Advocacy Update: Expanding the NYS Rehabilitation Tax Credit programs

Advocacy Update:Expanding the NYS Rehabilitation Tax Credit programs

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

Expanded Rehabilitation Tax Credit:Fiscal and Economic Impact Analysis (Preliminary)

Gross Credit Costs to NYS

Net Credit Costs to NYS

Direct Economic Activity

Secondary Economic Activity

Total EconomicOutput

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

Expanded Rehabilitation Tax Credit:Commercial Property ProgramChapter 547

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

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

Expanded Rehabilitation Tax Credit:Residential Property ProgramSenate/Assembly Bill

A.6471/S.2960Senate/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 <$60,000

Same

Effective Date: January 1, 2010 Same

Sunset: December 31, 2014 Same

A.9023/S.605690% of Upstate Census Tracts are eligible for proposed program19% of Downstate Census Tracts

City of New YorkEligible census tracts,

as proposed in A.9023/S.5065, vs. current program:

Bronx: 140 > 270 census tracts

Brooklyn: 120 > 540 census tracts

New York: 59 > 137 census tracts

Queens: 13 > 300 census tracts

Staten Is.: 3 > 24 census tracts

Rehabilitation Stimulus Program:A.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 legislation’s

impacts near completion (HR&A). 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 Governor’s staff and Tax &

Finance with developers and syndicators to resolve transferability language.

Rehabilitation Stimulus Program:A.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”

Jay A. DiLorenzoPresidentPreservation League of New York [email protected]

518-462-5658 x15