Amd §§606, 210-B & 1511, Tax L; add Art 14-A §§14.15 - 14.18, amd 14.05, Pks & Rec L
Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.
STATE OF NEW YORK
________________________________________________________________________
10366
IN ASSEMBLY
March 2, 2026
___________
Introduced by M. of A. HUNTER, WOERNER -- read once and referred to the
Committee on Tourism, Parks, Arts and Sports Development
AN ACT to amend the tax law and the parks, recreation and historic pres-
ervation law, in relation to establishing the large projects historic
rehabilitation tax credit and the "white elephant" housing historic
rehabilitation projects tax credit program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (oo) of section 606 of the tax law, as amended
2 by section 2 of part E of chapter 59 of the laws of 2025, is amended to
3 read as follows:
4 (oo) Credit for rehabilitation of historic properties. (1) (A) For
5 taxable years beginning on or after January first, two thousand ten and
6 before January first, two thousand [thirty] thirty-seven, a taxpayer, or
7 a transferee of such a taxpayer as described in paragraph seven of this
8 subsection, shall be allowed a credit as hereinafter provided, against
9 the tax imposed by this article, in an amount equal to:
10 (i) one hundred percent of the amount of credit allowed the taxpayer
11 with respect to a certified historic structure, and one hundred fifty
12 percent of the amount of credit allowed the taxpayer with respect to a
13 certified historic structure that is a small project, under internal
14 revenue code section 47(c)(3), determined without regard to ratably
15 allocating the credit over a five year period as required by subsection
16 (a) of such section 47; and
17 (ii) one hundred percent of the amount of credit allowed the taxpayer
18 with respect to a certified historic structure that is a white elephant
19 project, under internal revenue code section 47(c)(3), with respect to a
20 certified historic structure located within the state. Provided, howev-
21 er, the credit shall not exceed five million dollars, unless such credit
22 is allowed with respect to a certified historic structure that is a
23 white elephant project, in which case, the credit shall not exceed
24 fifteen million dollars. Provided, further, that whenever the commis-
25 sioner of parks, recreation and historic preservation receives an appli-
26 cation for a white elephant project from an applicant for which such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10242-02-6
A. 10366 2
1 commissioner has previously certified credit for an eligible white
2 elephant project, the commissioner of parks, recreation and historic
3 preservation may deem such subsequent application to be phase II of the
4 original eligible project if such commissioner determines that the two
5 projects are reasonably related, as determined by such commissioner; the
6 previous project qualified as an eligible white elephant project with
7 seventy-five million dollars or less of qualified rehabilitation expend-
8 itures; and the phase II application has been submitted within five
9 years of such commissioner's previous certification of credit for the
10 previously eligible white elephant project.
11 (B) For taxable years beginning on or after January first, two thou-
12 sand [thirty] thirty-seven, a taxpayer, or a transferee of such a
13 taxpayer as described in paragraph seven of this subsection, shall be
14 allowed a credit as hereinafter provided, against the tax imposed by
15 this article, in an amount equal to thirty percent of the amount of
16 credit allowed the taxpayer with respect to a certified historic struc-
17 ture under internal revenue code section 47(c)(3), determined without
18 regard to ratably allocating the credit over a five year period as
19 required by subsection (a) of such section 47, with respect to a certi-
20 fied historic structure located within the state; provided, however, the
21 credit shall not exceed one hundred thousand dollars, unless such credit
22 is allowed with respect to a certified historic structure that is a
23 white elephant project, in which case, the credit shall not exceed three
24 hundred thousand dollars.
25 [(B)] (C) If the taxpayer or transferee is a partner in a partnership
26 or a shareholder of a New York S corporation, then the credit cap
27 imposed in [subparagraph] subparagraphs (A) and (B) of this paragraph
28 shall be applied at the entity level, so that the aggregate credit
29 allowed to all the partners or shareholders of each such entity in the
30 taxable year does not exceed the credit cap that is applicable in that
31 taxable year.
32 (2) Tax credits allowed pursuant to this subsection shall be allowed
33 in the taxable year that the qualified rehabilitation is placed in
34 service under section 167 of the federal internal revenue code.
35 (3) If the taxpayer is allowed a credit pursuant to section 47 of the
36 internal revenue code with respect to a qualified rehabilitation that is
37 also the subject of the credit allowed by this subsection and that cred-
38 it pursuant to such section 47 is recaptured pursuant to subsection (a)
39 of section 50 of the internal revenue code, a portion of the credit
40 allowed under this subsection must be added back by the taxpayer or
41 transferee in the same taxable year and in the same proportion as the
42 federal recapture.
43 (4) If the amount of the credit allowed under this subsection for any
44 taxable year shall exceed the taxpayer's tax for such year, the excess
45 shall be treated as an overpayment of tax to be credited or refunded in
46 accordance with the provisions of section six hundred eighty-six of this
47 article, provided, however, that no interest shall be paid thereon.
48 (5) To be eligible for the credit allowable under this subsection the
49 rehabilitation project shall be in whole or in part located within a
50 census tract which is identified as being at or below one hundred
51 percent of the state median family income as calculated as of April
52 first of each year using the most recent five year estimate from the
53 American community survey published by the United States Census bureau.
54 If there is a change in the most recent five year estimate, a census
55 tract that qualified for eligibility under this program before informa-
56 tion about the change was released will remain eligible for a credit
A. 10366 3
1 under this subsection for an additional two calendar years. The eligi-
2 bility restrictions set forth in this paragraph shall not be applicable
3 if:
4 (A) a qualified rehabilitation project is undertaken within a state
5 park, state historic site, or other land owned by the state, that is
6 under the jurisdiction of the office of parks, recreation and historic
7 preservation; [or]
8 (B) a qualified rehabilitation project is undertaken for the provision
9 of affordable housing and the taxpayer has entered into a regulatory
10 agreement with any state or federal agency or authority, or any other
11 government entity that is authorized to engage in the financing,
12 construction or oversight of affordable housing within such entity's
13 jurisdiction, and where such regulatory agreement sets forth affordabil-
14 ity requirements applicable for a period of not less than thirty years
15 and that is binding on all successors of the taxpayer; or
16 (C) a qualified white elephant rehabilitation project is undertaken
17 that is also a qualified low-income housing project under article two-A
18 of the public housing law.
