New York Senate approves amendment for historic homeownership rehabilitation credit

New York's Senate Bill 405, introduced on January 8, 2025, aims to expand the definition of a "qualified historic home" under the state's historic homeownership rehabilitation credit. This legislative move seeks to incentivize the restoration and preservation of historic properties, particularly in economically challenged areas.

The bill proposes to include additional criteria for properties eligible for the rehabilitation credit. Specifically, it targets homes located in census tracts with median family incomes at or below the state average, as well as those in cities with populations under one million that have poverty rates exceeding fifteen percent. This expansion is designed to encourage investment in neighborhoods that may have been overlooked, fostering economic revitalization through historic preservation.

Supporters of the bill argue that it will not only protect New York's rich architectural heritage but also stimulate local economies by attracting homeowners and investors to areas in need of development. By making it financially feasible for individuals to rehabilitate historic homes, the bill could lead to increased property values and enhanced community pride.

However, the bill has faced some opposition. Critics express concerns about the potential for gentrification, fearing that incentivizing property restoration could lead to rising property taxes and displacement of long-term residents. The debate centers around finding a balance between preservation and community stability.

As the bill moves to the Committee on Budget and Revenue, its implications could be significant. If passed, it would take effect for taxable years beginning January 1, 2026, potentially reshaping the landscape of historic homeownership in New York. Stakeholders are closely monitoring the bill's progress, as its outcomes could influence housing policies and economic development strategies across the state.