N.Y. Tax Law § 1428-A — Credit

§ 1428-a. Credit. 1. A grantor shall be allowed a credit against the\ntax due on a conveyance of real property to the extent tax was paid by\nsuch grantor on a prior creation of a leasehold of all or a portion of\nthe same real property or on the granting of an option or contract to\npurchase all or a portion of the same real property, by such grantor.\nSuch credit shall be computed by multiplying the tax paid on the\ncreation of the leasehold or on the granting of the option or contract\nby a fraction, the numerator of which is the value of the consideration\nused to compute such tax paid which is not yet due to such grantor on\nthe date of the subsequent conveyance (and which such grantor will not\nbe entitled to receive after such date), and the denominator of which is\nthe total value of the consideration used to compute such tax paid.\n 2. A grantor shall be allowed a credit against the tax due on a\nconveyance of real property under the following circumstances: (a) the\ngrantor purchased the property without its being improved by residential\npremises, (b) the grantor improved it by the construction of residential\npremises thereon, and (c) the grantor subsequently sold such improved\nproperty. At the time of the first sale of the property after the making\nof the improvement, the grantor shall be allowed a credit equal to the\namount of the tax actually paid on the conveyance immediately prior to\nthe making of the improvement.\n