19 (6) [For purposes of this subsection the term "small] As used in this
20 subsection, the following terms shall have the following meanings:
21 (A) "Small project" means qualified rehabilitation expenditures total-
22 ing two million five hundred thousand dollars or less[.];
23 (B) "White elephant project" means qualified rehabilitation expendi-
24 tures totaling fifty million dollars or more with respect to a certified
25 historic structure that has been vacant, as determined by local code
26 enforcement or other reasonable means, for at least ten of fifteen
27 consecutive years preceding the date of the taxpayer's application for
28 the rehabilitation credit; and
29 (C) "Phase II housing project" means a white elephant housing project
30 which the commissioner determines (i) is reasonably related to a prior
31 eligible white elephant project or eligible white elephant housing
32 project by the same applicant, (ii) such prior project qualified as
33 eligible with seventy-five million dollars or less of qualified rehabil-
34 itation expenditures, and (iii) the phase II application has been
35 submitted within five years of the commissioner's previous allowance of
36 credit for the prior eligible white elephant project or eligible white
37 elephant housing project.
38 (7)(A) A taxpayer allowed a credit pursuant to this subsection may
39 transfer the credit, in whole or in part, to another person or entity,
40 who shall be referred to as the transferee, without regard to how any
41 tax credit authorized pursuant to section forty-seven of the internal
42 revenue code with respect to a qualified rehabilitation project may be
43 allocated and notwithstanding that such other person or entity owns no
44 interest in the qualified rehabilitation project or in an entity with an
45 ownership interest in the qualified rehabilitation project. A transferee
46 may not transfer any credit, or portion thereof, acquired by transfer.
47 (B) A taxpayer seeking to transfer a credit allowed pursuant to this
48 subsection must enter into a transfer contract with the transferee. The
49 transfer contract must specify:
50 (i) the building identification numbers for all buildings in the
51 project;
52 (ii) the date each building was placed into service;
53 (iii) the schedule of years for which the transfer credit may be
54 claimed and the amount of credit previously claimed;
55 (iv) the amount of consideration received by the taxpayer for the
56 transfer credit; and
A. 10366 4
1 (v) the amount of credit being transferred.
2 (C) No transfer shall be effective unless the taxpayer allowed a cred-
3 it pursuant to this subsection and seeking to transfer the credit files
4 a transfer application with the commissioner of parks, recreation and
5 historic preservation prior to the transfer and such transfer applica-
6 tion is approved. The transfer application shall include the name and
7 federal identification numbers of the taxpayer and each proposed trans-
8 feree, the amount of credit proposed to be transferred to each proposed
9 transferee, a copy of the transfer contract, and such other information
10 as the commissioner or the commissioner of parks, recreation and histor-
11 ic preservation may require. The commissioner of parks, recreation and
12 historic preservation shall approve or deny each transfer application
13 and, if an application is denied, shall issue a written determination to
14 the taxpayer. If the transfer is approved, the commissioner of parks,
15 recreation and historic preservation shall issue a transfer approval
16 certificate that provides the name of the transferor and all transfer-
17 ees, the amount of credit being transferred and such other information
18 as the commissioner of parks, recreation and historic preservation and
19 the commissioner deem necessary. A copy of the transfer approval certif-
20 icate must be attached to each transferee's tax return. The commission-
21 er of parks, recreation and historic preservation, in consultation with
22 the commissioner, may establish such other procedures and standards
23 deemed necessary for the transferability of credits allowed under this
24 subsection.
25 (D) The commissioner of parks, recreation and historic preservation
26 shall forward copies of all transfer applications and attachments there-
27 to and approval certificates to the commissioner within thirty days
28 after the transfer is approved.
29 (E) A taxpayer allowed a credit pursuant to section forty-seven of the
30 internal revenue code with respect to a qualified rehabilitation that is
31 also the subject of the credit allowed by this subsection shall remain
32 solely liable for all obligations and liabilities imposed on the taxpay-
33 er with respect to the credit allowed by this subsection, none of which
34 shall apply to a party to whom the credit has been subsequently trans-
35 ferred.
36 (8) The allocation of the credit established by this subsection may be
37 made without regard to and in a separate manner from any federal reha-
38 bilitation credit that may be allocated with respect to a qualified
39 white elephant project.
40 (9) The commissioner shall report annually, on or before the first day
41 of November, on the aggregate amount of credits claimed and awarded
42 pursuant to this subsection on returns filed during the preceding calen-
43 dar year. Such report shall be provided to the governor, temporary pres-
44 ident of the senate, speaker of the assembly, chair of the senate
45 finance committee and chair of the assembly ways and means committee and
46 shall be made publicly available on the department's website.
