ERLANGER, KY – July 8, 2009 – (RealEstateRama) —A new tax credit goes into effect this month that could give some Kentuckians thousands of dollars back on the purchase of a new home.
The New Home Tax Credit is an individual income tax credit and applies to a “qualified buyer” who purchases a home on or after July 26, 2009 and before July 26, 2010.
The tax credit is designed to help individuals who are buying a home but don’t qualify for the federal first-time homebuyer credit allowable under the Internal Revenue Code. Under the federal program, the home must never have been occupied and must be the principal residence of the qualified buyer for a minimum of two years. The buyer can get up to a $5,000 credit under this program.
“It’s been a really tough year for a lot of Kentuckians,” said Gov. Steve Beshear. “When the legislature met last month, it decided it had to do something to help. This tax credit will go a long way in helping those who qualify become homeowners.”
“This housing legislation will give prospective homebuyers a strong incentive over the next year to buy a new home,” said Rep. Tommy Thompson, of Owensboro. “It will also serve to stimulate local economies and reduce unemployment in the construction industry.”
To qualify, the buyer must submit a credit application within seven days of closing on the property. The Kentucky Department of Revenue will then review the application and when approved, send the buyer a credit allocation letter. That letter must be attached to the income tax return filed for the taxable year during which the qualified principal residence was purchased.
Anyone with questions can contact the Department of Revenue’s Income Tax Taxpayer Assistance Sections at (502) 564-4581.
Contact: Jay Blanton, Jill Midkiff