Friday, July 22, 2016

IRS Issues Rehabilitation Tax Credit 50(d) Income Temporary Regulations

The IRS has clarified its position on the treatment of 50(d) income in lease pass-through structured historic rehabilitation projects through publication of Treas. Reg. 1.50-1T.  These temporary regulations are effective for projects placed in service on or after September 19, 2016 and remain in effect until July 19, 2019. 

By determining that the 50(d) income associated with the pass-through of the rehabilitation tax credit is a partner item (rather than a partnership item), the temporary regulations will impact on the future structure of investments in historic rehabilitation projects, likely resulting in smaller investments being made available for preservation of historic buildings and neighborhoods.

Treas. Reg. 1.50-1T

Tim Lynn
(315) 766-2118

Monday, May 4, 2015

2015 Consolidated Funding Application

The 2015 Consolidated Funding Application competition has begun.  The application became available on May 1, 2015, and applications must be submitted by 4:00PM on July 31, 2015.

This year's competition covers two funding pools -- the recurring $750 million in economic development funds and $1.5 billion in Upstate Revitalization Initiative funds.

Three regions will receive awards from the Upstate Revitalization Initiative funds in the amount of $500 million each, funded $100 million per year for five years.  Those regions will not be eligible for ESD Capital Grants or Excelsior tax credits awarded in the 2015 competition.

For the remaining regions, those not receiving the $500 million, the three top performers will receive up to $30 million in ESD Capital Grants and up to $15 million in Excelsior tax credits.  The other four regions will receive up to $15 million in ESD Capital Grants and up to $15 million in Excelsior tax credits.

All ten regions are eligible for the remaining $530 million in other state agency funds.

Tim Lynn
(315) 766-2118

Thursday, December 11, 2014

Wednesday, January 8, 2014

New York Issues Guidance re: Minimum Wage Reimbursement Credit

The Minimum Wage Reimbursement Credit is available to employers who hire full-time or part-time students age 16 to 20 who are paid the minimum wage.  The credit is intended to offset the difference between the federal minimum wage and New York minimum wage.

The credit is available to Article 9, 9-A, 22, 32 and 33 taxpayers and the credit is fully refundable.

TSB-M-13(8)C, (7)I
Tim Lynn
(315) 701-6426

Allies: Change cleanup program - Times Union

Allies: Change cleanup program - Times Union

Tim Lynn
(315) 701-6426

Tuesday, December 31, 2013

IRS Issues Safe Harbor Guidance For Rehabilitation Tax Credit

The IRS has finally issued the long awaited and anticipated safe harbor rules for historic rehabilitation projects using the rehabilitation tax credit under Section 47 of the Internal Revenue Code.  More to follow.

Rev. Proc. 2014-12

Tim Lynn 
(315) 701-6426 
Email Me

Thursday, September 19, 2013

Wednesday, August 21, 2013

New York - A Bad Role Model for California

Indicative of the legislative and judicial temperaments in New York and California, in NY the legislature tried to retroactively change the tax rules and the courts protected taxpayers.  In Cali, the courts are trying to retroactively change the tax rules and the legislature is trying to protect taxpayers.


California small business owners ordered to pay back millions in tax breaks

Tim Lynn
(315) 701-6426

Saturday, June 15, 2013

Summary of Draft Tax-Free NY Proposed Legislation

Proposed Tax‐Free NY Summary of Provisions in Gov. Cuomo’s June 7, 2013 Draft Legislation


TaFNY Tax Benefits

• Credit to eliminate income tax (personal/partnership)

• Credit to eliminate corporate franchise tax

• Real property tax exemption (treated as exempt educational institution property). Limited to property with educational exemption as of June 1, 2013.

• Credit/refund of sales and use tax for 120 month period

• Lease is exempt from real estate transfer taxes

• For a period of up to 10 years, eligible employees working at the site are exempt from state/NYC/Yonkers income taxes

• Also an exemption for MCTD payroll tax

Eligible Sites – SUNY/Community Colleges

• SUNY campuses, with the exception of Empire State College (except Saratoga), any property of  Downstate Medical Center (except incubator property), the College of Optometry and the Maritime College

• Community colleges, except a community college whose main campus is in NYC 

• Sites allowed consists of:
– vacant space and vacant land on campus
– Up to 200,000sf of vacant land owned or leased by the SUNY located within one mile of campus
– Potential certification by ommissioner of ESD of land located more than one mile from campus

