Bill > A07525

This bill establishes the "first-time homebuyer tax credit act" to help new homeowners in New York manage property taxes by providing a tax credit that decreases over five years. Specifically, the bill allows qualified first-time homebuyers to receive a tax credit against local property taxes levied by counties, cities, towns, villages, or school districts. A qualified taxpayer is defined as someone who has not owned a primary residential property in the past three years, is not married to a previous homeowner, and does not own a vacation or investment property. The tax credit will be calculated on a sliding scale: 50% of property taxes in the first year, decreasing by 10% each subsequent year until reaching 0% in the sixth year. If the credit exceeds the taxpayer's tax liability, the excess will be refunded without interest, and even taxpayers not required to file a tax return can receive the full credit. The Legislature justifies this bill by highlighting the challenges first-time homebuyers face in New York, including high housing costs and property taxes that make homeownership difficult, particularly for younger residents and underserved communities. The tax credit will take effect for taxable years beginning on or after January 1, 2026, with the state's tax commissioner responsible for creating implementation regulations.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7525