Bill Text: NY A04257 | 2023-2024 | General Assembly | Introduced

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Bill Title: Creates a homeownership rehabilitation credit; allows a taxpayer to be credited for fifteen percent of the qualified rehabilitation expenses made by such taxpayer with respect to a qualified residence against the tax imposed; defines qualified residence and qualified rehabilitation expenses.

Spectrum: Partisan Bill (Republican 11-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A04257 Detail]

Download: New_York-2023-A04257-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4257

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 14, 2023
                                       ___________

        Introduced  by  M. of A. FITZPATRICK, BLANKENBUSH, BYRNES, J. M. GIGLIO,
          HAWLEY, MIKULIN, TAGUE -- Multi-Sponsored by  --  M.  of  A.  BARCLAY,
          MANKTELOW,  McDONOUGH  --  read  once and referred to the Committee on
          Ways and Means

        AN ACT to amend the tax law, in relation to establishing a homeownership
          rehabilitation credit

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  606  of  the  tax law is amended by adding a new
     2  subsection (o-1) to read as follows:
     3    (o-1) Homeownership rehabilitation credit. (1)  A  taxpayer  shall  be
     4  allowed  a  credit  of  fifteen  percent of the qualified rehabilitation
     5  expenses made by the taxpayer with  respect  to  a  qualified  residence
     6  against  the  tax  imposed  by  this  article.  For the purposes of this
     7  subsection:
     8    (A) "Qualified residence" means any residence which is located:
     9    (i) in a census tract in which seventy percent or more of the families
    10  have income that is less than ninety percent of the greater of  area  or
    11  statewide median gross income;
    12    (ii) in a rural area as defined under section 520 of the federal hous-
    13  ing act of 1949;
    14    (iii) on a reservation for a federally recognized Indian tribe; or
    15    (iv)  in  an  area of chronic economic distress, as defined by section
    16  143 of the internal revenue code.
    17    (B) "Residence" means:
    18    (i) a single family home containing one to four housing units;
    19    (ii) a condominium unit, or stock  in  a  cooperative  housing  corpo-
    20  ration; or
    21    (iii) that is owned or purchased by a taxpayer or his or her principal
    22  residence and is at least forty years old in the case of a single family
    23  home  or  in  the  case of a multiple dwelling containing condominium or
    24  cooperative housing units the exterior is at least forty years old.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08418-01-3
        A. 4257                             2

     1    (C) "Qualified rehabilitation  expenses"  means  any  amount  properly
     2  chargeable  to  capital  account  that exceeds five thousand dollars for
     3  both interior and exterior work.
     4    (2) The qualified residence must be used by the taxpayer as his or her
     5  principal residence during the taxable year in which the taxpayer claims
     6  the credit.
     7    (3) In the case of a qualified purchased residence, the taxpayer shall
     8  be  treated as having made, on the date of purchase, the qualified reha-
     9  bilitation expenditures made by the seller of such home.    Expenditures
    10  made by the seller shall be deemed qualified rehabilitation expenditures
    11  of such expenditures if made by the purchaser would have so qualified.
    12    For  purposes  of  this paragraph, the term "qualified purchased resi-
    13  dence" means any rehabilitated residence purchased by the taxpayer if:
    14    (A) the taxpayer is the first purchaser of such  structure  after  the
    15  date  rehabilitation  is  completed  and the purchase occurs within five
    16  years after such date;
    17    (B) the structure or a portion  thereof  shall,  within  a  reasonable
    18  period, be the principal residence of the taxpayer;
    19    (C)  no  credit  was  allowed  to the seller under this paragraph with
    20  respect to such rehabilitation; and
    21    (D) the taxpayer is furnished with such information as the commission-
    22  er decides is necessary to determine the credit under this paragraph.
    23    (4)(A) If before the end of the five-year period beginning on the date
    24  in which the rehabilitation of the residence is completed or,  if  para-
    25  graph  three  of  this  subsection applies, the date of purchase of such
    26  building by the taxpayer, (i) the taxpayer disposes of  such  taxpayer's
    27  interest  in  such  building, or (ii) such building ceases to be used as
    28  the principal residence of the taxpayer, the taxpayer's tax  imposed  by
    29  this article for the taxable year in which such disposition or cessation
    30  occurs  shall  be  increased  by  the recapture percentage of the credit
    31  allowed under this subsection for all prior taxable years  with  respect
    32  to such rehabilitation.
    33    (B)  For purposes of subparagraph (A) of this paragraph, the recapture
    34  percentage shall be the product of the amount of credit claimed  by  the
    35  taxpayer  multiplied by a ratio, the numerator of which is the number of
    36  months the building is used as the taxpayer's  principal  residence  and
    37  the denominator of which is sixty.
    38    (5)  If  the credit allowed under paragraph one of this subsection for
    39  any taxable year exceeds the  taxpayer's  tax  for  such  year  and  the
    40  taxpayer's  New York adjusted gross income for such year does not exceed
    41  one hundred thousand dollars, the excess credit shall be treated  as  an
    42  overpayment  of  tax  to  be credited or refunded in accordance with the
    43  provisions of section six hundred eighty-six of this article,  provided,
    44  however,  that  no interest shall be paid thereon. If the taxpayer's New
    45  York adjusted gross income for such year exceeds  one  hundred  thousand
    46  dollars,  the excess credit may be carried over to the following year or
    47  years and may be deducted from the  taxpayer's  tax  for  such  year  or
    48  years.
    49    (6) The commissioner shall prescribe such regulations as may be appro-
    50  priate  to carry out the purposes of this subsection, including, but not
    51  limited  to,  regulations  concerning  valid  proof  of   rehabilitation
    52  expenses by a taxpayer and regulations where more than one taxpayer uses
    53  the same dwelling unit on their principal residence.
    54    § 2. This act shall take effect immediately and shall apply to taxable
    55  years  commencing on and after the first of January in the year in which
    56  this act shall have become a law.