What's happening
This bill expands eligibility for economic transformation and facility redevelopment program tax credits to certain state psychiatric centers with decommissioned or surplus land.
Why it matters
Unlocks redevelopment potential for active psychiatric centers. By including psychiatric facilities with a majority of decommissioned or surplus land, the bill enables significant portions of still-operating centers to be repurposed, which could attract new investments and jobs to areas that might otherwise see land remain unused.
Targets economic recovery in challenged regions. Many state psychiatric centers are located in regions struggling with job loss or economic stagnation. This change could help catalyze broader economic transformation in these communities by making it easier for businesses to access redevelopment incentives.
Expands demolition-related tax benefits. The bill allows qualifying projects on these psychiatric center lands to include specific demolition costs (like asbestos removal and debris disposal) in their investment tax credit calculations, potentially lowering redevelopment barriers and incentivizing more ambitious projects.
Responds to shifting state facility needs. As healthcare delivery models evolve and some state land is no longer needed for institutional use, this amendment gives the state and local governments a tool to quickly transition surplus public property to productive private or mixed-use development, rather than letting it deteriorate.
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Who cares
Headline styles
Tax Credit for Surplus Psychiatric Land
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to commerce, economic development and small business
- Referred to commerce, economic development and small business
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1226
2019-2020 Regular Sessions
IN SENATE
January 11, 2019
Introduced by Sen. RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to amend the economic development law and the tax law, in relation to granting eligibility for the economic transformation and facility redevelopment program tax credit to certain state psychiatric centers with decommissioned or surplus land
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (e) of subdivision 4 of section 400 of the economic development law, as added by section 1 of part QQ of chapter 60 of the laws of 2016, is amended to read as follows:
(e) provided, however that the requirement in paragraph (a) of this subdivision that the participant be a new business shall not apply to a closed facility as defined in paragraph (d) or (e) of subdivision eleven of this section.
§ 2. Paragraph (d) of subdivision 10 of section 400 of the economic development law, as added by section 2 of part QQ of chapter 60 of the laws of 2016, is amended to read as follows:
(d) Notwithstanding paragraph (b) of this subdivision, with respect to a closed facility described in paragraph (d) or (e) of subdivision eleven of this section, the economic transformation area shall consist only of the acreage of the closed facility.
§ 3. Paragraph (d) of subdivision 11 of section 400 of the economic development law, as added by section 3 of part QQ of chapter 60 of the laws of 2016, is amended and a new paragraph (e) is added to read as follows:
(d) a facility previously owned by the state, and when operated, was operated as a psychiatric facility pursuant to section 7.17 of the mental hygiene law, and located within the metropolitan commuter transportation district but outside New York city[.]; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04214-01-9
S. 1226 2
(e) a facility that currently operates as a psychiatric center pursuant to section 7.17 of the mental hygiene law, where at least threefifths of the total acreage of such facility has been designated by the commissioner of mental health as decommissioned or surplus, including the buildings thereon.
§ 4. Subdivision 1 of section 402 of the economic development law, as amended by section 4 of part QQ of chapter 60 of the laws of 2016, is amended to read as follows:
1. A business entity must submit a completed application as prescribed by the commissioner by the later of (a) the date that is three years after the date of the closure of the closed facility located in the economic transformation area in which the business entity would operate or (b) January first, two thousand fifteen. Provided however, in the case of a closed facility described in paragraph (d) or (e) of subdivision eleven of section four hundred of this article, a business entity must submit a completed application as prescribed by the commissioner by September first, two thousand [sixteen] eighteen.
§ 5. Paragraph 1 of subdivision (h) of section 35 of the tax law, as amended by section 5 of part QQ of chapter 60 of the laws of 2016, is amended to read as follows:
(1) A taxpayer which meets the requirements in this section shall be eligible to claim a credit on qualified investments with respect to the project for which the certificate of eligibility is issued. The credit shall be equal to ten percent of the cost or other basis for federal income tax purposes of the qualified investment at a closed facility. Provided however, for purposes of this credit only, a taxpayer that is the owner of a closed facility described in paragraph (d) or (e) of subdivision eleven of section four hundred of the economic development law, shall be allowed to include in its cost or other basis of the qualified investment at the closed facility, any demolition costs incurred at such closed facility. Those demolition costs shall be limited to the following costs: (i) asbestos removal costs, (ii) rental of demolition equipment, (iii) personnel costs to operate the demolition equipment, (iv) costs to remove and dispose of demolition debris, (v) the costs of any permits, licenses and insurance necessary for the demolition. The total amount of investment tax credit allowed for all eligible participants under this subdivision for qualified investments located at each closed facility shall not exceed eight million dollars. The credit shall be equal to six percent of the cost or other basis for federal income tax purposes for all other qualified investments, but the credit allowed to a taxpayer may not exceed four million dollars.
