S T A T E O F N E W Y O R K
________________________________________________________________________
2709
2025-2026 Regular Sessions
I N A S S E M B L Y
January 22, 2025
___________
Introduced by M. of A. ROSENTHAL -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to excluding certain owners of
single family residential rental properties from being eligible for
credits for interest payments and depreciation for such rental proper-
ties
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 210-B of the tax law is amended by
adding a new paragraph (g) to read as follows:
(G) (1) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVI-
SION FOR ANY INTEREST PAID OR ACCRUED IN CONNECTION WITH ANY SINGLE
FAMILY RESIDENTIAL RENTAL PROPERTY OWNED (DIRECTLY OR INDIRECTLY) BY A
DISQUALIFIED SINGLE FAMILY PROPERTY OWNER; PROVIDED, HOWEVER THAT THIS
PARAGRAPH SHALL NOT APPLY WITH RESPECT TO INTEREST PAID OR ACCRUED IN
THE TAXABLE YEAR IN WHICH SUCH SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY
IS SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPLE RESIDENCE OF THE INDI-
VIDUAL OR TO A QUALIFIED NONPROFIT ORGANIZATION.
(2) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVISION
FOR DEPRECIATION IN CONNECTION WITH ANY SINGLE FAMILY RESIDENTIAL RENTAL
PROPERTY OWNED BY A DISQUALIFIED SINGLE FAMILY PROPERTY OWNER; PROVIDED,
HOWEVER THAT THIS PARAGRAPH SHALL NOT APPLY WITH RESPECT TO DEPRECIATION
IN CONNECTION WITH A SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY IN THE
TAXABLE YEAR IN WHICH SUCH SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY IS
SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPLE RESIDENCE OF THE INDIVID-
UAL OR TO A QUALIFIED NONPROFIT ORGANIZATION.
(3) FOR THE PURPOSES OF THIS PARAGRAPH, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
(I) "COMMUNITY LAND TRUST" MEANS A NONPROFIT ORGANIZATION OR STATE OR
LOCAL GOVERNMENT INSTRUMENTALITY THAT: (A) USES A GROUND LEASE OR DEED
COVENANT WITH AN AFFORDABILITY PERIOD OF AT LEAST THIRTY YEARS OR MORE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04946-01-5
A. 2709 2
TO MAKE RENTAL HOMEOWNERSHIP UNITS AFFORDABLE TO HOUSEHOLDS AND STIPU-
LATES A PREEMPTIVE OPTION TO PURCHASE THE AFFORDABLE RENTALS OR HOMEOWN-
ERSHIP UNITS SO THAT THE AFFORDABILITY OR THE UNITS IS PRESERVED FOR
SUCCESSIVE INCOME-ELIGIBLE HOUSEHOLDS; AND (B) MONITORS PROPERTIES TO
ENSURE AFFORDABILITY IS PRESERVED.
(II) "DISQUALIFIED SINGLE FAMILY PROPERTY OWNER" MEANS ANY TAXPAYER
WHO OWNS (DIRECTLY OR INDIRECTLY) MORE THAN ONE SINGLE FAMILY RESIDEN-
TIAL RENTAL PROPERTY.
(III) "LAND BANK" MEANS A GOVERNMENT ENTITY, AGENCY, OR PROGRAM, OR A
SPECIAL PURPOSE NONPROFIT ENTITY FORMED BY ONE OR MORE UNITS OF GOVERN-
MENT IN ACCORDANCE WITH STATE OR LOCAL LAND BANK ENABLING LAW, THAT HAS
BEEN DESIGNATED BY ONE OR MORE STATE OR LOCAL GOVERNMENTS TO ACQUIRE,
STEWARD, AND DISPOSE OF VACANT, ABANDONED, OR OTHER PROBLEM PROPERTIES
IN ACCORDANCE WITH LOCALLY-DETERMINED PRIORITIES AND GOALS.
