Anyone closing on a home in Georgia between June 1 and November 30, 2009, will be potentially able to receive this credit.  And, if you’re a first time homebuyer, you can ADD this to the $8,000 federal tax credit!

As Governor Perdue said, “Families interested in buying a home will now have an additional incentive to act.”

The bill provides an income tax credit for the purchase of a single family residence, with the amount of the credit being the lesser of $1,800 or 1.2 percent of the purchase price.  A taxpayer may claim one-third of the credit available for the taxable year, and may carry forward unclaimed amounts for up to 3 years.

The credit created by HB 261 can be claimed one time per taxpayer and is completely independent of the federal first time homebuyer tax credit.  The final version of the bill contains the Georgia Association of Realtors recommended amendment to clarify condos and homes occupied at the time of sale are eligible for the credit.  In addition, eligible single family residences include "new" single family homes; previously occupied residences that were for sale prior to May 11, 2009, and are still for sale after May 11, 2009; owner-occupied residences where the owner’s acquisition debt is in default on or before March 1, 2009; and homes where a foreclosure has taken place and are owned by the mortgagor or the mortgagor’s agent.

For first time homebuyers, the state credit would be in addition to the federal tax credit authorized by the American Recovery and Reinvestment Act. The federal credit gives first-time homebuyers a credit equal to 10 percent of the purchase price, up to $8,000. The state credit is available to all buyers.

For more information on the Georgia Homebuyer Tax Credit, visit our website: www.MoveToAlpharetta.com or call Tina Vliet at 770-365-4977.