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January 14, 2010


Hon. David Paterson
Governor, State of New York
Executive Chamber
State Capitol
Albany, NY 12224

Dear Governor Paterson:

On behalf of the 2,500 employer members of the Buffalo Niagara Partnership, I write concerning legislation signed by you in July, 2009 regarding Historic Rehabilitation Tax Credits. The Partnership was a firm supporter of this important economic development initiative and I thank you for your leadership on the issue.

We are aware that a defect in this legislation as approved has been brought to your attention, and it was encouraging to hear you comment on your efforts to repair it while in Buffalo this week. We believe changes to the legislation are imperative to the initiative reaching its full potential, and for Upstate urban areas to reap the well-intended benefit of the tax credits being offered.

Our members have informed us of two specific items in the current legislation that we urge you to address:

1.    Currently, the purchaser of the federal credits is required to purchase the state credits as well. This prevents money from outside of New York from aiding in New York development, as an out of state firm without business in New York would not be interested in NYS credits.

2.    The State legislation appears to restrict banks and insurance companies from purchasing NYS Credits, though such entities are historically the largest purchasers of such tax credits. By this restriction, the market place for selling such credits has been substantially limited – in fact, given the state of the economy this restriction may have rendered this legislation virtually unsustainable.

I strongly encourage you to consider change to these items in emergency legislation. Prompt action could help to spur construction jobs and projects throughout this State this year – including the high-profile AM&A’s restoration project in downtown Buffalo. Thank you, again, for your leadership on this issue.

Sincerely,

Andrew J. Rudnick