47 § 2. Subdivision 26 of section 210-B of the tax law, as amended by
48 section 1 of part E of chapter 59 of the laws of 2025, is amended to
49 read as follows:
50 26. Credit for rehabilitation of historic properties. (a) Application
51 of credit. (i) For taxable years beginning on or after January first,
52 two thousand ten, and before January first, two thousand [thirty] thir-
53 ty-seven, a taxpayer, or a transferee of such a taxpayer as described in
54 paragraph (g) of this subdivision, shall be allowed a credit as herein-
55 after provided, against the tax imposed by this article, in an amount
56 equal to:
A. 10366 5
1 (A) one hundred percent of the amount of credit allowed the taxpayer
2 for the same taxable year with respect to a certified historic struc-
3 ture, and one hundred fifty percent of the amount of credit allowed the
4 taxpayer with respect to a certified historic structure that is a small
5 project, under internal revenue code section 47(c)(3), determined with-
6 out regard to ratably allocating the credit over a five year period as
7 required by subsection (a) of such section 47; and
8 (B) one hundred percent of the amount of credit allowed the taxpayer
9 with respect to a certified historic structure that is a white elephant
10 project, under internal revenue code section 47(c)(3), with respect to a
11 certified historic structure located within the state. Provided, howev-
12 er, the credit shall not exceed five million dollars, unless such credit
13 is allowed with respect to a certified historic structure that is a
14 white elephant project, in which case, the credit shall not exceed
15 fifteen million dollars. Provided, further, that whenever the commis-
16 sioner of parks, recreation and historic preservation receives an appli-
17 cation for a white elephant project from an applicant for which such
18 commissioner has previously certified credit for an eligible white
19 elephant project, the commissioner of parks, recreation and historic
20 preservation may deem such subsequent application to be phase II of the
21 original eligible project if such commissioner determines that the two
22 projects are reasonably related, as determined by such commissioner; the
23 previous project qualified as an eligible white elephant project with
24 seventy-five million dollars or less of qualified rehabilitation expend-
25 itures; and the phase II application has been submitted within five
26 years of such commissioner's previous certification of credit for the
27 previously eligible white elephant project.
28 (ii) For taxable years beginning on or after January first, two thou-
29 sand [thirty] thirty-seven, a taxpayer, or a transferee of such a
30 taxpayer as described in paragraph (g) of this subdivision, shall be
31 allowed a credit as hereinafter provided, against the tax imposed by
32 this article, in an amount equal to thirty percent of the amount of
33 credit allowed the taxpayer for the same taxable year determined without
34 regard to ratably allocating the credit over a five year period as
35 required by subsection (a) of section 47 of the internal revenue code,
36 with respect to a certified historic structure under subsection (c)(3)
37 of section 47 of the internal revenue code with respect to a certified
38 historic structure located within the state. Provided, however, the
39 credit shall not exceed one hundred thousand dollars, unless such credit
40 is allowed with respect to a certified historic structure that is a
41 white elephant project, in which case, the credit shall not exceed three
42 hundred thousand dollars.
43 [(a-1)] (iii) If the taxpayer or transferee is a partner in a partner-
44 ship or a shareholder in a New York S corporation, then the credit caps
45 imposed in [paragraph (a)] subparagraphs (i) and (ii) of this [subdivi-
46 sion] paragraph shall be applied at the entity level, so that the aggre-
47 gate credit allowed to all the partners or shareholders of each such
48 entity in the taxable year does not exceed the credit cap that is appli-
49 cable in that taxable year.
50 (b) Tax credits allowed pursuant to this subdivision shall be allowed
51 in the taxable year that the qualified rehabilitation is placed in
52 service under section 167 of the federal internal revenue code.
53 (c) If the taxpayer is allowed a credit pursuant to section 47 of the
54 internal revenue code with respect to a qualified rehabilitation that is
55 also the subject of the credit allowed by this subdivision and that
56 credit pursuant to such section 47 is recaptured pursuant to subsection
A. 10366 6
1 (a) of section 50 of the internal revenue code, a portion of the credit
2 allowed under this subdivision must be added back by the taxpayer or
3 transferee in the same taxable year and in the same proportion as the
4 federal credit.
5 (d) The credit allowed under this subdivision for any taxable year
6 shall not reduce the tax due for such year to less than the amount
7 prescribed in paragraph (d) of subdivision one of section two hundred
8 ten of this article. However, if the amount of the credit allowed under
9 this subdivision for any taxable year reduces the tax to such amount or
10 if the taxpayer otherwise pays tax based on the fixed dollar minimum
11 amount, any amount of credit thus not deductible in such taxable year
12 shall be treated as an overpayment of tax to be recredited or refunded
13 in accordance with the provisions of section one thousand eighty-six of
14 this chapter. Provided, however, the provisions of subsection (c) of
15 section one thousand eighty-eight of this chapter notwithstanding, no
16 interest shall be paid thereon.
17 (e) To be eligible for the credit allowable under this subdivision,
18 the rehabilitation project shall be in whole or in part located within a
19 census tract which is identified as being at or below one hundred
20 percent of the state median family income as calculated as of April
21 first of each year using the most recent five year estimate from the
22 American community survey published by the United States Census bureau.
23 If there is a change in the most recent five year estimate, a census
24 tract that qualified for eligibility under this program before informa-
25 tion about the change was released will remain eligible for a credit
26 under this subdivision for an additional two calendar years. The eligi-
27 bility restrictions set forth in this paragraph shall not be applicable
28 if:
29 (i) a qualified rehabilitation project is undertaken within a state
30 park, state historic site, or other land owned by the state, that is
31 under the jurisdiction of the office of parks, recreation and historic
32 preservation; [or]
33 (ii) a qualified rehabilitation project is undertaken for the
34 provision of affordable housing and the taxpayer has entered into a
35 regulatory agreement with any state or federal agency or authority, or
36 any other government entity that is authorized to engage in the financ-
37 ing, construction or oversight of affordable housing within such enti-
38 ty's jurisdiction, and where such regulatory agreement sets forth
39 affordability requirements applicable for a period of not less than
40 thirty years and that is binding on all successors of the taxpayer; or
41 (iii) a qualified white elephant rehabilitation project is undertaken
42 that is also a qualified low-income housing project under article two-A
43 of the public housing law.
