) of subdivision one of section two hundred
ten of this article. However, if the amount of the credit allowed  under
this  subdivision for any taxable year reduces the tax to such amount or
if the taxpayer otherwise pays tax based on  the  fixed  dollar  minimum
shall be treated as an overpayment of tax to be recredited  or  refunded
[(e)] (F) To be eligible for the credit allowable under this  subdivi-
sion,  the  rehabilitation  project shall be in whole or in part located
within a census tract which is identified  as  being  at  or  below  one
hundred  percent  of  the state median family income as calculated as of
January first of each year using the most recent five year estimate from
§  4.  Paragraphs 1, 2 and 3 of subdivision (y) of section 1511 of the
tax law, as added by chapter 472 of the laws of 2010,  subparagraph  (A)
of  paragraph  1  as amended by section 4 of part F of chapter 59 of the
(1) (A) For taxable years beginning on or  after  January  first,  two
thousand   ten   and   before   January  first,  two  thousand  [twenty]
TWENTY-FIVE, a  taxpayer  shall  be  allowed  a  credit  as  hereinafter
provided, against the tax imposed by this article, in an amount equal to
[one  hundred  percent of the amount of credit allowed the taxpayer with
respect to a certified historic structure  under  subsection  (a)(2)  of
section  47  of the federal internal revenue code] TWENTY PERCENT OF THE
historic  structure  located  within  the  state. Provided, however, the
credit shall not exceed five million dollars.  For taxable years  begin-
ning  on  or  after  January first, two thousand [twenty] TWENTY-FIVE, a
taxpayer shall be allowed a credit as hereinafter provided, against  the
[amount  of  credit  allowed  the  taxpayer  with respect to a certified
historic structure under subsection (a)(2) of section 47 of the  federal
internal revenue code] QUALIFIED REHABILITATION EXPENDITURE with respect
S. 7648                             6
to  a  certified  historic structure located within the state. Provided,
(B)  If  the  taxpayer  is  a  partner  in a partnership, then the cap
imposed in subparagraph (A) of this paragraph shall be  applied  at  the
entity  level,  so that the aggregate credit allowed to all the partners
of such partnership in the taxable year does not exceed the  credit  cap
that is applicable in that taxable year.
in the taxable year [that the  qualified  rehabilitation  is  placed  in
service under section 167 of the federal internal revenue code] IN WHICH
THE   FINAL  CERTIFICATION  STEP  OF  THE  CERTIFIED  REHABILITATION  IS
COMPLETED PURSUANT TO SUBPARAGRAPH (C) OF PARAGRAPH  TWO  OF  SUBSECTION
(3)  [If the credit allowed the taxpayer pursuant to section 47 of the
internal revenue code with respect  to  a  qualified  rehabilitation  is
recaptured  pursuant  to  subsection  (a)  of section 50 of the internal
revenue code, a portion of the credit allowed under this  subsection  in
the  taxable  year the credit was claimed must be added back in the same
taxable year and in the same proportion as the  federal  recapture]  (A)
IF,  BEFORE  THE END OF THE TWO-YEAR PERIOD BEGINNING ON THE DATE OF THE
FINAL CERTIFICATION REFERRED TO IN PARAGRAPH TWO  OF  THIS  SUBDIVISION,
THE  TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED STRUC-
TURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGI-
BLE FOR THE CREDIT ALLOWED UNDER THIS SUBDIVISION,  THE  TAXPAYER'S  TAX
IMPOSED  BY  THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION
OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED
UNDER THIS PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH  RESPECT  TO  SUCH
§  5.  Subdivision  6  of  section  13.15 of the parks, recreation and
historic preservation law, as added by chapter 547 of the laws of  2006,
6.  The  office  may  establish  a  fee or fees for its processing and
review of applications for the certification of  the  rehabilitation  of
historic  buildings  and the approval of rehabilitation expenditures and
related work pursuant to  [subsection]  SUBSECTIONS  (OO)  AND  (pp)  of
section  six  hundred  six  of the tax law. All revenues from these fees
shall be deposited by  the  comptroller  in  the  miscellaneous  special
revenue  fund to be credited to the agency's patron services account and
shall be used to support the  office's  historic  preservation  program.
