S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4257
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2023
                                ___________
 
 Introduced  by  M. of A. FITZPATRICK, BLANKENBUSH, BYRNES, J. M. GIGLIO,
   HAWLEY, MIKULIN, TAGUE -- Multi-Sponsored by  --  M.  of  A.  BARCLAY,
   MANKTELOW,  McDONOUGH  --  read  once and referred to the Committee on
   Ways and Means
 
 AN ACT to amend the tax law, in relation to establishing a homeownership
   rehabilitation credit

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (o-1) to read as follows:
   (O-1) HOMEOWNERSHIP REHABILITATION CREDIT. (1)  A  TAXPAYER  SHALL  BE
 ALLOWED  A  CREDIT  OF  FIFTEEN  PERCENT OF THE QUALIFIED REHABILITATION
 EXPENSES MADE BY THE TAXPAYER WITH  RESPECT  TO  A  QUALIFIED  RESIDENCE
 AGAINST  THE  TAX  IMPOSED  BY  THIS  ARTICLE.  FOR THE PURPOSES OF THIS
 SUBSECTION:
   (A) "QUALIFIED RESIDENCE" MEANS ANY RESIDENCE WHICH IS LOCATED:
   (I) IN A CENSUS TRACT IN WHICH SEVENTY PERCENT OR MORE OF THE FAMILIES
 HAVE INCOME THAT IS LESS THAN NINETY PERCENT OF THE GREATER OF  AREA  OR
 STATEWIDE MEDIAN GROSS INCOME;
   (II) IN A RURAL AREA AS DEFINED UNDER SECTION 520 OF THE FEDERAL HOUS-
 ING ACT OF 1949;
   (III) ON A RESERVATION FOR A FEDERALLY RECOGNIZED INDIAN TRIBE; OR
   (IV)  IN  AN  AREA OF CHRONIC ECONOMIC DISTRESS, AS DEFINED BY SECTION
 143 OF THE INTERNAL REVENUE CODE.
   (B) "RESIDENCE" MEANS:
   (I) A SINGLE FAMILY HOME CONTAINING ONE TO FOUR HOUSING UNITS;
   (II) A CONDOMINIUM UNIT, OR STOCK  IN  A  COOPERATIVE  HOUSING  CORPO-
 RATION; OR
   (III) THAT IS OWNED OR PURCHASED BY A TAXPAYER OR HIS OR HER PRINCIPAL
 RESIDENCE AND IS AT LEAST FORTY YEARS OLD IN THE CASE OF A SINGLE FAMILY
 HOME  OR  IN  THE  CASE OF A MULTIPLE DWELLING CONTAINING CONDOMINIUM OR
 COOPERATIVE HOUSING UNITS THE EXTERIOR IS AT LEAST FORTY YEARS OLD.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08418-01-3
 A. 4257                             2
 
