New York Senate Bill S06021

New York 2025-2026 Regular Session

• Introduced: 3/4/25
• Refer: 3/4/25
• Refer: 1/7/26

Caption

Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.

Impact

The implementation of S06021 will amend both the tax law and the parks, recreation, and historic preservation law, providing clear definitions and guidelines for what constitutes eligible projects. It specifically allows for a rehabilitation tax credit of up to 150% of the rehabilitation expenditures for certified historic structures considered small projects and a cap of fifteen million dollars for 'white elephant' projects. This financial support is expected to encourage property owners and developers to invest in long-neglected sites, thus reducing urban blight and promoting sustainable economic growth through rehabilitated properties.

Summary

Bill S06021 aims to establish a historic rehabilitation tax credit program in New York for large projects, specifically targeting 'white elephant' structures—certified historic properties that have been vacant for at least ten of the last fifteen years. The bill defines 'large projects' as those requiring qualified rehabilitation expenditures of fifty million dollars or more. This initiative is intended to incentivize the restoration and utilization of these properties, boosting both local economies and community revitalization efforts. The tax credits will be significantly beneficial for owners of such properties, allowing for substantial financial relief as they undertake costly renovation projects.

Contention

During discussions regarding Bill S06021, key points of contention arose surrounding the definition of 'white elephant' projects and the specifics of the credit calculation. Critics expressed concern that the parameters could lead to inconsistency in applications and outcomes. Moreover, there are apprehensions regarding the long-term impact on local budgets as municipalities adjust to potentially elevated property values and development costs resulting from these tax incentives. Advocates for the bill argue that revitalization efforts can yield a net positive impact by transforming abandoned spaces into productive community assets.