NY A04312

Allows taxpayers a 15% tax credit for qualified rehabilitation expenses on eligible residences exceeding $5,000 for interior and exterior work combined.

Applies to residences in low-income census tracts (70%+ families below 90% of median income), rural areas, Indian reservations, or areas of chronic economic distress, and property must be at least 40 years old.

Permits first-time purchasers of rehabilitated homes to claim the credit for seller's rehabilitation expenses if purchased within five years of completion and no prior credit was claimed.

Requires recapture of the credit on a prorated basis if the property is sold or ceases to be the principal residence within five years of rehabilitation completion.

Allows taxpayers with adjusted gross income not exceeding $100,000 to claim excess credits as tax refunds; higher-income taxpayers may carry over excess credits to subsequent years.