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Preservation Tax Credit Program Remains Broken

Efforts to secure an exemption for the NYS Rehabilitation Tax Credit program from the Governor’s and Assembly’s tax credit deferral plan failed during final budget maneuvering this week.  There is still hope however.  An effort is underway to save the Rehabilitation Tax Credit program when the Senate reconvenes next month.

Governor Patterson proposed – and the NYS Assembly leadership then modified – a plan to defer 30 New York State tax credit programs, pushing state payback on credits earned in 2010 – 2013 out to the 2014 – 2016 timeframe.  The Governor proposed a deferral of 50 percent of tax credit value; the Assembly countered with and passed a proposal to defer 100 percent of tax credit value for credits over $2 million in value. 

The Assembly proposal (“Part Y”) applies the deferral per taxpayer, not project, meaning investors in or developers of multiple projects, or users of multiple tax credit programs, will trigger the $2 million threshold. 

A push was made to remove the preservation tax credit program from the deferral list as the state budget was being finalized.

DSC_0895b.JPG“There was a lot of pressure to get the budget done, obviously,” said Daniel Mackay, Director of Public Policy for the Preservation League.  “Carve out of the rehab tax credit from the list of 30 programs was aggressively pursued by rehab tax credit champions Assemblyman Hoyt and Senator Valesky, and was in play throughout final budget negotiations, but did not yet happen.”

According to Mackay, Senator Valesky, from Syracuse, has introduced a Chapter Amendment in Senate to carve the program out.  That will be under consideration in September when the Senate plans to reconvene to address unfinished business.  The Assembly is reportedly prepared to do the same.

“I remain optimistic that we can secure a full carve out for this program by early fall,” said Mackay.  “The economic impacts of a fully-functioning program are too great to be ignored, the deferral program is too crippling for the rehab credit to have any value if it stands, and as I think we’ve argued with great merit, this program made significant concessions to the state’s fiscal situation in 2009, and should be allowed to work, unimpeded, in distressed areas across New York State.”

Written by queenseyes

queenseyes

Newell Nussbaumer is 'queenseyes' - Eyes of the Queen City and Founder of Buffalo Rising. Co-founder Elmwood Avenue Festival of the Arts. Co-founder Powder Keg Festival that built the world's largest ice maze (Guinness Book of World Records). Instigator behind Emerald Beach at the Erie Basin Marina. Co-created Flurrious! winter festival. Co-creator of Rusty Chain Beer. Instigator behind Saturday Artisan Market (SAM) at Canalside, Buffalo Porchfest, and Paint vs. Paint. Founder of The Peddler retro and vintage market on Elmwood. Instigator behind Liberty Hound @ Canalside. Throws The Witches Ball at Statler City, the Hertel Alley Street Art Festival, and The Flutterby Festival.

Contact Newell Nussbaumer | Newell@BuffaloRising.com

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