Creates a rental housing and home ownership assistance trust fund program; grants tax credit to business firms making contributions for capital purposes to housing programs or projects developed, sponsored or managed by any not-for-profit neighborhood preservation company, rural preservation company or housing development fund company benefitting low income persons or families.
STATE OF NEW YORK
________________________________________________________________________
6004
2011-2012 Regular Sessions
IN ASSEMBLY
March 3, 2011
___________
Introduced by M. of A. BURLING, McKEVITT, FINCH, RAIA, D. MILLER --
Multi-Sponsored by -- M. of A. CASTELLI, CROUCH, HAWLEY, KOLB,
McLAUGHLIN, MONTESANO, PALMESANO, SPANO, THIELE -- read once and
referred to the Committee on Housing
AN ACT to amend the private housing finance law and the tax law, in
relation to granting tax credit to business firms for contributions
made to not-for-profit housing companies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The private housing finance law is amended by adding a new
2 section 1134 to read as follows:
3 § 1134. Rental housing and home ownership assistance trust fund
4 program. 1. (a) As used in this section, the term "business firm" shall
5 mean any business entity authorized to do business in the state of New
6 York and which is subject to the corporation franchise tax imposed under
7 article nine-A of the tax law, or any banking corporation which is
8 subject to the franchise tax under article thirty-two of the tax law, or
9 any insurance corporation which is subject to the franchise tax under
10 article thirty-three of the tax law.
11 (b) As used in this section, the term "low income persons or families"
12 shall mean those persons or families for whom there are no other reason-
13 able and affordable homeownership, rental, rehabilitation or home
14 improvement alternatives, as the case may be, in the private market.
15 2. The commissioner of taxation and finance shall grant a credit
16 against any tax due under the provisions of articles nine-A, thirty-two
17 and thirty-three of the tax law in an amount equal to the amount speci-
18 fied by the commissioner of housing and community renewal in any tax
19 credit voucher issued by such commissioner of housing and community
20 renewal pursuant to subdivision three of this section.
21 3. The commissioner of housing and community renewal shall establish a
22 system of tax credit vouchers for business firms making contributions
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03180-01-1
A. 6004 2
1 for capital purposes to housing programs or projects developed, spon-
2 sored or managed by any not-for-profit neighborhood preservation compa-
3 ny, rural preservation company, or housing development fund company
4 which benefit low income persons or families which have been approved
5 prior to the date of any such contribution by the commissioner of hous-
6 ing and community renewal. Such vouchers may be used as a credit against
7 any of the taxes to which such business firm is subject and which are
8 enumerated in subdivision two of this section.
9 4. Nothing in this section shall be construed to prevent two or more
10 business firms from participating jointly in one or more programs under
11 the provisions of this section.
12 5. The sum of all tax credits granted pursuant to the provisions of
13 this section shall not exceed five hundred thousand dollars annually per
14 business firm and no tax credit shall be granted to any business firm
15 for an individual amount contributed of less than five hundred dollars.
16 6. No tax credit shall be granted to any bank, bank and trust company,
17 insurance company, trust company, national bank, savings association, or
18 building and loan association or any other business entity for activ-
19 ities that are a part of its ordinary course of business.
20 7. Any tax credit not used during the period within which the contrib-
21 ution was made may be carried forward or backward for the five, imme-
22 diately succeeding or preceding, calendar or fiscal years until the full
23 credit has been allowed.
24 8. In no event shall the total amount of the tax credits allowed to
25 business firms, pursuant to the provisions of this section, exceed ten
26 million dollars in any one fiscal year.
27 9. No neighborhood preservation company, rural preservation company,
28 or housing development fund company, conducting a housing program or
29 project eligible for funding, with respect to which tax credits may be
30 allowed under this section, shall be allowed to receive an aggregate
31 amount of such funding for any program or project in excess of five
32 hundred thousand dollars for any fiscal year.
33 10. Nothing in this section shall be construed to prevent a business
34 firm from making any contribution to a housing program or project to
35 which tax credits may be applied, which contribution may result in the
36 business firm having a limited equity interest in the program or
37 project.
38 11. The commissioner of housing and community renewal, with the
39 approval of the commissioner of taxation and finance, shall adopt regu-
40 lations to implement the provisions of this section.
41 § 2. Section 606 of the tax law is amended by adding a new subsection
42 (ss) to read as follows:
43 (ss) Credit for contributions made to certain not-for-profit housing
44 companies. A taxpayer shall be allowed a credit against the tax imposed
45 by articles nine-A, thirty-two and thirty-three of this chapter pursuant
46 to the provisions of section eleven hundred thirty-four of the private
47 housing finance law.
48 § 3. This act shall take effect on the one hundred twentieth day after
49 it shall have become a law.