(IV) "QUALIFIED NONPROFIT ORGANIZATION" MEANS ANY ORGANIZATION WHICH
IS NOT ORGANIZED FOR PROFIT AND HAS AS A PRINCIPAL PURPOSE THE CREATION,
DEVELOPMENT, OR PRESERVATION OF AFFORDABLE HOUSING. "QUALIFIED NONPROFIT
ORGANIZATION" SHALL INCLUDE ANY COMMUNITY DEVELOPMENT CORPORATION, ANY
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION, ANY COMMUNITY-BASED DEVELOP-
MENT ORGANIZATION QUALIFIED UNDER SECTION 570.204 OF TITLE 24, CODE OF
FEDERAL REGULATIONS, AS IN EFFECT ON THE EFFECTIVE DATE OF THIS PARA-
GRAPH, ANY LAND BANK, ANY RESIDENT-OWNED COOPERATIVE OR COMMUNITY LAND
TRUST, AND ANY SUBSIDIARY OF A PUBLIC HOUSING AGENCY.
(V) "RESIDENTIAL RENTAL PROPERTY" MEANS ANY BUILDING OR STRUCTURE
WHERE EIGHTY PERCENT OR MORE OF THE GROSS RENTAL INCOME FROM SUCH BUILD-
ING OR STRUCTURE FOR THE TAXABLE YEAR IS RENTAL INCOME FROM DWELLING
UNITS.
(VI) "SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY" MEANS: (A) ANY RESI-
DENTIAL RENTAL PROPERTY WHICH CONTAINS FOUR OR FEWER DWELLING UNITS; AND
(B) IMPROVEMENTS TO REAL PROPERTY DIRECTLY RELATED TO SUCH DWELLING
UNITS LOCATED ON THE SITE OF SUCH DWELLING UNITS. "SINGLE FAMILY RESI-
DENTIAL RENTAL PROPERTY OWNER" SHALL NOT INCLUDE ANY RESIDENTIAL RENTAL
PROPERTY WHICH IS ELIGIBLE FOR A LOW INCOME HOUSING CREDIT FOR SUCH
TAXABLE YEAR OR WAS CONSTRUCTED BY THE TAXPAYER OR ACQUIRED BY THE
TAXPAYER AFTER ITS CONSTRUCTION BUT BEFORE THE FIRST DATE ON WHICH ANY
DWELLING UNIT IN SUCH PROPERTY WAS OCCUPIED BY A RESIDENT.
§ 2. Subsection (a) of section 606 of the tax law is amended by adding
a new paragraph 14 to read as follows:
(14) (A) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS
SUBSECTION FOR ANY INTEREST PAID OR ACCRUED IN CONNECTION WITH ANY
SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY OWNED (DIRECTLY OR INDIRECTLY)
BY A DISQUALIFIED SINGLE FAMILY PROPERTY OWNER; PROVIDED, HOWEVER THAT
THIS PARAGRAPH SHALL NOT APPLY WITH RESPECT TO INTEREST PAID OR ACCRUED
IN THE TAXABLE YEAR IN WHICH SUCH SINGLE FAMILY RESIDENTIAL RENTAL PROP-
ERTY IS SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPLE RESIDENCE OF THE
INDIVIDUAL OR TO A QUALIFIED NONPROFIT ORGANIZATION.
(B) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBSECTION FOR
DEPRECIATION IN CONNECTION WITH ANY SINGLE FAMILY RESIDENTIAL RENTAL
PROPERTY OWNED BY A DISQUALIFIED SINGLE FAMILY PROPERTY OWNER; PROVIDED,
HOWEVER THAT THIS PARAGRAPH SHALL NOT APPLY WITH RESPECT TO DEPRECIATION
IN CONNECTION WITH A SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY IN THE
TAXABLE YEAR IN WHICH SUCH SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY IS
SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPLE RESIDENCE OF THE INDIVID-
UAL OR TO A QUALIFIED NONPROFIT ORGANIZATION.
(C) FOR THE PURPOSES OF THIS PARAGRAPH, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
A. 2709 3
(I) "COMMUNITY LAND TRUST" MEANS A NONPROFIT ORGANIZATION OR STATE OR
LOCAL GOVERNMENT INSTRUMENTALITY THAT: (A) USES A GROUND LEASE OR DEED
COVENANT WITH AN AFFORDABILITY PERIOD OF AT LEAST THIRTY YEARS OR MORE
TO MAKE RENTAL HOMEOWNERSHIP UNITS AFFORDABLE TO HOUSEHOLDS AND STIPU-
LATES A PREEMPTIVE OPTION TO PURCHASE THE AFFORDABLE RENTALS OR HOMEOWN-
ERSHIP UNITS SO THAT THE AFFORDABILITY OR THE UNITS IS PRESERVED FOR
SUCCESSIVE INCOME-ELIGIBLE HOUSEHOLDS; AND (B) MONITORS PROPERTIES TO
ENSURE AFFORDABILITY IS PRESERVED.
