Cuomo’s tax credit will affect 80% of New York state renters

Governor Andrew Cuomo’s proposed tax credit for New York renters would apply to tenants earning less than $100,000 per year – or about 80 percent of the state’s 3.3 million renter households.

Cuomo’s office, which announced the tax credit this week as part of a series of tax cuts, is yet to offer details about the exact amount that individual households would save, though the total savings for renters are expected to be north of $400 million.

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In New York City, 31 percent of renters spend 50 percent or more of their income on rent and utilities, according to research from the Furman Center for Real Estate seen by the New York Times. The proposal would rectify what many see as imbalance in tax burden, wherein tax costs are passed on to renters while owners can deduct for costs.

Credits would increase based on family size, representatives for Cuomo told the Times. Affordable housing advocates told the newspaper that it remains to be seen whether Cuomo’s initiative will genuinely provide relief to renters or whether it was simply a political move from a governor approaching an election in November.

“They’re basically trying to give a little bit of money to a lot of people,” Ron Deutsch, executive director of advocacy group New Yorkers for Fiscal Fairness, told the newspaper. [NYT]Hiten Samtani