BILL NUMBER: S850
SPONSOR: HELMING
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing the "first-time
homebuyer tax credit act"
 
PURPOSE OR GENERAL IDEA OF BILL:
To provide a credit against personal income tax for first time homebuy-
ers based on the taxes levied on the taxpayer's primary residence by or
on behalf of the county, city, town, village, or school district in
which such property is located.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Provides that this act shall be known as the First-Time Home-
buyer Tax Credit
Section 2: Legislative findings
Section 3: Section 606 of the tax law is amended by adding a new
subsection (bbb). This subsection allows a qualified taxpayer who has
purchased a primary residential property to claim a credit against their
personal income tax based on the taxes levied on the taxpayer's primary
residence by or on behalf of any county, city, town, village, or school
district in which such property is located. This section defines a qual-
ified taxpayer as an individual who has not owned a primary residential
property and is not married to a person who has owned a residential
property, during the three-year period prior to his or her purchase of
the primary residential property, and who does not own a vacation or
investment home. This section also defines how the credit will be calcu-
lated.
Section 4: Directs the commissioner to promulgate rules and regulations
necessary to implement the provisions of this act.
Section 5: Provides for an immediate effective date.
 
JUSTIFICATION:
Homeownership is widely regarded as one of the most effective tools for
building personal wealth and creating intergenerational wealth. Expand-
ing homeownership opportunities is also critical to the success of our
local communities, employers, and the state's overall economy.
An October 2022 report from the Office of the New York State Comptroller
indicated New York State has the lowest homeownership rate in the entire
United States. In fact, New York State has trailed the national homeown-
ership average since 2005. With Increasing inflation and sky-high hous-
ing prices, the ability to achieve the American Dream of homeownership
is becoming even more challenging.
In an effort to increase homeownership opportunities for New Yorkers,
this legislation seeks to provide first time homebuyers with a tax cred-
it to offset the increasing cost of purchasing a home. This tax credit
will be credited against state income tax and calculated based on the
first-time homebuyer's local tax burden. Because this is a credit
against state income tax, it will not deprive local governments and
school districts of funding.
 
PRIOR LEGISLATIVE HISTORY:
2024: S.8826 referred to Budget and Revenue/A.9717 referred to Ways and
Means
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S850: 606 tax law