Nothing in this subdivision shall be construed to limit the ability of a
local  landmark  commission established pursuant to section ninety-six-a
or one hundred nineteen-dd of the  general  municipal  law  or  a  local
government  certified  pursuant  to  section  101(c)(1)  of the national
historic preservation act to establish and charge fees for its  process-
ing  and  review  of applications for the certification of the rehabili-
tation of historic buildings and the approval of rehabilitation expendi-
S7648A (ACTIVE) - Details
S7648A (ACTIVE) - Summary
S7648A (ACTIVE) - Sponsor Memo
BILL NUMBER: S7648A
To increase the value of the historic properties tax credit
Provides for transferability of the credit and certification of projects
In current law, the credit is not transferable.
The historic properties tax credit is a valuable tool in the development
of small cities and downtowns around the State, especially upstate. In
response to federal action on tax credits, we decoupled the historic
properties tax credit from the federal tax credit. This bill would allow
the historic properties tax credit to be transferable, like other devel-
opment tax credits. Transferability provides the credit with stable and
long-term value higher than that which the credits currently hold. High-
er value will provide more incentive to develop historic properties and
the protection of the unique nature and historic character of cities and
town around the State will be protected.
S7648A (ACTIVE) - Bill Text download pdf
7648--A
Introduced  by  Sens.  VALESKY, KENNEDY, O'MARA, YOUNG -- read twice and
3  and 5 as amended by section 1 of part RR of chapter 59 of the laws of
2018, paragraph 4 as amended by section 1 of part F of chapter 59 of the
before January first, two thousand  twenty-five,  a  taxpayer  shall  be
allowed  a  credit  as  hereinafter provided, against the tax imposed by
this article, in an amount equal to [one hundred percent of  the  amount
of  credit  allowed  the  taxpayer  with respect to a certified historic
structure under internal revenue code section 47(c)(3), determined with-
out regard to ratably allocating the credit over a five year  period  as
required  by  subsection  (a) of such section 47,] TWENTY PERCENT OF THE
credit shall not exceed five million dollars. For taxable  years  begin-
ning  on  or  after  January first, two thousand twenty-five, a taxpayer
imposed  by  this  article, in an amount equal to thirty percent of [the
LBD14636-03-8
S. 7648--A                          2
period  as  required  by  subsection  (a) of such section 47,] QUALIFIED
REHABILITATION EXPENDITURES with respect to a certified historic  struc-
ture  located  within the state; provided, however, the credit shall not
RENTAL PROPERTY, OR (III) AN ADDITION OR IMPROVEMENT  TO  NONRESIDENTIAL
(B)  If the taxpayer is a partner in a partnership or a shareholder of
a New York S corporation, then the credit cap  imposed  in  subparagraph
(A)  of this paragraph shall be applied at the entity level, so that the
aggregate credit allowed to all the partners  or  shareholders  of  each
such  entity  in the taxable year does not exceed the credit cap that is
(2) (A) Tax credits allowed  pursuant  to  this  subsection  shall  be
in  service  under  section 167 of the federal internal revenue code] IN
(B)  FOR  PURPOSES  OF  THIS  SUBSECTION THE TERM "CERTIFIED REHABILI-
HAS BEEN APPROVED AND CERTIFIED AS BEING CONSISTENT WITH  THE  STANDARDS
ESTABLISHED  BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRES-
ERVATION FOR REHABILITATION BY  THE  OFFICE  OF  PARKS,  RECREATION  AND
HISTORIC  PRESERVATION, A LOCAL GOVERNMENT CERTIFIED PURSUANT TO SECTION
101(C)(1) OF THE NATIONAL HISTORIC PRESERVATION ACT OR A LOCAL  LANDMARK
COMMISSION  ESTABLISHED  PURSUANT  TO  SECTION NINETY-SIX-A, AS ADDED BY
CHAPTER FIVE HUNDRED THIRTEEN OF THE LAWS  OF  NINETEEN  HUNDRED  SIXTY-
EIGHT, OR ONE HUNDRED NINETEEN-DD OF THE GENERAL MUNICIPAL LAW.
