Bill > A10956

This bill, known as the "Marriage Equality Deed Correction Tax Credit Act," establishes a tax credit for same-sex couples who, prior to the legalization of same-sex marriage, purchased a primary residence in the state and recorded the deed as "tenants in common" or "joint tenants with right of survivorship" because they were prohibited from recording it as "tenants by the entirety," a form of ownership that grants survivorship rights. To qualify for this credit, these couples must currently be married, still own and occupy the residence, and re-record the deed to reflect their ownership as "tenants by the entirety." The credit amount will be the lesser of $500 or the actual recording fees paid, and it can only be claimed once per couple for one residence. The credit will reduce the property's cost basis for future capital gains calculations, and it has certain limitations, including a combined gross income cap for the couple and a requirement that the property be used as their primary residence. This tax credit will be available for taxable years beginning on or after January 1, 2027, and will expire on January 1, 2029, though any unused credit can still be applied in the following three years.