Relates to the treatment of excess credits for the rehabilitation of historic barns.
Summary
This bill amends New York’s tax law to change how excess rehabilitation tax credits for historic barns are handled. Under current law, taxpayers can claim a credit equal to 25 percent of qualified rehabilitation expenditures for eligible historic barns, subject to existing limits and restrictions. The bill keeps the core credit structure in place but adds a new rule for excess credit amounts that cannot be used in the year the credit is claimed.
If a taxpayer’s New York adjusted gross income is $60,000 or less, any unused portion of the historic barn rehabilitation credit would be treated as an overpayment of tax and could be refunded or credited, though no interest would be paid. If the taxpayer’s income exceeds $60,000, the unused credit would not be refundable; instead, it could be carried forward and used in later tax years. The bill takes effect immediately.
Impact
The bill would amend section 606 of the Tax Law governing the historic barns rehabilitation credit, altering the treatment of excess credits based on taxpayer income. It would create a refundable feature for lower-income taxpayers and preserve a carryforward mechanism for higher-income taxpayers, while leaving the underlying eligibility rules for historic barn rehabilitation credits unchanged. The measure affects taxpayers claiming the credit, particularly owners or rehabilitators of qualifying agricultural barns in New York, and would interact with the administration of state income tax refunds and carryovers.
Sentiment
No committee transcript or vote record was provided, so there is no direct evidence of debate or recorded support/opposition. Based on the bill text, the measure appears targeted and technical rather than controversial, with a policy focus on improving usability of the credit for lower-income taxpayers. The absence of recorded votes or discussion means overall legislative sentiment cannot be measured from the available materials.
Contention
The main policy issue is the new income-based split in how excess credits are treated. Supporters would likely view the refundable treatment for taxpayers at or below $60,000 of New York adjusted gross income as a way to make the credit more meaningful and accessible, while opponents or fiscal watchdogs might question the revenue cost of making part of the credit refundable. Another possible point of concern is administrative complexity, since the Department of Taxation and Finance would need to apply different rules depending on income level and whether the excess is refunded or carried forward.
An act to amend Section 17053.91 of, and to add and repeal Sections 17053.92 and 23692 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.
Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.