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S1295Senate2015-2016 SessionSame asA4371

Establishes a credit against income tax for the rehabilitation of distressed commercial properties

Sponsor Michael H. RanzenhoferSD-61+5 co-sponsorsAffects Finance
Status
In Assembly Committee
Ways And Means
Impact
Pending
Passage
Pending

Bill progress

Step 5 of 7

In Assembly · Ways And Means

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Sponsors

Primary sponsor
Michael H. Ranzenhofer

Senator · Senate District 61

Chair, Corporations, Authorities And Commissions

History

  1. Referred to ways and means
  2. Delivered to assembly
  3. Passed senateVote 54–6
  4. Ordered to third reading cal.959
  5. Committee discharged and committed to rules
  6. Print number 1295a
  7. Amend and recommit to investigations and government operations
  8. Referred to investigations and government operations
  9. Returned to senate
  10. Died in assembly
  11. Referred to ways and means
  12. Delivered to assembly
Show 6 earlier actions
  1. Passed senateVote 57–4
  2. Advanced to third reading
  3. 2nd report cal.
  4. 1st report cal.1258
  5. Reported and committed to finance
  6. Referred to investigations and government operations

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A4371Assembly

Establishes a credit against income tax for the rehabilitation of distressed commercial properties

In Assembly Committee · Ways And Means · Sponsor Robin Schimminger

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

Title of bill

An act to amend the tax law, in relation to establishing a credit against income tax for the rehabilitation of distressed commercial properties

Summary of provisions

This bill would create a new tax credit program to encourage the rehabilitation of distressed commercial property.

Section 1 - amends section 606 of the Tax Law by adding a new subsection (ccc) which creates a tax credit for the rehabilitation of distressed commercial property.

Read the full memo (678 words)

(1) For taxable years beginning after January 1, 2016, taxpayers shall be allowed a credit equal to thirty percent of the qualified expenditures made by the taxpayer with respect to a qualified distressed commercial property.

(2) The credit shall not exceed $100,000. Credits are allowed in the taxable year in which the property is deemed a certified rehabilitation.

(3) Credits may be carried forward, but not more than $25,000 in any year.

(4) Defines qualified rehabilitation expenditure. Expenditures must be made after January 1, 2016 and before December 31, 2021.

(5) Defines certified rehabilitation.

(6) Defines qualified distressed commercial property.

(7) Provides for recapture of tax credits in the event the rehabilitated distressed commercial property is disposed of within five years after receiving the credit.

(8) Any expenditure for which a credit is claimed under this subsection shall not be eligible for any other credit under this chapter.

Section 2 - amends subparagraph (B) of paragraph 1 of subsection (i) of section 606 by adding a new clause (xli) enumerating the new credit for rehabilitation of distressed commercial property.

Section 3 - amends section 210 of the Tax law to add a new subdivision 49.

(1) For taxable years beginning after January 1, 2016, taxpayers shall be allowed a credit equal to thirty percent of the qualified expenditures made by the taxpayer with respect to a qualified distressed commercial property.

(2) The credit shall not exceed $100,000. Credits are allowed in the taxable year in which the property is deemed a certified rehabilitation.

(3) Credits may be carried forward, but not more than $25,000 in any year.

(4) Defines qualified rehabilitation expenditure. Expenditures must be made after January 1, 2016 and before December 31, 2021.

(5) Defines certified rehabilitation.

(6) Defines qualified distressed commercial property.

(7) Provides for recapture of tax credits in the event the rehabilitated distressed commercial property is disposed of within five years after receiving the credit.

(8) Any expenditure for which a credit is claimed under this subsection shall not be eligible for any other credit under this chapter.

Section 4 - provides that this act shall take effect immediately and shall apply to taxable years on or after January 1, 2016.

Purpose and justification

In many communities across New York State, whether towns, villages, suburbs or cities, there are areas of tired and outdated commercial buildings. On older commercial streets, these areas may include long stretches of outdated commercial buildings that may have been built from the 1930's through the 1980's. These commercial buildings have not received any significant updating for years, and they are now vacant or underperforming properties that give their whole neighborhoods a rundown appearance. Rehabilitating these properties will benefit communities, make these areas economically attractive for new and existing businesses and help to revive the economy of our state. Under this legislation, it will be up to local communities to identify, by local law, areas that are dilapidated and in need of rehabilitation, and to confirm that rehabilitation work is completed to the satisfaction of their building departments and certificates of occupancy were issued for the work done. We will all be rewarded with rejuvenated neighborhoods.

Existing law

Various tax credits are offered to encourage activities that will benefit the state.

Prior legislative history

2012: S.6516/A.9543 INVESTIGA/Ways & Means; 2013: S.2762/A.4507 - FINANCE/Ways & Means 2014: S.2762-B/A.4507-B - PASSED SENATE/Ways & Means 2015: S.1295/A.4371 - PASSED SENATE/Ways & Means

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.