A 9255: 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.

  
  STATE OF NEW YORK ________________________________________________________________________ 9255 2025-2026 Regular Sessions  IN ASSEMBLY November 21, 2025 ___________ Introduced by M. of A. BARRETT -- read once and referred to the Commit- tee on Housing 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 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. 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. LBD13967-02-5 
 A. 9255 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 laminated 5 veneer lumber, parallel strand lumber, cross-laminated timber, dowel 6 laminated timber, nail laminated timber, glue-laminated timber, glue-la- 7 minated beams and columns, and structural sawn lumber. 8 2. "Qualifying affordable housing projects" means new accessory dwell- 9 ing unit housing projects built on top of existing buildings and utiliz- 10 ing mass timber that serve households up to one hundred fifty percent of 11 area median income. 12 3. "Eligible participant" means a municipality that has received a 13 pro-housing community certification from the division of homes and 14 community renewal. 15 § 661. Build up New York pilot program. No later than one year from 16 the effective date of this article, the commissioner shall establish a 17 competitive build up New York pilot program. Such program shall provide 18 grants to eligible participants constructing qualifying affordable hous- 19 ing projects using mass timber. 20 § 662. Prevailing wage requirements. The pilot program established 21 pursuant to this article shall require that an eligible participant or a 22 third-party acting on the eligible participant's behalf shall comply 23 with the provisions of section two hundred twenty-four-a of the labor 24 law. 25 § 663. Annual evaluations. The division of homes and community renewal 26 shall conduct annual evaluations of the pilot program established pursu- 27 ant to this article and shall submit a summary evaluation of the pilot 28 program at the end of the second year of such program and again at the 29 conclusion of the program to the temporary president of the senate and 30 the speaker of the assembly. Such evaluations shall include, but not be 31 limited to: 32 1. The number of applicants to the pilot program and their geographic 33 distribution; 34 2. The number of projects completed and the number of new units 35 created as a result of the pilot program; 36 3. Barriers or challenges to implementation of the pilot program; and 37 4. Legislative recommendations for the expansion or improvement of the 38 pilot program. 39 § 4. The public housing law is amended by adding a new article 17 to 40 read as follows: 41 Article XVII 42 MASS TIMBER FOR AFFORDABLE HOUSING PROGRAM 43 Section 670. Definitions. 44 671. Eligibility criteria. 45 672. Application and approval process. 46 673. Powers and duties of the commissioner. 47 674. Mass timber for affordable housing tax credit. 48 675. Reporting. 49 § 670. Definitions. For the purposes of this article, the following 50 terms shall have the following meanings: 51 1. "Division" means the division of homes and community renewal. 52 2. "Certificate of eligibility" means the document issued by the divi- 53 sion to an applicant that has completed an application for the mass 54 timber for affordable housing program and has been accepted into the 
 A. 9255 3 1 program by the division. Possession of a certificate of eligibility does 2 not by itself guarantee eligibility to claim the tax credit. 3 3. "Certificate of tax credit" means the document issued to a partic- 4 ipant by the division, after the division has verified that the partic- 5 ipant has met all applicable eligibility criteria pursuant to this arti- 6 cle. The certificate of tax credit shall specify the exact amount of the 7 tax credit allowed pursuant to this article that a participant may claim 8 and shall specify the taxable year in which such tax credit may be 9 claimed. 10 4. "Participant" means a business entity that: 11 (a) has completed an application prescribed by the division to be 12 admitted into the program; 13 (b) has been issued a certificate of eligibility by the division; 14 (c) has demonstrated that it meets the eligibility criteria in section 15 six hundred seventy-one of this article; and 16 (d) has been certified as a participant by the commissioner. 17 5. "Qualifying affordable housing project" means new construction, or 18 a major retrofit of an existing building, that will primarily serve 19 households up to one hundred fifty percent of the area median income. 20 6. "Mass timber" means engineered wood products such as laminated 21 veneer lumber, parallel strand lumber, cross-laminated timber, dowel 22 laminated timber, nail laminated timber, glue-laminated timber, glue-la- 23 minated beams and columns, and structural sawn lumber. 24 § 671. Eligibility criteria. Eligibility criteria for the mass timber 25 for affordable housing program shall require that participants: 26 1. primarily utilize mass timber in qualifying affordable housing 27 projects; 28 2. be in compliance with all worker protection and environmental laws 29 and regulations; and 30 3. not owe past due state taxes or local property taxes unless the 31 participant is making payments and complying with an approved binding 32 payment agreement entered into with the taxing authority. 33 § 672. Application and approval process. 