Grants a tax credit against corporate franchise taxes to business firms for contributions to neighborhood assistance programs in economically distressed areas; provides limitations on amount of contributions and total amount of credits granted; requires approval of proposals by commissioner of tax and finance, in consultation with the commissioner of the division of housing and community renewal.
STATE OF NEW YORK
________________________________________________________________________
5665
2009-2010 Regular Sessions
IN ASSEMBLY
February 17, 2009
___________
Introduced by M. of A. V. LOPEZ, JOHN, GREENE, WEISENBERG, ENGLEBRIGHT,
JACOBS, PERRY, BROOK-KRASNY -- Multi-Sponsored by -- M. of A. CANES-
TRARI, CYMBROWITZ, DESTITO, EDDINGTON -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to granting a tax credit to
business firms for contributions made to neighborhood assistance
programs
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 25-b to read as follows:
3 25-b. Neighborhood assistance program credit. (a) For the purpose of
4 this subdivision a qualifying recipient shall be a company under
5 contract with the division of housing and community renewal pursuant to
6 sections nine hundred three and one thousand three of the private hous-
7 ing finance law or other non-profit entities that engage in housing and
8 community development activities including but not limited to: preserva-
9 tion and development of affordable housing, housing counseling and
10 community renewal. The commissioner of the division of housing and
11 community renewal shall establish a procedure to certify such other
12 entities as qualifying recipients.
13 (b) The commissioner of the division of housing and community renewal
14 shall establish a process for approval of a credit against any tax due
15 under this article to businesses, which contribute to a qualifying
16 recipient. Such approval shall be forwarded to the department under
17 procedures to be established by the division of housing and community
18 renewal and the department. The amount of the tax credit voucher shall
19 not exceed one-half the amount of the contribution. Only cash contrib-
20 utions shall be eligible for this tax credit.
21 (c) Criteria for approval of tax credit proposals shall include: the
22 extent of need of the community, vision and plans for the revitalization
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08366-01-9
A. 5665 2
1 of the community; successful track record of service to the community;
2 board and community involvement; and demonstrated ability to utilize
3 resources effectively.
4 (d) Nothing in this section shall be construed to prevent two or more
5 taxpayers or two or more qualifying recipients from participating joint-
6 ly in one or more programs under the provisions of this subdivision nor
7 shall it be construed to prevent any business from participating in one
8 or more programs.
9 (e) The sum of all tax credits granted pursuant to the provisions of
10 this subdivision shall not exceed five hundred thousand dollars annually
11 for any one taxpayer including such party's affiliates and related enti-
12 ties as determined by the commissioner, unless the commissioner deter-
13 mines that the total amount of the tax credits allowed to taxpayers will
14 be under-utilized in any one fiscal year.
15 (f) No tax credit shall be granted to any business for activities that
16 are part of its or any of its affiliates' or related entities' ordinary
17 course of business.
18 (g) Any tax credit not used during the period within which the
19 contribution was made may be carried forward for one immediately
20 succeeding calendar or fiscal year until the full credit has been
21 allowed.
22 (h) No one qualifying recipient shall be allowed to receive capital,
23 with respect to which a tax credit is granted pursuant to this subdivi-
24 sion, in excess of one hundred fifty thousand dollars in any one-year
25 period.
26 § 2. Section 1456 of the tax law is amended by adding a new subsection
27 (u) to read as follows:
28 (u) Neighborhood assistance program credit. (1) For the purpose of
29 this subsection a qualifying recipient shall be a company under contract
30 with the division of housing and community renewal pursuant to sections
31 nine hundred three and one thousand three of the private housing finance
32 law or other non-profit entities that engage in housing and community
33 development activities including but not limited to: preservation and
34 development of affordable housing, housing counseling and community
35 renewal. The commissioner of the division of housing and community
36 renewal shall establish a procedure to certify such other entities as
37 qualifying recipients.
38 (2) The commissioner of the division of housing and community renewal
39 shall establish a process for approval of a credit against any tax due
40 under this article to businesses, which contribute to a qualifying
41 recipient. Such approval shall be forwarded to the department under
42 procedures to be established by the division of housing and community
43 renewal and the department. The amount of the tax credit voucher shall
44 not exceed one-half the amount of the contribution. Only cash contrib-
45 utions shall be eligible for this tax credit.
46 (3) Criteria for approval of tax credit proposals shall include: the
47 extent of need of the community, vision and plans for the revitalization
48 of the community; successful track record of service to the community;
49 board and community involvement; and demonstrated ability to utilize
50 resources effectively.