S. 7648--A                          3
(3) [If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subsection and that cred-
it  pursuant to such section 47 is recaptured pursuant to subsection (a)
of section 50 of the internal revenue code,  a  portion  of  the  credit
allowed  under  this  subsection  must be added back in the same taxable
year and in the same proportion  as  the  federal  recapture.]  (A)  IF,
BEFORE THE END OF THE TWO-YEAR PERIOD BEGINNING ON THE DATE OF THE FINAL
CERTIFICATION  REFERRED  TO IN SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS
SUBSECTION, THE TAXPAYER DISPOSES  OF  SUCH  TAXPAYER'S  INTEREST  IN  A
CERTIFIED  HISTORIC  STRUCTURE,  OR  SUCH  CERTIFIED  HISTORIC STRUCTURE
OTHERWISE CEASES TO BE  ELIGIBLE  FOR  THE  CREDIT  ALLOWED  UNDER  THIS
SUBSECTION,  THE  TAXPAYER'S TAX IMPOSED BY THIS ARTICLE FOR THE TAXABLE
YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL BE INCREASED BY  THE  RECAP-
TURE  PORTION  OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR
TAXABLE YEARS WITH RESPECT TO SUCH REHABILITATION.
TAXPAYER OR TRANSFEREE MULTIPLIED BY A FRACTION, THE NUMERATOR OF  WHICH
IS EQUAL TO TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION
OR CESSATION OF THE STRUCTURE OCCURRED. ONLY THE TAXPAYER THAT INITIALLY
RECEIVED  THE  CREDIT, AND NO SUBSEQUENT GOOD FAITH TRANSFEREE, SHALL BE
RESPONSIBLE IN THE EVENT OF A  RECAPTURE,  REDUCTION,  DISALLOWANCE,  OR
OTHER FAILURE RELATED TO SUCH CREDIT.
(5) To be eligible for the credit allowable under this subsection  the
rehabilitation  project  shall  be  in whole or in part located within a
census tract which is identified  as  being  at  or  below  one  hundred
percent  of  the  state  median  family income as calculated as of April
first of each year using the most recent five  year  estimate  from  the
American  community survey published by the United States Census bureau.
If there is a change in the most recent five  year  estimate,  a  census
tract  that  qualified  for  eligibility under this [program] SUBSECTION
before information about the change was  released  [will]  SHALL  remain
eligible  for  a  credit  under  this  subsection for an additional [two
calendar years] EIGHTEEN MONTHS.
(6) NOTHING CONTAINED IN THIS SUBSECTION SHALL BE CONSTRUED TO  IMPOSE
A  DUTY  ON  A LOCAL LANDMARK COMMISSION ESTABLISHED PURSUANT TO SECTION
NINETY-SIX-A, AS ADDED BY CHAPTER FIVE HUNDRED THIRTEEN OF THE  LAWS  OF
NINETEEN  HUNDRED SIXTY-EIGHT, OR ONE HUNDRED NINETEEN-DD OF THE GENERAL
MUNICIPAL LAW OR  A  LOCAL  GOVERNMENT  CERTIFIED  PURSUANT  TO  SECTION
101(C)(1)  OF  THE  NATIONAL  HISTORIC PRESERVATION ACT TO UNDERTAKE ANY
REVIEW OR APPROVAL OF AN APPLICATION FOR THE CERTIFICATION OF THE  REHA-
BILITATION  OF  HISTORIC  STRUCTURES  AND OF REHABILITATION EXPENDITURES
PROVIDED FOR IN THIS SUBSECTION.
