BILL NUMBER:S2769

TITLE OF BILL:

An  act to amend the tax law, in relation to granting to purchasers of
residential housing a credit against personal income tax in the amount
of any downpayment made on such housing

PURPOSE:

This bill will  encourage  the  purchase  of  residential  housing  by
first-time  homebuyers  by  affording them a credit against a person's
income tax in the amount of any down payment.

SUMMARY OF PROVISIONS:

This bill adds a new subsection (r-1) to Section 606 of the Tax Law to
provide a taxpayer a credit against personal income tax for  any  down
payment made on the purchase of a one to four family residence located
within the State. Any tax credit not used in the taxable year in which
the  residence was purchased could be carried forward or backwards for
the five, immediately succeeding  or  preceding,  calendar  or  fiscal
years  until  the  full  credit  has  been  allowed.  In addition, the
aggregate amount of tax credit allowed could  not  exceed  5%  of  the
purchase price of the home.  The tax credit would only be available to
the  taxpayers  who  meet  the eligibility requirements imposed by the
              

State of New York Mortgage Agency  for  its  forward  commitment  loan
program.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:

The bill adds a new subsection (r-1) to Section 606 of the Tax Law.

JUSTIFICATION:

This  bill  is  predicated  on  the  belief  that  the  State needs to
encourage homeownership by attempting to make residential housing more
affordable. Allowing first-time homebuyers or purchasers of housing in
certain targeted areas to take a tax credit in the amount of any  down
payment   will   provide  an  added  economic  incentive  to  purchase
residential housing.

PRIOR LEGISLATIVE HISTORY:

2014 - A.3316 - Held in Ways and Means
2012 - A.2575 - Held in Ways and Means
2010: A.5819 - Held in Ways and Means
2008: A.4030 - Held in Ways and Means
2006: A.9609 - Held in Ways and Means
2005: A.5730 (Young) died in Ways & Means
2004:  A.4632 (Young) died in Ways & Means
2003: A.4632 (Young) died in Ways & Means
2002: A.10104 (Young) died in Ways & Means

FISCAL IMPLICATIONS:


Some loss of revenue to the State, but potential increases of  revenue
in local real property tax collections could result.

EFFECTIVE DATE:

Immediately  and  would  apply  to  the taxable year commencing on the
following February.