Governor Perdue Signs Housing Tax Credit Bill

On May 11, 2009, Governor Sonny Perdue signed House Bill 261, which provides a tax credit to Georgia taxpayers who purchase a single-family home within the next six months.  The key provisions are as follows:  

• Home must be purchased between June 1, 2009 and
  November 30, 2009   

• May be personal residence or investment property  

• Taxpayer does not have to be a first-time home buyer 
• First-time home buyers may receive the state credit in addition to the federal tax credit enacted by the American Recovery and Reinvestment Act  
• Credit is limited to the lesser of $1800 or 1.2% of the purchase price  
• Taxpayer must take the $1800 credit over a three year period, claiming no more than one-third of the credit in each taxable year. Unclaimed amounts may be carried forward. 
   
• Must be a single-family home, which is described in the bill as follows:    
  • New single-family residences
  • Previously occupied residences that were on the market prior to May 11, 2009 and still for sale after May 11, 2009
  • Owner-occupied residences subject to acquisition loans that were in default prior to March 1, 2009
  • Residences where foreclosure has taken place and are currently owned by the mortgagor or the mortgagor’s agent
  • Condominiums and residences occupied at the time of the sale as long as they are single-family residences