Bill Text: NY A02709 | 2025-2026 | General Assembly | Introduced
Bill Title: Excludes certain owners of single family residential rental properties who own more than one single family residential rental property from being eligible for credits for interest payments and depreciation for such rental properties; provides exceptions for qualified nonprofit organization; defines terms; grants the commissioner of taxation and finance the authority to make rules and regulations pertaining to carrying out such provisions and preventing avoidance of compliance with such provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-22 - referred to ways and means [A02709 Detail]
Download: New_York-2025-A02709-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2709 2025-2026 Regular Sessions IN ASSEMBLY 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: 1 Section 1. Subdivision 1 of section 210-B of the tax law is amended by 2 adding a new paragraph (g) to read as follows: 3 (g) (1) A taxpayer shall not be allowed a credit under this subdivi- 4 sion for any interest paid or accrued in connection with any single 5 family residential rental property owned (directly or indirectly) by a 6 disqualified single family property owner; provided, however that this 7 paragraph shall not apply with respect to interest paid or accrued in 8 the taxable year in which such single family residential rental property 9 is sold to an individual for use as the principle residence of the indi- 10 vidual or to a qualified nonprofit organization. 11 (2) A taxpayer shall not be allowed a credit under this subdivision 12 for depreciation in connection with any single family residential rental 13 property owned by a disqualified single family property owner; provided, 14 however that this paragraph shall not apply with respect to depreciation 15 in connection with a single family residential rental property in the 16 taxable year in which such single family residential rental property is 17 sold to an individual for use as the principle residence of the individ- 18 ual or to a qualified nonprofit organization. 19 (3) For the purposes of this paragraph, the following terms shall have 20 the following meanings: 21 (i) "Community land trust" means a nonprofit organization or state or 22 local government instrumentality that: (A) uses a ground lease or deed 23 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. LBD04946-01-5A. 2709 2 1 to make rental homeownership units affordable to households and stipu- 2 lates a preemptive option to purchase the affordable rentals or homeown- 3 ership units so that the affordability or the units is preserved for 4 successive income-eligible households; and (B) monitors properties to 5 ensure affordability is preserved. 6 (ii) "Disqualified single family property owner" means any taxpayer 7 who owns (directly or indirectly) more than one single family residen- 8 tial rental property. 9 (iii) "Land bank" means a government entity, agency, or program, or a 10 special purpose nonprofit entity formed by one or more units of govern- 11 ment in accordance with state or local land bank enabling law, that has 12 been designated by one or more state or local governments to acquire, 13 steward, and dispose of vacant, abandoned, or other problem properties 14 in accordance with locally-determined priorities and goals. 15 (iv) "Qualified nonprofit organization" means any organization which 16 is not organized for profit and has as a principal purpose the creation, 17 development, or preservation of affordable housing. "Qualified nonprofit 18 organization" shall include any community development corporation, any 19 community housing development organization, any community-based develop- 20 ment organization qualified under section 570.204 of title 24, Code of 21 Federal Regulations, as in effect on the effective date of this para- 22 graph, any land bank, any resident-owned cooperative or community land 23 trust, and any subsidiary of a public housing agency. 24 (v) "Residential rental property" means any building or structure 25 where eighty percent or more of the gross rental income from such build- 26 ing or structure for the taxable year is rental income from dwelling 27 units. 28 (vi) "Single family residential rental property" means: (A) any resi- 29 dential rental property which contains four or fewer dwelling units; and 30 (B) improvements to real property directly related to such dwelling 31 units located on the site of such dwelling units. "Single family resi- 32 dential rental property owner" shall not include any residential rental 33 property which is eligible for a low income housing credit for such 34 taxable year or was constructed by the taxpayer or acquired by the 35 taxpayer after its construction but before the first date on which any 36 dwelling unit in such property was occupied by a resident. 37 § 2. Subsection (a) of section 606 of the tax law is amended by adding 38 a new paragraph 14 to read as follows: 39 (14) (A) A taxpayer shall not be allowed a credit under this 40 subsection for any interest paid or accrued in connection with any 41 single family residential rental property owned (directly or indirectly) 42 by a disqualified single family property owner; provided, however that 43 this paragraph shall not apply with respect to interest paid or accrued 44 in the taxable year in which such single family residential rental prop- 45 erty is sold to an individual for use as the principle residence of the 46 individual or to a qualified nonprofit organization. 47 (B) A taxpayer shall not be allowed a credit under this subsection for 48 depreciation in connection with any single family residential rental 49 property owned by a disqualified single family property owner; provided, 50 however that this paragraph shall not apply with respect to depreciation 51 in connection with a single family residential rental property in the 52 taxable year in which such single family residential rental property is 53 sold to an individual for use as the principle residence of the individ- 54 ual or to a qualified nonprofit organization. 55 (C) For the purposes of this paragraph, the following terms shall have 56 the following meanings:A. 2709 3 1 (i) "Community land trust" means a nonprofit organization or state or 2 local government instrumentality that: (A) uses a ground lease or deed 3 covenant with an affordability period of at least thirty years or more 4 to make rental homeownership units affordable to households and stipu- 5 lates a preemptive option to purchase the affordable rentals or homeown- 6 ership units so that the affordability or the units is preserved for 7 successive income-eligible households; and (B) monitors properties to 8 ensure affordability is preserved. 9 (ii) "Disqualified single family property owner" means any taxpayer 10 who owns (directly or indirectly) more than one single family residen- 11 tial rental property. 12 (iii) "Land bank" means a government entity, agency, or program, or a 13 special purpose nonprofit entity formed by one or more units of govern- 14 ment in accordance with state or local land bank enabling law, that has 15 been designated by one or more state or local governments to acquire, 16 steward, and dispose of vacant, abandoned, or other problem properties 17 in accordance with locally-determined priorities and goals. 18 (iv) "Qualified nonprofit organization" means any organization which 19 is not organized for profit and has as a principal purpose the creation, 20 development, or preservation of affordable housing. "Qualified nonprofit 21 organization" shall include any community development corporation, any 22 community housing development organization, any community-based develop- 23 ment organization qualified under section 570.204 of title 24, Code of 24 Federal Regulations, as in effect on the effective date of this para- 25 graph, any land bank, any resident-owned cooperative or community land 26 trust, and any subsidiary of a public housing agency. 27 (v) "Residential rental property" means any building or structure 28 where eighty percent or more of the gross rental income from such build- 29 ing or structure for the taxable year is rental income from dwelling 30 units. 31 (vi) "Single family residential rental property" means: (I) any resi- 32 dential rental property which contains four or fewer dwelling units; and 33 (II) improvements to real property directly related to such dwelling 34 units located on the site of such dwelling units. "Single family resi- 35 dential rental property owner" shall not include any residential rental 36 property which is eligible for a low income housing credit for such 37 taxable year or was constructed by the taxpayer or acquired by the 38 taxpayer after its construction but before the first date on which any 39 dwelling unit in such property was occupied by a resident. 40 § 3. The commissioner of taxation and finance shall promulgate rules 41 and regulations as may be necessary or appropriate to carry out the 42 provisions of this act, including to prevent the avoidance of compliance 43 with this act. 44 § 4. This act shall take effect immediately.
