$5,000 State Tax Credit EligibilityThis non-refundable tax credit is available to purchasers who close on a newly constructed or never occupied home by July 24 2010 and do not claim the $8,000 First Time Homebuyers Tax Credit on their federal tax return. The credit is non-refundable, which means it is used to offset a tax liabilty to the state of Kentucky, but cannot result in a tax refund if the tax credit exceeds the amount of tax liability. This credit is offered exclusively by the state of Kentucky on a homebuyer's state tax return. To qualify, the new home owner must use the home as a principal residence. They must also live in the home for at least two (2) years, or the tax credit must be repaid to the state. A total of $25 million dollars, in program funds, are available on a first-come, first-served basis until July 24, 2010 or until the funds run, whicever is first. How the Credit is ClaimedThe tax credit may be claimed by the qualified buyer submitting a completed application via fax within seven (7) calendar days of closing on a new home. To download the application, go to http://www.revenue.ky.gov Persons successfully claiming the credit will be provided a form by the Kentucky Department of Revenue that can be used in filing their state tax returns. As of the time of this article is undetermined if this credit can be used with the federal $6,500 current home owners tax credit. Please consult your tax professional for advice on how this tax credit may apply to your specific circumstances and to verify if you qualify for this tax credit. |