Investor Tax Abatement Phase-out ?

I think this phasing of the tax abatement is a game changer for condos with 10/15/25 years tax abatement. Investors cant benefit from this anymore.

They have nothing to do with each other.

It's what's called the "Cooperative/Condominium Abatement" that's changing. Only owner-occupied, no trust or LLC ownership, and I don't know what all else.

The 10/15/25-year 421A abatements for new construction are a different thing. If your condo is getting a 421A, it's never been able to get the "Cooperative/Condominium Abatement". That would kick in, if eligible, after the 421A ends.

nwt, what's needed nowadays to prove that's your primary resident? i'd assume tax returns, but they usually only ask for 1st 2 pages of 1040, not even looking if ny it-201 or 203 was filed...utility bills to your name? letter from mgmgt? thanks

ps yes you can still rent out units in 421 abatements, which is different.

NWT is correct. Section 421 abatements will not be affected by the
changes in the Coop/Condo tax abatement.

However, the distinction in the new abatement law between investors
and owner occupants may be unconstitutional and is likely to be
challenged in court on that basis

The residency cases I've seen have to do with NYS/NYC income tax, where people have multiple residences and cut it fine when claiming non-residence in a high-tax jurisdiction. Besides documentation, the courts look at "attachment" and other subjective factors. Don't know what the city will use. For sure you won't be able to have it both ways.

The assumption that LLC or trust ownership means non-resident will be interesting. Lots of the more expensive condos, with either no or only 5-year 421A, are held by LLCs. If they'd planned on the Coop/Condo Abatement after their 421A ends they're out of luck unless, as rb345 said, the whole thing gets shot down.

Thanks everyone for the clarification! I was very concerned as I thought this would affect my investment property that has a 15 year abatement.