(II) "DISQUALIFIED SINGLE FAMILY PROPERTY OWNER" MEANS ANY TAXPAYER
WHO OWNS (DIRECTLY OR INDIRECTLY) MORE THAN ONE SINGLE FAMILY RESIDEN-
TIAL RENTAL PROPERTY.
(III) "LAND BANK" MEANS A GOVERNMENT ENTITY, AGENCY, OR PROGRAM, OR A
SPECIAL PURPOSE NONPROFIT ENTITY FORMED BY ONE OR MORE UNITS OF GOVERN-
MENT IN ACCORDANCE WITH STATE OR LOCAL LAND BANK ENABLING LAW, THAT HAS
BEEN DESIGNATED BY ONE OR MORE STATE OR LOCAL GOVERNMENTS TO ACQUIRE,
STEWARD, AND DISPOSE OF VACANT, ABANDONED, OR OTHER PROBLEM PROPERTIES
IN ACCORDANCE WITH LOCALLY-DETERMINED PRIORITIES AND GOALS.
(IV) "QUALIFIED NONPROFIT ORGANIZATION" MEANS ANY ORGANIZATION WHICH
IS NOT ORGANIZED FOR PROFIT AND HAS AS A PRINCIPAL PURPOSE THE CREATION,
DEVELOPMENT, OR PRESERVATION OF AFFORDABLE HOUSING. "QUALIFIED NONPROFIT
ORGANIZATION" SHALL INCLUDE ANY COMMUNITY DEVELOPMENT CORPORATION, ANY
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION, ANY COMMUNITY-BASED DEVELOP-
MENT ORGANIZATION QUALIFIED UNDER SECTION 570.204 OF TITLE 24, CODE OF
FEDERAL REGULATIONS, AS IN EFFECT ON THE EFFECTIVE DATE OF THIS PARA-
GRAPH, ANY LAND BANK, ANY RESIDENT-OWNED COOPERATIVE OR COMMUNITY LAND
TRUST, AND ANY SUBSIDIARY OF A PUBLIC HOUSING AGENCY.
(V) "RESIDENTIAL RENTAL PROPERTY" MEANS ANY BUILDING OR STRUCTURE
WHERE EIGHTY PERCENT OR MORE OF THE GROSS RENTAL INCOME FROM SUCH BUILD-
ING OR STRUCTURE FOR THE TAXABLE YEAR IS RENTAL INCOME FROM DWELLING
UNITS.
(VI) "SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY" MEANS: (I) ANY RESI-
DENTIAL RENTAL PROPERTY WHICH CONTAINS FOUR OR FEWER DWELLING UNITS; AND
(II) IMPROVEMENTS TO REAL PROPERTY DIRECTLY RELATED TO SUCH DWELLING
UNITS LOCATED ON THE SITE OF SUCH DWELLING UNITS. "SINGLE FAMILY RESI-
DENTIAL RENTAL PROPERTY OWNER" SHALL NOT INCLUDE ANY RESIDENTIAL RENTAL
PROPERTY WHICH IS ELIGIBLE FOR A LOW INCOME HOUSING CREDIT FOR SUCH
TAXABLE YEAR OR WAS CONSTRUCTED BY THE TAXPAYER OR ACQUIRED BY THE
TAXPAYER AFTER ITS CONSTRUCTION BUT BEFORE THE FIRST DATE ON WHICH ANY
DWELLING UNIT IN SUCH PROPERTY WAS OCCUPIED BY A RESIDENT.
§ 3. The commissioner of taxation and finance shall promulgate rules
and regulations as may be necessary or appropriate to carry out the
provisions of this act, including to prevent the avoidance of compliance
with this act.
§ 4. This act shall take effect immediately.