Bill > S00849

This bill establishes a new tax credit for home builders who sell newly constructed properties to buyers using USDA mortgages. Specifically, the bill allows taxpayers to claim a tax credit of up to 15 percent of the difference between the total construction cost and the final sale price of a property, but only when the property is sold to someone financing the purchase through a USDA mortgage. A USDA mortgage is defined as any mortgage loan subject to specific federal regulations, including Title 7 CFR Part 3550, 3555, or 3560, which typically support rural housing and home ownership programs. The bill amends both Section 210-B and Section 606 of the tax law to implement this credit, and requires the commissioner of taxation and finance to develop regulations for its implementation. The tax credit is designed to incentivize home construction and make housing more affordable for rural homebuyers by providing a financial benefit to builders who sell to USDA mortgage recipients.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S849