senate Bill S1266A

2011-2012 Legislative Session

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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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 09, 2012 print number 1266a
amend and recommit to investigations and government operations
Jan 04, 2012 referred to investigations and government operations
Jan 06, 2011 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S1266 - Bill Details

See Assembly Version of this Bill:
A6341A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S3900C

S1266 - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S1266

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 economy 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

FISCAL IMPLICATIONS:
To be determined. Cost would be offset the additional 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.

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

                                  1266

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 6, 2011
                               ___________

Introduced  by  Sens.  ADDABBO, LANZA -- read twice and ordered printed,
  and when printed to be committed to the  Committee  on  Investigations
  and Government 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 (ss) to read as follows:
  (SS) 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.
                                                           LBD01381-01-1

S. 1266                             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.

Co-Sponsors

S1266A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6341A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S3900C

S1266A (ACTIVE) - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S1266A

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 economy 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

FISCAL IMPLICATIONS:
To be determined. Cost would be offset the additional 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 full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1266--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 6, 2011
                               ___________

Introduced  by Sens. ADDABBO, ESPAILLAT, LANZA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations -- recommitted to the  Committee  on
  Investigations  and  Government  Operations  in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

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 (uu) to read as follows:
  (UU) 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01381-03-2

S. 1266--A                          2

CREDIT  ALLOWED  PURSUANT  TO THIS SUBSECTION MAY BE APPLIED AGAINST THE
TAX IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
  (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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