Grants credit against personal income tax to purchasers of residential housing in the amount of any downpayment made on such housing; provides that the maximum credit shall not exceed 5 percent of the purchase price of the residential housing; requires taxpayers to meet eligibility requirements imposed by the state of New York mortgage agency.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7706
SPONSOR: Fitzpatrick (MS) TITLE OF BILL:
An act to amend the tax law, in relation to granting to purchasers of
residential housing a credit against personal income tax in the amount
of any downpayment made on such housing
PURPOSE OR GENERAL IDEA OF BILL:
This bill will encourage the purchase of residential housing by first
time homebuyers by affording them a credit against a person's income tax
in the amount of any down payment.
SUMMARY OF PROVISIONS:
This bill adds a new subsection (r-1) to Section 606 of the tax law
toprovide a taxpayer a credit against personal income t payment made on
the purchase of a one to four family residence located within the State.
Any tax credit not used in the taxable year in which the residence was
purchased could be carried forward or backwards for the five, immediate-
ly succeeding or preceding, calendar or fiscal years until the full
credit has been allowed. In addition, the aggregate amount of tax credit
allowed could not exceed 5% of the purchase price of the home. The tax
credit would only be available to the taxpayers who meet the eligibility
requirements imposed by the State of New York Mortgage Agency for its
forward commitment loan program.
Section two provides the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
This bill is predicated on the belief that the State needs to encourage
homeownership by attempting to make residential housing more affordable.
Allowing first-time homebuyers or purchasers of housing in certain
targeted areas to take a tax credit in the amount of any down payment
will provide an added economic incentive to purchase residential hous-
ing.
PRIOR LEGISLATIVE HISTORY:
2024 - A4884 - Referred to Ways and Means
2022 - A5666 - Referred to Ways and Means
2020 - A6124 - Held in Ways and Means
2018 - A3883 - Held in Ways and Means
2016 - A3193 - Held in Ways and Means
2014 - A3316 - Held in Ways and Means
2012 - A2575 - Held in Ways and Means
2010 - A5819 - Held in Ways and Means
2008 - A4030 - Held in Ways and Means
2006 - A9609 - Held in Ways and Means
2005 - A5730 - (Young) died in Ways & Means
2004 - A4632 - (Young) died in Ways & Means
2003 - A4632 - (Young) died in Ways & Means
2002 - A10104 - (Young) died in Ways & Means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Some loss of revenue to the State, but potential increases of revenue in
local real property tax collections could result.
EFFECTIVE DATE:
Immediately and would apply to the taxable year commencing on or after
the first of January next succeeding the date on which it shall have
become law.
STATE OF NEW YORK
________________________________________________________________________
7706
2025-2026 Regular Sessions
IN ASSEMBLY
April 8, 2025
___________
Introduced by M. of A. FITZPATRICK, DiPIETRO, REILLY, TAGUE -- Multi-
Sponsored by -- M. of A. MANKTELOW -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to granting to purchasers of
residential housing a credit against personal income tax in the amount
of any downpayment made on such housing
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (r-1) to read as follows:
3 (r-1) Credit for downpayment made by purchasers of residential hous-
4 ing. (1) A taxpayer shall be allowed a credit against the tax imposed by
5 section six hundred one of this part for any downpayment made on the
6 purchase of a one- to four-family residence located within the state.
7 Any tax credit not used in the taxable year in which the residence was
8 purchased may be carried forward or backwards for the five, immediately
9 succeeding or preceding, calendar or fiscal years until the full credit
10 has been allowed. The aggregate amount of the tax credit allowed under
11 this subsection shall not exceed five percent of the purchase price of
12 the residential housing.
13 (2) The provisions of this subsection shall only apply to taxpayers
14 who meet the eligibility requirements imposed by the state of New York
15 mortgage agency for its forward commitment loan program pursuant to
16 article eight of the public authorities law.
17 § 2. This act shall take effect immediately and shall apply to taxable
18 years commencing on or after the first of January next succeeding the
19 date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08962-01-5