44 (f) [For purposes of this subdivision "small] Definitions. As used in
45 this subdivision, the following terms shall have the following meanings:
46 (i) "Small project" means qualified rehabilitation expenditures total-
47 ing two million five hundred thousand dollars or less[.];
48 (ii) "White elephant project" means qualified rehabilitation expendi-
49 tures totaling fifty million dollars or more with respect to a certified
50 historic structure that has been vacant, as determined by local code
51 enforcement or other reasonable means, for at least ten of fifteen
52 consecutive years preceding the date of the taxpayer's application for
53 the rehabilitation credit; and
54 (iii) "Phase II housing project" means a white elephant housing
55 project which the commissioner determines (A) is reasonably related to a
56 prior eligible white elephant project or eligible white elephant housing
A. 10366 7
1 project by the same applicant, (B) such prior project qualified as
2 eligible with seventy-five million dollars or less of qualified rehabil-
3 itation expenditures, and (C) the phase II application has been submit-
4 ted within five years of the commissioner's previous allowance of credit
5 for the prior eligible white elephant project or eligible white elephant
6 housing project.
7 (g)(i) A taxpayer allowed a credit pursuant to this subdivision may
8 transfer the credit, in whole or in part, to another person or entity,
9 who shall be referred to as the transferee, without regard to how any
10 tax credit authorized pursuant to section forty-seven of the internal
11 revenue code with respect to a qualified rehabilitation project may be
12 allocated and notwithstanding that such other person or entity owns no
13 interest in the qualified rehabilitation project or in an entity with an
14 ownership interest in the qualified rehabilitation project. A transferee
15 may not transfer any credit, or portion thereof, acquired by transfer.
16 (ii) A taxpayer seeking to transfer a credit allowed pursuant to this
17 subdivision must enter into a transfer contract with the transferee. The
18 transfer contract must specify:
19 (A) the building identification numbers for all buildings in the
20 project;
21 (B) the date each building was placed into service;
22 (C) the schedule of years for which the transfer credit may be claimed
23 and the amount of credit previously claimed;
24 (D) the amount of consideration received by the taxpayer for the
25 transfer credit; and
26 (E) the amount of credit being transferred.
27 (iii) No transfer shall be effective unless the taxpayer allowed a
28 credit pursuant to this subdivision and seeking to transfer the credit
29 files a transfer application with the commissioner of parks, recreation
30 and historic preservation prior to the transfer and such transfer appli-
31 cation is approved. The transfer application shall include the name and
32 federal identification numbers of the taxpayer and each proposed trans-
33 feree, the amount of credit proposed to be transferred to each proposed
34 transferee, a copy of the transfer contract, and such other information
35 as the commissioner or the commissioner of parks, recreation and histor-
36 ic preservation may require. The commissioner of parks, recreation and
37 historic preservation shall approve or deny each transfer application
38 and, if an application is denied, shall issue a written determination to
39 the taxpayer. If the transfer is approved, the commissioner of parks,
40 recreation and historic preservation shall issue a transfer approval
41 certificate that provides the name of the transferor and all transfer-
42 ees, the amount of credit being transferred and such other information
43 as the commissioner of parks, recreation and historic preservation and
44 the commissioner deem necessary. A copy of the transfer approval certif-
45 icate must be attached to each transferee's tax return. The commission-
46 er of parks, recreation and historic preservation, in consultation with
47 the commissioner, may establish such other procedures and standards
48 deemed necessary for the transferability of credits allowed under this
49 subdivision.
50 (iv) The commissioner of parks, recreation and historic preservation
51 shall forward copies of all transfer applications and attachments there-
52 to and approval certificates to the commissioner within thirty days
53 after the transfer is approved.
54 (v) A taxpayer allowed a credit pursuant to section forty-seven of the
55 internal revenue code with respect to a qualified rehabilitation that is
56 also the subject of the credit allowed by this subdivision shall remain
A. 10366 8
1 solely liable for all obligations and liabilities imposed on the taxpay-
2 er with respect to the credit allowed by this subdivision, none of which
3 shall apply to a party to whom the credit has been subsequently trans-
4 ferred.
5 (h) The allocation of the credit established by this subdivision may
6 be made without regard to and in a separate manner from any federal
7 rehabilitation credit that may be allocated with respect to a qualified
8 white elephant project.
9 (i) The commissioner shall report annually, on or before the first day
10 of November, on the aggregate amount of credits claimed and awarded
11 pursuant to this subdivision on returns filed during the preceding
12 calendar year. Such report shall be provided to the governor, temporary
13 president of the senate, speaker of the assembly, chair of the senate
14 finance committee and chair of the assembly ways and means committee and
15 shall be made publicly available on the department's website.
