A05665 Summary:

BILL NO    A05665 

SAME AS    No same as

SPONSOR    Lopez V (MS)

COSPNSR    John, Weisenberg, Englebright, Jacobs, Perry, Brook-Krasny

MLTSPNSR   Canestrari, Cymbrowitz, Destito

Amd SS210, 1456 & 1511, Tax L

Grants a tax credit against corporate franchise taxes to business firms for
contributions to neighborhood assistance programs in economically distressed
areas; provides limitations on amount of contributions and total amount of
credits granted; requires approval of proposals by commissioner of tax and
finance, in consultation with the commissioner of the division of housing and
community renewal.

A05665 Actions:

BILL NO    A05665 

02/17/2009 referred to ways and means
01/06/2010 referred to ways and means

A05665 Votes:

A05665 Memo:

 BILL NUMBER:  A5665

 TITLE OF BILL :  An act to amend the tax law, in relation to granting
a tax credit to business firms for contributions made to neighborhood
assistance programs

 PURPOSE OR GENERAL IDEA OF BILL :  This bill will create a new state
level tax credit for businesses supporting neighborhood based
community development efforts planned for New York State.

 SUMMARY OF SPECIFIC PROVISIONS :  This bill amends section 210 of the
tax law to allow the state commissioner of the Division of Housing and
Community Renewal to grant a tax credit to any business that
contributes to a Neighborhood Assistance Program. The proposed NAP tax
credit benefits would provide an incentive for corporations to partner
with CDCs to help further stimulate economic development, create jobs,
and build affordable housing. 1/2 of the funds would be allocated to
groups outside of NYC.

 JUSTIFICATION :  This bill will create a new state-level corporate
income tax credit program that would spur more New York businesses to
partner with local nonprofit organizations across the state in order
to bring the benefits of economic recovery to many more neighborhoods.
Businesses making contributions to not-for-profit community-based
organizations working to transform distressed neighborhoods would earn
a tax credit equal to one-half the amount of their contribution. A
total credit pool of $20 million per year (up to $500,000 per eligible
Donor Corporation) would generate $40 million in annual contributions
from participating corporations. A fair-share allocation process
administered by the New York State Department of Taxation and Finance
would distribute the funds through a competitive selection process
among the estimated 250 eligible local groups now in operation
statewide. An organization could receive up to $150,000 per year
(either directly from corporate partners or through jointly
administered contribution pools) for specified community development
purposes, subject to annual performance evaluation.

 PRIOR LEGISLATIVE HISTORY :

A.1811 of 2001-02 Legislative Session
A.2510a of 2003-04 Legislative Session
A.3904 of 2005-06 Legislative Session A.1595 of 2007-08 Legislative
Session

 FISCAL IMPLICATIONS :

This bill will create a $10 million tax credit but will generate $20
million in direct support of not-for-profit community development
corporations.

 EFFECTIVE DATE :  This act shall take effect on the 120th day after
it shall have become a law.