Permits multiple transfers of low-income housing tax credits

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          10588

                                  I N  A S S E M B L Y

                                     March 13, 2026
                                       ___________

        Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
          Committee on Housing

        AN ACT to amend the public housing law, in relation to permitting multi-
          ple transfers of low-income housing tax credits

          THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
        BLY, DO ENACT AS FOLLOWS:

     1    Section 1. Subdivision 1 and paragraph (a) of subdivision 8 of section
     2  22  of the public housing law, subdivision 1 as amended by section 1 and
     3  paragraph (a) of subdivision 8 as added by section 2 of part PP of chap-
     4  ter 59 of the laws of 2018, are amended to read as follows:
     5    1. A taxpayer subject to tax  under  article  nine-A,  twenty-two,  or
     6  thirty-three of the tax law which owns an interest in one or more eligi-
     7  ble  low-income  buildings, or [a transferee] ONE OR MORE TRANSFEREES of
     8  such a taxpayer as described in subdivision eight of this section, shall
     9  be allowed a credit against such tax for the amount of low-income  hous-
    10  ing  credit  allocated by the commissioner to each such building. Except
    11  as provided in subdivision two of this section,  the  credit  amount  so
    12  allocated shall be allowed as a credit against the tax for the ten taxa-
    13  ble years in the credit period.
    14    (a)  A taxpayer allowed a credit pursuant to this article may transfer
    15  the credit, in whole or in part, to another person or entity, who  shall
    16  be  referred  to  as  the  transferee, without regard to how any federal
    17  low-income housing tax credit with respect to  the  low-income  building
    18  may  be  allocated  and notwithstanding that such other person or entity
    19  owns no interest in the eligible low-income building  or  in  an  entity
    20  with  an ownership interest in the eligible low-income building.  Trans-
    21  ferees shall be entitled to apply transferred credit to  a  tax  imposed
    22  under  article  nine-A,  twenty-two  or  thirty-three  of  the  tax law,
    23  provided all requirements for claiming the credit are met. A  transferee
    24  may [not] transfer [any] ALL OR A PORTION OF A credit[, or portion ther-
    25  eof, acquired] RECEIVED by transfer TO ANOTHER PERSON OR ENTITY, SUBJECT
    26  TO  APPROVAL  BY  THE AGENCY AND IN ACCORDANCE WITH RULES PROMULGATED BY
    27  THE AGENCY, PROVIDED THAT EACH TRANSFER IS PROPERLY DOCUMENTED AND  DOES

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15209-01-6
        A. 10588                            2

     1  NOT  AFFECT THE ELIGIBILITY OF THE UNDERLYING LOW-INCOME HOUSING PROJECT
     2  FOR PROGRAM BENEFITS.
     3    §  2.  This  act  shall take effect immediately and shall apply to any
     4  low-income housing tax credit allocated under article 2-A of the  public
     5  housing law, whether allocated before, on, or after such effective date,
     6  including  credits  associated  with  projects  that have been placed in
     7  service, are under construction, or  are  in  pre-development,  provided
     8  that  any transfer occurring on or after the effective date shall comply
     9  with the provisions of paragraph (a) of subdivision 8 of section  22  of
    10  the public housing law, as amended by section one of this act.