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

IPED/Using Tax Credits in New IPED/Using Tax Credits in New York CityYork CityNew York, New YorkNew York, New YorkJune 24, 2009June 24, 2009

The Preservation League of New York State

Federal Rehabilitation Tax Credit Use in NYS: 1997-2005An 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.

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 AdvocacyLegislative History

1997 – 2005Advocacy for state credit for residential rehabilitation.

2006Commercial/residential credit programs established in

NYS

2007-2009Advocacy to promote program expansion to address

incentives levels and more effective targeting

Existing Rehabilitation Tax Credit:Chapter 547 of the Laws of 2006Commercial 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

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

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: 140 census tractsBrooklyn: 120 census tractsNew York: 59 census tractsQueens: 13 census tractsStaten Is.: 3 census tracts

NYS Rehabilitation Tax CreditChapter 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 ProgramChapter 547

(Existing program)Assembly/Senate BillA.6471-B/S.2960-B

Assembly/Senate BillA.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

Daniel MackayDirector of Public PolicyPreservation League of New York Statedmackay@preservenys.orgwww.preservenys.org

518-462-5658 x18