In a press release on August 10th, Governor David A. Paterson announced that New York will offer a tax credit to first-time homebuyers equal to 20% of their annual mortgage interest costs. The New York State Mortgage Credit Certificate (MCC) tax credit, which could save an average homebuyer about $1,500 each year, is in addition to the $8,000 First-Time Homebuyer Credit enacted as part of the American Recovery and Reinvestment Act of 2009. Prospective homebuyers should apply for the MCC when they apply for a fixed-interest rate mortgage from a participating lending institution or, with respect to homebuyers who have obtained a mortgage but have not yet closed on their new home, prior to closing on their home. MCC applications are expected to be available at participating lenders by early September 2009 and MCC-approved borrowers will be able to take the tax credit when they file their annual federal tax return. The MCC tax credit can be used every year a homebuyer's mortgage loan is outstanding and any unused credit, to the extent the credit exceeds a homebuyer's tax liability, can be carried forward for up to three years. The MCC will be administered by the State of New York Mortgage Agency (SONYMA). Homebuyers who do not meet SONYMA's income and purchase price limits, or who obtain a SONYMA mortgage, however, will not be eligible for the credit.