A taxpayer’s building was located in a qualifying census tract, and, therefore, qualified for the New York income tax credit for the rehabilitation of historic properties. In an advisory opinion on the building’s eligibility for the credit, the Department of Taxation and Finance deferred to the finding made by the Office of Parks, Recreation and Historic Preservation.
In this case, the Office had approved the taxpayer’s plans for renovating the building. It issued the taxpayer a letter stating that the building was eligible for the credit. Later, the taxpayer’s lender noted that the median family income for the census tract was higher than the median family income for New York. The lender questioned whether the building was eligible for the credit. As a result, the lender stopped work on the building. The Department clarified that the determination of eligibility by the Office was controlling.
TSB-A-17(3)I, New York Commissioner of Taxation and Finance, June 30, 2017, ¶409-093