S 8918 NY

0likes☆Favorite🔕SubscribeShare

Skip to main content

New York State Assembly Speaker Carl E. Heastie

--> --> -->

Assembly Members

Legislative Info

Public Hearings

Speaker's Press

Assembly Reports

Committees & More

Bill Search Home Laws Legislative Calendar Public Hearing Schedule Assembly Calendars Assembly Committee Agenda Javascript must be enabled to properly view this page.

Bill No.: Summary Actions Committee&nbspVotes Floor&nbspVotes Memo Text LFIN Chamber&nbspVideo/Transcript S08918 Summary: BILL NO S08918A &nbsp SAME AS SAME AS A09255-A

&nbsp SPONSOR KAVANAGH &nbsp COSPNSR &nbsp MLTSPNSR &nbsp Add Art 16 §§660 - 663, Art 17 §§670 - 675, Pub Hous L; amd §§210-B & 606, Tax L &nbsp Establishes the build up New York pilot program to provide grants to eligible municipalities that construct new accessory dwelling unit housing projects built on top of existing buildings that utilize mass timber and serve certain households; establishes the mass timber for affordable housing program to provide tax credits for eligible taxpayers who use mass timber in certain new construction or major retrofits of existing buildings that primarily serve households up to one hundred fifty percent of the area median income; establishes tax credits for mass timber production.

Go to top S08918 Text:

STATE OF NEW YORK ________________________________________________________________________

8918--A

IN SENATE

January 15, 2026 ___________

Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the public housing law, in relation to establishing the build up New York pilot program and the mass timber for affordable housing program; and to amend the tax law, in relation to establishing tax credits for the mass timber for affordable housing program and for mass timber production; and providing for the repeal of certain 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. Short title. This act shall be known and may be cited as 2 the "facilitating resilient affordable mass timber expansion act" or the 3 "FRAME act". 4 § 2. Legislative intent. The legislature finds that mass timber is a 5 sustainable, resilient, and efficient construction material that can 6 reduce greenhouse gas emissions, lower construction costs, and acceler- 7 ate housing production. The use of mass timber supports New York's 8 climate goals, promotes workforce development, and strengthens supply 9 chains for renewable building products. The purpose of this act is to: 10 1. Pilot the use of mass timber in affordable housing retrofits and 11 additions; 12 2. Provide tax incentives to encourage adoption of mass timber in 13 affordable housing projects; and 14 3. Spur investment in facilities and machinery that produce mass 15 timber products within New York state forests. 16 § 3. The public housing law is amended by adding a new article 16 to 17 read as follows: 18 ARTICLE XVI 19 BUILD UP NEW YORK PILOT PROGRAM 20 Section 660. Definitions. 21 661. Build up New York pilot program. 22 662. Prevailing wage requirements.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13967-08-6

S. 8918--A 2

1 663. Annual evaluations. 2 § 660. Definitions. For the purposes of this article, the following 3 terms shall have the following meanings: 4 1. "Mass timber" means engineered wood products such as cross-laminat- 5 ed timber, dowel laminated timber, nail laminated timber, glue-laminated 6 timber, and glue-laminated beams and columns. 7 2. "Qualifying affordable housing projects" means new housing projects 8 built on top of existing buildings or from the ground up and utilizing 9 mass timber that serve households up to one hundred fifty percent of 10 area median income. 11 3. "Eligible participant" means a municipality that has received a 12 pro-housing community certification from the division of homes and 13 community renewal. 14 § 661. Build up New York pilot program. No later than one year from 15 the effective date of this article, the commissioner shall establish a 16 competitive build up New York pilot program. Such program shall provide 17 grants to eligible participants constructing qualifying affordable hous- 18 ing projects using mass timber, and priority shall be given to qualify- 19 ing affordable housing projects using mass timber harvested within New 20 York from forests with an approved management plan pursuant to section 21 four hundred eighty-a of the real property tax law. 22 § 662. Prevailing wage requirements. The pilot program established 23 pursuant to this article shall require that an eligible participant or a 24 third-party acting on the eligible participant's behalf shall comply 25 with the provisions of section two hundred twenty-four-a of the labor 26 law. 27 § 663. Annual evaluations. The division of homes and community renewal 28 shall conduct annual evaluations of the pilot program established pursu- 29 ant to this article and shall submit a summary evaluation of the pilot 30 program at the end of the second year of such program and again at the 31 conclusion of the program to the temporary president of the senate and 32 the speaker of the assembly. Such evaluations shall include, but not be 33 limited to: 34 1. The number of applicants to the pilot program and their geographic 35 distribution; 36 2. The number of projects completed and the number of new units 37 created as a result of the pilot program; 38 3. Barriers or challenges to implementation of the pilot program; and 39 4. Legislative recommendations for the expansion or improvement of the 40 pilot program. 41 § 4. The public housing law is amended by adding a new article 17 to 42 read as follows:

