2012 New York Consolidated Laws
TAX - Tax
Article 1 - (1 - 37) SHORT TITLE; DEFINITIONS; MISCELLANEOUS
18 - Low-income housing credit.

 
    §  18.  Low-income housing credit. (a) Allowance of credit. A taxpayer
  subject  to  tax  under  article  nine-A,  twenty-two,   thirty-two   or
  thirty-three of this chapter shall be allowed a credit against such tax,
  pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
  section, with respect to the ownership of eligible low-income  buildings
  for  which  an eligibility statement has been issued by the commissioner
  of housing and community renewal. The amount of the credit shall be  the
  credit  amount  for each such building allocated by such commissioner as
  provided in article two-A of the public housing law. The  credit  amount
  shall be allowed for each of the ten taxable years in the credit period,
  and any reduction in first-year credit as provided in subdivision two of
  section  twenty-two of such law shall be allowed in the eleventh taxable
  year.
    (b) Credit recapture. (1) General. If,
    (A) as of the close of any taxable year in the compliance period,  the
  amount  of  the  qualified  basis  of  any  building with respect to the
  taxpayer is less than
    (B) the amount of such basis as of the close of the preceding  taxable
  year,
    (C)  then  the  credit  recapture  amount  must  be added back for the
  taxable year.
    (2) Credit recapture amount. The credit recapture amount is an  amount
  equal to the sum of
    (A)  the  aggregate  decrease  in  the credits allowed to the taxpayer
  under this section for all prior taxable years which would have resulted
  if the accelerated portion of the credit allowable  by  reason  of  this
  section were not allowed for all prior taxable years with respect to the
  excess  of  the amount described in subparagraph (B) of paragraph (1) of
  this subdivision over the amount described in subparagraph (A)  of  such
  paragraph, plus
    (B)  interest  at  the  overpayment rate established under section one
  thousand ninety-six of this  chapter  on  the  amount  determined  under
  subparagraph  (A)  of this paragraph for each prior taxable year for the
  period beginning on the due date for filing the  report  for  the  prior
  taxable year involved.
    (3)  Accelerated  portion  of credit. For purposes of paragraph two of
  this subdivision, the accelerated portion of the credit  for  the  prior
  taxable years with respect to any amount of basis is the excess of
    (A)  the  aggregate  credit allowed by reason of this section (without
  regard to this subdivision) for such years with respect to  such  basis,
  over
    (B)  the  aggregate  credit which would be allowable by reason of this
  section for such years with respect  to  such  basis  if  the  aggregate
  credit  which would (but for this subdivision) have been allowed for the
  entire compliance period were allowable ratably over fifteen years.
    (4) Special rules. For purposes of  this  subdivision,  the  rules  of
  section 42 (j)(4)(B) and (C) of the internal revenue code shall apply in
  determining the credit recapture amount.
    (5)  Exceptions  to  recapture. Recapture under this subdivision shall
  not apply to a reduction in qualified basis
    (A) by reason of a casualty loss, if the commissioner, in consultation
  with the commissioner of housing and community renewal, determines  that
  such  loss  is  restored  by  reconstruction  or  replacement  within  a
  reasonable period, or
    (B) by reason of a change in floor space devoted to  low-income  units
  in  a building, if such building remains an eligible low-income building
  after such change, and if the commissioner,  in  consultation  with  the

  commissioner  of  housing  and  community  renewal, determines that such
  change is de minimis, or
    (C)  by reason of error in complying with low-income eligibility tests
  referred to in subdivision five of  section  twenty-one  of  the  public
  housing  law, if the commissioner, in consultation with the commissioner
  of housing and community renewal,  determines  that  such  error  is  de
  minimis.
    (6)  Recapture  by partners of a partnership. In the case of ownership
  of a building or interest therein by a partnership which has thirty-five
  or more partners, the provisions of section  42(j)(5)  of  the  internal
  revenue  code shall apply to any recapture under this subdivision unless
  the partnership elects not to have such provisions apply.
    (7) (A) The credit recapture required under this subdivision will  not
  apply  solely  by reason of the disposition of a building or an interest
  therein if it is reasonably expected that such building will continue to
  be operated  as  an  eligible  low-income  building  for  the  remaining
  compliance period with respect to such building.
    (B)  Statute of limitations. If a building (or an interest therein) is
  disposed of during any taxable year and there is any  reduction  in  the
  qualified  basis  of  such  building which results in an increase in tax
  under this section for such taxable or any subsequent taxable year, then
    (i) the statutory period for the assessment  of  any  deficiency  with
  respect to such increase in tax will not expire before the expiration of
  three  years  from  the  date  the commissioner of housing and community
  renewal is notified by the taxpayer (in such manner as the  commissioner
  of  housing  and  community  renewal may prescribe) of such reduction in
  qualified basis, and
    (ii) such deficiency may be assessed before  the  expiration  of  such
  three-year  period  notwithstanding  the  provisions of any other law or
  rule of law which would otherwise prevent such assessment.
    (c) Construction with public housing law; definitions. The  provisions
  of this section shall be construed in conjunction with the provisions of
  article two-A of the public housing law. For definitions relating to the
  low-income housing credit, see section twenty-one of such law.
    (d)  Cross-references.  For  application of the credit provided for in
  this section, see the following provisions of this chapter:
    (1) Article 9-A: Section 210: subdivision 30,
    (2) Article 22: Section 606: subsections (i) and (x),
    (3) Article 32: Section 1456: subsection (l),
    (4) Article 33: Section 1511: subdivision (n).