Bill > S00850

This bill establishes the "First-Time Homebuyer Tax Credit Act" to help make homeownership more accessible in New York by providing a tax credit for first-time homebuyers. The legislation aims to address the challenges of housing affordability by offering a graduated tax credit over five years for property taxes on a primary residence. Specifically, a qualified taxpayer who has not owned a primary residential property in the past three years can receive a tax credit that reduces their property tax burden: 50% in the first year, decreasing to 10% by the fifth year. To be eligible, the individual must purchase a primary residential property and not own a vacation or investment home. The bill recognizes that homeownership is a critical tool for economic security and wealth creation, particularly for underserved communities, and seeks to help young adults stay in their local communities by making home purchases more financially feasible. The tax credit can be claimed against state taxes, and if the credit exceeds the taxpayer's tax liability, the excess will be refunded without interest. The act will take effect for taxable years beginning on or after January 1, 2026, and the state tax commissioner will develop specific rules and regulations to implement the program.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S850