senate Bill S1931

Amended

Provides an income tax credit for three years to a taxpayer who purchases a new primary residence for one million dollars or less

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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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Mar / 2013
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Mar / 2013
    • PRINT NUMBER 1931A
  • 16 / Apr / 2013
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 16 / Apr / 2013
    • PRINT NUMBER 1931B
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 12 / Feb / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 12 / Feb / 2014
    • PRINT NUMBER 1931C

Summary

Provides an income tax credit for three years to a taxpayer who purchases a new primary residence for one million dollars or less.

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Bill Details

Versions:
S1931
S1931A
S1931B
S1931C
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1266A
2009-2010: S3900C

Sponsor Memo

BILL NUMBER:S1931

TITLE OF BILL: An act to amend the tax law, in relation to providing a
personal income tax credit for the purchase of a new home

PURPOSE OR GENERAL IDEA OF BILL: To provide purchasers of newly
constructed one- or two-family residences, including condos and co-ops,
with a $5,000 state tax credit returned to the homeowner after purchase.
The purchasers can carry the unused portion of the credit forward for
three consecutive years. This tax credit will stimulate New York's econ-
omy as well as provide incentive to those considering a home purchase.

JUSTIFICATION: Sales of existing U.S. homes in December 2009 plunged
17%- - the biggest decline since records began in 1968 - to a 5.45
million annual rate from 6.54 million pace the prior month, according to
the National Association of Realtors, and median sales prices rose for
the first time in two years, reflecting fewer first-time buyers. For New
York State, a decline in building permits - from 34,500 in June 2008 to
6,400 in June 2009 - reflected a major decrease in home sales. Single
family homes in New York State fell by 16.2% alone in February 2009.

The federal government has provided home purchasers with a tax credit
for first-time homebuyers and is extending this program up to mid 2010.
Since 2006, median home prices in the state have dropped by more than
thirty thousand dollars from $245,201 to $215,000.

The residential home construction industry has a positive impact on New
York State's economy. This bill would help revitalize the economy while
encouraging home ownership by allowing first-time home buyers to utilize
a State tax credit on top of the federal government's tax-credit.

PRIOR LEGISLATIVE HISTORY: 2009-2010: S.3900 - Referred to Finance
2011-2012: S.1266-A - Referred to Investigation and Government Oper-
ations.

FISCAL IMPLICATIONS: To be determined. Cost would be offset the addi-
tional taxes generated by the construction of the home.

EFFECTIVE DATE: This act shall take effect on the thirtieth day and
shall apply to contracts executed after the effective date.

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

                                  1931

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. ADDABBO -- 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 providing a personal  income
  tax credit for the purchase of a new home

  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 (vv) to read as follows:
  (VV)  REAL PROPERTY PURCHASE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A
CREDIT AS PROVIDED IN THIS SUBSECTION AGAINST THE TAX  IMPOSED  BY  THIS
ARTICLE  FOR  THE  PURCHASE OF ELIGIBLE REAL PROPERTY. THE AMOUNT OF THE
CREDIT SHALL BE FIVE THOUSAND DOLLARS.  ANY AMOUNT OF THE TAX CREDIT NOT
USED IN THE TAXABLE YEAR IN WHICH THE RESIDENCE  WAS  PURCHASED  MAY  BE
CARRIED  FORWARD FOR THREE YEARS UNTIL THE FULL AMOUNT OF THE CREDIT HAS
BEEN ALLOWED AND ANY AMOUNT NOT USED SHALL LAPSE.
  (2) IF BEFORE THE END OF A THREE YEAR PERIOD BEGINNING ON THE DATE  OF
PURCHASE OF SUCH ELIGIBLE REAL PROPERTY BY THE TAXPAYER:
  (I) THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN SUCH ELIGIBLE
REAL PROPERTY, OR
  (II)  SUCH  ELIGIBLE  REAL PROPERTY CEASES TO BE USED AS THE PRINCIPAL
RESIDENCE OF THE TAXPAYER,
THE TAXPAYER'S TAX IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH
SUCH DISPOSITION OR CESSATION OCCURS SHALL BE INCREASED BY THE RECAPTURE
PERCENTAGE OF THE CREDIT AS DETERMINED  BY  REGULATION  ADOPTED  BY  THE
COMMISSIONER, FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH CREDIT.
  (3) IN THE CASE OF A HUSBAND AND WIFE WHO FILE A JOINT FEDERAL RETURN,
BUT  WHO  ARE  REQUIRED  TO  DETERMINE THEIR STATE TAXES SEPARATELY, THE
CREDIT ALLOWED PURSUANT TO THIS SUBSECTION MAY BE  APPLIED  AGAINST  THE
TAX IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04507-01-3

S. 1931                             2

  (4) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "ELIGIBLE REAL PROP-
ERTY" SHALL MEAN A NEWLY CONSTRUCTED ONE OR TWO FAMILY RESIDENCE IN THIS
STATE, WHICH HAS NOT BEEN PREVIOUSLY OCCUPIED, PURCHASED FOR ONE MILLION
DOLLARS  OR  LESS  AND THAT IS THE PRIMARY RESIDENCE OF THE TAXPAYER. TO
QUALIFY AS ELIGIBLE REAL PROPERTY, THE TAXPAYER MUST RESIDE IN THE PROP-
ERTY  AS  A  PRINCIPAL  RESIDENCE  FOR  AT  LEAST  THREE YEARS AFTER THE
PURCHASE OF SUCH ELIGIBLE REAL PROPERTY.
  S 2. This act shall take effect on the thirtieth day  after  it  shall
have  become  a  law and shall apply to eligible real property purchased
pursuant to contracts of sale executed after the effective date of  this
act.

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