Craig Johnson

The New York State Senate last week unanimously passed a vitally important economic stimulus and community revitalization program: the Historic Rehabilitation Tax Credit, Senator Craig M. Johnson, (D-Nassau), announced.

The bill, (S2960-B), strengthens the State program first launched in 2006 and will make New York State more competitive against the nearly 30 other states with similar programs. The changes will allow the state to target reinvestment to distressed communities, as determined by the U.S. Census, and incorporate cost savings to the administration of the program.

Because of these changes, New York State will have among the most productive and cost-effective redevelopment programs in the country.

"This much needed economic development tool will help preserve historic structures in our villages and neighborhoods, as well as spur development in communities that are in need of an economic revitalization," said Senator Johnson. "This important legislation will have a positive impact on Long Island and across New York State."

Features of the Senate’s legislation include:

• Increase the cap on commercial credit value from $100,000 to $5 million; the residential credit value will increase from $25,000 to $50,000. These are over the course of the program, which is 5 years.
• Limit the availability of the residential and commercial credit of the program to “distressed” areas, which is defined as being located within a Census tract identified at or below one hundred percent of the median family income.
• Increase 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.
• Make 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.
• Offer the rehabilitation tax credit as a rebate to make the program a stronger financial incentive for homeowners without significant income tax liability.

"A Historic Rehabilitation Tax Credit will provide an incentive to maintain and renovate infrastructure throughout our state and help protect valuable historic structures," said Senator Brian X. Foley (D–Suffolk). "This measure is part of larger efforts by the Senate to boost economic development and stimulate New York State’s economy."

The bill is expected to pass the Assembly. Senators are working with the Governor to ensure that, based on the program’s ability to attract new investment, business, and jobs to the state at a time when our economy is struggling, it is signed into law.