Creates a downtown revitalization zone investment tax credit

BILL NUMBER:A9821

Title of bill

An act to amend the tax law, in relation to creating a downtown revitalization zone investment tax credit

Purpose or general idea of bill

To create investment tax credits for qualified projects within a designated Downtown Business Revitalization Zone to encourage redirection of development to existing neighborhood centers and discourage sprawl.

Summary of specific provisions

Section 210 of the tax law is amended by adding a new subdivision 25-b.

Justification

Successful downtown business centers have historically been a hallmark of quality suburban living, serving as the social and commercial centers of communities. Today, with the proliferation of discount megastores, outlet shopping malls, and "big box" retailers outside the downtown area, the economies of our once-thriving downtowns are becoming increasingly more fragile. Without supports Main Street will continue its regression from a viable economic center, to an area fought with high vacancy rates, vandalism and deterioration of struc- tures.

The proposed incentive will help to reverse this trend, and provide positive fiscal impacts to the entire community. Revitalizing downtowns will facilitate an increased tax base, create new jobs, promote underu- tilized, existing infrastructure and transportation centers, and preserve the history and character of the area. A Downtown Revitaliza- tion Investment Tax Credit will provide meaningful financial enticement, and encourage business people to invest new money in the location or expansion of their businesses in our deteriorating neighborhood centers.

New York State currently provides investment tax credits for businesses involved in manufacturing, processing, assembling, refining, mining, -farming and commercial fishing. This new legislation is needed. to ensure that our downtown areas can compete in attracting viable economic opportunities and to promoting downtown areas as a practical alterna- tive, so that downtowns may remain, or again become, a central driving force in the economic and social well being of our communities.

This bill would allow for the strengthening of local economies, enhance- ment of existing community hubs, reduction of the tax burden, and improvement of the overall quality of life. The bill is consistent with the objectives of the local communities and the County of Suffolk as a whole.

Prior legislative history

2007-2008: A.3404 - Remained in Committee 2005-2006: A.7484 -Remained on Committee

Fiscal implications

None

EFFECTIVE DATE:; This act shall take effect on the one hundred twentieth day after it shall have become a law; provided, however, that the commissioner of taxation and finance shall promulgate any rules and regulations necessary for the timely implementation of this act on or before such date.