Senate Finance Committee Passes Historic Preservation Tax Credit in New York Legislature
Contributed By: The National Trust for Historic Preservation's Department of Public Policy
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On May 19, the New York State Senate Finance Committee passed the Historic Rehabilitation Tax Credit bill (S2960-A/Valesky), sending it to the full Senate which is expected to pass the measure next week.
The bill strengthens the program first launched in 2006 by:
Senator David J. Valesky (D-Oneida), Vice President Pro Tempore of the Senate and lead sponsor said, "the Historic Rehabilitation Tax Credit will provide real incentives to stimulate Main Street and downtown development that will create jobs, increase property values and provide a better quality of life for all upstate New Yorkers. This program has great potential to revitalize the upstate economy and reduce the strain on urban, suburban and rural communities alike."
- Increasing the percent of qualified rehabilitation costs that can be claimed for the credit from 6-percent to 20-percent, allowing for a higher percentage of qualified rehabilitation costs.
- Increasing the program cap on the commercial credit up from $100,000 to $5 million and the residential credit up from $25,000 to $50,000.
- Making the credit assignable, transferable, and conveyable within business partnerships, to allow for greater flexibility on the part of the investor, and attract out-of-state financing to in-state rehabilitation projects.
- Offering the rehabilitation tax credit as a rebate to make the program a stronger financial incentive for homeowners without significant income tax liability.
- Limiting the availability of the residential and commercial credit of the program to “distressed” areas, which is defined as an area located within a census tract identified at or below one hundred percent of the median family income.
Keywords: Senate Finance Committee, Historic Preservation Tax Credit, New York Legislature
Posted: May 25, 2009
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