Historic Homeowner Tax Credit (S4057A Fahy/A5453 Woerner)

As of January 1, 2025, the homeowner portion of the NYS Historic Rehabilitation Tax Credit Program stepped down significantly in value from a maximum of $50,000 per project to $25,000. Additionally, the rebate provision of the credit, which has been so helpful to those homeowners without the state tax liability to accept the full value of the credit and instead receive it as a rebate, has been allowed to expire.

In response, there has been introduced in the NYS Legislature a bill that would restore the Homeowner Credit to its pre-January 1, 2025, value. In the Senate it is bill S4057A sponsored by Senator Patricia Fahy and in the Assembly it is A5453 sponsored by Assemblymember Carrie Woerner (click the links to read the full legislation and see the current list of co-sponsors).

Because tax credits have a fiscal impact on New York State, it is likely that any fix to the tax credit program will have to be a part of the FY27 Budget now being negotiated in Albany. For it to be included, legislators will need to sign on as co-sponsors of the legislation and request that leadership include the bill’s language in the final FY27 Budget.

Please reach out to your legislators now and ask them to co-sponsor S4057A Fahy/A5453 Woerner and tell leadership it is time to restore the Homeowner Tax Credit.

Click here for a fact sheet on the legislation for you to share, or scroll down to review the information. Not sure who your elected representatives are? Click here to find your NYS Senator and here to find your NYS Assemblymember.

For more information or if questions arise, please reach out to League President Jay DiLorenzo via email at jdilorenzo@preservenys.org.

Restore the Homeowner Tax Credit in FY27 Budget

Co-sponsor legislation (S4057A Fahy/A5453 Woerner) to restore the Homeowner Historic Tax Credit and include the bill’s language in the Legislature’s FY27 one-house budget bills.

An Incentive for Homeowners Across NYS
The New York State Homeowner Historic Tax Credit has been an important incentive for homeownership for the last fifteen years. Targeted to owners of historic homes in qualified census tracts, the program provides a tax credit equal to 20% of rehabilitation costs to a maximum of $50,000 per residence per year. Pre-approved work associated with repair, maintenance and upgrades are eligible, including work on structural systems, roofs, gutters, interiors, utilities, the installation of high efficiency HVAC systems, insulation, exterior wall repair, etc.

Program Limited in Value as of January 1, 2025
As of January 1, 2025, the Homeowner Historic Tax Credit was stepped down in value as part of its implementing legislation. This means that the credit is no longer refundable for lower-income New Yorkers and its per residence cap has been decreased from $50,000 to $25,000 per year. These two changes will significantly impact use by lower-income New Yorkers and decrease the amount of investment made into our neighborhoods.

Call to Action
Restore the Homeowner Historic Tax Credit by co-sponsoring S4057A Fahy/A5453 Woerner and request that the bill’s language be included in the Legislature’s FY27 one-house budget bills.

Key Points

  • Currently, the NYS Homeowner Historic Tax Credit provides a tax credit equal to 20% of Qualified Rehabilitation Expenses for owner-occupied homes listed in the State and National Registers of Historic Places individually or as a contributing building in a historic district and located in a distressed census tract.

  • Historic rehabilitation projects must meet all eligibility requirements of the program. The credit is claimed against personal income taxes.

  • Over the past five years, nearly 4,000 New York State homeowners have used, or plan to use, the Homeowner Tax Credit. Their projects reflect an investment of more than $340 million in New York’s historic neighborhoods.

  • Prior to January 1, 2025, the credit was refundable for those taxpayers with NYS adjusted gross income less than or equal to $60,000. This provision has since expired.

  • Prior to January 1, 2025, the per residence cap on the credit was $50,000. This has subsequently been reduced to $25,000.

  • Restoring the Homeowner Tax Credit to its pre-January 1, 2025, format will allow it to continue to incentivize restoration in our historic neighborhoods.

NYS, Tax CreditsPLNYS Staff