About NY FIRST HOME
An initiative designed to assist New Yorkers in saving for the purchase or construction of a first home in New York State.
Modeled after New York’s 529 College Savings Program, individual New Yorkers utilizing a NY First Home account would be able to deposit up to $5,000 ($10,000 for couples) of after-tax dollars annually, receive a deduction on their state income taxes for the principal saved, and apply the savings and any interest earned towards the purchase or construction of a first home in New York State tax-free.
Upfront costs including down-payment, high taxes and numerous fees create significant barriers for New Yorkers who work hard to save for a first home.
If passed into law, NY First Home would allow New Yorkers to save and grow their money tax-free to help overcome the burdens of these high upfront costs, which are the primary obstacles facing prospective first-time home buyers in our state.
How NY FIRST HOME works
The NY First Home initiative would make an individual New Yorker eligible to make a $5,000.00 per year tax deductible deposit into a NY First Home savings account ($10,000.00 for couples) and any interest accrued would remain untaxed for the qualified purchase or construction of a first home.
Unqualified purchases using funds from the NY First Home account may result in penalties including repayment of unpaid taxes and interest.
The money saved in the NY First Home account could be used to pay for qualified expenses associated with the purchase or construction of a first home including closing costs; and down-payments.
Yes. A NY First Home account would be a dedicated savings account program that provides tax benefits only for the qualified purchase of a first home in New York State.