(7)(A)(I) ANY TAXPAYER, ELIGIBLE FOR THE CREDIT  ALLOWED  PURSUANT  TO
THIS  SUBSECTION  MAY  TRANSFER SUCH CREDIT, IN WHOLE OR IN PART, TO ANY
INDIVIDUAL OR ENTITY, WITHOUT THE REQUIREMENT OF TRANSFERRING ANY OWNER-
SHIP INTEREST IN THE CERTIFIED HISTORIC STRUCTURE OR ANY INTEREST IN THE
ENTITY WHICH OWNS THE  CERTIFIED  HISTORIC  STRUCTURE.  TRANSFEREES  ARE
S. 7648--A                          4
ENTITLED TO APPLY THE CREDITS AGAINST THE TAX WITH THE SAME EFFECT AS IF
THE  TRANSFEREE  HAD INCURRED THE QUALIFIED REHABILITATION EXPENDITURES.
SUCH CREDIT MAY BE TRANSFERRED ONLY ON OR AFTER THE FINAL  CERTIFICATION
STEP OF THE CERTIFIED REHABILITATION IS COMPLETED AS PROVIDED IN SUBPAR-
AGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION.
(II) A TRANSFEREE SHALL USE SUCH CREDIT IN THE YEAR IT IS TRANSFERRED.
A TRANSFEREE MAY SUBSEQUENTLY TRANSFER SUCH CREDIT, HOWEVER, IN NO CASE,
MAY  A CREDIT BE TRANSFERRED MORE THAN ONE TIME AFTER THE INITIAL TRANS-
FER. A SECONDARY TRANSFEREE SHALL USE SUCH CREDIT  IN  THE  YEAR  IT  IS
TRANSFERRED TO THE SECONDARY TRANSFEREE. IF THE CREDIT ALLOWABLE FOR ANY
TAX  YEAR  EXCEEDS  THE  TRANSFEREE'S  TAX  LIABILITY FOR THAT YEAR, THE
TRANSFEREE MAY CARRY FORWARD AND APPLY IN A SUBSEQUENT TAXABLE YEAR, THE
PORTION, AS REDUCED FROM YEAR TO YEAR, OF THE CREDIT WHICH EXCEEDS  SUCH
TAX  FOR  THE TAXABLE YEAR; PROVIDED, HOWEVER, THAT THE CARRYOVER PERIOD
CANNOT EXCEED FIVE TAXABLE YEARS AFTER THE CLOSE OF THE TAXABLE YEAR  IN
COMPLETED AS PROVIDED IN SUBPARAGRAPH  (C)  OF  PARAGRAPH  TWO  OF  THIS
(III) THE PROVISIONS OF PARAGRAPH THREE OF THIS SUBSECTION RELATING TO
THE  RECAPTURE  OF  THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION SHALL
NOT APPLY TO THE TRANSFER OF SUCH CREDIT AS PROVIDED FOR IN  THIS  PARA-
(B)  THE  COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION,
IN CONSULTATION WITH THE DEPARTMENT, SHALL PROMULGATE A FORM OF TRANSFER
STATEMENT TO BE FILED BY THE TRANSFEROR OF THE CREDIT  ALLOWED  PURSUANT
TO  THIS  SUBSECTION. THE TRANSFER STATEMENT SHALL BE IN ADDITION TO THE
TRANSFER CONTRACT PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH. TRANS-
FER STATEMENT FORMS MAY BE OBTAINED FROM THE COMMISSIONER.  THE TRANSFE-
ROR SHALL FILE A TRANSFER STATEMENT AND A COPY OF THE PROPOSED  TRANSFER
CONTRACT  WITH  THE  DEPARTMENT  PRIOR TO THE TRANSFER AND SHALL FURTHER
FILE WITH THE DEPARTMENT THE EXECUTED TRANSFER  CONTRACT  WITHIN  THIRTY
DAYS  AFTER THE COMPLETED TRANSFER. THE TRANSFER STATEMENT SHALL PROVIDE
THE NAME AND FEDERAL TAXPAYER IDENTIFICATION NUMBER OF  EACH  TRANSFEROR
AND TRANSFEREE. FURTHER, SUCH STATEMENT SHALL INDICATE THE AMOUNT OF THE
CREDIT  TRANSFERRED TO EACH TRANSFEREE. THE STATEMENT SHALL ALSO CONTAIN
SUCH OTHER INFORMATION AS THE DEPARTMENT OR THE COMMISSION MAY FROM TIME
(C) ANY TAXPAYER TRANSFERRING HIS OR HER CREDIT  ALLOWED  PURSUANT  TO
THIS  SUBSECTION SHALL ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFER-
EE. THE TRANSFER CONTRACT SHALL SPECIFY THE FOLLOWING:
(I) A DESCRIPTION AND ADDRESS FOR THE CERTIFIED HISTORIC STRUCTURE  OR
STRUCTURES WHICH QUALIFIED THE TAXPAYER FOR SUCH CREDIT;
(II)  THE  DATE IN WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED
REHABILITATION IS COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF PARAGRAPH
TWO OF THIS SUBSECTION;
(III) THE SCHEDULE OF YEARS DURING WHICH THE CREDIT MAY BE  TAKEN  AND
THE  AMOUNT OF CREDIT PREVIOUSLY TAKEN FOR THE CERTIFIED HISTORIC STRUC-
TURE INCLUDING ALL PREVIOUS TRANSFEREES; AND
