Establishes a housing infrastructure tax credit to provide a credit of up to ten percent of costs for infrastructure projects related to the construction of new homes or multiple dwellings commenced and completed within a specific time period.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9709
SPONSOR: Fitzpatrick TITLE OF BILL:
An act to amend the tax law, in relation to establishing a housing
infrastructure tax credit
PURPOSE OR GENERAL IDEA OF BILL:
To provide a tax credit of up to ten percent of the cost for infrastruc-
ture projects related to the construction of new homes or multiple
dwellings.
SUMMARY OF SPECIFIC PROVISIONS:
Sections 1: The tax law is amended to add a new section 49 establishing
the housing infrastructure tax credit. The credit will be worth up to
ten percent of the cost of infrastructure projects related to the
construction of new homes or multiple dwellings and can be applied to
personal income tax or the franchise tax on business corporations. The
housing infrastructure tax credit will apply to projects commenced on or
after 1/1/2025 and completed on or before 12/31/2030.
Section 2: Section 210-B of the tax law is amended by adding a new
subdivision 60. This subdivision allows the housing infrastructure tax
credit to be applied to franchise tax on business corporations.
Section 3: Section 606 of the tax law is amended by adding a new
subsection ppp. This subsection allows the housing infrastructure tax
credit to be applied to personal income tax.
Section 4: Provides an immediate effective date.
JUSTIFICATION:
It is widely acknowledged that New York State is facing a severe short-
age of housing. While several factors contribute to the lack of avail-
able workforce housing in the state, one key factor is the lack of
infrastructure required to construct new housing, including electric,
gas, water, sewer, and septic system infrastructure. Especially in
rural and suburban areas, communities seeking to expand their housing
stock are prevented from doing so due to the lack of this critical
infrastructure and the costs associated with developing it.
The cost of infrastructure investments has only increased in recent
years. This has been driven paitially by an increase in the price of
needed materials. Between 2021 and 2022, the cost of copper pipe
increased by over twenty percent, and the price of PVC pipe increased by
over thirty five percent. In addition, the price of fabricated steel
rose by almost forty percent. Some estimates forecast an overall
increase in construction material prices of as much as twenty percent
from 2021 to 2024.
This bill would help address these issues by providing individuals and
businesses involved in the expansion of required housing infrastructure
with a tax credit of up to ten percent of costs associated with these
projects. This will incentivize further development and help offset the
rising costs of materials.
PRIOR LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9709
IN ASSEMBLY
April 3, 2024
___________
Introduced by M. of A. FITZPATRICK -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a housing
infrastructure tax credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 49 to read
2 as follows:
3 § 49. Housing infrastructure tax credit. A taxpayer subject to tax
4 under article nine-A or article twenty-two of this chapter shall be
5 allowed a credit of up to ten percent of costs for infrastructure
6 projects, including but not limited to electric lines, gas lines, sewer
7 lines, septic systems, water lines, or wells, related to the
8 construction of new homes or multiple dwellings commenced on or after
9 January first, two thousand twenty-five, and completed on or before
10 December thirtieth, two thousand thirty.
11 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
12 sion 60 to read as follows:
13 60. A taxpayer shall be allowed a credit of up to ten percent of costs
14 for infrastructure projects, including but not limited to electric
15 lines, gas lines, sewer lines, septic systems, water lines, or wells,
16 related to the construction of new homes or multiple dwellings commenced
17 on or after January first, two thousand twenty-five, and completed on or
18 before December thirtieth, two thousand thirty.
19 § 3. Section 606 of the tax law is amended by adding a new subsection
20 (ppp) to read as follows:
21 (ppp) A taxpayer shall be allowed a credit of up to ten percent of
22 costs for infrastructure projects, including but not limited to electric
23 lines, gas lines, sewer lines, septic systems, water lines, or wells,
24 related to the construction of new homes or multiple dwellings commenced
25 on or after January first, two thousand twenty-five, and completed on or
26 before December thirtieth, two thousand thirty.
27 § 4. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11719-02-4
