NEW YORK SENATE VOTES TO DEFER REHABILITATION TAX CREDITS

Thursday, August 12, 2010 - 9:15am

The New York State Senate last week passed the final revenue bill needed to complete the New York State budget. Among other things, the bill defers state rehabilitation tax credits earned between January 1, 2010 and January 1, 2014 that exceed $2 million in value. The deferral program will not affect projects receiving less than $2 million in tax credits. Commercial projects will be able to claim their first $2 million in credits in the year that they are certified for the federal credit. The law makes tax credits in excess of $2 million available for redemption over time; in 2014, 50 percent of the balance of credit value of more than $2 million will be available, 75 percent of the remaining balance of credit value will be available in 2015, and 100 percent of the remaining balance of credit value will be available in 2016.