Eligible Sites – CUNY

• Five CUNY campuses (one in each borough)

• Limitations on selecting campus located in area with high poverty

• Up to 200,000sf of land adjacent to the campus that is owned or leased by the CUNY

Eligible Sites – Private Colleges/Universities

• Up to 3 million sf of vacant space or vacant land on a campus of a private university or college located outside Nassau, Suffolk, Westchester, or NYC

• However, each of Nassau, Suffolk, Westchester, Brooklyn,Bronx, Queens and Staten Island will have 30,000 sf in high poverty areas

• The locations for the 30,000sf sites must be owned or leased by one of the following:
– Private college or university whose campus is in Nassau, Suffolk, Westchester or NYC
– One of the SUNY institutions excluded from the SUNY category
– A community college whose main campus in is NYC
– A CUNY excluded from the five sites

Eligible Sites – Educational Institutions

• All of the educational institutions are prohibited relocating academic, administrative, housing, dining athletics or any other facilities serving students in order to create vacant space

Eligible Sites – Strategic State Assets

• The TaFNY approval board may designate up to 20 strategic state assets as designated sites

• Each site must be affiliated with and supported by an educational institution]

• No limit on the size of the designated site 

• A strategic state asset does not include land or buildings located in NYC 
• Includes only land and buildings which are, as of June 15, 2013, closed, vacant or for which notice
of closure has been authorized by law 

Eligible Businesses

• Businesses that align with university mission

• Create and maintain net new jobs (including first year of operation)

• If a business has current operations in NYS or had operations in the last 5 years, it must apply for permission from the Commissioner of ESD to participate in TaFNY

• Excluded businesses:

– businesses providing utilities

– businesses engaged in generation or distribution of electricity, the distribution of natural gas, or the production of steam

– Retail/wholesale, restaurants, hotels

– Medical or dental practices

– Real estate brokers, accountants, attorneys

– Personal service businesses

– Finance and financial services

Approval Procedures

• The draft bill would providefor a process by which an educational institution would apply to have some
of its property designated as a TaFNY area

• The application requires a plan for the types of businesses and how these businesses align with the
educational mission of the institution

• A business desiring to participate in the program will apply first to the academic institution, which application, if approved, must be approved by the Commissioner of ESD

Welcome to the Utica Comets

Following up on the noteworthy success of Gary Heenan and the Utica College Pioneers at the refurbished Utica Aud (I miss the artwork of the bell-bottomed guitarist), we all welcome the Utica Comets to the AHL.  Perfect timing with the Syracuse Crunch playoff run.  Will it replace the Devils??? | The American Hockey League | Home Page

Monday, June 10, 2013

New York Department of Taxation and Finance Issues Guidance Regarding Annual Beer Tax Return Filing

The New York State Department of Taxation and Finance issued guidance on June 10, 2013 regarding technical amendments that permit farm breweries to file annual beer tax returns (rather than monthly filings).  These changes bring consistent treatment for farm brewers, micro-breweries and restaurant breweries.  To take advantage of annual filing, a farm brewer must file an election -- Application for Annual Filing Status for Certain Beer and Wine Manufacturers.

For further information, contact:

Tim Lynn
(315) 701-6426

New York Consolidated Funding Application (CFA) Round 3 Announced

New York State has commenced Round 3 of the Consolidated Funding Application (CFA) process.  Pursuant to this process, approximately $750 million will be awarded to projects located in the various economic development regions, as administered by the Regional Councils.  More information can be found at CFA Application Manual 2013.

The deadline for submission is August 12, 2013.

For more information, please contact:

Tim Lynn
(315) 701-6426

Friday, June 7, 2013

Split Up New York?

In response to Gov. Cuomo's Tax-Free NY plan, James Banks, writing in, asserts that Upstate New York's problems won't be solved by tax-free zones -- the real problem is that Upstate New York cannot thrive in a tax and regulatory environment designed for NYC:

Tax-Free NY Isn't Upstate New York's Solution

While his thoughts and critiques about the problem are convincing, I am not sure, at this point, Upstate New York could survive secession.  At one time, Upstate probably did fund the NYC morass.  That day has passed.  Would a state of 7 million residents with a struggling economy, exodus of population and loss of identity thrive in the 21st century?  Would the residents accept Medicaid cuts, decreases in hospital funding, additional prison closures, management of a massive complex of state facilities and a myriad of other financial problems?

Legislative Criticism of Tax-Free NY

Lalor says Tax-Free NY plan is ‘corporate welfare’