senate Bill S762

Grants tax credit for downpayment made on residential housing

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Grants credit against personal income tax to purchasers of residential housing in the amount of any down payment made on such housing; provides that the maximum credit shall not exceed 5 percent of the purchase price of the residential housing; requires taxpayers to meet eligibility requirements imposed by the state of New York mortgage agency.

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Bill Details

See Assembly Version of this Bill:
A2575
Versions:
S762
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S1094, A5819
2007-2008: A4030

Sponsor Memo

BILL NUMBER:S762

TITLE OF BILL:
An act to amend the tax law, in relation to granting to purchasers of
residential housing a credit against personal income tax in the amount
of any down payment made on such housing

PURPOSE:
This bill will encourage the purchase of residential housing by first
time home buyers by affording them a credit against a person's income
tax in the amount of any down payment.

SUMMARY OF PROVISIONS:
This bill adds a new subsection (r-1) to Section 606 of the Tax Law to
provide a taxpayer a credit against personal income tax for any down
payment made on the purchase of a one to four family residence located
within the State. Any tax credit not used in the taxable year in which
the residence was purchased could be carried forward or backwards for
the five, immediately succeeding or preceding, calendar or fiscal
years until the full credit has been allowed. In addition, the
aggregate amount of tax credit allowed could not exceed 5% of the
purchase price of the home. The tax credit would only be available to
the taxpayers who meet the eligibility requirements imposed by the
state of New York Mortgage Agency for its forward commitment loan
program.

JUSTIFICATION:
This bill is predicated on the belief that the State needs to
encourage home ownership by attempting to make residential housing
more affordable. Allowing first time home buyers or purchasers of
housing in certain targeted areas to take a tax credit in the amount
of any down payment will provide an added economic incentive to
purchase residential housing.

LEGISLATIVE HISTORY:
2009-10: S.1094/A.5819 Referred to Investigations and Government
Operations
2007-08: S.357/A.4030 Referred to Investigations and
Government Operations
2006: S.6492/A.9609 Referred to Investigations
and Government operations
2005: A.5730 Referred to Ways and Means
2003-04: A.4632 Held in Ways and Means
2002: A.10104 Held in Ways and Means

FISCAL IMPLICATIONS:
Some loss of revenue to the State, but potential
increases of revenue in local real property tax collections could
result.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply
to taxable years commencing on or after the first of January next
succeeding the date on which it shall have become a law.



view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   762

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to granting  to  purchasers  of
  residential housing a credit against personal income tax in the amount
  of any downpayment made on such housing

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Section 606 of the tax law is  amended  by  adding  a  new
subsection (r-1) to read as follows:
  (R-1)  CREDIT  FOR DOWNPAYMENT MADE BY PURCHASERS OF RESIDENTIAL HOUS-
ING. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
SECTION SIX HUNDRED ONE OF THIS PART FOR ANY  DOWNPAYMENT  MADE  ON  THE
PURCHASE  OF  A  ONE- TO FOUR-FAMILY RESIDENCE LOCATED WITHIN THE STATE.
ANY TAX CREDIT NOT USED IN THE TAXABLE YEAR IN WHICH THE  RESIDENCE  WAS
PURCHASED  MAY BE CARRIED FORWARD OR BACKWARDS FOR THE FIVE, IMMEDIATELY
SUCCEEDING OR PRECEDING, CALENDAR OR FISCAL YEARS UNTIL THE FULL  CREDIT
HAS  BEEN ALLOWED.  THE AGGREGATE AMOUNT OF THE TAX CREDIT ALLOWED UNDER
THIS SUBSECTION SHALL NOT EXCEED FIVE PERCENT OF THE PURCHASE  PRICE  OF
THE RESIDENTIAL HOUSING.
  (2)  THE  PROVISIONS  OF THIS SUBSECTION SHALL ONLY APPLY TO TAXPAYERS
WHO MEET THE ELIGIBILITY REQUIREMENTS IMPOSED BY THE STATE OF  NEW  YORK
MORTGAGE  AGENCY  FOR  ITS  FORWARD  COMMITMENT LOAN PROGRAM PURSUANT TO
ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
  S 2. This act shall take effect immediately and shall apply to taxable
years commencing on or after the first of January  next  succeeding  the
date on which it shall have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02508-01-1

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