New York Senate Bill S00405

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Report Pass: 2/11/25
• Engrossed: 5/19/25
• Refer: 5/19/25
• Engrossed: 6/17/25
• Enrolled: 12/8/25
• Vetoed: 12/12/25

Caption

Adds certain properties located in a city of one million or more to the definition of a qualified historic home for the historic homeownership rehabilitation credit.

Summary

S00405 amends New York’s tax law to expand eligibility for the historic homeownership rehabilitation credit. Specifically, it adds certain properties located in cities with a population of one million or more to the definition of a “qualified historic home,” so long as the property is in a qualifying census tract as of January 1, 2017 and was owned by the applicant on January 1, 2010. The bill also retains existing eligibility categories for targeted area residences, homes in census tracts at or below 100 percent of state median family income, and homes in smaller cities with poverty rates above 15 percent. The practical effect is to broaden access to a state historic rehabilitation tax credit for owners of eligible historic homes, especially in New York City, beginning with taxable years on or after January 1, 2026. By expanding the pool of qualifying properties, the bill is intended to encourage rehabilitation and preservation of older housing stock in economically distressed areas while providing a tax incentive to homeowners who undertake qualifying restoration work.

Impact

The bill amends section 606 of the Tax Law, specifically the provisions governing the historic homeownership rehabilitation credit, by adding a new category of eligible property in large cities with populations over one million. It does not create a new credit, but enlarges the definition of a qualified historic home and therefore increases the number of taxpayers who may claim the existing credit. The change applies prospectively to taxable years beginning on or after January 1, 2026, and may affect homeowners, historic property owners, and state tax revenue through increased credit claims.

Sentiment

The available voting record shows strong support for the bill. It passed the Senate Budget and Revenue Committee unanimously, the Senate Finance Committee unanimously, and the Assembly unanimously, with only one dissenting vote on final passage in the Senate. The lack of recorded committee opposition and the broad final votes suggest the measure was generally viewed favorably as a targeted tax incentive for historic preservation and neighborhood rehabilitation.

Contention

No committee transcript is available, and the voting history shows little overt controversy. The only notable point of potential contention is the fiscal effect of expanding a tax credit, since broader eligibility can reduce state revenue. Any policy debate likely centers on whether the added incentive for properties in large cities, particularly New York City, is an appropriate use of tax expenditures and whether the geographic and ownership-date limits are sufficiently targeted to distressed historic housing.