43 Article XVII 44 MASS TIMBER FOR AFFORDABLE HOUSING PROGRAM

45 Section 670. Definitions. 46 671. Eligibility criteria. 47 672. Application and approval process. 48 673. Powers and duties of the commissioner. 49 674. Mass timber for affordable housing tax credit. 50 675. Reporting. 51 § 670. Definitions. For the purposes of this article, the following 52 terms shall have the following meanings: 53 1. "Division" means the division of homes and community renewal.

S. 8918--A 3

1 2. "Certificate of eligibility" means the document issued by the divi- 2 sion to an applicant that has completed an application for the mass 3 timber for affordable housing program and has been accepted into the 4 program by the division. Possession of a certificate of eligibility does 5 not by itself guarantee eligibility to claim the tax credit. 6 3. "Certificate of tax credit" means the document issued to a partic- 7 ipant by the division, after the division has verified that the partic- 8 ipant has met all applicable eligibility criteria pursuant to this arti- 9 cle. The certificate of tax credit shall specify the exact amount of the 10 tax credit allowed pursuant to this article that a participant may claim 11 and shall specify the taxable year in which such tax credit may be 12 claimed. 13 4. "Participant" means a business entity that: 14 (a) has completed an application prescribed by the division to be 15 admitted into the program; 16 (b) has been issued a certificate of eligibility by the division; 17 (c) has demonstrated that it meets the eligibility criteria in section 18 six hundred seventy-one of this article; and 19 (d) has been certified as a participant by the commissioner. 20 5. "Qualifying affordable housing project" means new construction, or 21 a major retrofit of an existing building, that will primarily serve 22 households up to one hundred fifty percent of the area median income. 23 6. "Mass timber" means engineered wood products such as cross-laminat- 24 ed timber, dowel laminated timber, nail laminated timber, glue-laminated 25 timber, and glue-laminated beams and columns. 26 § 671. Eligibility criteria. Eligibility criteria for the mass timber 27 for affordable housing program shall require that participants: 28 1. primarily utilize mass timber in qualifying affordable housing 29 projects; 30 2. be in compliance with all worker protection and environmental laws 31 and regulations; and 32 3. not owe past due state taxes or local property taxes unless the 33 participant is making payments and complying with an approved binding 34 payment agreement entered into with the taxing authority. 35 § 672. Application and approval process. 1. Applicants for the program 36 shall submit a completed application in such form and with such informa- 37 tion as prescribed by the commissioner. The application shall require 38 that applicants: 39 (a) agree to allow the department of taxation and finance to share the 40 applicant's tax information with the division; provided, however, that 41 any information shared as a result of such agreement shall not be avail- 42 able for disclosure or inspection under the state freedom of information 43 law; 44 (b) agree to allow the department of labor to share the applicant's 45 employer information with the division; provided, however, that any 46 information shared as a result of this agreement shall not be available 47 for disclosure or inspection under the state freedom of information law; 48 (c) allow the division and its agents access to any and all books and 49 records that the division may require to monitor compliance; and 50 (d) certify, under penalty of perjury, that the applicant is in 51 substantial compliance with all environmental, worker protection, and 52 local, state, and federal tax laws. 53 2. After reviewing an applicant's completed application and determin- 54 ing that the applicant will meet the requirements of this section, the 55 division may admit the applicant into the program and provide such 56 applicant with a certificate of eligibility.