§ 6. This act shall take effect immediately, provided that the amendments to sections 400 and 402 of the economic development law, made by sections one, two, three and four of this act, and section 35 of the tax law, made by section five of this act, shall not affect the expiration and repeal of such sections and shall be deemed repealed therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the economic development law and the tax law, in relation to granting eligibility for the economic transformation and facility redevelopment program tax credit to certain state psychiatric centers with decommissioned or surplus land
Purpose
To grant eligibility for the economic transformation and facility rede- velopment program tax credit to certain state psychiatric centers with decommissioned or surplus land
Summary of provisions
Section 1 amends § 400(4)(e) of the Economic Development Law to add to the closed facility exception.
Read the full memo (877 words)
Section 2 amends § 400(10)(d) of the Economic Development Law to provide that with respect to a closed facility described in paragraph (d) or (e) or subdivision eleven of this section, the economic transformation area shall consist only of the acreage of the closed facility.
Section 3 amends § 400(11)(d) of the Economic Development Law to add to the definition of closed facility a facility that is currently operated as a psychiatric center pursuant to § 7.17 of the Mental Hygiene Law, where at least three-fifths of the total acreage of such facility has been designated by the Commissioner of Mental Health as decommissioned or surplus, including the buildings thereon.
Section 4 amends § 402(1) of the Economic Development Law to provide that a business entity must submit a completed application as prescribed by the commissioner pursuant to specific deadlines, provided however that in the case of a closed facility as described in § 400(11)(d) and newly created paragraph (e), a business entity must submit a completed application as prescribed by the commissioner by September 1, 2016.
Section 5 amends § 35(h)(1) of the Tax Law to provide that a taxpayer which meets the requirements in this section shall be eligible to claim a credit on qualified investments with respect to the project for which the certificate of eligibility is issued The credit shall be equal to 10% of the cost of other bases for federal income tax purposed of the quailed investment at a closed facility, provided that the taxpayer that is the owner of the closed facility as described in the amended § 400(11) of the Economic Development Law shall be allowed to include in its cost or other basis of the qualified investment at the closed facil- ity, any demolition costs incurred at such closed facility.
Section 6 is the effective date.
Existing law
§ 400 of the Economic Development Law provides the definitions for the Economic Transformation and Facility Redevelopment Program.
§ 402 of the Economic Development Law provides the application and approval process of the Economic Transformation and Facility Redevelop- ment Program.
§ 7.17 of the Mental Hygiene Law provides the programs, services, and operation of facilities in the Office of Mental Health.
§ 35 of the Tax Law provides the Economic Transformation and Facility redevelopment program Tax Credit. This bill adds the new definition of closed facility to the credit.
This bill seeks to adds to the definition of closed facility for the purposes of expanding the Economic Transformation and Facility Redevel- opment Program facilities that are currently operated as a psychiatric center, as defined by the Mental Hygiene Law, where at least three- fifths of the total acreage of such facility has been designated by the Commissioner of Mental Health as decommissioned or surplus, including the buildings thereon.
Justification
The Economic Transformation and Facility Redevelopment Program includes a series of wage and tax credits designed to entice new businesses to locate, expand and grow, utilizing formerly occupied state facilities. Initially aimed at redeveloping former prisons and juvenile detention facilities, the program was expanded in the SFY 2016-17 State Budget to also include certain former psychiatric hospitals with the goal of reviving these facilities into thriving economic engines of job creation.
Meantime, in communities across New York, the state continues to operate psychiatric facilities, but on a much smaller footprint than originally planned for these purposes. The result is hundreds or thousands of vacant acres and buildings that are not being used, and with no plans for their reuse, yet they remain under state control, and off local community tax rolls. Many of these facilities are located in econom- ically distressed communities.
For example, the St. Lawrence Psychiatric Center, located in Ogdensburg, continues to provide world-class medical care for hundreds of patients each year, and remains an important part of New York's fabric of mental health care, but utilizes a fraction of the land and buildings on the center's more than 422-acre campus. Recently, the Legislature has recognized the value of releasing some of the unused land and derelict, abandoned buildings at St. Lawrence Psychiatric Center for possible redevelopment, and passage of this measure would enhance efforts to remove and redevelop blighted buildings, and transform communities by triggering revitalization efforts that can attract new economic activity and job creation.
Legislative history
2017-2018: S.30178
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately, provided that the amendments to sections 400 and 402 of the economic development law, made by sections one, two, three, and four of this act, and section 35 of the tax law, made by section five of this act, shall not affect the expiration and repeal of such sections and shall be deemed repealed therewith.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.