16 § 3. Subdivision (y) of section 1511 of the tax law, as amended by
17 section 3 of part E of chapter 59 of the laws of 2025, is amended to
18 read as follows:
19 (y) Credit for rehabilitation of historic properties. (1) (A) For
20 taxable years beginning on or after January first, two thousand ten and
21 before January first, two thousand [thirty] thirty-seven, a taxpayer, or
22 a transferee of such a taxpayer as described in paragraph seven of this
23 subdivision, shall be allowed a credit as hereinafter provided, against
24 the tax imposed by this article, in an amount equal to:
25 (i) one hundred percent of the amount of credit allowed the taxpayer
26 with respect to a certified historic structure, and one hundred fifty
27 percent of the amount of credit allowed the taxpayer with respect to a
28 certified historic structure that is a small project, under internal
29 revenue code section 47(c)(3), determined without regard to ratably
30 allocating the credit over a five year period as required by subsection
31 (a) of such section 47; and
32 (ii) one hundred percent of the amount of credit allowed the taxpayer
33 with respect to a certified historic structure that is a white elephant
34 project, under internal revenue code section 47(c)(3), with respect to a
35 certified historic structure located within the state. Provided, howev-
36 er, the credit shall not exceed five million dollars, unless such credit
37 is allowed with respect to a certified historic structure that is a
38 white elephant project, in which case, the credit shall not exceed
39 fifteen million dollars. Provided, further, that whenever the commis-
40 sioner of parks, recreation and historic preservation receives an appli-
41 cation for a white elephant project from an applicant for which such
42 commissioner has previously certified credit for an eligible white
43 elephant project, the commissioner of parks, recreation and historic
44 preservation may deem such subsequent application to be phase II of the
45 original eligible project if such commissioner determines that the two
46 projects are reasonably related, as determined by such commissioner; the
47 previous project qualified as an eligible white elephant project with
48 seventy-five million dollars or less of qualified rehabilitation expend-
49 itures; and the phase II application has been submitted within five
50 years of such commissioner's previous certification of credit for the
51 previously eligible white elephant project.
52 (B) For taxable years beginning on or after January first, two thou-
53 sand [thirty] thirty-seven, a taxpayer, or a transferee of such a
54 taxpayer as described in paragraph seven of this subdivision, shall be
55 allowed a credit as hereinafter provided, against the tax imposed by
56 this article, in an amount equal to thirty percent of the amount of
A. 10366 9
1 credit allowed the taxpayer with respect to a certified historic struc-
2 ture under internal revenue code section 47(c)(3), determined without
3 regard to ratably allocating the credit over a five year period as
4 required by subsection (a) of such section 47 with respect to a certi-
5 fied historic structure located within the state. Provided, however, the
6 credit shall not exceed one hundred thousand dollars, unless such credit
7 is allowed with respect to a certified historic structure that is a
8 white elephant project, in which case, the credit shall not exceed three
9 hundred thousand dollars.
10 [(B)] (C) If the taxpayer or transferee is a partner in a partnership,
11 then the cap imposed in [subparagraph] subparagraphs (A) and (B) of this
12 paragraph shall be applied at the entity level, so that the aggregate
13 credit allowed to all the partners of such partnership in the taxable
14 year does not exceed the credit cap that is applicable in that taxable
15 year.
16 (2) Tax credits allowed pursuant to this subsection shall be allowed
17 in the taxable year that the qualified rehabilitation is placed in
18 service under section 167 of the federal internal revenue code.
19 (3) If the taxpayer is allowed a credit pursuant to section 47 of the
20 internal revenue code with respect to a qualified rehabilitation that is
21 also the subject of the credit allowed by this subdivision and that
22 credit pursuant to such section 47 is recaptured pursuant to subsection
23 (a) of section 50 of the internal revenue code, a portion of the credit
24 allowed under this subdivision in the taxable year the credit was
25 claimed must be added back by the taxpayer or transferee in the same
26 taxable year and in the same proportion as the federal recapture.
27 (4) The credit allowed under this subdivision for any taxable year
28 shall not reduce the tax due for such year to less than the minimum
29 fixed by paragraph four of subdivision (a) of section fifteen hundred
30 two or section fifteen hundred two-a of this article, whichever is
31 applicable. However, if the amount of credits allowed under this subdi-
32 vision for any taxable year reduces the tax to such amount, any amount
33 of credit thus not deductible in such taxable year shall be treated as
34 an overpayment of tax to be credited or refunded in accordance with the
35 provisions of section one thousand eighty-six of this chapter. Provided,
36 however, the provisions of subsection (c) of section one thousand eight-
37 y-eight of this chapter notwithstanding, no interest shall be paid ther-
38 eon.
39 (5) To be eligible for the credit allowable under this subdivision,
40 the rehabilitation project shall be in whole or in part located within a
41 census tract which is identified as being at or below one hundred
42 percent of the state median family income as calculated as of April
43 first of each year using the most recent five year estimate from the
44 American community survey published by the United States Census bureau.
45 If there is a change in the most recent five year estimate, a census
46 tract that qualified for eligibility under this program before informa-
47 tion about the change was released will remain eligible for a credit
48 under this subdivision for an additional two calendar years. The eligi-
49 bility restrictions set forth in this paragraph shall not be applicable
50 if:
51 (A) a qualified rehabilitation project is undertaken within a state
52 park, state historic site, or other land owned by the state, that is
53 under the jurisdiction of the office of parks, recreation and historic
54 preservation; [or]
55 (B) a qualified rehabilitation project is undertaken for the provision
56 of affordable housing and the taxpayer has entered into a regulatory
A. 10366 10
1 agreement with any state or federal agency or authority, or any other
2 government entity that is authorized to engage in the financing,
3 construction or oversight of affordable housing within such entity's
4 jurisdiction, and where such regulatory agreement sets forth affordabil-
5 ity requirements applicable for a period of not less than thirty years
6 and that is binding on all successors of the taxpayer; or
7 (C) a qualified white elephant rehabilitation project is undertaken
8 that is also a qualified low-income housing project under article two-A
9 of the public housing law.