S. 8918--A 4

1 3. In order to become a participant in the program, an applicant shall 2 submit evidence, in such form as the commissioner may prescribe, that 3 such applicant satisfies the eligibility criteria set forth in section 4 six hundred seventy-one of this article. After reviewing such evidence, 5 if the division finds that the applicant satisfies the eligibility 6 criteria, then the division shall certify the applicant as a participant 7 and issue to such participant a certificate of tax credit. 8 § 673. Powers and duties of the commissioner. 1. The commissioner 9 shall promulgate regulations consistent with the purposes of this arti- 10 cle which, notwithstanding any provisions to the contrary in the state 11 administrative procedure act, may be adopted on an emergency basis. Such 12 regulations shall include, but not be limited to, establishing an appli- 13 cation process and eligibility criteria for business entities desiring 14 to participate in the mass timber for affordable housing program so as 15 not to exceed the annual cap on tax credits set forth in section six 16 hundred seventy-four of this article and such other provisions as the 17 commissioner deems to be appropriate to implement the provisions of this 18 article. 19 2. The commissioner shall, in consultation with the department of 20 taxation and finance, develop a certificate of tax credit that shall be 21 issued by the commissioner to participants. Participants shall be 22 required to include the certificate of tax credit with their tax return 23 to receive any tax benefits under this article. 24 3. The commissioner shall solely determine the eligibility of any 25 applicant applying for entry into the program and shall remove any 26 participant from the program for failing to meet any of the requirements 27 set forth in section six hundred seventy-one of this article. 28 § 674. Mass timber for affordable housing tax credit. 1. A partic- 29 ipant in the mass timber for affordable housing program shall be eligi- 30 ble for a credit against the costs of purchasing mass timber for a qual- 31 ifying affordable housing project in New York state. The amount of such 32 credit shall be equal to twenty-five percent of the cost. 33 2. In addition to the credit authorized pursuant to subdivision one of 34 this section, a participant in the mass timber for affordable housing 35 program primarily using mass timber harvested within New York from 36 forests with an approved management plan pursuant to section four 37 hundred eighty-a of the real property tax law shall be eligible for an 38 additional credit against the costs of purchasing mass timber for a 39 qualifying affordable housing project in New York state. The amount of 40 such additional credit shall be ten percent of the cost. 41 § 675. Reporting. The division, beginning February first, two thousand 42 twenty-eight, and annually thereafter provided program funds remain, 43 shall submit a report to the governor, the temporary president of the 44 senate, and the speaker of the assembly. Such annual report shall 45 include, but need not be limited to: the number of participants approved 46 for the program; the geographical distribution of participants; the 47 total amount of tax credits provided through the mass timber for afford- 48 able housing tax credit; the number of new units created; and such other 49 information as the commissioner determines is necessary and appropriate. 50 Such reports shall be included on the division's website and be made 51 publicly available. 52 § 5. Section 210-B of the tax law is amended by adding a new subdivi- 53 sion 63 to read as follows: 54 63. Mass timber for affordable housing tax credit. (a) Allowance of 55 credit. A taxpayer that has been approved by the commissioner of homes 56 and community renewal to participate in the mass timber for affordable

