Enacts the "city of Buffalo historic preservation tax credit act"

BILL NUMBER:S2878

Title of bill

An act to amend the tax law, in relation to enacting the "city of Buffalo historic preservation tax credit act"

Purpose

To create the "City of Buffalo historic preservation tax credit" in order to ensure funding for potential historic rehabilitation projects found within Buffalo and Western New York.

Summary of specific provisions

Section one of this bill is the title, known as the "City of Buffalo historic preservation tax credit act". Section two amends section 606 of the Tax Law by adding a new subsection. This subsection allows for the historic structure rehabilitation credit to be granted to taxpayers for rehabilitation of historic buildings within the City of Buffalo. section three creates an effective date.

Justification

Due to a funding shortage, many potential historic rehabilitation projects never get off the ground. Lack of funding is not uncommon for historic developments but is particularly common in western New York. with a high volume of historic properties located in and around Buffalo, the rehabilitation costs tend to be higher, mainly because they deteriorate longer pending a financing plan that would support redevelopment. The availability of a state historic tax credit for properties located in Buffalo and around western New York would allow for the redevelopment of more historic properties in a shorter period of time. This would then lower the rehabilitation costs because less deterioration of that building would be present.

Prior legislative history

2005-06 A.8870 Referred to Ways and Means, Amended and Recommitted S.5681 Passed Senate

Fiscal implications

$250,000 to 500,000 per year for the State of New York.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to taxable years commencing on and after such date.