S 850: Establishes the "first-time homebuyer tax credit act"; provides that 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 behalf of any county, city, town, village, or school district in which such property is located.

  
  STATE OF NEW YORK ________________________________________________________________________ 850 2025-2026 Regular Sessions  IN SENATE (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: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "first-time homebuyer tax credit act". 3 § 2. Legislative findings. The Legislature finds that homeownership is 4 one of the most critical tools to economic security and prosperity. 5 Homeownership is one of the most effective ways to create intergenera- 6 tional transfers of wealth which many underserved and marginalized 7 communities have historically been unable to achieve. However, the 8 Legislature also finds that New York has become increasingly unafforda- 9 ble for many first-time homebuyers due to burdensome regulation that has 10 crippled the development of housing stock and kept prices high, as well 11 as exorbitant property taxes that price out many individuals from 12 putting down roots in our communities. Many children, upon reaching 13 adulthood, are forced to move away from the towns they grew up in, 14 simply because they cannot afford to live there. Therefore, the Legisla- 15 ture deems it necessary to provide first-time homebuyers with a tax 16 credit that will make it easier for them to be able to start and main- 17 tain their lives here in our great state. 18 § 3. Section 606 of the tax law is amended by adding a new subsection 19 (bbb) to read as follows: 20 (bbb) First-time homebuyer tax credit. (1) Allowance of credit. (A) 21 Notwithstanding any provision in law to the contrary, a qualified 22 taxpayer shall be allowed a credit against the taxes imposed by this 23 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 1 behalf of any county, city, town, village, or school district in which 2 such property is located. If the credit exceeds the tax as so reduced 3 for such year under this article, the excess shall be treated as an 4 overpayment, to be credited or refunded, without interest. If a quali- 5 fied taxpayer is not required to file a return pursuant to section six 6 hundred fifty-one of this article, a qualified taxpayer may nevertheless 7 receive the full amount of the credit to be credited or repaid as an 8 overpayment, without interest. 9 (B) For the purposes of this subsection, a qualified taxpayer shall be 10 a person who has purchased a primary residential property, and who has 11 not owned a primary residential property and is not married to a person 12 who has owned a residential property, during the three-year period prior 13 to such taxpayer's purchase of the primary residential property, and who 14 does not own a vacation or investment home. 15 (2) Calculation of credit. Such credit shall last five years from the 16 date of purchase of the primary residential property and be computed in 17 accordance with the following table: 18 Year of Credit Percentage of Taxes Levied 19 1 50 20 2 40 21 3 30 22 4 20 23 5 10 24 6 or more 0 25 § 4. The commissioner of taxation and finance shall promulgate any 26 rules and regulations necessary to implement the provisions of this act. 27 § 5. This act shall take effect immediately and shall apply to taxable 28 years beginning on and after January 1, 2026.