Establishes a tax credit for the replacement or repair of sewer lateral pipes by homeowners who use the home as their principal residence and have an income of less than two hundred fifty thousand dollars.
This bill would create a new personal income tax credit for individual taxpayers who repair or replace a sanitary sewer lateral pipe on qualifying residential property. The credit would equal 25 percent of eligible costs, including plumber assessments, labor, disposal, cleanup, and related fees, but not state or local sales tax. To qualify, the property must be in New York, owned by the taxpayer, used as the taxpayer’s principal residence, and the taxpayer must have household income below $250,000. The repair or replacement must be recommended by a certified plumber or the local municipality.
The credit would apply to taxable years beginning on or after January 1, 2027, for work completed and paid for after January 1, 2027, even though the bill itself takes effect January 1, 2027. The statewide cap on credits would be $5 million per calendar year, and unused credit amounts could be carried forward for up to five additional taxable years. The bill is aimed at reducing the out-of-pocket burden on homeowners facing costly sewer lateral repairs, which are often necessary to address aging infrastructure, leaks, or municipal compliance issues.
The bill would amend section 606 of the Tax Law by adding a new subsection authorizing a refundable-style personal income tax credit mechanism through carryforward, limited to qualifying homeowners and capped statewide. It would create a new tax expenditure for the state, reduce income tax liability for eligible taxpayers, and potentially encourage maintenance or replacement of residential sewer lateral lines. The measure would affect homeowners, plumbers, and municipalities that recommend or require such repairs, while excluding higher-income households and non-owner-occupied properties.
Based on the bill text and caption, the measure appears generally supportive of homeowners and infrastructure repair, with a consumer-relief framing rather than a controversial regulatory change. No committee transcripts or recorded votes were provided, so there is no documented debate or formal voting sentiment to assess. The bill’s structure suggests an intent to target assistance narrowly to primary-residence owners with moderate incomes and to limit fiscal exposure through the statewide cap.
The main potential points of contention are fiscal cost, eligibility limits, and the scope of the benefit. Critics could question the $5 million annual statewide cap, the exclusion of renters and owners of non-principal residences, and whether the $250,000 household-income threshold is too high or too low for a targeted tax credit. There may also be debate over whether sewer lateral repairs should be subsidized through the tax code at all, versus through direct municipal programs or infrastructure funding. No specific opposing or supporting stakeholders were identified in the provided materials.