Georgia residents will reap the benefits of a tax credit up to $1800 for home purchases. The credit which would be taken over three years, became effective on May 11, 2009.. New home owners will be able to take an income tax credit for the purchase of a single family residence. The amount of the credit will be the lesser of $1800 or 1.2% of the purchase price. Taxpayers may claim one-third of the credit available in each taxable year, and may carry forward unclaimed amounts. For first time homebuyers, the state credit would be in addition to the federal tax credit authorized by the American Recovery and Reinvestment Act signed in to legislation by President Obama earlier this year. The federal credit gives first-time homebuyers a credit equal to 10% of the purchase price, up to $8000. Unlike the federal tax credit, the Georgia credit is not limited to first-time homebuyers, and there are no applicable income limits. The credit is only available to buyers of eligible single family residences who close between June 1 and November 30 of this year.

Continue Reading »