New York S 9259: Creates an office to residential conversion tax credit and a historic preservation rehabilitation office to residential conversion tax credit

Bill Text

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 Speaker Carl E. Heastie

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S09259 Summary:

BILL NOS09259 

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SAME ASSAME AS A10192

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SPONSORFAHY

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COSPNSRBASKIN, COMRIE, RYAN C

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MLTSPNSR

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Add §36-a, amd §210-B, Tax L

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Creates an office to residential conversion tax credit which shall be administered by the empire state development corporation; creates a historic preservation rehabilitation office to residential conversion tax credit which shall be administered by the state historic preservation office.

Go to top S09259 Actions:

BILL NOS09259 

&nbsp

02/19/2026REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Go to topS09259 Committee&nbspVotes:

Go to topS09259 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS09259 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9259

 IN SENATE

 February 19, 2026
 ___________

 Introduced by Sen. FAHY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern-
 ment Operations

 AN ACT to amend the tax law, in relation to creating an office to resi-
 dential conversion tax credit and a historic preservation rehabili-
 tation office to residential conversion tax credit; and providing for
 the repeal of such provisions upon expiration thereof

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The tax law is amended by adding a new section 36-a to read
 2 as follows:
 3 § 36-a. Office to residential conversion tax credit. (a) General. A
 4 taxpayer shall be allowed a credit against the tax imposed by this arti-
 5 cle in an amount equal to ten percent of the qualified rehabilitation
 6 expenditures, as defined in subdivision (c) of this section, paid or
 7 incurred by the taxpayer with respect to any qualified office to resi-
 8 dential conversion project, as defined in subdivision (b) of this
 9 section. Such credit shall be refundable in accordance with the
 10 provisions of section six hundred eighty-six of this chapter.
 11 (b) Qualified office to residential conversion project. For purposes
 12 of this section, a "qualified office to residential conversion project"
 13 shall mean the substantial rehabilitation of a qualified building that
 14 meets the following requirements:
 15 (1) the building is located in a city, town, or village with a popu-
 16 lation under one million residents and was placed in service as a non-
 17 residential or other income-producing property within the ten years
 18 preceding the date of application, provided that such building was not
 19 used as rental residential property during such period;
 20 (2) no less than fifty percent of the gross square footage of the
 21 building following rehabilitation shall be residential;
 22 (3) the building contains at least twenty-five thousand gross square
 23 feet;
 24 (4) no less than fifty percent of the building was physically vacant
 25 as of January first, two thousand twenty-six;

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD14451-02-6

 S. 9259 2

 1 (5) the building is not listed on the state register of historic plac-
 2 es or the national register of historic places, nor is such building
 3 located within a registered historic district and certified as being of
 4 historic significance to such district;
 5 (6) the substantial rehabilitation meets the following structural
 6 retention requirements:
 7 (i) at least fifty percent of the existing external walls are retained
 8 in place as external walls;
 9 (ii) at least seventy-five percent of the existing external walls are
 10 retained in place as either external walls or internal walls; and
 11 (iii) at least seventy-five percent of the existing internal struc-
 12 tural framework remains in place; and
 13 (7) the qualified rehabilitation expenditures for such project are not
 14 less than two million five hundred thousand dollars.
 15 (c) Qualified rehabilitation expenditures. For purposes of this
 16 section, "qualified rehabilitation expenditures" shall have the same
 17 meaning as set forth in section 47(c)(2) of the internal revenue code,
 18 as amended, and applicable regulations promulgated thereunder.
 19 (d) Limitation on credit amou