S. 8918--A 5

1 housing program and has been issued a certificate of tax credit pursuant 2 to section six hundred seventy-two of the public housing law shall be 3 allowed to claim a credit against the tax imposed by this article. The 4 credit shall equal up to twenty-five percent of costs directly attribut- 5 able to the design, procurement, and installation of mass timber in 6 qualified affordable housing projects; provided, however, that there 7 shall be an additional credit equal to ten percent of costs directly 8 attributable to the design, procurement, and installation of mass timber 9 harvested within New York from forests with an approved management plan 10 pursuant to section four hundred eighty-a of the real property tax law 11 in qualified affordable housing projects. In no event shall a taxpayer 12 be allowed a credit greater than the amount of credit listed on the 13 certificate of tax credit issued by the commissioner of homes and commu- 14 nity renewal. No cost or expense paid or incurred by the taxpayer that 15 is the basis for this credit shall be the basis for any other tax credit 16 provided by this chapter. 17 (b) Application of credit. The credit allowed under this subdivision 18 for any taxable year may not reduce the tax due for such year to less 19 than the amount prescribed in paragraph (d) of subdivision one of 20 section two hundred ten of this article. However, if the amount of cred- 21 it allowed under this subdivision for any taxable year reduces the tax 22 to such amount, or if the taxpayer otherwise pays tax based on the fixed 23 dollar minimum amount, any amount of credit thus not deductible in that 24 taxable year will be treated as an overpayment of tax to be credited or 25 refunded in accordance with the provisions of section one thousand 26 eighty-six of this chapter. Provided, however, the provisions of 27 subsection (c) of section one thousand eighty-eight of this chapter 28 notwithstanding, no interest will be paid thereon. 29 (c) Reporting. The taxpayer shall attach to its tax return its certif- 30 icate of tax credit issued by the commissioner of homes and community 31 renewal pursuant to section six hundred seventy-two of the public hous- 32 ing law. In no event shall the taxpayer be allowed a credit greater than 33 the amount of the credit listed on the certificate of tax credit, or in 34 the case of a taxpayer who is a partner in a partnership, a member of a 35 limited liability company, or shareholder in an S corporation, its pro 36 rata share of the amount of credit listed on the certificate of tax 37 credit. 38 (d) Credit recapture. If a certificate of eligibility or a certificate 39 of tax credit issued by the division of homes and community renewal 40 under article seventeen of the public housing law is revoked by such 41 division because the taxpayer does not meet the eligibility requirement 42 set forth in section six hundred seventy-one of the public housing law, 43 the amount of credit described in this subdivision and claimed by the 44 taxpayer prior to that revocation shall be added back to tax in the 45 taxable year in which any such revocation becomes final. 46 § 6. Section 606 of the tax law is amended by adding a new subsection 47 (uuu) to read as follows: 48 (uuu) Mass timber for affordable housing tax credit. (1) Allowance of 49 credit. A taxpayer that has been approved by the commissioner of homes 50 and community renewal to participate in the mass timber for affordable 51 housing program and has been issued a certificate of tax credit pursuant 52 to section six hundred seventy-two of the public housing law shall be 53 allowed to claim a credit against the tax imposed by this article. The 54 credit shall equal up to twenty-five percent of costs directly attribut- 55 able to the design, procurement, and installation of mass timber in 56 qualified affordable housing projects; provided, however, that there

