Assembly Bill A3276

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

                                  3276

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 24, 2013
                               ___________

Introduced  by  M.  of A. RABBITT, THIELE, KOLB, FINCH, McDONOUGH, RAIA,
  McKEVITT -- Multi-Sponsored by -- M. of A. BARCLAY --  read  once  and
  referred to the Committee on Ways and Means

AN  ACT  to amend the tax law, in relation to providing a credit against
  income tax in the form of a mortgage credit certificate for first-time
  home buyers

  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) MORTGAGE CREDIT CERTIFICATE. (1) A TAXPAYER SHALL  BE  ALLOWED  A
CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO  TWENTY-FIVE
PERCENT  OF  A  QUALIFIED  MORTGAGE CREDIT CERTIFICATE NOT TO EXCEED TWO
THOUSAND DOLLARS PER YEAR.
  (2) IF THE CREDIT ALLOWABLE UNDER PARAGRAPH ONE OF THIS SUBSECTION FOR
ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH  YEAR,  THE  EXCESS
CREDIT  MAY  BE  CARRIED  OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (3) (A) A TAXPAYER WHO IS A FIRST-TIME HOME BUYER SHALL BE ENTITLED TO
A QUALIFIED MORTGAGE CREDIT CERTIFICATE FROM A PRIVATE  LENDER  FOR  THE
ANNUAL AMOUNT OF INTEREST TO BE PAID TO FINANCE THE COST OF THE ACQUISI-
TION OF A PRINCIPAL RESIDENCE.
  (B)  A  MORTGAGE  CREDIT  CERTIFICATE  MAY  ONLY BE TRANSFERRED BY THE
TAXPAYER TO A LENDING INSTITUTION INCLUDING A NON-DEPOSITORY INSTITUTION
IN CONNECTION WITH A LOAN:
  (I) THAT IS SECURED BY THE PRINCIPAL RESIDENCE WITH RESPECT  TO  WHICH
THE CREDIT RELATES, AND
  (II)  THE PROCEEDS OF WHICH MAY NOT BE USED FOR ANY PURPOSE OTHER THAN
THE ACQUISITION OF SUCH PRINCIPAL RESIDENCE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05258-01-3

              