(IV) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(D) ANY TAXPAYER WHO IS A TRANSFEREE OF THE CREDIT ALLOWED PURSUANT TO
THIS SUBSECTION MAY, PROVIDED ALL TRANSFER  AND  OTHER  REQUIREMENTS  OR
LIMITATIONS  ARE  MET,  APPLY  SUCH CREDIT TO THE TAX IMPOSED UNDER THIS
§ 2. Subdivision 26 of section 210-B of  the  tax  law,  as  added  by
section  17 of part A of chapter 59 of the laws of 2014, paragraphs (a),
S. 7648--A                          5
(c) and (e) as amended by section 2 of part RR of chapter 59 of the laws
26. Credit for rehabilitation of historic properties.  (a) Application
two thousand ten, and before January first, two thousand twenty-five,  a
tax imposed by this article, in an amount equal to [one hundred  percent
of  the  amount of credit allowed the taxpayer for the same taxable year
with respect to a certified historic structure  under  internal  revenue
code  section  47(c)(3), determined without regard to ratably allocating
the credit over a five year period as required by subsection (a) of such
section 47,] TWENTY PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES
Provided, however, the credit shall not exceed five million dollars.
sand  twenty-five,  a  taxpayer shall be allowed a credit as hereinafter
thirty percent of the [amount of credit allowed  the  taxpayer  for  the
same  taxable  year  determined without regard to ratably allocating the
credit over a five year period as required by subsection (a) of  section
47  of the internal revenue code,] QUALIFIED REHABILITATION EXPENDITURES
with respect to a certified historic structure under  subsection  (c)(3)
of  section  47 of the internal revenue code with respect to a certified
historic structure located within  the  state.  Provided,  however,  the
[(B)]  (B)  If  the taxpayer is a partner in a partnership or a share-
holder in a New York S corporation, then  the  credit  caps  imposed  in
[subparagraph  (A)]  PARAGRAPH (A) of this [paragraph] SUBDIVISION shall
be applied at the entity level, so that the aggregate credit allowed  to
[(b)]  (C)  Tax  credits allowed pursuant to this subdivision shall be
[(c) If the taxpayer is allowed a credit pursuant to section 47 of the
also  the  subject  of  the  credit allowed by this subdivision and that
credit pursuant to such section 47 is recaptured pursuant to  subsection
(a)  of section 50 of the internal revenue code, a portion of the credit
allowed under this subdivision must be added back in  the  same  taxable
year and in the same proportion as the federal credit] (D)(I) IF, BEFORE
THE  END  OF  THE  TWO-YEAR  PERIOD  BEGINNING  ON THE DATE OF THE FINAL
CERTIFICATION REFERRED TO IN PARAGRAPH  (B)  OF  THIS  SUBDIVISION,  THE
TAXPAYER  DISPOSES OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED STRUCTURE,
OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGIBLE FOR
THE CREDIT ALLOWED UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED BY
THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL
BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED  UNDER  THIS
PARAGRAPH  FOR  ALL  PRIOR  TAXABLE YEARS WITH RESPECT TO SUCH REHABILI-
S. 7648--A                          6
April first of each year using the most recent five year  estimate  from
the  American  community  survey  published  by the United States Census
bureau.  If there is a change in the most recent five year  estimate,  a
census  tract  that  qualified for eligibility under this program before
information about the change was released will  remain  eligible  for  a
credit under this subdivision for an additional two calendar years.