S. 8918--A 6

1 shall be an additional credit equal to ten percent of costs directly 2 attributable to the design, procurement, and installation of mass timber 3 harvested within New York from forests with an approved management plan 4 pursuant to section four hundred eighty-a of the real property tax law 5 in qualified affordable housing projects. In no event shall a taxpayer 6 be allowed a credit greater than the amount of credit listed on the 7 certificate of tax credit issued by the commissioner of homes and commu- 8 nity renewal. In the case of a taxpayer who is a partner in a partner- 9 ship, member of a limited liability company or shareholder in an S 10 corporation, the taxpayer shall be allowed its pro rata share of the 11 credit earned by the partnership, limited liability company, or S corpo- 12 ration. No cost or expense paid or incurred by the taxpayer that is the 13 basis for this credit shall be the basis for any other tax credit 14 provided by this chapter. 15 (2) Application of credit. If the amount of the credit allowed under 16 this subsection for any taxable year exceeds the taxpayer's tax for the 17 taxable year, the excess shall be treated as an overpayment of tax to be 18 credited or refunded in accordance with the provisions of section six 19 hundred eighty-six of this article, provided, however, no interest will 20 be paid thereon. 21 (3) Reporting. The taxpayer shall attach to its tax return its certif- 22 icate of tax credit issued by the commissioner of homes and community 23 renewal pursuant to section six hundred seventy-two of the public hous- 24 ing law. In no event shall the taxpayer be allowed a credit greater than 25 the amount of the credit listed on the certificate of tax credit, or in 26 the case of a taxpayer who is a partner in a partnership, a member of a 27 limited liability company, or shareholder in an S corporation, its pro 28 rata share of the amount of credit listed on the certificate of tax 29 credit. 30 (4) Credit recapture. If a certificate of eligibility or a certificate 31 of tax credit issued by the division of homes and community renewal 32 under article seventeen of the public housing law is revoked by such 33 division because the taxpayer does not meet the eligibility requirement 34 set forth in section six hundred seventy-one of the public housing law, 35 the amount of credit described in this subsection and claimed by the 36 taxpayer prior to that revocation shall be added back to tax in the 37 taxable year in which any such revocation becomes final. 38 § 7. Section 210-B of the tax law is amended by adding a new subdivi- 39 sion 64 to read as follows: 40 64. Mass timber production tax credit. (a) Allowance of credit. A 41 taxpayer who is eligible for a credit with respect to tangible personal 42 property and other tangible property pursuant to paragraph (b) of subdi- 43 vision one of this section shall be allowed an additional ten percent 44 credit with respect to tangible personal property that is principally 45 used for the purposes of producing, processing or assembling mass 46 timber. 47 (b) Application of credit. The credit allowed under this subdivision 48 for any taxable year may not reduce the tax due for such year to less 49 than the amount prescribed in paragraph (d) of subdivision one of 50 section two hundred ten of this article. However, if the amount of cred- 51 it allowed under this subdivision for any taxable year reduces the tax 52 to such amount, or if the taxpayer otherwise pays tax based on the fixed 53 dollar minimum amount, any amount of credit thus not deductible in that 54 taxable year will be treated as an overpayment of tax to be credited or 55 refunded in accordance with the provisions of section one thousand 56 eighty-six of this chapter. Provided, however, the provisions of

S. 8918--A 7

1 subsection (c) of section one thousand eighty-eight of this chapter 2 notwithstanding, no interest will be paid thereon. 3 (c) For the purposes of this subdivision, "mass timber" means engi- 4 neered wood products such as cross-laminated timber, dowel laminated 5 timber, nail laminated timber, glue-laminated timber, and glue-laminated 6 beams and columns. 7 § 8. Section 606 of the tax law is amended by adding a new subsection 8 (www) to read as follows: 9 (www) Mass timber production tax credit. (1) Allowance of credit. A 10 taxpayer who is eligible for a credit with respect to tangible personal 11 property and other tangible property pursuant to paragraph two of 12 subsection (a) of this section shall be allowed an additional ten 13 percent credit with respect to property that is principally used for the 14 purposes of producing, processing or assembling mass timber. In the case 15 of a taxpayer who is a partner in a partnership, member of a limited 16 liability company or shareholder in an S corporation, the taxpayer shall 17 be allowed its pro rata share of the credit earned by the partnership, 18 limited liability company, or S corporation. No cost or expense paid or 19 incurred by the taxpayer that is the basis for this credit shall be the 20 basis for any other tax credit provided by this chapter. 21 (2) Application of credit. If the amount of the credit allowed under 22 this subsection for any taxable year exceeds the taxpayer's tax for the 23 taxable year, the excess shall be treated as an overpayment of tax to be 24 credited or refunded in accordance with the provisions of section six 25 hundred eighty-six of this article, provided, however, no interest will 26 be paid thereon. 27 (3) For the purposes of this subdivision, "mass timber" means engi- 28 neered wood products such as cross-laminated timber, dowel laminated 29 timber, nail laminated timber, glue-laminated timber, and glue-laminated 30 beams and columns. 31 § 9. This act shall take effect immediately and shall apply to taxa- 32 ble years beginning on or after January 1, 2026; provided, however, that 33 section three of this act shall expire and be deemed repealed five years 34 after such effective date.

Go to top

Sitemap

Request Information

Directions and Maps