New Homebuyer Tax Credit
The CBIA-sponsored homebuyer tax credit signed into law in February will take effect March 1 and is available to buyers of new homes for a year. SB 15XX (Ashburn) authorizes:
• A tax credit of up to $10,000 (5 percent of home price or $10,000, whichever is less) for the purchase of a newly constructed, previously unoccupied home.
• Available March 1, 2009, through March 2010, or whenever funding authority runs out – whichever comes first ($100 million was allocated to program).
• Allocated by the state’s Franchise Tax Board on a first-come, first-served basis (details still to be worked out).
• Paid out to home purchasers over three tax years in equal amounts (i.e. $3,333 for 2009, $3,333 for 2010, etc.)
• Purchasers must reside in the home for at least two years.
• There are no income limitations that have to be met by purchasers.
• There is no first-time homebuyer requirement.
• There is no repayment requirement (unless the purchaser sells, rents out, etc. before two years expire).
Consult the Franchise Tax Board website for more information.
View CBIA's frequently asked questions.
