For Georgians, not only can you get up to $8,000 for a first-time home purchase, you now can get up to $1800 for any home purchase (whether you are a first-timer or not). On Monday, May 11, Governor Sonny Perdue signed legislation into law that creates a new state income tax credit for home purchases in Georgia. The tax credit will apply to purchases of eligible properties between June 1 and November 30, 2009, and is expected to spur activity in the housing market. So now is definitely the time to purchase real estate in the Metro Atlanta area!!
House Bill 261 provides an income tax credit for the purchase of a single-family residence during the six months between June 1 and November 30, 2009. The credit amount is the lesser of $1,800 or 1.2 percent of the purchase price. The tax credit is applied over three years, with one-third of the credit available each year. If a the amount of the credit exceeds the taxpayer's tax liability, the unused credit may carry forward to the next tax year.
The credit created by HB 261 may be claimed one time per taxpayer. The final version of the bill contains the GAR amendment to clarify condominiums and residences occupied at the time of sale are eligible for the credit. In addition, eligible single family residences include:
- New single-family residences;
- Previously occupied residences that were for sale prior to May 11, 2009. and are still for sale after May 11, 2009;
- Owner-occupied residences in which the owner's acquisition debt is in default on or before March 1, 2009; and
- Residences where a foreclosure has taken place and are owned by the mortgagor or the mortgagor's agent.
This tax credit is in addition to the federal first-time home buyer tax credit of up to $8,000, which is available to only those buyers who have not owned a home during the last three years.
Happy House Hunting in Georgia!!
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