Relates to the treatment of excess credits for the rehabilitation of historic barns.
Summary
S06872 amends New York’s tax law to change how excess rehabilitation tax credits for historic barns are handled. The bill preserves the existing 25 percent credit for qualified rehabilitation expenditures on eligible historic barns, while clarifying that the credit cannot be claimed for barns that were already used for residential purposes before rehabilitation, for projects that convert a nonresidential barn into a residentially suitable structure, or for work that materially alters the barn’s historic appearance.
The main substantive change is to the treatment of unused credit amounts. If the credit exceeds a taxpayer’s liability and the taxpayer’s New York adjusted gross income is $60,000 or less, the excess is treated as an overpayment and may be refunded or credited, though no interest is paid. If the taxpayer’s income is above $60,000, the excess credit may only be carried forward to future tax years. The bill takes effect immediately and would apply within the existing historic barn rehabilitation credit framework in the tax law and related real property tax law definitions of an historic barn.
Impact
The bill amends section 606 of the Tax Law to create a refundable component for excess historic barn rehabilitation credits for lower-income taxpayers and a carryforward-only rule for higher-income taxpayers. It affects taxpayers claiming the historic barn rehabilitation credit, particularly owners or developers rehabilitating qualifying agricultural structures, and it interacts with the existing definition of an historic barn in the Real Property Tax Law. The measure does not create a new credit, but it changes the usability of unused credits and reinforces eligibility limits tied to residential use and preservation of historic character.
Sentiment
The available voting history shows strong and unanimous support for the bill at every recorded stage: 7-0 in the Senate Budget and Revenue Committee, 21-0 in the Senate Rules Committee, and 58-0 on final Senate passage. That pattern suggests broad bipartisan agreement and little visible opposition. No committee transcript was provided, so the record reflects support through votes rather than detailed debate.
Contention
There is little evidence of controversy in the available materials. The only potentially sensitive policy choices are the income threshold for refundability, the denial of interest on refunded overpayments, and the restrictions preventing credits for barns already used as residences or for projects that materially alter historic appearance. These provisions appear designed to balance preservation goals with tax relief, and the unanimous votes suggest no significant disagreement among legislators in the recorded proceedings.
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.