51 (4) Nothing in this section shall be construed to prevent two or more
52 taxpayers or two or more qualifying recipients from participating joint-
53 ly in one or more programs under the provisions of this subsection nor
54 shall it be construed to prevent any business from participating in one
55 or more programs.
A. 5665 3
1 (5) The sum of all tax credits granted pursuant to the provisions of
2 this subsection shall not exceed five hundred thousand dollars annually
3 for any one taxpayer including such party's affiliates and related enti-
4 ties as determined by the commissioner, unless the commissioner deter-
5 mines that the total amount of the tax credits allowed to taxpayers will
6 be under-utilized in any one fiscal year.
7 (6) No tax credit shall be granted to any business for activities that
8 are part of its or any of its affiliates' or related entities' ordinary
9 course of business.
10 (7) Any tax credit not used during the period within which the
11 contribution was made may be carried forward for one immediately
12 succeeding calendar or fiscal year until the full credit has been
13 allowed.
14 (8) No one qualifying recipient shall be allowed to receive capital,
15 with respect to which a tax credit is granted pursuant to this
16 subsection, in excess of one hundred fifty thousand dollars in any one-
17 year period.
18 § 3. Section 1511 of the tax law is amended by adding a new subdivi-
19 sion (l-1) to read as follows:
20 (l-1) Neighborhood assistance program credit. (1) For the purpose of
21 this subdivision a qualifying recipient shall be a company under
22 contract with the division of housing and community renewal pursuant to
23 sections nine hundred three and one thousand three of the private hous-
24 ing finance law or other non-profit entities that engage in housing and
25 community development activities including but not limited to: preserva-
26 tion and development of affordable housing, housing counseling and
27 community renewal. The commissioner of the division of housing and
28 community renewal shall establish a procedure to certify such other
29 entities as qualifying recipients.
30 (2) The commissioner of the division of housing and community renewal
31 shall establish a process for approval of a credit against any tax due
32 under this article to businesses, which contribute to a qualifying
33 recipient. Such approval shall be forwarded to the department under
34 procedures to be established by the division of housing and community
35 renewal and the department. The amount of the tax credit voucher shall
36 not exceed one-half the amount of the contribution. Only cash contrib-
37 utions shall be eligible for this tax credit.
38 (3) Criteria for approval of tax credit proposals shall include: the
39 extent of need of the community, vision and plans for the revitalization
40 of the community; successful track record of service to the community;
41 board and community involvement; and demonstrated ability to utilize
42 resources effectively.
43 (4) Nothing in this section shall be construed to prevent two or more
44 taxpayers or two or more qualifying recipients from participating joint-
45 ly in one or more programs under the provisions of this subdivision nor
46 shall it be construed to prevent any business from participating in one
47 or more programs.
48 (5) The sum of all tax credits granted pursuant to the provisions of
49 this subdivision shall not exceed five hundred thousand dollars annually
50 for any one taxpayer including such party's affiliates and related enti-
51 ties as determined by the commissioner, unless the commissioner deter-
52 mines that the total amount of the tax credits allowed to taxpayers will
53 be under-utilized in any one fiscal year.
54 (6) No tax credit shall be granted to any business for activities that
55 are part of its or any of its affiliates' or related entities' ordinary
56 course of business.
A. 5665 4
1 (7) Any tax credit not used during the period within which the
2 contribution was made may be carried forward for one immediately
3 succeeding calendar or fiscal year until the full credit has been
4 allowed.
5 (8) No one qualifying recipient shall be allowed to receive capital,
6 with respect to which a tax credit is granted pursuant to this subdivi-
7 sion, in excess of one hundred fifty thousand dollars in any one-year
8 period.
9 § 4. In no event shall the total amount of the tax credits allowed to
10 taxpayers pursuant to the provisions of subdivision 25-b of section 210,
11 subsection (u) of section 1456 and subdivision (1-1) of section 1511 of
12 the tax law, in the aggregate, exceed ten million dollars in any one
13 fiscal year. No more than fifty percent of the total amount of the tax
14 credits shall be granted for contributions made to neighborhood organ-
15 izations located within a city with a population of one million or more.
16 § 5. This act shall take effect on the one hundred twentieth day after
17 it shall have become a law. Effective immediately, the commissioner of
18 the division of housing and community renewal shall promulgate any rules
19 and regulations necessary for the timely implementation of this act on
20 or before such date.
