NY Pub Hsg L § 22 (2021)
2021 New York Laws PBG - Public Housing Article 2-A - New York State Low Income Housing Tax Credit Program 22 - Allowance of Credit, Amount and Limitations.

§  22.  Allowance  of  credit,  amount  and limitations. 1. A taxpayer subject to tax under article nine-A, twenty-two, or thirty-three of  the tax  law  which  owns  an  interest  in  one or more eligible low-income buildings,  or  a  transferee  of  such  a  taxpayer  as  described   in subdivision  eight  of  this  section, shall be allowed a credit against such tax for the amount of low-income housing credit  allocated  by  the commissioner  to  each  such building. Except as provided in subdivision two of this section, the credit amount so allocated shall be allowed  as a credit against the tax for the ten taxable years in the credit period.   2.  Adjustment  of  first-year  credit  allowed  in eleventh year. The credit allowable for the first taxable year of the  credit  period  with respect  to  any  building  shall be adjusted using the rules of section 42(f)(2) of the internal revenue code (relating to first-year adjustment of qualified basis by  the  weighted  average  of  low-income  to  total residential  units), and any reduction in first-year credit by reason of such adjustment shall be allowable for the first taxable year  following the credit period.   3.  Amount of credit. Except as provided in subdivisions four and five of this section, the amount of low-income housing credit  shall  be  the applicable percentage of the qualified basis of each eligible low-income building.   * 4. Statewide limitation. The aggregate dollar amount of credit which the  commissioner  may  allocate  to eligible low-income buildings under this article shall be one hundred twelve million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the  commissioner,  and  does  not  apply  to allowance  to  a  taxpayer  of  the  credit  with respect to an eligible low-income building for each year of the credit period.   * NB Effective until April 1, 2022   * 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to  eligible  low-income  buildings  under this article shall be one hundred twenty million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar  amount  of  credit  by  the  commissioner, and does not apply to allowance to a taxpayer of  the  credit  with  respect  to  an  eligible low-income building for each year of the credit period.   * NB Effective April 1, 2022 until April 1, 2023   * 4. Statewide limitation. The aggregate dollar amount of credit which the  commissioner  may  allocate  to eligible low-income buildings under this article shall be one  hundred  twenty-eight  million  dollars.  The limitation  provided  by  this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does  not apply  to  allowance  to  a  taxpayer  of  the credit with respect to an eligible low-income building for each year of the credit period.   * NB Effective April 1, 2023 until April 1, 2024   * 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to  eligible  low-income  buildings  under this  article  shall  be  one  hundred  thirty-six  million dollars. The limitation provided by this subdivision applies only  to  allocation  of the  aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer  of  the  credit  with  respect  to  an eligible low-income building for each year of the credit period.   * NB Effective April 1, 2024 until April 1, 2025   * 4. Statewide limitation. The aggregate dollar amount of credit which the  commissioner  may  allocate  to eligible low-income buildings under this article shall  be  one  hundred  forty-four  million  dollars.  The limitation  provided  by  this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does  not  apply  to  allowance  to  a  taxpayer  of  the credit with respect to an eligible low-income building for each year of the credit period.   * NB Effective April 1, 2025   5.  Building  limitation. The dollar amount of credit allocated to any building shall not exceed the  amount  the  commissioner  determines  is necessary for the financial feasibility of the project and the viability of the building as an eligible low-income building throughout the credit period.  In  allocating  a  dollar amount of credit to any building, the commissioner shall specify the applicable  percentage  and  the  maximum qualified  basis which may be taken into account under this article with respect to such building. The  applicable  percentage  and  the  maximum qualified  basis with respect to a building shall not exceed the amounts determined  in  subdivisions  one  and  six,  respectively,  of  section twenty-one of this article.   6.  Long-term  commitment  to  low-income  housing required. No credit shall be allowed under this article with respect to a building  for  the taxable  year  unless  an  extended  low-income housing commitment is in effect as of the  end  of  such  taxable  year.  For  purposes  of  this subdivision,  the term "extended low-income housing commitment" means an agreement  between  the  taxpayer  and  the  commissioner  substantially similar  to  the  agreement  specified  in  section  42(h)(6)(B)  of the internal revenue code.   7. Credit to successor owner. If a credit is allowed under subdivision one of this section with respect to an eligible low-income building  and such building (or an interest therein) is sold during the credit period, the credit for the period after the sale which would have been allowable under  such subdivision one to the prior owner had the building not been sold shall be allowable to the new owner. Credit for the  year  of  sale shall  be  allocated  between  the parties on the basis of the number of days during such year that the building or interest was held by each.   8. (a) A taxpayer allowed  a  credit  pursuant  to  this  article  may transfer  the  credit, in whole or in part, to another person or entity, who shall be referred to as the transferee, without regard  to  how  any federal  low-income  housing  tax  credit with respect to the low-income building may be allocated and notwithstanding that such other person  or entity  owns  no  interest  in the eligible low-income building or in an entity with an ownership interest in the eligible  low-income  building. Transferees  shall  be  entitled  to  apply  transferred credit to a tax imposed under article nine-A, twenty-two or thirty-three of the tax law, provided all requirements for claiming the credit are met. A  transferee may not transfer any credit, or portion thereof, acquired by transfer.  (b)  A  taxpayer  allowed a credit pursuant to this article must enter into a transfer contract with the transferee. The transfer contract must specify  (i) the building identification  numbers  for  all  buildings  in  the project;  (ii) the date each building was placed into service;  (iii) the fifteen year compliance period for the project;  (iv)  the  schedule  of  years  for  which  the transfer credit may be claimed and the amount of credit previously claimed;  (v) the amount of consideration  received  by  the  taxpayer  for  the transfer credit; and  (vi) the amount of credit being transferred.  (c)  No  transfer  shall  be  effective  unless the taxpayer allowed a credit pursuant to this article and seeking to transfer the credit files a transfer statement with the commissioner prior to the transfer and the commissioner  approves  such  transfer.  The  transfer  statement  shall provide  the  name  and  federal  identification  numbers  of the filing  transferor and the taxpayer to whom the  filing  transferor  transferred the  credit, and the amount of credit transferred to each such person or entity. A copy of  the  transfer  contract  shall  be  attached  to  the transfer   statement.  The  statement  shall  also  contain  such  other information  as  the  commissioner  may  require.  After  reviewing  the transfer  contract  and  the  transfer statement, the commissioner shall approve or deny the transfer as provided in  this  subdivision.  If  the commissioner  approves  the  transfer,  the  commissioner shall issue an approval  statement  that  provides  the  name  of  the  transferor  and transferee,  the  amount  of  credit  being  transferred  and such other information as the commissioner and the  commissioner  of  taxation  and finance  deem necessary. A copy of the commissioner's approval statement must be attached to the transferee's tax  return.  If  the  commissioner denies  the  transfer,  the  commissioner  shall  provide the taxpayer a written determination for such denial. The commissioner, in consultation with the commissioner of taxation and finance, may establish such  other procedures and standards deemed necessary for the transferability of the low-income housing credit.  (d)  The  commissioner shall forward copies of all transfer statements and attachments thereto and approval statements  to  the  department  of taxation  and  finance within thirty days after the transfer is approved by the commissioner.