Relates to a residential housing downpayment credit; provides that such tax credit is in the amount of 10 percent of the purchase price, or twenty-five thousand dollars, whichever is less.

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S809-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 5, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S809-2011 Memo

BILL NUMBER:S809

TITLE OF BILL:

An act
to amend the tax law, in relation to a residential housing downpayment
credit against the tax on personal income

PURPOSE:

Relates to a residential housing down payment credit.

SUMMARY OF PROVISIONS:

Section 606 of the tax law is amended by adding a new subsection (r-I).

JUSTIFICATION:

It is the goal of this legislation to increase housing opportunities
for individuals across the State.
This bill would provide homebuyers with an opportunity to receive a
credit against the personal income tax for any down payment made on
the purchase of a principal residence located within New York State.
Any tax credit not used in the taxable year in which the residence
was purchased may be carried forward until the full credit has been
allowed.

Down payments are normally difficult to make for many homebuyers and
by providing them with an opportunity to receive a tax credit up to
10% of the purchase price or $25,000 (whichever is less), New York
State is seeking to address the affordable housing crisis facing many
areas, namely Long Island.

LEGISLATIVE HISTORY:

2009-2010, S.235; 2007-08, S.143; 2005-06, S.3147.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

S809-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

      S. 809                                                    A. 525

                         2011-2012 Regular Sessions

                        SENATE - ASSEMBLY

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
    ed,  and  when  printed  to  be committed to the Committee on Investi-
    gations and Government Operations

  IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once  and  referred
    to the Committee on Ways and Means

  AN  ACT to amend the tax law, in relation to a residential housing down-
    payment credit against the tax on personal income

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  Section  606  of  the  tax law is amended by adding a new
  subsection (r-1) to read as follows:

    (R-1) RESIDENTIAL HOUSING DOWNPAYMENT CREDIT. (1) A TAXPAYER SHALL  BE
  ALLOWED  A  CREDIT AGAINST THE TAX IMPOSED BY SECTION SIX HUNDRED ONE OF
  THIS PART FOR ANY DOWNPAYMENT MADE ON THE PURCHASE OF A PRINCIPAL  RESI-
  DENCE  LOCATED  WITHIN THE STATE OF NEW YORK. ANY TAX CREDIT NOT USED IN
  THE TAXABLE YEAR IN WHICH THE RESIDENCE WAS  PURCHASED  MAY  BE  CARRIED
  FORWARD UNTIL THE FULL CREDIT HAS BEEN ALLOWED.
    (2)  THE  AGGREGATE  AMOUNT  OF  THE  TAX  CREDIT  ALLOWED  UNDER THIS
  SUBSECTION SHALL NOT EXCEED TEN PERCENT OF THE PURCHASE PRICE  OR  TWEN-
  TY-FIVE THOUSAND DOLLARS, WHICHEVER IS LESS.
    (3)  THE  PROVISIONS  OF THIS SUBSECTION SHALL ONLY APPLY TO TAXPAYERS
  WHOSE HOUSEHOLD INCOME IS EQUAL TO OR BELOW THE MEDIAN HOUSEHOLD  INCOME
  IN THE COUNTY IN WHICH THE RESIDENCE IS LOCATED.
    (4)  THE  PROVISIONS OF THIS SUBSECTION SHALL ONLY APPLY TO A TAXPAYER
  WHO HAS NOT OWNED A PRINCIPAL RESIDENCE WITHIN THE PRECEDING FIVE  YEARS
  OF THE PURCHASE OF THE RESIDENCE FOR WHICH THE CREDIT IS CLAIMED.
    S 2. This act shall take effect immediately.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD03754-01-1