§  3.  Paragraphs 1, 2 and 3 of subdivision (y) of section 1511 of the
of  paragraph  1  and  paragraph 3 as amended by section 3 of part RR of
chapter 59 of the laws of 2018, are amended to read as follows:
thousand  ten  and  before  January  first,  two thousand twenty-five, a
tax  imposed by this article, in an amount equal to [one hundred percent
historic structure under internal revenue code section 47(c)(3),  deter-
period as required by subsection (a) of such section 47,] TWENTY PERCENT
OF THE QUALIFIED REHABILITATION EXPENDITURES with respect to a certified
credit  shall  not exceed five million dollars. For taxable years begin-
ning on or after January first, two  thousand  twenty-five,  a  taxpayer
imposed by this article, in an amount equal to  thirty  percent  of  the
period as required by subsection (a) of such section 47] QUALIFIED REHA-
BILITATION EXPENDITURE with respect to a  certified  historic  structure
located  within  the  state.    Provided,  however, the credit shall not
(B) If the taxpayer is a  partner  in  a  partnership,  then  the  cap
imposed  in  subparagraph  (A) of this paragraph shall be applied at the
entity level, so that the aggregate credit allowed to all  the  partners
of  such  partnership in the taxable year does not exceed the credit cap
in  the  taxable  year  [that  the qualified rehabilitation is placed in
S. 7648--A                          7
THE  FINAL  CERTIFICATION  STEP  OF  THE  CERTIFIED  REHABILITATION   IS
allowed under this subdivision  in  the  taxable  year  the  credit  was
claimed  must  be  added  back  in the same taxable year and in the same
proportion as the federal recapture.] (A) IF,  BEFORE  THE  END  OF  THE
TWO-YEAR  PERIOD  BEGINNING  ON  THE  DATE  OF  THE  FINAL CERTIFICATION
REFERRED TO IN PARAGRAPH TWO OF THIS SUBDIVISION, THE TAXPAYER  DISPOSES
OF  SUCH TAXPAYER'S INTEREST IN A CERTIFIED STRUCTURE, OR SUCH CERTIFIED
HISTORIC STRUCTURE OTHERWISE  CEASES  TO  BE  ELIGIBLE  FOR  THE  CREDIT
ALLOWED UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED BY THIS ARTI-
§ 4. Subdivision 6 of section  13.15  of  the  parks,  recreation  and
historic  preservation law, as added by chapter 547 of the laws of 2006,
6. The office may establish a fee  or  fees  for  its  processing  and
review  of  applications  for the certification of the rehabilitation of
historic buildings and the approval of rehabilitation  expenditures  and
related  work  pursuant  to  [subsection]  SUBSECTIONS  (OO) AND (pp) of
section six hundred six of the tax law. All  revenues  from  these  fees
shall  be  deposited  by  the  comptroller  in the miscellaneous special
revenue fund to be credited to the agency's patron services account  and
shall  be  used  to  support the office's historic preservation program.
local landmark commission established pursuant to section  ninety-six-a,
AS  ADDED  BY  CHAPTER  FIVE  HUNDRED  THIRTEEN  OF THE LAWS OF NINETEEN
HUNDRED SIXTY-EIGHT, or one hundred nineteen-dd of the general municipal
law or a local government certified pursuant to section 101(c)(1) of the
national historic preservation act to establish and charge fees for  its
processing and review of applications for the certification of the reha-
bilitation  of  historic  buildings  and  the approval of rehabilitation