Advocacy Update: Expanding the NYS Rehabilitation Tax Credit programs

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Advocacy UpdateExpanding the NYS Rehabilitation
Tax Credit programs
The Preservation League of New York State
IPED/Using Tax Credits in New York City New York,
New York June 24, 2009
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Expanded Rehabilitation Tax CreditFiscal and
Economic Impact Analysis (Preliminary)
Gross Credit Costs to NYS Net Credit Costs to NYS Direct Economic Activity Secondary Economic Activity Total Economic Output Total Employment
52 million 40 million 305 million 205 million 510 million 2000 employees

• Total economic and fiscal impacts of five-year
  program.
• Direct costs offset by sales, personal income
  and business income taxes.
• Total benefit ratio of almost 13 1.
• Projected 80 total increase in rehabilitation
  activity

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Expanded Rehabilitation Tax CreditCommercial
Property Program
Chapter 547 (Existing program) Assembly/Senate Bill A.6471/S.2960 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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Expanded Rehabilitation Tax CreditResidential
Property Program
Senate/Assembly Bill A.6471/S.2960 Senate/Assembly Bill A.9023/S.6056
Availability Census tracts at or below 100 State Median Family Income (SMFI) Same
Qualified Buildings National State Register Same
Credit Rate 20 of qualified rehabilitation costs Same
Credit Cap 50,000 Same
Rebate Provision Credit can be taken as rebate for those earning lt60,000 Same
Effective Date January 1, 2010 Same
Sunset December 31, 2014 Same
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A.9023/S.6056 90 of Upstate Census Tracts are
eligible for proposed program 19 of Downstate
Census Tracts
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City of New York Eligible census tracts, as
proposed in A.9023/S.5065, vs. current
program Bronx 140 gt 270 census
tracts Brooklyn 120 gt 540 census tracts New
York 59 gt 137 census tracts Queens 13 gt
300 census tracts Staten Is. 3 gt 24 census
tracts
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Rehabilitation Stimulus ProgramA.9023
(Hoyt)/S.6056 (Valesky)

• Advocacy
• Statewide, bi-partisan support at county, mayoral
  and legislative levels established Re-Invest NY
  Partnership
• Economic and fiscal impact study of legislations
  impacts near completion (HRA).
• A.9023 passed Assembly early Tuesday, June 23rd
  S.6056 introduced in Senate Tuesday afternoon
• Seeking Senate bill passage and signature by
  Governor significant incremental improvements to
  program
• Convene meeting with Governors staff and Tax
  Finance with developers and syndicators to
  resolve transferability language.

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Rehabilitation Stimulus ProgramA.9023
(Hoyt)/S.6056 (Valesky)

• Advocacy Next Steps
• Call Senate Bill Sponsor David Valesky
  518-455-2838
• We support Senate passage and signature by the
  Governor, and want to work with you going forward
  to address transferability issues
• Call Governor Paterson 518-474-8390
• Please support Senate passage of S.6506 and
  sign this legislation to catalyze economic
  stimulus and community revitalization throughout
  New York State

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• Jay A. DiLorenzo
• President
• Preservation League of New York State
• jdilorenzo_at_preservenys.org
• www.preservenys.org
• 518-462-5658 x15