Provides a credit against the franchise tax on corporations and the personal income tax to employers who provide housing assistance to eligible employees.
STATE OF NEW YORK
________________________________________________________________________
1905
2009-2010 Regular Sessions
IN ASSEMBLY
January 14, 2009
___________
Introduced by M. of A. THIELE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to providing a credit against
the franchise tax on corporations and the personal income tax to
employers who provide housing assistance to eligible employees
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 41 to read as follows:
3 41. Community housing opportunity credit. (a) A taxpayer shall be
4 allowed a credit, to be computed as hereinafter provided, against the
5 tax imposed by this article. The amount of the credit shall be equal to
6 fifty percent of the qualified community housing opportunity expendi-
7 tures made by the taxpayer in relation to eligible employees of the
8 taxpayer, as further provided by this subdivision.
9 (b) For the purposes of this subdivision: (1) The term "eligible
10 employee" means an annual or seasonal full time employee who works at
11 least thirty hours each week. A seasonal employee shall work at least
12 thirteen weeks during the tax year but not more than thirty-nine weeks
13 in order to be an eligible employee. An annual employee shall work more
14 than thirty-nine weeks during the tax year. In addition, the gross
15 adjusted income of such eligible employee shall be at or below the medi-
16 an household income for the county in which such employee resides. In
17 the case of seasonal employee, gross adjusted income shall be prorated
18 over the entire tax year in order to determine income eligibility.
19 (2) The term "qualified community housing opportunity expenditures"
20 means: (i) in the case of the purchase of a housing unit by an eligible
21 employee, expenditures by the taxpayer for down payments, mortgage
22 interest rate buy-downs or other mortgage subsidies, and closing costs;
23 (ii) in the case of the rental of a housing unit by an eligible employ-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03219-01-9
A. 1905 2
1 ee, expenditures by the taxpayer for security deposits, advance rental
2 payments, or other rent subsidies.
3 (c) A housing unit for which qualified community housing expenditures
4 are made by a taxpayer pursuant to this subdivision shall be located
5 within the state of New York and shall be the primary residence of the
6 eligible employee.
7 (d) A housing unit for which qualified community housing expenditures
8 have been made by the taxpayer pursuant to this subdivision, shall
9 possess a valid certificate of occupancy for use as a residential hous-
10 ing unit, and shall not have been the subject of a conviction by a court
11 of competent jurisdiction during the relevant tax year of a violation of
12 any zoning, building, fire, sanitary or other health or safety code. The
13 taxpayer shall certify compliance with this paragraph in order to be
14 eligible for the credit provided by this subdivision.
15 (e) The amount of the credit allowed pursuant to this subdivision
16 shall not exceed ten thousand dollars per eligible annual employee in
17 any tax year and five thousand dollars for each seasonal employee.
18 Cumulatively, such credit shall not exceed two hundred fifty thousand
19 dollars in any tax year.
20 (f) In the case of qualified community housing opportunity expendi-
21 tures made by the taxpayer with regard to the purchase of a housing unit
22 by an eligible employee, the purchase price of such housing units shall
23 not exceed five times the median household income of the county in which
24 the housing unit is located. In the case of expenditures made in
25 relation to a housing rental, the annual rent shall not exceed one-third
26 of the median household income of the county in which the housing unit
27 is located.
28 § 2. Section 606 of the tax law is amended by adding a new subsection
29 (qq) to read as follows:
30 (qq) Community housing opportunity credit. (1) A taxpayer shall be
31 allowed a credit, to be computed as hereinafter provided, against the
32 tax imposed by this article. The amount of the credit shall be equal to
33 fifty percent of the qualified community housing opportunity expendi-
34 tures made by the taxpayer in relation to eligible employees of the
35 taxpayer, as further provided by this subsection.
36 (2) For the purposes of this subsection: (A) The term "eligible
37 employee" means an annual or seasonal full time employee who works at
38 least thirty hours each week. A seasonal employee shall work at least
39 thirteen weeks during the tax year but not more than thirty-nine weeks
40 in order to be an eligible employee. An annual employee shall work more
41 than thirty-nine weeks during the tax year. In addition, the gross
42 adjusted income of such eligible employee shall be at or below the medi-
43 an household income for the county in which such employee resides. In
44 the case of a seasonal employee, gross adjusted income shall be prorated
45 over the entire tax year in order to determine income eligibility.
46 (B) The term "qualified community housing opportunity expenditures"
47 means: (i) in the case of the purchase of a housing unit by an eligible
48 employee, expenditures by the taxpayer for down payments, mortgage
49 interest rate buy-downs or other mortgage subsidies, and closing costs;
50 (ii) in the case of the rental of a housing unit by an eligible employ-
51 ee, expenditures by the taxpayer for security deposits, advance rental
52 payments, or other rent subsidies.
53 (3) A housing unit for which qualified community housing expenditures
54 are made by a taxpayer pursuant to this subsection shall be located
55 within the state of New York and shall be the primary residence of the
56 eligible employee.
A. 1905 3
1 (4) A housing unit for which qualified community housing expenditures
2 have been made by the taxpayer pursuant to this subsection, shall
3 possess a valid certificate of occupancy for use as a residential hous-
4 ing unit, and shall not have been the subject of a conviction by a court
5 of competent jurisdiction during the relevant tax year of a violation of
6 any zoning, building, fire, sanitary or other health or safety code. The
7 taxpayer shall certify compliance with this paragraph in order to be
8 eligible for the credit provided by this subsection.
9 (5) The amount of the credit pursuant to this subsection shall not
10 exceed ten thousand dollars per eligible annual employee in any tax year
11 and five thousand dollars for each seasonal employee. Cumulatively, such
12 credit shall not exceed two hundred fifty thousand dollars in any tax
13 year.
14 (6) In the case of qualified community housing opportunity expendi-
15 tures made by the taxpayer with regard to the purchase of a housing unit
16 by an eligible employee, the purchase price of such housing units shall
17 not exceed five times the median household income of the county in which
18 the housing unit is located. In the case of expenditures made in
19 relation to a housing rental, the annual rent shall not exceed one-third
20 of the median household income of the county in which the housing unit
21 is located.
22 § 3. If any clause, sentence, paragraph, section or part of this act
23 shall be adjudged by any court of competent jurisdiction to be invalid,
24 such judgment shall not affect, impair or invalidate the remainder ther-
25 eof, but shall be confined in its operation to the clause, sentence,
26 paragraph, section or part thereof directly involved in the controversy
27 in which such judgment shall have been rendered.
28 § 4. This act shall take effect on the first of January next succeed-
29 ing the date on which it shall have become a law.
