Enacts the private activity bond allocation act of 2025

Latest action Jun 26, 2025

Enacts the private activity bond allocation act to establish an alternative formula for making volume ceiling allocations.

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Where it stands

Signed into law.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A6763, the matching bill in the Assembly.

Passed as A6763, the matching Assembly bill.

Committee

Local Government · New York State Senate

Also referred to Local Governments · New York State Assembly.

Purpose, from the sponsor's memo

Section 1 of the bill provides the title of the act, "Private Activity Bond Allocation Act of 2025." Section 2 of the bill provides the legislative findings. Section 3 of the bill provides definitions. Sections 4, 5, and 6 of the bill establish the allocation formula for the distribution of private bond activity volume ceiling (IDB Cap) as follows: -One-third for State agencies; One-third for local agencies, including Industrial Development Agencies (IDAs); and -One-third for the statewide bond reserve for use by both the State and IDAs. The ESD Commissioner would be required to publish the amount of recap- tured local set asides on its website each year. Section 7 of the bill provides certain requirements and conditions relating to access to new employment opportunities created in connection with industrial or manufacturing projects financed through the issuance of qualified small issue bonds. Section 8 of the bill allocates one half to the county agency and one half to the subcounty local agency in instances where there is overlap- ping jurisdiction. Section 9 of the bill allocates the local agency set-aside to the poli- tical subdivision for of the IDA in instances where the IDA is ineligi- ble to receive such allocation Section 10 of the bill authorizes the chief executive officer of any political subdivision to withdraw any portion of the allocation and reallocate it to itself or any other issuer established for the benefit of the political subdivision. Section 11 of the bill authorizes the process of allocating statewide ceiling for certain multi-year housing development projects in the future. Sections 12 and 13 of the bill detail provisions relating to year end recapture of IDB Cap to the statewide bond reserve and procedures for carry forward elections of IDB Cap, respectively. Section 14 of the bill creates a New York State Bond Allocation Policy Advisory Panel to provide policy advice regarding the priorities for distribution of the statewide ceiling. The Director of the Division of Budget would also be required to publish an annual volume cap report on its website concurrently with providing the report to the bond allo- cation advisory panel. Section 15 of the bill provides for severability provisions. Section 16 of the bill mandates that any allocation of the statewide ceiling on or after January 1, 2025, and prior to the effective date of the act shall first be chargeable to the statewide bond reserve for an IDA and to the state agency set aside for any state agencies. Section 17 of the bill prohibits the proposed legislation from supersed- ing, altering, or impairing any allocation of IDB Cap made prior to the effective date of the legislation. Section 18 of the bill provides the effective date.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateApr 30, 2025Result: passedSenate vote on A6763, the matching Assembly bill.
(59) (1) (0) (2)
Vote: Committee vote · Rules
Senate RulesApr 24, 2025Result: passed
(18) (0) (0) (3)

The sponsor's argument

Why Monica Martinez says this is needed

The Federal Tax Reform Act of 1986, as amended, imposes a ceiling on the volume of tax-exempt, private activity and certain other bonds that may be issued in a state in any given year. It also establishes an allo- cation formula which provides 50% of the statewide IDB Cap to State agencies and the remaining 50% to local governments. Federal law permit- ted temporary modification of this allocation formula by gubernatorial executive order until December 31, 1987. Following this sunset, the federal act permits states to establish an alternative formula for allo- cation by statute. New York State has opted to establish an alternative method of distribution in which one-third of the IDB Cap is available to State agencies, one-third to local agencies (industrial development agencies or IDAs) and one-third to a statewide bond reserve for use by both the State and IDAs.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Jun 26, 2025
Sent to the executive
DELIVERED TO GOVERNOR
NY Assembly
Jun 26, 2025
Signed
SIGNED CHAP.164
NY Assembly
Apr 30, 2025
3RD Reading CAL.692
3RD READING CAL.692
NY Senate
Apr 30, 2025
Passed a chamber
PASSED SENATE
NY Senate
Apr 30, 2025
Substituted
SUBSTITUTED FOR S7526
NY Senate

Show full history (9 earlier events)

Apr 24, 2025
In committee
COMMITTEE DISCHARGED AND COMMITTED TO RULES
NY Senate
Apr 24, 2025
Ordered to Third Reading CAL.692
ORDERED TO THIRD READING CAL.692
NY Senate
Apr 21, 2025
Referred to committee
REFERRED TO LOCAL GOVERNMENT
NY Senate
Mar 18, 2025
Sent to the executive
DELIVERED TO SENATE
NY Assembly
Mar 18, 2025
Passed a chamber
PASSED ASSEMBLY
NY Assembly
Mar 18, 2025
Referred to committee
REFERRED TO LOCAL GOVERNMENT
NY Senate
Mar 18, 2025
Reported out of committee
REPORTED REFERRED TO WAYS AND MEANS
NY Assembly
Mar 18, 2025
Rules Report CAL.110
RULES REPORT CAL.110
NY Assembly
Mar 12, 2025
Referred to committee
REFERRED TO LOCAL GOVERNMENTS
NY Assembly

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 22, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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