2023 New York Laws › PBG - Public Housing › Article 2-A - New York State Low Income Housing Tax Credit Program › 21 - Definitions.

§   21.   Definitions.   1.  (a)  "Applicable  percentage"  means  the
appropriate  percentage  (depending  on  whether  a  building  is   new,
existing,  or  federally  subsidized) prescribed by the secretary of the
treasury for purposes of section 42 of the internal revenue code for the
month which is the earlier of
(i) the month in which the eligible low-income building is  placed  in
service, or
(ii) at the election of the taxpayer,
(A) the month in which the taxpayer and the commissioner enter into an
agreement  with  respect  to  such  building  (which  is  binding on the
commissioner, the taxpayer, and all successors in interest)  as  to  the
housing credit dollar amount to be allocated to such building, or
(B)  in the case of any building to which subsection (h)(4)(B) of such
section 42 applies, the month in which the  tax-exempt  obligations  are
issued.
(b) A month may be elected under subparagraph (ii) of paragraph (a) of
this  subdivision  only if the election is made not later than the fifth
day after the close of such month. Such election, once  made,  shall  be
irrevocable.
(c)  If, as of the close of any taxable year in the credit period, the
qualified basis of an eligible low-income building exceeds such basis as
of the close of the first year of  the  credit  period,  the  applicable
percentage  which  shall apply to such excess shall be two-thirds of the
applicable percentage originally ascribed to such building.
2. "Compliance period" means, with respect to any building, the period
of fifteen taxable years beginning with the first taxable  year  of  the
credit period with respect to such building.
3.  "Credit  period"  means,  with  respect to any eligible low-income
building, the period of ten taxable years beginning with
(a) the taxable year in which the building is placed in service, or
(b) at the election of the taxpayer, the succeeding taxable year,
but only if the building is an eligible low-income building  as  of  the
close of the first year of such period. The election under paragraph (b)
of this subdivision, once made, shall be irrevocable.
4.   "Eligibility   statement"   means   a  statement  issued  by  the
commissioner certifying  that  a  building  is  an  eligible  low-income
building.  Such statement shall set forth the taxable year in which such
building is placed in service, the dollar amount of  low-income  housing
credit  allocated  by  the  commissioner to such building as provided in
subdivision five of section twenty-two of this article,  the  applicable
percentage  and  maximum  qualified  basis with respect to such building
taken  into  account  in  determining  such  dollar  amount,  sufficient
information to identify each such building and the taxpayer or taxpayers
with  respect  to  each such building, and such other information as the
commissioner, in consultation with  the  commissioner  of  taxation  and
finance, shall prescribe. Such statement shall be first issued following
the  close  of  the  first  taxable  year  in  the  credit  period,  and
thereafter, to the extent required by the commissioner of  taxation  and
finance,  following  the  close  of  each taxable year of the compliance
period.
5. "Eligible low-income building" means a  building  located  in  this
state which either
(a)  is a qualified low-income building as defined in section 42(c) of
the internal revenue code, or
(b) would be a qualified low-income building under such section if the
20-50  test  specified  in  subsection  (g)(1)  of  such  section   were
disregarded  and  the 40-60 test specified in such subsection (requiring
that at least forty percent of residential units be both rent-restricted

and occupied by individuals whose income is sixty  percent  or  less  of
area median gross income) were a 40-90 test.
6.  "Qualified  basis"  of  an  eligible low-income building means the
qualified basis of such building determined under section 42(c)  of  the
internal  revenue  code, or which would be determined under such section
if the 40-90 test specified in paragraph (b) of subdivision five of this
section applied under such section 42 to determine if such building were
part of a qualified low-income housing project.
7. References in this article to section 42 of  the  internal  revenue
code shall mean such section as amended from time to time.