Overview of NYS Incentives: The existing NYS Rehabilitation Tax Credit programs (2006)

Report
The Preservation League of New York State
Overview of NYS Incentives:
The existing NYS Rehabilitation Tax Credit
programs (2006)
IPED/Using Tax Credits in New York City
New York, New York
June 24, 2009
Federal Rehabilitation Tax Credit Use in
NYS: 1997-2005
An assessment of federal Rehabilitation Tax Credit use in New
York State reveals:

Of the nearly $320 million in federal rehabilitation tax credits
allocated to New York State projects, approximately $280
million were allocated to projects in New York City and the
Boroughs.
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Of the $40 million in federal rehabilitation credits allocated to
projects outside of New York City, only $12 million were
allocated to projects north and west of the Capital Region.
NYS Rehabilitation Tax Credit Advocacy
Legislative History
1997 – 2005
Advocacy for state credit for residential rehabilitation.
2006
Commercial/residential credit programs established in NYS
2007-2009
Advocacy to promote program expansion to address incentives
levels and more effective targeting
Existing Rehabilitation Tax Credit:
Chapter 547 of the Laws of 2006
Commercial Program
Residential Program
Availability
Statewide
Ultra-distressed census tracts
(70% of population below 80%
State Median Family Income)
Qualified Buildings
National Register
National & State Register
Credit Rate:
30% of federal credit value
(6% credit rate)
20% of qualified rehabilitation
costs
Credit Cap:
$100,000
$25,000
Transferability:
Credit allocation only to entity
receiving the federal credit
None
Effective Date:
Current
Current
Sunset
None
None
NYS Rehabilitation Tax Credit:
Commercial Rehabilitation Tax Credit Program
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Available statewide – no targeting provisions
National Register-listed structure used for commercial
(income-producing) purposes
Requires use of the federal rehabilitation tax credit (20% of
qualified rehabilitation costs)
NYS Credit value equal to 30% of federal credit value (net 6.0%
new financing)
$100,000 cap on qualified rehabilitation costs
Credit cannot be assigned, transferred, or sold
NYS Rehabilitation Tax Credit:
Residential Rehabilitation Tax Credit Program
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State or National Register-listed, owner-occupied residential
structures
Structures must be located in “ultra-distressed” census tracts
(70% of the population is at or below 80% SMFI)
NYS Credit value equal to 20% of qualified rehabilitation costs
$25,000 cap on qualified rehabilitation costs per structure
Estimated to serve only 4100 homes statewide
9 applications to date, 8 projects authorized for tax credit use
City of New York - North:
Eligible Historic Districts and
Landmarks, Residential
Program, Chapter 547
Bronx:
Brooklyn:
New York:
Queens:
Staten Is.:
140 census tracts
120 census tracts
59 census tracts
13 census tracts
3 census tracts
NYS Rehabilitation Tax Credit
Chapter 547, Laws of 2006
Established a NYS Income Tax Credit for rehabilitation of both
commercial and residential historic properties.
Administered by the NY State Historic Preservation Office (SHPO):
 Commercial Rehabilitation Program:
NYS SHPO Technical Assistance regional staff at this link:
http://nysparks.state.ny.us/shpo/state/ap.htm

Residential Rehabilitation Program:
NYS SHPO Staff: Sloane Bullough 518-237-8643 x3252
Expanded Rehabilitation Tax Credit:
Commercial Property Program
Chapter 547
(Existing program)
Assembly/Senate Bill
A.6471-B/S.2960-B
Assembly/Senate Bill
A.9023/S.6056
Availability
Statewide
Distressed census tracts at or
below 100% State Median
Family Income (SMFI)
Same
Qualified Buildings
National Register
National Register
Same
Credit Rate:
30% of federal credit
value
(6% credit rate)
100% of federal credit value
(20% credit rate)
Same
Credit Cap:
$100,000
$5 million
Same
Transferability:
Credit allocation only
to entity receiving the
federal credit
Specified unrestricted
allocation of credit within
business partnership
(Subsection 3)
Allows credit to any
person, firm, partnership,
limited liability company,
corporation or other
business entity
Effective Date:
Current program
January 1, 2010
Same
Sunset
None
December 31, 2014
Same
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Daniel Mackay
Director of Public Policy
Preservation League of New York State
[email protected]
www.preservenys.org
518-462-5658 x18

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