Grants credit against personal income tax to purchasers of residential housing in the amount of any down payment 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.

---

S762-2011 Actions

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

S762-2011 Memo

BILL NUMBER:S762

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 down payment made on such housing

PURPOSE:
This bill will encourage the purchase of residential housing by  first
time  home buyers 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 to
provide a taxpayer a credit against personal income tax for  any  down
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, immediately 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.

JUSTIFICATION:
This  bill  is  predicated  on  the  belief  that  the  State needs to
encourage home ownership by attempting  to  make  residential  housing
more  affordable.  Allowing  first  time  home buyers 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 housing.

LEGISLATIVE HISTORY:
2009-10: S.1094/A.5819 Referred to Investigations and Government
Operations
2007-08: S.357/A.4030 Referred to Investigations and
Government Operations
2006:    S.6492/A.9609 Referred to Investigations
and Government operations
2005:    A.5730 Referred to Ways and Means
2003-04: A.4632 Held in Ways and Means
2002:    A.10104 Held in Ways and Means

FISCAL IMPLICATIONS:
Some loss of revenue to the State, but potential
increases of revenue in local real property tax collections could
result.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply
to taxable years commencing on or after the first of January next
succeeding the date on which it shall have become a law.

S762-2011 Text

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

                                     762

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
    printed to be committed to the Committee on Investigations and Govern-
    ment Operations

  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:


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

    (R-1)  CREDIT  FOR DOWNPAYMENT MADE BY PURCHASERS OF RESIDENTIAL HOUS-
  ING. (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  ONE- TO FOUR-FAMILY RESIDENCE LOCATED WITHIN THE STATE.
  ANY TAX CREDIT NOT USED IN THE TAXABLE YEAR IN WHICH THE  RESIDENCE  WAS
  PURCHASED  MAY BE CARRIED FORWARD OR BACKWARDS FOR THE FIVE, IMMEDIATELY
  SUCCEEDING OR PRECEDING, CALENDAR OR FISCAL YEARS UNTIL THE FULL  CREDIT
  HAS  BEEN ALLOWED.  THE AGGREGATE AMOUNT OF THE TAX CREDIT ALLOWED UNDER
  THIS SUBSECTION SHALL NOT EXCEED FIVE PERCENT OF THE PURCHASE  PRICE  OF
  THE RESIDENTIAL HOUSING.
    (2)  THE  PROVISIONS  OF THIS SUBSECTION SHALL ONLY APPLY TO TAXPAYERS
  WHO MEET THE ELIGIBILITY REQUIREMENTS IMPOSED BY THE STATE OF  NEW  YORK
  MORTGAGE  AGENCY  FOR  ITS  FORWARD  COMMITMENT LOAN PROGRAM PURSUANT TO
  ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
    S 2. This act shall take effect immediately and shall apply to taxable
  years commencing on or after the first of January  next  succeeding  the
  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.
                                                             LBD02508-01-1