8-28-17-LEGAL ALERT Census Tract Eligibility Using NYS Historic Tax Credits Rochester Chapter

LEGAL ALERT FROM RAC NYSCAR AFFILIATE MEMBER, HARRIS BEACH PLLC: Census Tract Eligibility Using NYS Historic Tax Credits

The NYS Department of Taxation and Finance (DTF) recently issued Advisory Opinion TSB-A-17(3)I determining that a property listed in the National Register of Historic Places (the building) was located within a qualifying census tract for purposes of the historic tax credit (HTC) based on the determination of the New York State Office of Parks, Recreation and Historic Preservation (SHPO) that the building was in a qualifying census tract. 

NYS Tax Law § 606(oo) allows for a HTC against NYS tax equal to 100% of the federal HTC (up to $5 million).  Among other requirements, NYS Tax Law § 606[oo][5]) requires that a property to be rehabilitated must be located within a qualified census tract, defined as a census tract at or below 100% of the state median family income.  The state median family income is computed as of January 1 of each year using the most recent 5-year estimate from the American Community Survey published by the United States Census Bureau.  The determination of eligibility is made by SHPO. Continue Reading