New York FY 2025 State Budget

At this time, the proposed New York State Budget for the 2025 Fiscal Year includes a new 485x tax incentive for affordable housing development, while further extending the 421a incentive for projects already under development. The 421a Program supports construction of multiple dwellings on lots which were previously vacant, with non-conforming use three years prior to the start of construction and must include 20% affordable housing units. The current 421a incentive expired for projects which last commenced construction effective June 15, 2022.

Functionally, the 485x tax incentive would extend the 421a incentive. Though at this time mroe details and specifics on the program are unavailable.