What's happening
This bill increases the maximum historic preservation tax credit in New York to $7 million in 2020-2021 and $9 million in 2021-2022.
Why it matters
Encourages larger and potentially more ambitious historic preservation projects. by allowing developers and property owners to receive significantly higher tax credits, making it more financially feasible to restore and rehabilitate historic buildings.
May stimulate local economies and job creation. , as higher credit caps can lead to increased investment in construction, architecture, and tourism associated with revitalized historic sites.
Targets immediate support for post-2019 projects. by retroactively applying the increased credit limits to taxable years beginning January 1, 2019, potentially benefiting ongoing or recently completed projects that would otherwise not have qualified for higher credits.
Signals state-level commitment to heritage conservation. by prioritizing public funding for preservation efforts, which could enhance community character and cultural identity while encouraging the private sector to participate in maintaining historic assets.
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Who cares
Headline styles
Increase Historic Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to budget and revenue
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.
Increase Historic Tax Credit
In Assembly Committee · Ways And Means · Sponsor Steven Englebright
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7928
IN SENATE
March 3, 2020
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to increasing the maximum award available under the historic preservation tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (A) of paragraph 1 of subsection (oo) of section 606 of the tax law, as amended by section 1 of part RR of chapter 59 of the laws of 2018, is amended to read as follows:
(A) For taxable years beginning on or after January first, two thousand ten and before January first, two thousand twenty-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed [five] seven million dollars in state fiscal year two thousand twenty--two thousand twenty-one and nine million dollars in state fiscal year two thousand twenty-one--two thousand twenty-two. For taxable years beginning on or after January first, two thousand twenty-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state; provided, however, the credit shall not exceed one hundred thousand dollars.
§ 2. Subparagraph (i) of paragraph (a) of subdivision 26 of section 210-B of the tax law, as amended by section 2 of part RR of chapter 59 of the laws of 2018, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08490-01-9
S. 7928 2
(i) For taxable years beginning on or after January first, two thousand ten, and before January first, two thousand twenty-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer for the same taxable year with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed [five] seven million dollars in state fiscal year two thousand twenty--two thousand twenty-one and nine million dollars in state fiscal year two thousand twenty-one--two thousand twenty-two.
§ 3. Subparagraph (A) of paragraph 1 of subdivision (y) of section 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of the laws of 2018, is amended to read as follows:
(A) For taxable years beginning on or after January first, two thousand ten and before January first, two thousand twenty-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed [five] seven million dollars in state fiscal year two thousand twenty--two thousand twenty-one and nine million dollars in state fiscal year two thousand twenty-one--two thousand twenty-two. For taxable years beginning on or after January first, two thousand twenty-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47 with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed one hundred thousand dollars.
§ 4. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to increasing the maximum award available under the historic preservation tax credit
Purpose or general idea of bill
The purpose of this bill is to increase the maximum award under the historic preservation tax credit to $7 million in SFY 2020-21 and $9 million in SFY 2021-22.
Summary of provisions
Section 1 - amends the Tax Law section 606 to increase the maximum award under the Historic Preservation Tax Cap to $7 million in SFY 2020-21 and $9 million in SFY 2021-22.
Section 2 - amends the Tax Law section 210-B to increase the maximum award under the Historic Preservation Tax Cap to $7 million in SFY 2020-21 and $9 million in SFY 2021-22.
Section 3 - amends the Tax Law section 1511 to increase the maximum award under the Historic Preservation Tax Cap to $7 million in SFY 2020-21 and $9 million in SFY 2021-22.
Section 4 is the effective date.
Justification
The Historic Preservation Tax Credit is an effective tool to revitalize historic properties throughout New York. This tax credit has been used successfully by developers throughout New York to rehabilitate buildings that have long fallen into neglect and are in dire need of repair. However, there is a current cap of $5 million per project. This $5 million cap acts as a disincentive for developers to tackle larger, more blighted, and more expensive projects. Current law allows for a 20% tax credit up to a maximum of $5 million dollars. This legislation continues the 20% credit, but raises the maximum threshold from $5 million to $7 million in SFY 2020-21 and then to $9 million in SFY 2021-22, therefore increasing the number of properties that developers will likely rehabil- itate under this program.
Prior legislative history
2013-14 A6979A referred to ways and means
2015-16 A6670 referred to ways and means
2017-18 A8416-A referred to ways and means
Fiscal implications for state and local governments
Minimal.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.