Last Chance to Save Preservation Tax Credit
The Governor and Senate and Assembly have separately proposed two NYS tax credit deferral programs, impacting 30 state tax credits, ranging from the rehabilitation (preservation) tax credit programs to the low income housing tax credit, green building tax credit, and brownfields programs, among others.
The most recent proposal from the NYS Assembly and Senate (“Part Y”) is to implement a deferral of a taxpayer’s credits above $2 million dollars in value. Note that this currently attributed to taxpayer, not project, meaning no single taxpayer using the rehabilitation tax credit program, or any other NYS tax credits—alone, across multiple projects, or in combination with any of the other state tax credits subject to the deferral program—will be credited with more than $2 million dollars in years 2010, 2011, and/or 2012. All total credits earned in excess of $2 million dollars through one or more programs will be deferred by NYS until 2013-2016.
For many projects and investors in New York State, the imposition of a deferral and a $2 million dollar threshold per taxpayer represents a crippling blow to the rehabilitation tax credit program and other redevelopment and community renewal incentives in New York State. Investors will have little interest in providing equity to projects under such program restrictions.
The New York State Rehabilitation Tax Credit program made significant concessions to New York’s fiscal situation when the program was broadened in 2009. A $5 million state tax credit cap was set per project. A 5 year sunset for the program was put in place. And the program was limited to economically distressed census tracts. This program has already been honed to serve NYS’s economic and community redevelopment needs in the current fiscal situation, and the imposition of any deferral component will stop financing of most projects around New York State, just when the state most needs the economic stimulus that this program can provide.
Call NYS Assembly and Assembly leadership, and the Governor at the numbers below to state the importance of leaving the Rehabilitation Tax Credit program intact and free from any deferral agreement. After you’ve done this, call your local Senate and Assembly member and tell them you’ve been advocating for this program and ask them to get involved with Senator Valesky and Assemblymember Hoyt to protect this program and its extensive economic and redevelopment benefits:
Assembly Speaker Sheldon Silver:
518-455-3791
Senator John Sampson:
518-455-2788
Governor David Paterson:
518-474-8390
For NYS Senate contact information, click here
For NYS Assembly contact information, click here
It is very important that the Legislature receive a high volume of calls over the next 24 to 48 hours.