   (C) "QUALIFIED REHABILITATION  EXPENSES"  MEANS  ANY  AMOUNT  PROPERLY
 CHARGEABLE  TO  CAPITAL  ACCOUNT  THAT EXCEEDS FIVE THOUSAND DOLLARS FOR
 BOTH INTERIOR AND EXTERIOR WORK.
   (2) THE QUALIFIED RESIDENCE MUST BE USED BY THE TAXPAYER AS HIS OR HER
 PRINCIPAL RESIDENCE DURING THE TAXABLE YEAR IN WHICH THE TAXPAYER CLAIMS
 THE CREDIT.
   (3) IN THE CASE OF A QUALIFIED PURCHASED RESIDENCE, THE TAXPAYER SHALL
 BE  TREATED AS HAVING MADE, ON THE DATE OF PURCHASE, THE QUALIFIED REHA-
 BILITATION EXPENDITURES MADE BY THE SELLER OF SUCH HOME.    EXPENDITURES
 MADE BY THE SELLER SHALL BE DEEMED QUALIFIED REHABILITATION EXPENDITURES
 OF SUCH EXPENDITURES IF MADE BY THE PURCHASER WOULD HAVE SO QUALIFIED.
   FOR  PURPOSES  OF  THIS PARAGRAPH, THE TERM "QUALIFIED PURCHASED RESI-
 DENCE" MEANS ANY REHABILITATED RESIDENCE PURCHASED BY THE TAXPAYER IF:
   (A) THE TAXPAYER IS THE FIRST PURCHASER OF SUCH  STRUCTURE  AFTER  THE
 DATE  REHABILITATION  IS  COMPLETED  AND THE PURCHASE OCCURS WITHIN FIVE
 YEARS AFTER SUCH DATE;
   (B) THE STRUCTURE OR A PORTION  THEREOF  SHALL,  WITHIN  A  REASONABLE
 PERIOD, BE THE PRINCIPAL RESIDENCE OF THE TAXPAYER;
   (C)  NO  CREDIT  WAS  ALLOWED  TO THE SELLER UNDER THIS PARAGRAPH WITH
 RESPECT TO SUCH REHABILITATION; AND
   (D) THE TAXPAYER IS FURNISHED WITH SUCH INFORMATION AS THE COMMISSION-
 ER DECIDES IS NECESSARY TO DETERMINE THE CREDIT UNDER THIS PARAGRAPH.
   (4)(A) IF BEFORE THE END OF THE FIVE-YEAR PERIOD BEGINNING ON THE DATE
 IN WHICH THE REHABILITATION OF THE RESIDENCE IS COMPLETED OR,  IF  PARA-
 GRAPH  THREE  OF  THIS  SUBSECTION APPLIES, THE DATE OF PURCHASE OF SUCH
 BUILDING BY THE TAXPAYER, (I) THE TAXPAYER DISPOSES OF  SUCH  TAXPAYER'S
 INTEREST  IN  SUCH  BUILDING, OR (II) SUCH BUILDING CEASES TO BE USED AS
 THE PRINCIPAL RESIDENCE OF THE TAXPAYER, THE TAXPAYER'S TAX  IMPOSED  BY
 THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSATION
 OCCURS  SHALL  BE  INCREASED  BY  THE RECAPTURE PERCENTAGE OF THE CREDIT
 ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR TAXABLE YEARS  WITH  RESPECT
 TO SUCH REHABILITATION.
   (B)  FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
 PERCENTAGE SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED  BY  THE
 TAXPAYER  MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS THE NUMBER OF
 MONTHS THE BUILDING IS USED AS THE TAXPAYER'S  PRINCIPAL  RESIDENCE  AND
 THE DENOMINATOR OF WHICH IS SIXTY.
   (5)  IF  THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBSECTION FOR
 ANY TAXABLE YEAR EXCEEDS THE  TAXPAYER'S  TAX  FOR  SUCH  YEAR  AND  THE
 TAXPAYER'S  NEW YORK ADJUSTED GROSS INCOME FOR SUCH YEAR DOES NOT EXCEED
 ONE HUNDRED THOUSAND DOLLARS, THE EXCESS CREDIT SHALL BE TREATED  AS  AN
 OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,  PROVIDED,
 HOWEVER,  THAT  NO INTEREST SHALL BE PAID THEREON. IF THE TAXPAYER'S NEW
 YORK ADJUSTED GROSS INCOME FOR SUCH YEAR EXCEEDS  ONE  HUNDRED  THOUSAND
 DOLLARS,  THE EXCESS CREDIT MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR
 YEARS AND MAY BE DEDUCTED FROM THE  TAXPAYER'S  TAX  FOR  SUCH  YEAR  OR
 YEARS.
   (6) THE COMMISSIONER SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE APPRO-
 PRIATE  TO CARRY OUT THE PURPOSES OF THIS SUBSECTION, INCLUDING, BUT NOT
 LIMITED  TO,  REGULATIONS  CONCERNING  VALID  PROOF  OF   REHABILITATION
 EXPENSES BY A TAXPAYER AND REGULATIONS WHERE MORE THAN ONE TAXPAYER USES
 THE SAME DWELLING UNIT ON THEIR PRINCIPAL RESIDENCE.
   § 2. This act shall take effect immediately and shall apply to taxable
 years  commencing on and after the first of January in the year in which
 this act shall have become a law.