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.
TITLE OF BILL:
An act to amend the tax law, in relation to a residential housing downpayment credit against the tax on personal income
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).
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.
2009-2010, S.235; 2007-08, S.143; 2005-06, S.3147.
To be determined.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ S. 809 A. 525 2011-2012 Regular Sessions S E N A T E - A S S E M B L Y (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