What does the 421B tax exemption provide?

The 421B tax exemption is specifically designed to provide partial tax exemptions for new construction, conversion, or reconstruction of owner-occupied one- or two-family homes. This program is aimed at promoting the development and renovation of residential buildings, ultimately encouraging homeownership and increasing the housing stock in urban areas, particularly in New York City. By providing these economic incentives, the program supports homeowners by reducing their tax burden, which can make it more feasible for individuals and families to invest in enhancing their living conditions or purchasing new homes.

The other options do not align with the focus of the 421B program. There is no full tax exemption specifically for rental properties under this exemption. The program does not provide incentives tailored for commercial building upgrades, nor does it offer tax credits specifically for first-time homebuyers. The primary intention of the 421B exemption is to incentivize the development of residential properties, especially for owner-occupants.