The New Home Tax Credit is a nonrefundable credit, up to $5000, against individual income tax allowable to a qualified buyer, provided a cap of $25,000,000 for all approved New Home Tax Credits has not been met.
• The up to $5,000 state income tax credit can be applied against state tax liability for the purchase of a new, not previously occupied home in the state of Kentucky.
• To qualify you must fax the New Home Tax Credit form to the Department of Revenue at (502) 564-3706 within seven (7) days of the closing.
• The tax credit is non-refundable, meaning you will not receive a refund of any unused portion and may not be carried forward or backward to another year.
• The home purchased must be a single family dwelling that will be used as the primary residence for at least two years.
• New homes must be purchased, with a complete sale by July 26, 2010 to qualify.
To Apply For the Credit:
- Submit a Kentucky Form 40A103 Application for New Home Tax Credit application via fax within seven (7) calendar days of the escrow closing between the buyer and the seller.
- Kentucky Form 40A103 may be accessed via link to application.
- FAX to the Department of Revenue at (502) 564-3706
The Worker, Homeownership, and Business Assistance Act of 2009 has authorized a tax credit of up to $6,500 for qualified repeat home buyers.
• The $6,500 tax credit is available for repeat buyers who have lived in their primary residence consecutively for five of the last eight years. Repeat buyers do not have to purchase a home that is more expensive than their previous home to receive the tax credit.
• The tax credit can be applied to the purchase of a new or existing home.
• The tax credit is equal to 10 percent of the purchase price of the home up to $6,500.
• The purchase price of the home must be $800,000 or less to qualify.
• The income limitations to qualify must be less than $125,000 for an individual and less than $225,000 for joint filers.
• The tax credit is refundable and does not have to be paid back unless the home owner sold the home within three years after purchase.
• Qualifying homes will be under a binding contract for purchase by April 30, 2010 and will have completed the sale by June 30, 2010.
Frequently asked questions about the $6,500 tax credit for repeat home buyers.
2009-2010 Home Buyer Federal Tax Credit Fact Sheet from NAHB
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence.
• The $8,000 tax credit is available for first-time buyers only.
• The tax credit can be applied to the purchase of a new or existing home.
• A first-time buyer is defined as a person who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit is equal to 10 percent of the purchase price of the home up to $8,000.
• The income limitations to qualify must be less than $125,000 for an individual and less than $225,000 for joint filers.
• The tax credit is refundable and does not have to be paid back unless the home owner sold the home within three years after purchase.
• Qualifying homes will be under a binding contract for purchase by April 30, 2010 and will have completed the sale by June 30, 2010.
Frequently asked questions about the $8,000 first-time home buyer tax credit.
2009-2010 Home Buyer Federal Tax Credit Fact Sheet from NAHB
A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment.
• Through the Kentucky Housing Corporation, the federal government allows first time homeowner an income tax deduction for part of the interest paid each year on a mortgage loan. The Mortgage Credit Certificate gives you a tax credit of up to $2,000 each year (25% of total interest), which reduces the amount of federal income tax you pay and puts more money in your pocket during the year.
• The credit can be taken for the life of the loan. If you sell your home before nine years you could be subject to a Federal Recapture Tax