A. 3276                             2

  (C) IN EXCHANGE  FOR  WHICH  SUCH  LENDING  INSTITUTION  PROVIDES  THE
TAXPAYER,  (I) A REDUCTION DETERMINED AS PROVIDED IN SUCH REGULATIONS IN
THE RATE OF INTEREST ON THE LOAN; OR (II) IF THE TAXPAYER SO ELECTS WITH
RESPECT TO A SPECIFIED AMOUNT OF THE FACE AMOUNT OF SUCH  A  CERTIFICATE
RELATING TO A BUILDING:
  A.  WHICH  IS A TARGETED AREA RESIDENCE (WITHIN THE MEANING OF SECTION
143(J)(1) OF THE INTERNAL REVENUE CODE), OR
  B. WHICH IS LOCATED IN A FEDERAL ENTERPRISE OR EMPOWERMENT ZONE OR  AN
EMPIRE  ZONE, A PAYMENT WHICH IS SUBSTANTIALLY EQUIVALENT TO SUCH SPECI-
FIED AMOUNT TO BE USED TO REDUCE THE TAXPAYER'S COST OF  PURCHASING  THE
BUILDING (AND ONLY THE REMAINDER OF SUCH FACE AMOUNT SHALL BE TAKEN INTO
ACCOUNT UNDER CLAUSE (I) OF THIS SUBPARAGRAPH).
  THE AMOUNT OF THE CREDIT SPECIFIED IN THE CERTIFICATE SHALL BE ALLOWED
TO  THE  LENDER  ONLY  TO  OFFSET  THE  TAX OF SUCH LENDER DUE UNDER THE
PROVISIONS OF ARTICLE NINE-A OR THIRTY-TWO OF THIS CHAPTER.  THE  LENDER
MAY  CARRY  FORWARD  ALL  UNUSED  AMOUNTS  UNDER  THIS  PARAGRAPH  UNTIL
EXHAUSTED.
  (D) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "QUALIFIED MORTGAGE CRED-
IT CERTIFICATE" MEANS A CERTIFICATE:
  (I) ISSUED TO THE TAXPAYER, IN ACCORDANCE WITH  PROCEDURES  PRESCRIBED
BY THE COMMISSIONER,
  (II)  THE  FACE  AMOUNT  OF  WHICH SHALL BE EQUAL TO THE AMOUNT OF THE
ANNUAL INTEREST TO BE PAID ON A LOAN OR LOANS TO FINANCE THE COST OF THE
ACQUISITION OF A PRINCIPAL RESIDENCE BY A FIRST-TIME HOME BUYER,
  (III) WHICH MAY ONLY BE USED BY THE  TAXPAYER  IN  CONNECTION  WITH  A
LOAN:
  A.  THAT  IS SECURED BY THE RESIDENCE WITH RESPECT TO WHICH THE CREDIT
RELATES, AND
  B. THE PROCEEDS OF WHICH MAY NOT BE USED FOR ANY  PURPOSE  OTHER  THAN
THE ACQUISITION OF SUCH RESIDENCE.
  (E) THE TERM "FIRST-TIME HOME BUYER" INCLUDES ANY TAXPAYER WHO HAS NOT
OWNED HIS OR HER PRINCIPAL RESIDENCE WITHIN THE PRECEDING FIVE YEARS AND
WHO  MEETS 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.
  (F) THE TERM "PRINCIPAL RESIDENCE" MEANS A DWELLING IN THE STATE OWNED
AS  A  HOME AND SO MUCH OF THE LAND ABUTTING IT, NOT EXCEEDING ONE ACRE,
AS IS REASONABLY NECESSARY FOR USE OF THE DWELLING AS A  HOME,  AND  MAY
CONSIST OF PART OF A MULTIPLE DWELLING OR MULTI-PURPOSE BUILDING INCLUD-
ING A COOPERATIVE OR A CONDOMINIUM.
  (G)  IF  THE TAXPAYER HOLDS STOCK AS A TENANT-SHAREHOLDER IN A COOPER-
ATIVE HOUSING CORPORATION SUCH SHAREHOLDER SHALL BE  TREATED  AS  OWNING
THE  HOUSE OR APARTMENT WHICH THE TAXPAYER IS ENTITLED TO OCCUPY AS SUCH
SHAREHOLDER.
  (4) (A) IF, BEFORE THE END OF THE FIVE-YEAR PERIOD  BEGINNING  ON  THE
DATE OF PURCHASE OF SUCH RESIDENCE BY THE TAXPAYER:
  (I)  THE  TAXPAYER  DISPOSES OF SUCH TAXPAYER'S INTEREST IN SUCH RESI-
DENCE, OR
  (II) SUCH RESIDENCE 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  ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR
TAXABLE YEARS WITH RESPECT TO SUCH CREDIT.

A. 3276                             3

  (B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE  RECAPTURE
PERCENTAGE SHALL BE DETERMINED IN ACCORDANCE WITH REGULATIONS ADOPTED BY
THE COMMISSIONER.
  (5)  THE COMMISSIONER IN CONJUNCTION WITH THE SUPERINTENDENT OF FINAN-
CIAL SERVICES SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE APPROPRIATE  TO
CARRY  OUT  THE PURPOSES OF THIS SUBSECTION, INCLUDING REGULATIONS WHERE
LESS THAN ALL OF A BUILDING IS USED AS A PRINCIPAL RESIDENCE  AND  WHERE
MORE  THAN  ONE  TAXPAYER  USE THE SAME DWELLING UNIT AS THEIR PRINCIPAL
RESIDENCE.
  S 2. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
taxable years commencing on and  after  such  date;  provided  that  the
commissioners  of taxation and finance and housing and community renewal
and the superintendent of financial services are authorized  to  promul-
gate  any  and  all  rules  and  regulations and take any other measures
necessary to implement this act on its effective date on or before  such
date.