What's happening
This bill expands eligibility for the historic homeownership rehabilitation tax credit by removing location-based restrictions on qualified historic homes.
Why it matters
Expands access to the historic homeownership rehabilitation tax credit. , enabling more homeowners—including those in higher-income neighborhoods or outside previously targeted areas—to qualify for financial incentives to restore historic homes.
Could stimulate preservation and revitalization efforts. in a wider range of communities, encouraging the maintenance of historic properties regardless of their location or the local median income.
Removes geographic and income-based barriers. that may have excluded many historic homes (and their owners) from participating, potentially increasing both the number and diversity of beneficiaries.
May shift the program’s impact. by allowing resources to flow to historic homeowners in more affluent or non-targeted neighborhoods, which could change the original focus on economic development in disadvantaged areas.
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Who cares
Historic homeowners outside currently eligible areas
The bill would remove the targeted-area or census-tract income requirement, allowing their homes to qualify for the rehabilitation credit if the remaining conditions are met.
Historic preservation advocates
The bill would expand the geographic eligibility of the credit while retaining requirements for a certified historic structure, substantial rehabilitation, taxpayer ownership and residency.
New York State tax administrators
The bill would eliminate the need to apply the targeted-area residence or census-tract income test when determining whether a historic home qualifies.
Headline styles
Expand Historic Home Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- 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.
Expand Historic Home Tax Credit
In Assembly Committee · Ways And Means · Sponsor Michael J. Fitzpatrick
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
902
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sens. YOUNG, SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to the definition of qualified historic home for the purposes of the historic homeownership rehabilitation credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (A) of paragraph 5 of subsection (pp) of section 606 of the tax law, as added by chapter 547 of the laws of 2006, clause (iv) as amended by chapter 239 of the laws of 2009, is amended to read as follows:
(A) The term "qualified historic home" means, for purposes of this subsection, a certified historic structure located within New York state:
(i) which has been substantially rehabilitated,
(ii) which, or any portion of which, is owned, in whole or part, by the taxpayer, and
(iii) in which the taxpayer resides during the taxable year in which the taxpayer is allowed a credit under this subsection[, and
(iv) which is in whole or in part a targeted area residence within the meaning of section 143(j) of the internal revenue code or is located within a census tract which is identified as being at or below one hundred percent of the state median family income in the most recent federal census].
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03641-01-9
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 the defi- nition of qualified historic home for the purposes of the historic homeownership rehabilitation credit
Purpose
The purpose of this bill is to expand the purview of the historic home rehabilitation tax credit to include all homes listed on the national or state historic registers and all homes of a historical significance in historic districts.
Summary of provisions
The bill amends subparagraph (A) of paragraph 5 of subsection (pp) of Section 606 of the Tax Law to delete language in the definition of a "qualified historic home" that requires such home to be a "targeted area residence within the meaning of Section 143 (j) of the Internal Revenue Code." Thus, the bill expands the application of the historic home reha- bilitation tax credit to all homes listed as historic under the national and state registers and any home deemed to be of historical significance located in a registered historic district.
Justification
Chapter 547 of the laws of 2006 enacted a 20% tax credit for the reha- bilitation of historic homes or homes located in a historic district provided such homes are located in "distressed areas" pursuant to the Internal Revenue Code. While Chapter 547 represents a significant first step in implementing a historic home rehabilitation tax credit, it unfortunately, would only apply to approximately 4,100 homes statewide.
Eliminating the "distressed area" or "targeted area" requirement as provided for in the bill would expand the tax credit program to include over 50,000 qualified homes, a goal that was envisioned by original legislation first introduced in 1995.
Extending the incentives contained in Chapter 547 to historic homes located anywhere in the state will enhance the revitalization of our neighborhoods by providing an incentive for investment in New York's rich legacy of historic housing stock.
Primarily, the bill would create a vastly expanded economic development program targeted at aging residential properties that would provide increased housing opportunities; however, it would also have an economic impact on local economies resulting from spending by homeowners for labor and materials. Rehabilitation of these properties would also result in tax base growth and will also help foster further business growth.
Legislative history
2017,2018: S.540/A.3908 Referred to Investigations and Government Oper- ations 2015,2016: S.2317/A.3194 Referred to Investigations and Government Oper- ations
2013,2014: S.2206/A.3993 Referred to Investigations and Government Oper- ations 2011,2012: S.758A/A.2678 Referred to Investigations and Government Oper- ations 2009,2010: S.4682/A.4364 Referred to Investigations and Government Oper- ations 2007,2008: S.4575/A.4117 Passed Senate
Fiscal implications
Undetermined; however, any fiscal impact on the state would be partially offset by increased local property tax revenues through increased assessments on rehabilitated properties and the return to the tax rolls of previously abandoned or delinquent properties.
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.