1. Applicants for the program 34 shall submit a completed application in such form and with such informa- 35 tion as prescribed by the commissioner. The application shall require 36 that applicants: 37 (a) agree to allow the department of taxation and finance to share the 38 applicant's tax information with the division; provided, however, that 39 any information shared as a result of such agreement shall not be avail- 40 able for disclosure or inspection under the state freedom of information 41 law; 42 (b) agree to allow the department of labor to share the applicant's 43 employer information with the division; provided, however, that any 44 information shared as a result of this agreement shall not be available 45 for disclosure or inspection under the state freedom of information law; 46 (c) allow the division and its agents access to any and all books and 47 records that the division may require to monitor compliance; and 48 (d) certify, under penalty of perjury, that the applicant is in 49 substantial compliance with all environmental, worker protection, and 50 local, state, and federal tax laws. 51 2. After reviewing an applicant's completed application and determin- 52 ing that the applicant will meet the requirements of this section, the 53 division may admit the applicant into the program and provide such 54 applicant with a certificate of eligibility. 55 3. In order to become a participant in the program, an applicant shall 56 submit evidence, in such form as the commissioner may prescribe, that 
 A. 9255 4 1 such applicant satisfies the eligibility criteria set forth in section 2 six hundred seventy-one of this article. After reviewing such evidence, 3 if the division finds that the applicant satisfies the eligibility 4 criteria, then the division shall certify the applicant as a participant 5 and issue to such participant a certificate of tax credit. 6 § 673. Powers and duties of the commissioner. 1. The commissioner 7 shall promulgate regulations consistent with the purposes of this arti- 8 cle which, notwithstanding any provisions to the contrary in the state 9 administrative procedure act, may be adopted on an emergency basis. Such 10 regulations shall include, but not be limited to, establishing an appli- 11 cation process and eligibility criteria for business entities desiring 12 to participate in the mass timber for affordable housing program so as 13 not to exceed the annual cap on tax credits set forth in section six 14 hundred seventy-four of this article and such other provisions as the 15 commissioner deems to be appropriate to implement the provisions of this 16 article. 17 2. The commissioner shall, in consultation with the department of 18 taxation and finance, develop a certificate of tax credit that shall be 19 issued by the commissioner to participants. Participants shall be 20 required to include the certificate of tax credit with their tax return 21 to receive any tax benefits under this article. 22 3. The commissioner shall solely determine the eligibility of any 23 applicant applying for entry into the program and shall remove any 24 participant from the program for failing to meet any of the requirements 25 set forth in section six hundred seventy-one of this article. 26 § 674. Mass timber for affordable housing tax credit. A participant in 27 the mass timber for affordable housing program shall be for a credit 28 against the costs of purchasing mass timber for a qualifying affordable 29 housing project in New York state. The amount of such credit shall be 30 equal to twenty-five percent of the cost. 31 § 675. Reporting. The division, beginning February first, two thousand 32 twenty-eight, and annually thereafter provided program funds remain, 33 shall submit a report to the governor, the temporary president of the 34 senate, and the speaker of the assembly. Such annual report shall 35 include, but need not be limited to: the number of participants approved 36 for the program; the geographical distribution of participants; the 37 total amount of tax credits provided through the mass timber for afford- 38 able housing tax credit; the number of new units created; and such other 39 information as the commissioner determines is necessary and appropriate. 40 Such reports shall be included on the division's website and be made 41 publicly available. 42 § 5. Section 210-B of the tax law is amended by adding a new subdivi- 43 sion 63 to read as follows: 44 63. Mass timber for affordable housing tax credit. (a) Allowance of 45 credit. (1) A taxpayer that has been approved by the commissioner of 46 homes and community renewal to participate in the mass timber for 47 affordable housing program and has been issued a certificate of tax 48 credit pursuant to section six hundred seventy-two of the public housing 49 law shall be allowed to claim a credit against the tax imposed by this 50 article. The credit shall equal up to twenty-five percent of costs 51 directly attributable to the design, procurement, and installation of 52 mass timber in qualified affordable housing projects. In no event shall 53 a taxpayer be allowed a credit greater than the amount of credit listed 54 on the certificate of tax credit issued by the commissioner of homes and 55 community renewal. No cost or expense paid or incurred by the taxpayer 
