$1,800 Tax Credit for All Georgia Residents Buying a Home

$1,800 Tax Credit for All Georgia Residents Buying a Home

On May 11, 2009 Governor Sonny Perdue signed House Bill 261 into law allowing Georgia Residents to receive a $1,800 Tax Credit on homes purchased between June 1, 2009 and Nov 30, 2009. This tax credit is not limited to 1^st Time Homebuyers; it is for All Georgia Residents purchasing a single family home or condo used as primary residence after June 1, 2009 and no later than Nov 30, 2009. Only certain homes qualify for the $1,800 Tax Credit - the home must be on sale prior to May 11, 2009 and still for sale or must be in default on or before Mar 1, 2009, or already foreclosed and held by a bank or mortgage company. The Georgia Tax Credit is $1,800 or 1.2 percent of the purchase price whichever is less. The Georgia Tax Credit can be claimed on end of year Georgia State tax return over 3 year period including 2009, 2010, and 2011. Total tax credit allowed in a single tax year shall not exceed the taxpayer's income tax liability or one-third of the total amount of the credit allowed. The $1,800 Georgia Tax Credit can be used in addition to the 1^st Time Homebuyer Tax Credit as the two tax credits are completely separate and neither affects the other. This means that 1^st Time Homebuyers who are a Georgia Resident can receive up to a total of $9,800 total in Federal and State tax credits if they purchase a home that qualifies for the Georgia State Tax credit within the next 6 months.