S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    850
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced by Sens. HELMING, BORRELLO, GALLIVAN, RHOADS, ROLISON, WEBER,
   WEIK -- read twice and ordered printed, and when printed to be commit-
   ted to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to establishing the "first-time
   homebuyer tax credit act"

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "first-time homebuyer tax credit act".
   § 2. Legislative findings. The Legislature finds that homeownership is
 one  of  the  most  critical  tools to economic security and prosperity.
 Homeownership is one of the most effective ways to  create  intergenera-
 tional  transfers  of  wealth  which  many  underserved and marginalized
 communities have historically been unable  to  achieve.    However,  the
 Legislature  also finds that New York has become increasingly unafforda-
 ble for many first-time homebuyers due to burdensome regulation that has
 crippled the development of housing stock and kept prices high, as  well
 as  exorbitant  property  taxes  that  price  out  many individuals from
 putting down roots in our  communities.  Many  children,  upon  reaching
 adulthood,  are  forced  to  move  away  from the towns they grew up in,
 simply because they cannot afford to live there. Therefore, the Legisla-
 ture deems it necessary to provide  first-time  homebuyers  with  a  tax
 credit  that  will make it easier for them to be able to start and main-
 tain their lives here in our great state.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (bbb) to read as follows:
   (BBB)  FIRST-TIME  HOMEBUYER  TAX CREDIT. (1) ALLOWANCE OF CREDIT. (A)
 NOTWITHSTANDING ANY PROVISION  IN  LAW  TO  THE  CONTRARY,  A  QUALIFIED
 TAXPAYER  SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAXES IMPOSED BY THIS
 ARTICLE FOR TAXES LEVIED ON THE TAXPAYER'S PRIMARY RESIDENCE  BY  OR  ON
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01070-01-5
 S. 850                              2
 
 BEHALF  OF  ANY COUNTY, CITY, TOWN, VILLAGE, OR SCHOOL DISTRICT IN WHICH
 SUCH PROPERTY IS LOCATED. IF THE CREDIT EXCEEDS THE TAX  AS  SO  REDUCED
 FOR  SUCH  YEAR  UNDER  THIS  ARTICLE, THE EXCESS SHALL BE TREATED AS AN
 OVERPAYMENT,  TO  BE CREDITED OR REFUNDED, WITHOUT INTEREST. IF A QUALI-
 FIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO  SECTION  SIX
 HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER MAY NEVERTHELESS
 RECEIVE  THE  FULL  AMOUNT  OF THE CREDIT TO BE CREDITED OR REPAID AS AN
 OVERPAYMENT, WITHOUT INTEREST.
   (B) FOR THE PURPOSES OF THIS SUBSECTION, A QUALIFIED TAXPAYER SHALL BE
 A PERSON WHO HAS PURCHASED A PRIMARY RESIDENTIAL PROPERTY, AND  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 SUCH TAXPAYER'S PURCHASE OF THE PRIMARY RESIDENTIAL PROPERTY, AND WHO
 DOES NOT OWN A VACATION OR INVESTMENT HOME.
   (2) CALCULATION OF CREDIT. SUCH CREDIT SHALL LAST FIVE YEARS FROM  THE
 DATE  OF PURCHASE OF THE PRIMARY RESIDENTIAL PROPERTY AND BE COMPUTED IN
 ACCORDANCE WITH THE FOLLOWING TABLE:
 
          YEAR OF CREDIT      PERCENTAGE OF TAXES LEVIED
                1                        50
                2                        40
                3                        30
                4                        20
                5                        10
                6 OR MORE                 0
 
   § 4. The commissioner of taxation and  finance  shall  promulgate  any
 rules and regulations necessary to implement the provisions of this act.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2026.