After a long and grueling process to pass a budget, our state legislators have included a lucrative tax credit available only for buyers of brand new homes.
Here is what is available to YOU:
A $10,000 State Tax Credit
The state tax credit is for $10,000 or 5 percent of the purchase price of a newly built home, whichever is less. The home must be the principal residence of the buyer, and the sale must close between March 1, 2009 and March 1, 2010.
How does it work?
The credit will be provided in equal amounts (up to $3,333) per year, over three successive tax years, beginning with the year the purchase is made.
Will I receive the credit if I buy an existing home?
The credit is only for the purchase of a newly built home that has never been occupied. That is because building a new home generates more tax revenues than the credit will cost the state.
Are there any other restrictions?
The taxpayer must live in the home as their principal residence for at least two years. If he/she does not, he/she will have to repay the credit.
How much money is available under the program?
The law limits the total amount of credits that can be claimed to $100 million. Credit reservations will be allowed on a first-come, first-served basis. It is likely that the full amount will be exhausted this year, so prospective buyers should move quickly.
Can the credit be used in conjunction with the recently enacted federal tax credit?
Yes. If you buy a new home between March 1 and Dec. 31 and are a first-time home buyer, you can take advantage of both the $10,000 state credit and the $8,000 federal tax credit.
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