Establishes a tax credit for same-sex couples re-recording their property deeds to reflect a change in status from tenants in common or joint tenants with right of survivorship to tenancy by the entirety
This bill creates a temporary personal income tax credit for certain same-sex married couples in New York who re-record the deed to their primary residence so the property ownership form changes from tenants in common or joint tenants with right of survivorship to tenants by the entirety. To qualify, the couple must have purchased and continuously occupied the home before June 24, 2011, still own and live in it during the tax year, and record a new deed for that sole purpose. The measure is titled the “Marriage Equality Deed Correction Tax Credit Act.”
The credit equals the lesser of $500 or the recording fees charged by a city, town, or county clerk for the qualifying deed. It may be claimed only once per taxpayer and only for one residence, and any credit received reduces the property’s cost basis for future capital gains calculations. The bill also includes income, residency, and property-type limits, excluding households with combined income above $300,000, commercial property, wholly tax-exempt property, and nonresidents. It applies to tax years beginning on or after January 1, 2027, and sunsets on January 1, 2029.
The bill would amend section 606 of the Tax Law by adding a new refundable-style personal income tax credit structure, though the credit is limited to the taxpayer’s liability and may be carried forward for up to three years if unused. It would create a narrow, time-limited benefit for a specific class of same-sex married homeowners who need to update deed language to reflect marital property status under New York law. The measure would also affect county, city, and town clerks by tying the credit to deed recording fees, and it would interact with property ownership and tax basis rules for affected residences.
Based on the bill text and available context, the measure appears generally supportive of marriage equality and administrative fairness for same-sex couples who must correct older deed records. There are no recorded committee transcripts or votes indicating opposition or support beyond introduction, so the available record suggests the bill was presented as a targeted corrective tax measure rather than a broad tax policy change. Its limited scope and sunset date also suggest an attempt to frame it as a modest, temporary remedy.
The main policy issue is the bill’s narrow eligibility design. It applies only to same-sex married couples who bought and continuously occupied a home before June 24, 2011, which may exclude similarly situated couples outside that date range or couples who do not meet the specific deed-history requirements. The income cap, primary-residence requirement, and exclusion of commercial or tax-exempt property further limit access. Because there are no committee transcripts, no specific objections are documented, but likely points of contention would include whether the state should subsidize deed re-recording costs at all, whether the credit should be broader, and whether the $500 cap adequately covers fees and related costs.