10 (6) [For purposes of this subdivision "small] As used in this
11 subdivision, the following terms shall have the following meanings:
12 (A) "Small project" means qualified rehabilitation expenditures total-
13 ing two million five hundred thousand dollars or less[.];
14 (B) "White elephant project" means qualified rehabilitation expendi-
15 tures totaling fifty million dollars or more with respect to a certified
16 historic structure that has been vacant, as determined by local code
17 enforcement or other reasonable means, for at least ten of fifteen
18 consecutive years preceding the date of the taxpayer's application for
19 the rehabilitation credit; and
20 (C) "Phase II housing project" means a white elephant housing project
21 which the commissioner determines (I) is reasonably related to a prior
22 eligible white elephant project or eligible white elephant housing
23 project by the same applicant, (II) such prior project qualified as
24 eligible with seventy-five million dollars or less of qualified rehabil-
25 itation expenditures, and (III) the phase II application has been
26 submitted within five years of the commissioner's previous allowance of
27 credit for the prior eligible white elephant project or eligible white
28 elephant housing project.
29 (7)(A) A taxpayer allowed a credit pursuant to this subdivision may
30 transfer the credit, in whole or in part, to another person or entity,
31 who shall be referred to as the transferee, without regard to how any
32 tax credit authorized pursuant to section forty-seven of the internal
33 revenue code with respect to a qualified rehabilitation project may be
34 allocated and notwithstanding that such other person or entity owns no
35 interest in the qualified rehabilitation project or in an entity with an
36 ownership interest in the qualified rehabilitation project. A transferee
37 may not transfer any credit, or portion thereof, acquired by transfer.
38 (B) A taxpayer seeking to transfer a credit allowed pursuant to this
39 subdivision must enter into a transfer contract with the transferee. The
40 transfer contract must specify:
41 (i) the building identification numbers for all buildings in the
42 project;
43 (ii) the date each building was placed into service;
44 (iii) the schedule of years for which the transfer credit may be
45 claimed and the amount of credit previously claimed;
46 (iv) the amount of consideration received by the taxpayer for the
47 transfer credit; and
48 (v) the amount of credit being transferred.
49 (C) No transfer shall be effective unless the taxpayer allowed a cred-
50 it pursuant to this subdivision and seeking to transfer the credit files
51 a transfer application with the commissioner of parks, recreation and
52 historic preservation prior to the transfer and such transfer applica-
53 tion is approved. The transfer application shall include the name and
54 federal identification numbers of the taxpayer and each proposed trans-
55 feree, the amount of credit proposed to be transferred to each proposed
56 transferee, a copy of the transfer contract, and such other information
A. 10366 11
1 as the commissioner or the commissioner of parks, recreation and histor-
2 ic preservation may require. The commissioner of parks, recreation and
3 historic preservation shall approve or deny each transfer application
4 and, if an application is denied, shall issue a written determination to
5 the taxpayer. If the transfer is approved, the commissioner of parks,
6 recreation and historic preservation shall issue a transfer approval
7 certificate that provides the name of the transferor and all transfer-
8 ees, the amount of credit being transferred and such other information
9 as the commissioner of parks, recreation and historic preservation and
10 the commissioner deem necessary. A copy of the transfer approval certif-
11 icate must be attached to each transferee's tax return. The commission-
12 er of parks, recreation and historic preservation, in consultation with
13 the commissioner, may establish such other procedures and standards
14 deemed necessary for the transferability of credits allowed under this
15 subdivision.
16 (D) The commissioner of parks, recreation and historic preservation
17 shall forward copies of all transfer applications and attachments there-
18 to and approval certificates to the commissioner within thirty days
19 after the transfer is approved.
20 (E) A taxpayer allowed a credit pursuant to section forty-seven of the
21 internal revenue code with respect to a qualified rehabilitation that is
22 also the subject of the credit allowed by this subdivision shall remain
23 solely liable for all obligations and liabilities imposed on the taxpay-
24 er with respect to the credit allowed by this subdivision, none of which
25 shall apply to a party to whom the credit has been subsequently trans-
26 ferred.
27 (8) The allocation of the credit established by this subdivision
28 may be made without regard to and in a separate manner from any
29 federal rehabilitation credit that may be allocated with respect to
30 a qualified white elephant project.
31 (9) The commissioner shall report annually, on or before the first day
32 of November, on the aggregate amount of credits claimed and awarded
33 pursuant to this subdivision on returns filed during the preceding
34 calendar year. Such report shall be provided to the governor, temporary
35 president of the senate, speaker of the assembly, chair of the senate
36 finance committee and chair of the assembly ways and means committee and
37 shall be made publicly available on the department's website.
38 § 4. The parks, recreation and historic preservation law is amended by
39 adding a new article 14-A to read as follows:
40 ARTICLE 14-A
41 WHITE ELEPHANT HOUSING HISTORIC REHABILITATION PROJECTS TAX
42 CREDIT PROGRAM
43 Section 14.15 Definitions.
44 14.16 Allowance of credit, amount and limitations.
45 14.17 Project monitoring.
46 14.18 Regulations, coordination with federal rehabilitation
47 credit provisions.
