BILL NUMBER: S6021A
SPONSOR: BASKIN
 
TITLE OF BILL:
An act to amend the tax law and the parks, recreation and historic pres-
ervation law, in relation to establishing the large projects historic
rehabilitation tax credit and the "white elephant" housing historic
rehabilitation projects tax credit program
 
PURPOSE:
This bill extends the NY State Historic Rehabilitation Tax Credit to
large "white elephant" projects and creates the "white elephant" housing
historic rehabilitation projects tax credit program for large rehabili-
tation projects that also qualify for a low-income housing project tax
credit under article 2-A of the public housing law.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends paragraph (1) of subsection (00) of section 606 of the
tax law to extend the availability of the credit for rehabilitation of
historic properties to taxable years beginning before January 1, 2037,
and subsection (ii) adds a new credit for one hundred percent of the
amount of credit allowed a taxpayer with respect to a certified historic
structure that is a white elephant project under internal revenue code §
47(c)(3). Subsection (ii) adds the provisions that credit for a quali-
fied white elephant project shall be ratably allocated over a five-year
period as required by internal revenue code § 47(a) and shall not exceed
fifteen million dollars, provided that the commissioner of parks, recre-
ation and historic preservation may determine that a subsequent applica-
tion for a white elephant project received from the same applicant be
deemed a "Phase II" application where the subsequent application is
determined reasonably related to the original and is submitted within
five years of the previous application for an eligible white elephant
project having seventy-five million dollars or less of qualified reha-
bilitation expenditures. Subparagraph (B) of Section 1 has been added to
note that for taxable years beginning on or after January 1, 2037, the
credit for a white elephant project shall not exceed three hundred thou-
sand dollars. Subparagraph (C), formerly subparagraph (B), notes that if
the taxpayer is in a partnership or shareholder of a New York S corpo-
ration, the credit caps imposed in subgraphs (A) and (B) will be applied
at the entity level, such that the aggregate credit allowed to all part-
ners or shareholders of such entity in the taxable year does not exceed
the credit cap this is applicable in that year.
Paragraph (5) is amended in subparagraph (C) to exempt a qualified white
elephant rehabilitation project that is also a qualified low-income
housing project under article two-A of the public housing law from the
requirement that the project be in whole or in part located within a
qualified census tract.
Adds paragraph (6) to define "white elephant project" and "phase II
housing project".
Paragraph (8) is added to allow the allocation of the credit established
by this subsection may be made without regard to and in a separate
manner from any federal rehabilitation credit that may be allocated with
respect to a qualified white elephant project.
Paragraph (9) is added to require the commissioner of taxation and
finance to report annually on the aggregate amount of historic rehabili-
tation credits claimed and awarded during the preceding calendar year,
and such report shall be provided to the governor, temporary president
of the senate, speaker of the assembly, chair of the senate finance
committee and chair of the assembly ways and means committee and shall
be made publicly available on the department's website.
§ 2: Amends subdivision 26 of section 210-B of the tax law, as amended
by section 1 part E of chapter 59 of the laws of 2025, to extend the
availability of the credit for rehabilitation of historic properties to
taxable years beginning before January 1, 2037 in subparagraph (i).
Subparagraph (g) subsection (B) adds a new NYS credit for one hundred
percent of the amount of credit allowed a taxpayer with respect to a
certified historic structure that is a white elephant project under
internal revenue code section 47(c)(3). The credit for a qualified white
elephant project shall be ratably allocated over a five-year period as
required by internal revenue code § 47(a) and shall not exceed fifteen
million dollars, and provides further than whenever the commissioner of
parks and recreation receives an application for a white elephant
project wherein the applicant for which such commissioner has previously
certified credit for an eligible white elephant project that the commis-
sioner of parks, recreation and historic preservation may determine that
a subsequent application for a white elephant project received from the
same applicant be deemed a "Phase II" application where the subsequent
application is determined reasonably related to the original and is
submitted within five years of the previous application for an eligible
white elephant project having seventy-five million dollars or less of
qualified rehabilitation expenditures. In addition, for taxable years
beginning on or after January 1, 2037, the credit for a white elephant
project shall not exceed three hundred thousand dollars.
Paragraph (e) subdivision (iii) is amended to exempt a qualified white
elephant rehabilitation project that is also a qualified low-income
housing project under article two-A of the public housing law from the
requirement that the project be in whole or in part located within a
qualified census tract. Paragraph (f) is added to define "white elephant
project" and "phase II housing project".
Paragraph (g) is added to permit the credit to be allocated without
regard to and in a separate manner from any federal rehabilitation cred-
it that may be allocated with respect to a qualified white elephant
project.
Paragraph (h) is added to require the commissioner of taxation and
finance to report annually on the aggregate amount of historic rehabili-
tation credits claimed and awarded during the preceding calendar year,
and such report shall be provided to the governor, temporary president
of the senate, speaker of the assembly, chair of the senate finance
committee and chair of the assembly ways and means committee and shall
be made publicly available on the department's website.
§ 3: Amends paragraph (i) of subsection (y) of section 1511 of the tax
law to extend the availability of the credit for rehabilitation of
historic properties to taxable years beginning before January 1, 2037
and paragraph (ii) adds a new NYS credit for one hundred percent of the
amount of credit allowed a taxpayer with respect to a certified historic
structure that is a white elephant project under internal revenue code §
47(c)(3). The credit for a qualified white elephant project shall be
ratably allocated over a five-year period as required by internal reven-
ue code § 47(a) and shall not exceed fifteen million dollars, provided
that the commissioner of parks, recreation and historic preservation may
determine that a subsequent application for a white elephant project
received from the same applicant be deemed a "Phase II" application
wherein the subsequent application is determined reasonably related to
the original and is submitted within five years of the previous applica-
tion for an eligible white elephant project having seventy-five million
dollars or less of qualified rehabilitation expenditures. In addition,
subparagraph (B) states for taxable years beginning on or after January
1, 2037, the credit for a white elephant project shall not exceed three
hundred thousand dollars.
Paragraph (5) subparagraph (C) is amended to exempt a qualified white
elephant rehabilitation project that is also a qualified low-income
housing project under article two-A of the public housing law from the
requirement that the project be in whole or in part located within a
qualified census tract. Adds paragraph (6) to define "white elephant
project" and "phase II housing project". Paragraph (7) is added to
permit the credit to be allocated without regard to and in a separate
manner from any federal rehabilitation credit that may be allocated with
respect to a qualified white elephant project. Paragraph (8) is added to
require the commissioner of taxation and finance to report annually on
the aggregate amount of historic rehabilitation credits claimed and
awarded during the preceding calendar year, and such report shall be
provided to the governor, temporary president of the senate, speaker of
the assembly, chair of the senate finance committee and chair of the
assembly ways and means committee and shall be made publicly available
on the department's website.
§ 4: Amends the parks, recreation and historic preservation law by
adding a new article 14-A. Section 14.15 of Article 14-A defines key
terms. Section 14.16 provides for an allowance of credit for eligible
white elephant housing projects and sets the amount and limitations.
Section 14.17 authorizes the commissioner to establish such procedures
deemed necessary for monitoring compliance of an eligible white elephant
housing project with the provisions of article 14-A and for notifying
the commissioner of taxation and finance of noncompliance.
Section 14.18 authorizes the commissioner to promulgate rules and regu-
lations and permits allocation of the credit established by article 14-A
without regard to and in a separate manner from any federal rehabili-
tation credit for an eligible white elephant housing project.
§ 5: Amends paragraph 2 of subsection (pp) of section 606 of the tax law
to extend the credit for rehabilitation of historic homeownership from
to two thousand thirty-seven; and to add new paragraph 13 to direct the
commissioner of taxation to report annually on the amount of credits
claimed and awarded.
§ 6: Amends section 14.05 of the parks, recreation and historic preser-
vation law by adding a new subdivision (5) to require the commissioner
to report annually on the historic rehabilitation tax credit projects
applied for under sections 210-B, 606, and 1511 of the tax law and to
detail the information to be reported.
§ 7: Establishes the effective date.
 
