How current events impact your business and real estate holdings

Monday, June 13, 2011

First Time Homebuyers of Newly Constructed Homes - Tax Break

Gov. Cuomo just extended tax exemptions for first-time homebuyers, which sounds great. The problem is that this only helps purchasers of newly constructed homes, not existing homes. Also, most first-time homebuyers purchase used homes, not new ones. Therefore, it appears that this bill is less about the first-time homebuyers and more about the builders lobby. Make your own decision.

Also, to be clear, this bill does not provide an exemption, but allows local municipalities to offer such an exemption. Suffolk does offer such an exemption, so this may help.

The Justifications of the Bill is as follows:
Home ownership is the most potent form of economic stimulus. When some- one purchases a home, they generate economic a activity in every sector from construction, finishing, furnishing and more. New homeowners purchase appliances, upkeep equipment and tools, plumbing and electrical services, insurance and more.  The purchase of new homes contributes to the community, encouraging the homeowners to take root and participate in public schools and local governments. Encouraging the construction of new homes is critical to attracting businesses, which consider the availability of workforce housing when choosing where to locate.  This legislation would continue a local option to permit municipal enti- ties to adopt a first-time homebuyer program for newly constructed homes. By allowing municipalities to provide a tax incentive for first time homebuyers, New York State sends a message that it is committed to economic recovery.  Counties where municipal entities have adopted first-time homebuyer programs include Albany, Alleghany, Chautauqua, Nassau, Oneida, Orange, Oswego, Rensselaer and Suffolk.

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