Establishes a historic wood window rehabilitation and energy retrofit tax credit of up to 25% of the expenditures paid or incurred within the five years preceding the year in which the tax credit is applied.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8613
SPONSOR: Barrett TITLE OF BILL:
An act to amend the tax law, in relation to establishing a historic wood
window rehabilitation and energy retrofit tax credit
PURPOSE OF THE BILL:
To establish a Historic Wood Window Rehabilitation and Energy Retrofit
Tax Credit.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends the Tax Law by adding a new subsection (ppp) to
section 606 establishing a Historic Wood Window Rehabilitation and Ener-
gy Retrofit Tax Credit. The amount of the credit shall be 25% of the
taxpayer's qualified rehabilitation and energy retrofit expenditures
paid or incurred within the 5 years immediately preceding the year in
which the tax shall be applied.
The total amount of tax credits allocated each fiscal year shall not
exceed $200,000 and rebates shall be allocated on a first-come, first-
served basis. An owner-occupied residential property or owners of
commercial properties shall not exceed $50,000 in expenditures per
fiscal year.
If the amount of credit allowable exceeds a taxpayer's tax and the
taxpayer's New York adjusted gross income does not exceed $60,000, the
excess shall be treated as an overpayment or tax to be credited or
refunded.
§ 2: Effective Date
JUSTIFICATION:
New York State is home to a wealth of historic buildings, some dating
from as early as the 17th century. These buildings represent the growth
of the Empire State, reflecting settlement patterns, industrial inno-
vation and the influence of the land on building styles and materials.
As sustainable building practices and historic preservation gain momen-
tum, the number of older buildings and structures needing rehabilitation
and restoration increases. In particular, there is a need to balance the
rehabilitation of wood windows with energy efficiency while maintaining
the historic integrity of the windows.
This legislation will establish a Historic Wood Window Rehabilitation
and Energy Retrofit Tax Credit intended to spur the restoration of these
historic wood windows while increasing energy efficiency. The tax credit
shall be 25% of the taxpayer's qualified rehabilitation and energy
retrofit expenditures paid or incurred within the 5 years immediately
preceding the year in which the tax shall be applied. The total amount
of tax credits allocated each fiscal year shall not exceed $200,000 and
rebates shall be allocated on a first-come, first-served basis. An
owner-occupied residential property or owners of commercial properties
shall not exceed $50,000 in expenditures per fiscal year. Additionally,
this legislation would deliver benefits of this program more effectively
to New Yorkers by providing a refund if the tax credit exceeds the
taxpayer's tax owed.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on and after such date.
STATE OF NEW YORK
________________________________________________________________________
8613
IN ASSEMBLY
January 12, 2024
___________
Introduced by M. of A. BARRETT -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a historic wood
window rehabilitation and energy retrofit tax credit
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 (ppp) to read as follows:
3 (ppp) Historic wood window rehabilitation and energy retrofit tax
4 credit. (1) A taxpayer shall be allowed a credit, to be computed as
5 hereinafter provided, against the tax imposed by this article. The
6 amount of the credit shall be twenty-five percent of the taxpayer's
7 qualified rehabilitation and energy retrofit expenditures paid or
8 incurred within the five years immediately preceding the year in which
9 such tax credit shall be applied with respect to any historic wood
10 windows located in this state. All such rehabilitation and energy retro-
11 fit shall include energy efficiency upgrades while maintaining the
12 historic integrity of all such windows. For purposes of this subsection,
13 the term "energy efficiency upgrades" shall mean repairs in kind to
14 deteriorated historic wood windows, window sash systems and operational
15 components, including but not limited to, reglazing, weatherstripping,
16 and the appropriate installation of interior or exterior storm windows
17 to protect historic sash. For the purposes of this subsection, the term
18 "historic wood windows" means a wood window that is fifty years or
19 older, as evaluated and approved by the state historic preservation
20 office.
21 (2) The total amount of tax credits allocated to the historic wood
22 window rehabilitation and energy retrofit tax credit each fiscal year
23 shall not exceed two hundred thousand dollars of qualified expenditures.
24 Rebates shall be allocated to applicants on a first-come, first-served
25 basis, determined by the date the application is received, until all
26 appropriated funds for the fiscal year are expended. An owner-occupied
27 residential property or owners of commercial properties shall not exceed
28 fifty thousand dollars in expenditures per fiscal year.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11804-03-3
A. 8613 2
1 (3) If the amount of credit allowable under this subsection shall
2 exceed the taxpayer's tax for such year and the taxpayer's New York
3 adjusted gross income for such year does not exceed sixty thousand
4 dollars, the excess shall be treated as an overpayment of tax to be
5 credited or refunded in accordance with the provisions of section six
6 hundred eighty-six of this article; provided, however, that no interest
7 shall be paid thereon. If the taxpayer's New York adjusted gross income
8 for such year exceeds sixty thousand dollars, the excess credit may be
9 carried over to the following year or years and may be deducted from the
10 taxpayer's tax for such year or years.
11 § 2. This act shall take effect immediately and shall apply to taxable
12 years commencing on and after such date.