48 § 14.15 Definitions. As used in this article, the following terms
49 shall have the following meanings:
50 1. "Eligibility statement" means a statement issued by the commission-
51 er, in consultation with the commissioner of the division of community
52 housing and renewal, certifying that a white elephant housing project is
53 eligible for white elephant housing project historic rehabilitation
54 credits under this article and low-income housing tax credits under
55 article two-A of the public housing law. Such statement shall set forth
56 the taxable year in which the building is placed in service, the dollar
A. 10366 12
1 amount of rehabilitation credit certified by the commissioner to such
2 building as provided in section 14.16 of this article, the dollar amount
3 of low-income housing tax credit allocated by the commissioner of commu-
4 nity housing and renewal to such building as provided in section twen-
5 ty-two of the public housing law, sufficient information to identify
6 each such building and the taxpayer or taxpayers with respect to each
7 such building, whether the project is a phase II housing project, and
8 such other information as the commissioner, in consultation with the
9 commissioner of taxation and finance and commissioner of community hous-
10 ing and renewal, shall prescribe. Such eligibility statement shall be
11 first issued following the close of the first taxable year, and there-
12 after, to the extent required by the commissioner of taxation and
13 finance, following the close of each of the following four taxable
14 years.
15 2. "Eligible white elephant project" means a white elephant project as
16 defined in section two hundred ten-B, six hundred six or one thousand
17 five hundred eleven of the tax law that qualifies for historic rehabili-
18 tation tax credit.
19 3. "Eligible white elephant housing project" means an eligible white
20 elephant project as defined in this section that also qualifies for
21 low-income housing tax credit under article two-A of the public housing
22 law.
23 4. "Phase II housing project" means a white elephant housing project
24 which the commissioner determines (a) is reasonably related to a prior
25 eligible white elephant project or eligible white elephant housing
26 project by the same applicant, (b) such prior project qualified as
27 eligible with less than seventy-five million dollars of qualified reha-
28 bilitation expenditures, and (c) the phase II application has been
29 submitted within five years of the commissioner's previous allowance of
30 credit for the prior eligible white elephant project or eligible white
31 elephant housing project.
32 5. "Qualified rehabilitation expenditures" shall have the same meaning
33 as in section 47 of the internal revenue code.
34 6. "White elephant project" means a project as defined in section two
35 hundred ten-B, six hundred six or one thousand five hundred eleven of
36 the tax law.
37 7. "White elephant housing project" means a white elephant project as
38 defined in section two hundred ten-B, six hundred six or one thousand
39 five hundred eleven of the tax law that is also a housing project.
40 8. References in this article to section 47 of the internal revenue
41 code shall mean such section as amended from time to time.
42 § 14.16 Allowance of credit, amount and limitations. 1. A taxpayer
43 subject to tax under article nine-A, twenty-two, or thirty-three of the
44 tax law which owns an interest in one or more eligible white elephant
45 housing projects, or a transferee of such a taxpayer as described in
46 subdivision two of this section, shall be allowed a credit against such
47 tax for the amount of white elephant housing project historic rehabili-
48 tation credit certified by the commissioner to each such structure.
49 2. (a) A taxpayer allowed a credit pursuant to this article may trans-
50 fer the credit, in whole or in part, to another person or entity, who
51 shall be referred to as the transferee, notwithstanding that such other
52 person or entity owns no interest in the eligible white elephant housing
53 project or in an entity with an ownership interest in the eligible white
54 elephant housing project. Transferees shall be entitled to apply trans-
55 ferred credit to a tax imposed under article nine-A, twenty-two or thir-
56 ty-three of the tax law, provided all requirements for claiming the
A. 10366 13
1 credit are met. A transferee may not transfer any credit, or portion
2 thereof, acquired by transfer.
3 (b) A taxpayer allowed a credit pursuant to this article must enter
4 into a transfer contract with the transferee. The transfer contract must
5 specify:
6 (i) the building identification numbers for all buildings in the white
7 elephant housing project;
8 (ii) the date each building was placed into service;
9 (iii) the five year ownership period for the project;
10 (iv) the schedule of years for which the transfer credit may be
11 claimed and the amount of credit previously claimed;
12 (v) the amount of consideration received by the taxpayer for the
13 transfer credit; and
14 (vi) the amount of credit being transferred.
15 (c) No transfer shall be effective unless the taxpayer allowed a cred-
16 it pursuant to this article and seeking to transfer the credit files a
17 transfer statement with the commissioner prior to the transfer and the
18 commissioner approves such transfer. The transfer statement shall
19 provide the name and federal identification numbers of the filing
20 transferor and the taxpayer to whom the filing transferor transferred
21 the credit, and the amount of credit transferred to each such person or
22 entity. A copy of the transfer contract shall be attached to the trans-
23 fer statement. The statement shall also contain such other information
24 as the commissioner may require. After reviewing the transfer contract
25 and the transfer statement, the commissioner shall approve or deny the
26 transfer as provided in this subdivision. If the commissioner approves
27 the transfer, the commissioner shall issue an approval statement that
28 provides the name of the transferor and transferee, the amount of credit
29 being transferred and such other information as the commissioner and the
30 commissioner of taxation and finance deem necessary. A copy of the
31 commissioner's approval statement must be attached to the transferee's
32 tax return. If the commissioner denies the transfer, the commissioner
33 shall provide the taxpayer a written determination for such denial. The
34 commissioner, in consultation with the commissioner of taxation and
35 finance, may establish such other procedures and standards deemed neces-
36 sary for the transferability of the white elephant housing project
37 historic rehabilitation credit.
38 (d) The commissioner shall forward copies of all transfer statements
39 and attachments thereto and approval statements to the department of
40 taxation and finance within thirty days after the transfer is approved
41 by the commissioner.
42 § 14.17 Project monitoring. The commissioner shall establish such
43 procedures deemed necessary for monitoring compliance of an eligible
44 white elephant housing project with the provisions of this article, and
45 for notifying the commissioner of taxation and finance of any such
46 noncompliance.
