Bill > S01157

This bill establishes the New York State First Home Savings Program, a new initiative designed to help first-time home buyers save money for purchasing their first residential property. The program allows individuals to open special savings accounts with specific tax advantages and restrictions. Account holders can contribute up to $100,000, with annual tax deductions limited to $5,000 for individuals and $10,000 for married couples filing jointly, subject to income restrictions. To qualify, individuals must be true first-time home buyers who have never owned a principal residence, and they must intend to use the purchased property as their primary residence for at least two years. The accounts come with significant tax benefits, but also penalties for non-qualified withdrawals, including having the entire account taxed at the account owner's federal tax rate plus a 10% state penalty. The program is managed by the state comptroller, who will select financial organizations to serve as account depositories and managers. Participants must complete a certification form proving they are first-time home buyers, and the purchased property cannot be used as a business, vacation home, or pure investment property (though up to two rental units are allowed in a multiple dwelling). The bill aims to incentivize home ownership by providing a structured, tax-advantaged savings mechanism specifically for first-time home buyers in New York State.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/S1157