NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7526
SPONSOR: Fitzpatrick (MS) TITLE OF BILL:
An act to amend the tax law, in relation to the definition of qualified
historic home for the purposes of the historic homeownership rehabili-
tation credit
PURPOSE OR GENERAL IDEA OF BILL::
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 or within a census tract which is at or below 100% of the state
medium family income." Thus, the bill expands the application of the
historic home rehabilitation 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.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
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, elimi-
nating the "targeted area" and census tract requirements, 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 the original
legislation which was 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. Its benefits would be plentiful.
Primarily, it 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 will result in
tax base growth and will also help foster further business growth.
PRIOR LEGISLATIVE HISTORY::
2024 - A4396 - Referred to Ways and Means
2022 - A5600 - Referred to Ways and Means
2020 - A6097 - Held in Housing Committee
2018 - A3908 - Held in Housing Committee
2016 - A3194 - Held in Housing Committee
2014 - A3993 - Held in Housing Committee
2012 - A2678a - Held in Housing Committee
2010 - A4364 - Held in Housing Committee
2008 - A4117 - Held in Housing Committee
FISCAL IMPLICATIONS FOR STATE AND
LOCAL GOVERNMENTS::
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.