JUSTIFICATION:
Across the state the landscape is dotted with behemoth "white elephant"
projects, like the Central Warehouse in Albany, the mill in Victory
Mills, the Richardson Complex and the Central Terminal in Buffalo, the
Massey-Ferguson Complex in Batavia, and the NY Central Power Plant in
Yonkers. These buildings have long sat vacant as they slowly deteriorate
from neglect. Too expensive to demolish and too expensive to rehab. This
bill seeks to provide a tool to breathe new life into these buildings
whose presence is part of the history of New York and of their communi-
ties, and further to encourage their rehabilitation as new and afforda-
ble housing.
This extension of the existing Historic Preservation Tax credit is a 20%
credit for projects with a minimum of $50 million in qualified rehabili-
tation expenditures, capped at fifteen million dollars. According to
the State Historic Preservation Office, there are 35 buildings that
would be of sufficient size to make use of this new extended credit. Due
to its size, this credit would need to be claimed over a five-year peri-
od at 20% per year, resulting in a maximum fiscal impact of $3m million
per project per year for each of five years.
If the "white elephant" project is also a housing project that qualifies
for low-income housing tax credits, then the historic rehabilitation
credits will provide additional flexibilities to further aid in the
financing of the project: credits would be transferable (one-time) to
taxpayers not associated with the project and the requirement that the
project be in a qualifying census tract would be lifted.
 
LEGISLATIVE HISTORY:
2023-2024: S.4174 Kennedy
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2026.

Statutes affected:
S6021: 606 tax law, 606(pp) tax law, 14.05 parks recreation and historic preservation law
S6021A: 606 tax law, 606(oo) tax law, 210-B tax law, 210-B(26) tax law, 1511 tax law, 606(pp) tax law, 14.05 parks recreation and historic preservation law