N.J. Assembly approves $100M in tax credits for new homebuyers to improve housing market
May 20, 2010, 5:33PM
Tony Kurdzuk/The Star-LedgerView
TRENTON -- The state Assembly approved a measure today that seeks to rejuvenate the state's housing market by giving out $100 million in tax credits to homebuyers.
The bill establishes the New Jersey Homebuyer Tax Credit Program, which will give new homeowners credits worth either $15,000 or five percent of the home purchase price, whichever is less. It will be distributed over a three year period on a first come, first serve basis for purchases during 2010.
The bill passed 66-8, with three abstentions and still needs to pass in the state Senate.
The total payout from the state is capped at $100 million, though supporters of the bill and members of the home building industry who pushed for it said it will generate far more revenue from the creation of jobs related to the industry and other related economic activity.
Seventy-five million dollars of the credit is reserved for new construction, while $25 million is set aside for buyers of existing homes.
The credit, which would start in 2011, comes after an $8,000 tax credit federal first-time homebuyer and $6,500 for repeat buyers expired on April 30th.