Provides a real property tax relief credit and an enhanced real property tax circuit breaker credit for certain taxpayers who meet income requirements and other eligibility.
Summary
This bill creates two new personal income tax credits beginning with taxable years starting on or after January 1, 2026. First, it establishes a property tax relief credit for eligible homeowners who previously received the STAR exemption or STAR credit, are New York residents, and have qualified gross income of $275,000 or less. The credit is tied to the school property tax savings associated with basic or enhanced STAR and is phased by income, with larger percentages for lower-income taxpayers. The bill excludes properties in New York City and in certain school districts or cities that exceed their tax levy limits unless those localities certify compliance with the cap. It also provides for advance payments, refundability as an overpayment if the credit exceeds tax liability, and rules limiting the credit to one per residence.
Impact
The bill would amend section 606 of the Tax Law by adding a new property tax relief credit and a new enhanced real property tax circuit breaker credit. It would expand state tax relief for homeowners and some renters by creating a refundable credit structure administered by the Department of Taxation and Finance, while also adding reporting and verification requirements. The circuit breaker credit is targeted to residents of cities with populations over one million, which in practice means New York City, and is based on household income and the amount by which property taxes or a rent-based tax equivalent exceed a set share of household income. The measure would affect homeowners, certain cooperative owners, and renters, and would require the department to calculate, issue, and report on credits annually.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive of property tax relief and targeted affordability assistance. The bill is framed as a tax reduction measure for middle- and lower-income households, especially homeowners receiving STAR benefits and urban residents facing high housing costs. Because no transcripts or vote history are provided, there is no documented opposition or formal legislative reaction in the supplied record.
Contention
The main points of contention likely concern eligibility limits, geographic targeting, and fiscal cost. The bill excludes New York City from the STAR-based property tax relief credit while separately creating a city-specific circuit breaker credit, which may raise questions about fairness and regional treatment. It also conditions eligibility on local tax levy compliance for certain school districts and dependent school districts, potentially shifting pressure to local governments. Additional issues include the income thresholds, the relatively complex formulas for calculating benefits, and the administrative burden of advance payments, verification, and annual reporting.
Provides a real property tax relief credit and an enhanced real property tax circuit breaker credit for certain taxpayers who meet income requirements and other eligibility.
Creates the middle class circuit breaker tax credit allowing a credit against personal income tax, equal to seventy percent of the amount by which the taxpayer's net real property tax or the taxpayer's real property tax equivalent exceeds the taxpayer's maximum real property tax; establishes a tax reform study commission.
Modifies the "circuit breaker" tax credit by increasing the maximum upper limits and adjusting the property tax credit income phase-out increment amounts
To Reduce Arkansas Income Taxes; To Adopt Federal Law On Depreciation And Expensing Of Property; To Create An Income-tax Credit For Certain Taxpayers; And To Declare An Emergency.
To Reduce Arkansas Income Taxes; To Adopt Federal Law On Depreciation And Expensing Of Property; To Create An Income-tax Credit For Certain Taxpayers; And To Declare An Emergency.