 A. 9255 5 1 that is the basis for this credit shall be the basis for any other tax 2 credit provided by this chapter. 3 (2) In addition to the credit authorized pursuant to subparagraph one 4 of this paragraph, for any property that is principally used by a 5 taxpayer who qualifies for the credit authorized pursuant to subpara- 6 graph one of this paragraph for the purposes of producing, processing or 7 assembling mass timber, as defined in subdivision six of section six 8 hundred seventy of the public housing law, the percentage to be used to 9 compute the credit allowed under this subdivision shall be an additional 10 ten percent. 11 (b) Application of credit. The credit allowed under this subdivision 12 for any taxable year may not reduce the tax due for such year to less 13 than the amount prescribed in paragraph (d) of subdivision one of 14 section two hundred ten of this article. However, if the amount of cred- 15 it allowed under this subdivision for any taxable year reduces the tax 16 to such amount, or if the taxpayer otherwise pays tax based on the fixed 17 dollar minimum amount, any amount of credit thus not deductible in that 18 taxable year will be treated as an overpayment of tax to be credited or 19 refunded in accordance with the provisions of section one thousand 20 eighty-six of this chapter. Provided, however, the provisions of 21 subsection (c) of section one thousand eighty-eight of this chapter 22 notwithstanding, no interest will be paid thereon. 23 (c) Reporting. The taxpayer shall attach to its tax return its certif- 24 icate of tax credit issued by the commissioner of homes and community 25 renewal pursuant to section six hundred seventy-two of the public hous- 26 ing law. In no event shall the taxpayer be allowed a credit greater than 27 the amount of the credit listed on the certificate of tax credit, or in 28 the case of a taxpayer who is a partner in a partnership, a member of a 29 limited liability company, or shareholder in an S corporation, its pro 30 rata share of the amount of credit listed on the certificate of tax 31 credit. 32 (d) Credit recapture. If a certificate of eligibility or a certificate 33 of tax credit issued by the division of homes and community renewal 34 under article seventeen of the public housing law is revoked by such 35 division because the taxpayer does not meet the eligibility requirement 36 set forth in section six hundred seventy-one of the public housing law, 37 the amount of credit described in this subdivision and claimed by the 38 taxpayer prior to that revocation shall be added back to tax in the 39 taxable year in which any such revocation becomes final. 40 § 6. Section 606 of the tax law is amended by adding a new subsection 41 (uuu) to read as follows: 42 (uuu) Mass timber for affordable housing tax credit. (1) Allowance of 43 credit. (A) A taxpayer that has been approved by the commissioner of 44 homes and community renewal to participate in the mass timber for 45 affordable housing program and has been issued a certificate of tax 46 credit pursuant to section six hundred seventy-two of the public housing 47 law shall be allowed to claim a credit against the tax imposed by this 48 article. The credit shall equal up to twenty-five percent of costs 49 directly attributable to the design, procurement, and installation of 50 mass timber in qualified affordable housing projects. In no event shall 51 a taxpayer be allowed a credit greater than the amount of credit listed 52 on the certificate of tax credit issued by the commissioner of homes and 53 community renewal. In the case of a taxpayer who is a partner in a part- 54 nership, member of a limited liability company or shareholder in an S 55 corporation, the taxpayer shall be allowed its pro rata share of the 56 credit earned by the partnership, limited liability company, or S corpo- 
 A. 9255 6 1 ration. No cost or expense paid or incurred by the taxpayer that is the 2 basis for this credit shall be the basis for any other tax credit 3 provided by this chapter. 4 (B) In addition to the credit authorized pursuant to subparagraph (A) 5 of this paragraph, for any property that is principally used by a 6 taxpayer who qualifies for the credit authorized pursuant to subpara- 7 graph (A) of this paragraph for the purposes of producing, processing or 8 assembling mass timber, as defined in subdivision six of section six 9 hundred seventy of the public housing law, the percentage to be used to 10 compute the credit allowed under this subsection shall be an additional 11 ten percent. 12 (2) Application of credit. If the amount of the credit allowed under 13 this subsection for any taxable year exceeds the taxpayer's tax for the 14 taxable year, the excess shall be treated as an overpayment of tax to be 15 credited or refunded in accordance with the provisions of section six 16 hundred eighty-six of this article, provided, however, no interest will 17 be paid thereon. 18 (3) Reporting. The taxpayer shall attach to its tax return its certif- 19 icate of tax credit issued by the commissioner of homes and community 20 renewal pursuant to section six hundred seventy-two of the public hous- 21 ing law. In no event shall the taxpayer be allowed a credit greater than 22 the amount of the credit listed on the certificate of tax credit, or in 23 the case of a taxpayer who is a partner in a partnership, a member of a 24 limited liability company, or shareholder in an S corporation, its pro 25 rata share of the amount of credit listed on the certificate of tax 26 credit. 27 (4) Credit recapture. If a certificate of eligibility or a certificate 28 of tax credit issued by the division of homes and community renewal 29 under article seventeen of the public housing law is revoked by such 30 division because the taxpayer does not meet the eligibility requirement 31 set forth in section six hundred seventy-one of the public housing law, 32 the amount of credit described in this subsection and claimed by the 33 taxpayer prior to that revocation shall be added back to tax in the 34 taxable year in which any such revocation becomes final. 35 § 7. This act shall take effect immediately and shall apply to taxable 36 years beginning on or after January 1, 2026; provided, however, that 37 section three of this act shall expire and be deemed repealed five years 38 after such effective date.