Relates to a credit for purchase, construction or retrofitting of a principal residence to achieve universal visitability pursuant to guidelines developed by the division of code enforcement and administration within the department of state; caps tax credits awarded at 1 million dollars per year for 5 years.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9005
TITLE OF BILL:
An act to amend the tax law, in relation to providing a tax credit for
universal visitability; and providing for the repeal of such provisions
upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
To allow a tax credit for either new or retrofitted principal residences
which are universally designed to be accessible and adaptable housing.
SUMMARY OF PROVISIONS:
This bill amends section 606 of the tax law by adding a new subsection
(coo) which would provide a one-time tax credit for a newly constructed
principal residence not to exceed $2,750 or for a renovated principal
residence of 50% of the amount expended, not to exceed $2,750, for
Eligibility requirements for universal visitability would be established
through guidelines by the Department of State Division of Code Enforce-
ment and Administration. This credit would be effective beginning Janu-
ary 1, 2021 until December 31, 2025.
This legislation provides a positive incentive for universal design
changes to create accessible and adaptable housing which is important to
allow individuals to age in place. Universal design changes make resi-
dences accessible and user friendly for senior citizens and others with
limited mobility. By providing seniors with the opportunity to age in
place, this may save some of the costs associated with assisted living
or nursing homes. This bill would provide and alternative for many
seniors who are able to remain in place with universal design. changes.
It also will assist in building an inventory of residence which will
have universal design to ensure accessibility. The use of a tax credit
provides and incentive rather.than a mandated approach.
PRIOR LEGISLATIVE HISTORY:
S.2411A/A.5950A - 2017; Passed both houses and Vetoed by Governor.
S.6943A/A.9303B - 2016;
S.2967A/A.1276 - 2015 Passed both houses and Vetoed by Governor.
A10668 - 2018 Passed assembly
S.2424/A.2493- 2019 Passed both houses and Vetoed by Governor.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
The total credit amount provided by the state will be capped at $1
EFFECTIVE DATE: .
This act shall take effect immediately and shall apply to taxable years
commencing on and after January 1, 2021 and shall expire and be deemed
repealed December 31, 2025.
STATE OF NEW YORK
January 10, 2020
Introduced by M. of A. LAVINE, LIFTON, ROMEO, OTIS, BUTTENSCHON, SANTA-
BARBARA, SEAWRIGHT -- read once and referred to the Committee on Ways
AN ACT to amend the tax law, in relation to providing a tax credit for
universal visitability; and providing for the repeal of such
provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (kkk) to read as follows:
3 (kkk) Universal visitability tax credit. (1) For taxable years begin-
4 ning on or after January first, two thousand twenty-one, until December
5 thirty-first, two thousand twenty-five, a taxpayer shall be allowed a
6 credit against the tax imposed by this article for a portion of the
7 total purchase price paid by such taxpayer for a principal residence
8 attributable to universal visitability or the total amount expended by a
9 taxpayer to retrofit an existing principal residence to achieve
10 universal visitability provided that the principal residence or the
11 retrofitting of the existing principal residence is located within this
12 state and designed to provide universal visitability as defined through
13 the eligibility requirements established by guidelines developed by the
14 division of code enforcement and administration within the department of
15 state. For the purpose of this subsection, principal residence shall
16 mean such residence pursuant to section one hundred twenty-one of the
17 internal revenue code.
18 (2) The credit shall be allowed for the taxable year in which the
19 principal residence has been purchased or constructed, or the retrofit-
20 ting or renovation of the residence or residential unit has been
21 completed, or the year of allocation to the taxpayer as provided in
22 paragraph seven of this subsection. The credit allowed under this
23 subsection shall not exceed (A) twenty-seven hundred fifty dollars for
24 the purchase of a new residence, or (B) fifty percent of the total
25 amount expended, but not to exceed twenty-seven hundred fifty dollars
26 for the retrofitting or renovation of each existing residence or unit.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.
A. 9005 2
1 (3) No credit shall be allowed under this subsection for the purchase,
2 retrofitting or renovation of residential rental property.
3 (4) The credit shall be allowed under this subsection only for
4 universal visitability improvements made by or at the direction of the
6 (5) If the amount of the credit allowable under this subsection shall
7 exceed the taxpayer's tax for such year, the excess may be carried over
8 to the following year or years and may be deducted from the taxpayer's
9 tax for such year or years.
10 (6) Eligible taxpayers shall apply for the credit through the division
11 of code enforcement and administration within the department of state.
12 The division of code enforcement and administration within the depart-
13 ment of state shall issue a certification for an approved application to
14 the taxpayer that states the amount of the credit allocated to the
15 taxpayer and the allocation year.
16 (7) (A) The aggregate amount of tax credits allowed pursuant to the
17 authority of this subsection shall be one million dollars each year
18 during the period two thousand twenty-one through two thousand twenty-
19 five. Such aggregate amounts of credits shall be allocated by the
20 department of state among taxpayers in order of priority based upon the
21 date of filing an application for allocation of credit with the division
22 of code enforcement and administration. If the total amount of allocated
23 credits applied for in any particular year exceeds the aggregate amount
24 of tax credits allowed for such year under this subsection, such excess
25 shall be treated as having been applied for on the first day of the
26 subsequent year.
27 (B) The secretary of state, after consulting with the commissioner,
28 shall promulgate regulations by October thirty-first, two thousand twen-
29 ty to establish procedures for the allocation of tax credits as required
30 by this subparagraph. Such rules and regulations shall include
31 provisions describing the application process, the due dates for such
32 applications, the standards which shall be used to evaluate the applica-
33 tions, the documentation that will be provided to taxpayers to substan-
34 tiate to the department the amount of tax credits allocated to such
35 taxpayers, and such other provisions as deemed necessary and appropri-
36 ate. Notwithstanding any other provisions to the contrary in the state
37 administrative procedure act, such rules and regulations may be adopted
38 on an emergency basis if necessary to meet such October thirty-first,
39 two thousand twenty deadline.
40 (8) The department of state shall submit to the governor, the tempo-
41 rary president of the senate, and the speaker of the assembly, an annual
42 report to be submitted by February first of each year evaluating the
43 effectiveness of the universal visitability tax credit provided by this
44 subsection. Such report shall be based on data available from the appli-
45 cation filed with the division of code enforcement and administration
46 for universal visitability credits. Notwithstanding any provision of law
47 to the contrary, the information contained in the report shall be public
48 information. The report may also include any recommendations of changes
49 in the calculation or administration of the credit, and any other recom-
50 mendation of the commissioner of the department of state or the division
51 of code enforcement and administration regarding continuing modifica-
52 tion, repeal of such act, and such other information regarding the act
53 as the division may feel useful and appropriate.
54 § 2. This act shall take effect immediately and shall apply to taxable
55 years commencing on and after January 1, 2021 and shall expire and be
56 deemed repealed December 31, 2025.