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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7525
SPONSOR: Fitzpatrick TITLE OF BILL:
An act to amend the tax law, in relation to establishing the "first-time
homebuyer tax credit act"
PURPOSE OR GENERAL IDEA OF BILL:
To provide a credit against personal income tax for first time homebuy-
ers based on the taxes levied on the taxpayer's primary residence by or
on behalf of the county, city, town, village, or school district in
which such property is located.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Provides that this act shall be known as the First-Time Home-
buyer Tax Credit
Section 2: Legislative findings
Section 3: Section 606 of the tax law is amended by adding a new
subsection saga This subsection allows a qualified taxpayer who has
purchased a primary residential property to claim a credit against their
personal income tax based on the 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. This section defines a qual-
ified taxpayer as an individual 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 his or her purchase of
the primary residential property, and who does not own a vacation or
investment home. This section also defines how the credit will be calcu-
lated.
Section 4: Directs the Commissioner of Taxation and Finance to promul-
gate rules and regulations necessary to implement the provisions of this
act.
Section 5: Provides an effective date of January 1, 2026.
JUSTIFICATION:
Homeownership is widely regarded as one of the most effective tools for
building personal wealth and creating intergenerational wealth. Expand-
ing homeownership opportunities is also critical to the success of our
local communities, employers, and the state's overall economy.
An October 2022 report from the Office of the New York State Comptroller
indicated New York State has the lowest homeownership rate in the entire
United States. In fact, New York State has trailed the national homeown-
ership average since 2005. With increasing inflation and sky-high hous-
ing prices, the ability to achieve the American Dream of homeownership
is becoming even, more challenging.
In an effort to increase homeownership opportunities for New Yorkers,
this legislation seeks to provide first time homebuyers with a tax cred-
it to offset the increasing cost of purchasing a home. This tax credit
will be credited against state income tax and calculated based on the
first-time homebuyer's local tax burden. Because this is a credit
against state income tax, it will not deprive local governments and
school districts of funding.
PRIOR LEGISLATIVE HISTORY:
2024: A.9717 - Referred to Ways and Means Committee
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect January 1, 2026.
STATE OF NEW YORK
________________________________________________________________________
7525
2025-2026 Regular Sessions
IN ASSEMBLY
April 1, 2025
___________
Introduced by M. of A. FITZPATRICK -- read once and referred to the
Committee on Ways and Means
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
24 behalf of any county, city, town, village, or school district in which
25 such property is located. If the credit exceeds the tax as so reduced
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01070-01-5
A. 7525 2
1 for such year under this article, the excess shall be treated as an
2 overpayment, to be credited or refunded, without interest. If a quali-
3 fied taxpayer is not required to file a return pursuant to section six
4 hundred fifty-one of this article, a qualified taxpayer may nevertheless
5 receive the full amount of the credit to be credited or repaid as an
6 overpayment, without interest.
7 (B) For the purposes of this subsection, a qualified taxpayer shall be
8 a person who has purchased a primary residential property, and who has
9 not owned a primary residential property and is not married to a person
10 who has owned a residential property, during the three-year period prior
11 to such taxpayer's purchase of the primary residential property, and who
12 does not own a vacation or investment home.
13 (2) Calculation of credit. Such credit shall last five years from the
14 date of purchase of the primary residential property and be computed in
15 accordance with the following table:
16 Year of Credit Percentage of Taxes Levied
17 1 50
18 2 40
19 3 30
20 4 20
21 5 10
22 6 or more 0
23 § 4. The commissioner of taxation and finance shall promulgate any
24 rules and regulations necessary to implement the provisions of this act.
25 § 5. This act shall take effect immediately and shall apply to taxable
26 years beginning on and after January 1, 2026.