47 § 14.18 Regulations, coordination with federal rehabilitation credit
48 provisions. 1. The commissioner shall promulgate rules and regulations
49 necessary to administer the provisions of this article.
50 2. The provisions of section 47 of the internal revenue code shall
51 apply to the credit under this article, provided however, to the extent
52 such provisions are inconsistent with this article, the provisions of
53 this article shall control.
54 3. The allocation of the credit established by this article may be
55 made without regard to and in a separate manner from any federal reha-
A. 10366 14
1 bilitation credit that may be allocated with respect to an eligible
2 white elephant housing project.
3 § 5. Paragraph 2 of subsection (pp) of section 606 of the tax law, as
4 amended by section 4 of part RR of chapter 59 of the laws of 2018, is
5 amended and a new paragraph 13 is added to read as follows:
6 (2) (A) With respect to any particular residence of a taxpayer, the
7 credit allowed under paragraph one of this subsection shall not exceed
8 fifty thousand dollars for taxable years beginning on or after January
9 first, two thousand ten and before January first, two thousand [twenty-
10 five] thirty-seven and twenty-five thousand dollars for taxable years
11 beginning on or after January first, two thousand [twenty-five] thirty-
12 seven. In the case of a [husband and wife] married couple, the amount of
13 the credit shall be divided between them equally or in such other manner
14 as they may both elect. If a taxpayer incurs qualified rehabilitation
15 expenditures in relation to more than one residence in the same year,
16 the total amount of credit allowed under paragraph one of this
17 subsection for all such expenditures shall not exceed fifty thousand
18 dollars for taxable years beginning on or after January first, two thou-
19 sand ten and before January first, two thousand [twenty-five] thirty-
20 seven and twenty-five thousand dollars for taxable years beginning on or
21 after January first, two thousand [twenty-five] thirty-seven.
22 (B) For taxable years beginning on or after January first, two thou-
23 sand ten and before January first, two thousand [twenty-five] thirty-
24 seven, if the amount of credit allowable under this subsection shall
25 exceed the taxpayer's tax for such year, and the taxpayer's New York
26 adjusted gross income for such year does not exceed sixty thousand
27 dollars, the excess shall be treated as an overpayment of tax to be
28 credited or refunded in accordance with the provisions of section six
29 hundred eighty-six of this article, provided, however, that no interest
30 shall be paid thereon. If the taxpayer's New York adjusted gross income
31 for such year exceeds sixty thousand dollars, the excess credit that may
32 be carried over to the following year or years and may be deducted from
33 the taxpayer's tax for such year or years. For taxable years beginning
34 on or after January first, two thousand [twenty-five] thirty-seven, if
35 the amount of credit allowable under this subsection shall exceed the
36 taxpayer's tax for such year, the excess may be carried over to the
37 following year or years and may be deducted from the taxpayer's tax for
38 such year or years.
39 (13) The commissioner shall report annually, on or before the first
40 day of November, on the aggregate amount of credits claimed and awarded
41 pursuant to this subdivision on returns filed during the preceding
42 calendar year. Such report shall be provided to the governor, temporary
43 president of the senate, speaker of the assembly, chair of the senate
44 finance committee and chair of the assembly ways and means committee,
45 and shall be made publicly available on the department's website.
46 § 6. Section 14.05 of the parks, recreation and historic preservation
47 law is amended by adding a new subdivision 5 to read as follows:
48 5. (a) The commissioner shall report annually, on or before the first
49 day of November, on the tax credit projects applied for in accordance
50 with subdivision twenty-six of section two hundred ten-B, subsection
51 (oo) of section six hundred six, and subdivision (y) of section fifteen
52 hundred eleven of the tax law on returns filed during the preceding
53 calendar year. Such report shall be provided to the governor, temporary
54 president of the senate, speaker of the assembly, chair of the senate
55 finance committee and chair of the assembly ways and means committee,
A. 10366 15
1 shall be made publicly available on the department's website and shall
2 include the following information:
3 (i) the number and value of tax credit projects applied for during the
4 state fiscal year, organized by municipality and county, and project
5 size;
6 (ii) the number and value of tax credit projects certified by the
7 national park service during the state fiscal year, organized by munici-
8 pality and county, and project size;
9 (iii) the total value of credits certified annually for each of the
10 taxable years beginning on or after January first, two thousand seven to
11 the present, by municipality and county;
12 (iv) the number of housing units before and after rehabilitation;
13 (v) the number of low-moderate housing units before and after rehabil-
14 itation; and
15 (vi) the number of projects certified for both federal and state cred-
16 its, and the number of projects certified for federal credits only.
17 (b) The commissioner shall report annually, on or before the first day
18 of November, on the tax credit projects applied for pursuant to
19 subsection (pp) of section six hundred six of the tax law on returns
20 filed during the preceding calendar year. Such report shall be provided
21 to the governor, temporary president of the senate, speaker of the
22 assembly, chair of the senate finance committee and chair of the assem-
23 bly ways and means committee, shall be made publicly available on the
24 office's website and shall include the following information:
25 (i) the number and value of tax credit projects applied for during the
26 state fiscal year, organized by municipality and county, and project
27 size;
28 (ii) the number and value of tax credit projects certified by the
29 office during the state fiscal year, organized by municipality and coun-
30 ty, and project size;
31 (iii) the total value of credits certified annually for each of the
32 taxable years beginning on or after January first, two thousand seven to
33 the present, by municipality and county;
34 (iv) the number of housing units before and after rehabilitation; and
35 (v) the number of projects certified for state credits by the office.
36 § 7. This act shall take effect immediately and shall apply to taxable
37 years beginning on or after January 1, 2026.
