NY A01097

First-time home buyers are allowed a tax credit equal to 25 percent of a qualified mortgage credit certificate, not to exceed $2,000 per year.

Excess credits that exceed a taxpayer's annual tax liability may be carried forward to following years until exhausted.

Mortgage credit certificates are issued by private lenders and may only be transferred in connection with loans secured by the principal residence and used solely for its acquisition.

Lenders receive a tax credit offset against Article 9-A or Article 32 taxes and may carry forward all unused amounts until exhausted.

If the taxpayer disposes of the residence or ceases using it as their principal residence within five years of purchase, a recapture percentage of prior-year credits allowed must be added back to their tax liability.