A09882 Summary:
BILL NO | A09882 |
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SAME AS | SAME AS S07648 |
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SPONSOR | Woerner |
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COSPNSR | Lupardo, Goodell, McDonald, Fahy, Magnarelli, Hawley, Magee |
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MLTSPNSR | Lifton |
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Amd §§606, 210-B & 1511, Tax L; amd §13.15, Pks & Rec L | |
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Relates to removing dependence on federal law to receive the historic properties tax credit in New York state. |
A09882 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)   BILL NUMBER: A9882 SPONSOR: Woerner
  TITLE OF BILL: An act to amend the tax law and the parks, recreation and historic preservation law, in relation to the tax credit for reha- bilitation of historic properties   PURPOSE OF THE BILL: To extend the historic properties tax credit and decouple it from feder- al law.   SUMMARY OF PROVISIONS: The historic properties tax credit is extended from January 1, 2020 to January 1, 2025. Further, the references to federal law such as defining the tax credit as 100% of the federal credit are replaced with state law references and definitions.   JUSTIFICATION: The federal tax law changes require investors to spread many tax cred- its, including the historic properties tax credit, across five years, reducing its year-to-year value significantly. The way the state credit is written, a similar diminution in value would occur for the state credit, doubling the negative impact on investors in historic proper- ties. Since Governor Cuomo signed the expansion and extension of the Historic Tax Credit in 2013, significant investment has occurred across the state, especially upstate in the numerous historic downtowns and neigh- borhoods. Extension now will ensure projects being planned and already in developers' pipelines will continue to move forward without losing the tax benefits that induced the investment in the first place. Those seeking to renovate, repurpose, and renew historic properties often must first obtain program eligibility through National Register Historic District nominations. These nominations can take up to a year for designation. A key piece of the upstate economic development puzzle, the historic properties tax credit have been a big part of the invest- ment in upstate cities and extending the credit and maintaining its value will ensure the economic revitalization will continue.   PRIOR LEGISLATIVE HISTORY: The existing historic properties tax credit is set to expire on January 1, 2020.   FISCAL IMPLICATIONS: None this year, extension of a current program   EFFECTIVE DATE: This act shall take effect immediately.