Georgia has an income tax credit for the purchase of an eligible single-family residence for purchases made between June 1, 2009 and November 30, 2009. The credit created by HB 261 can be claimed one time per taxpayer and is completely independent of the federal first time home buyer tax credit. The credit shall not exceed the income tax liability of 1/3 of the total amount of the credit allowed, whichever is less. Excess or unused tax credit may be carried forward and applied to succeeding year's tax liability. The credit is limited to the lesser of 1.2% of the sales price or $1,800 ($150,000 x 1.2% = $1,800). The final version of the bill contains the GAR amendment to clarify condominiums and residences occupied at the time of sale are eligible for the credit . In addition, eligible single family residences include:
- new single family residences;
- previously occupied residences that were for sale prior to May 11,
2009 and are still for sale after May 11, 2009;
- owner-occupied residences with respect to which the owner's acquisition
debt (mortgage) is in default on or before March 1, 2009; AND
- residences where a foreclosure has taken place and are owned by the mortgagor or the mortgagor's agent (REO's).
CLICK HERE FOR INFORMATION ON THE FEDERAL TAX CREDIT
If you or anyone you know is in the market to buy a home and would like to take advantage of the tax credit, please contact us at 404-551-2607.
