Senate BillIntroducedTAX
S 849: Establishes the USDA construction tax credit for a percentage of the profit on any newly constructed home that is sold to someone qualifying with a USDA mortgage.
What S 849 does, verified January 22, 2026
The bill aims to establish a tax credit for taxpayers who sell newly constructed properties to buyers who finance the purchase with a USDA mortgage. The tax credit is up to 15% of the difference between the total cost to build and the final sale price. This credit applies to both the sales tax and the income tax. The credit is available for properties sold to individuals who finance the purchase with a USDA mortgage, which meets certain federal regulations. The credit is intended to incentivize the development and sale of properties that meet USDA standards, particularly in rural areas. The bill also requires the state to promulgate rules and regulations to implement the tax credit, and it takes effect immediately.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: PRINT NUMBER 849A (2026-01-21)Alert me
Author and sponsors
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| Jan. 21, 2026 | PRINT NUMBER 849A |
| Jan. 21, 2026 | AMEND AND RECOMMIT TO BUDGET AND REVENUE |
| Jan. 07, 2026 | REFERRED TO BUDGET AND REVENUE |
| Jan. 08, 2025 | REFERRED TO BUDGET AND REVENUE |
Latest bill textIntroduced version, January 8, 2025 · 392 words
STATE OF NEW YORK ________________________________________________________________________ 849 2025-2026 Regular Sessions IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sens. HELMING, GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Reven- ue AN ACT to amend the tax law, in relation to establishing the USDA construction tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 61 to read as follows: 3 61. USDA construction tax credit. Notwithstanding any provision in law 4 to the contrary, a taxpayer shall be allowed a credit against such tax 5 of up to fifteen percent of the difference between the total cost to 6 build and the final sale price of any newly constructed property that a 7 taxpayer sells to a person or persons who finance the purchase of the 8 property with a USDA mortgage. For the purposes of this subdivision, a 9 USDA mortgage shall be any mortgage loan subject to the provisions of 10 Title 7 CFR Part 3550, Title 7 CFR Part 3555, or Title 7 CFR Part 3560. 11 § 2. Section 606 of the tax law is amended by adding a new subsection 12 (bbb) to read as follows: 13 (bbb) USDA construction tax credit. Notwithstanding any provision in 14 law to the contrary, a taxpayer shall be allowed a credit against such 15 tax of up to fifteen percent of the difference between the total cost to 16 build and the final sale price of any newly constructed property that a 17 taxpayer sells to a person or persons who finance the purchase of the 18 property with a USDA mortgage. For the purposes of this subsection, a 19 USDA mortgage shall be any mortgage loan subject to the provisions of 20 Title 7 CFR Part 3550, Title 7 CFR Part 3555, or Title 7 CFR Part 3560. 21 § 3. The commissioner of taxation and finance shall promulgate rules 22 and regulations necessary to implement this act. 23 § 4. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01073-01-5
Text of S 849 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions