Charlotte Home Mortgage News

NC House Bill 485 $10,000 Tax Credit For New Construction

Although there’s been tons of discussion about tax credits and the housing industry.  Many feel that the tax credit last year did little to help motivate folks to purchase a new home – but there’s no disputing the fact that more houses DID sell during that little window of time last year.

North Carolina’s House and Senate passed on to the next level Legislation intended to pump up the New Construction business as they consider a bill that will provide a $10,000 tqax credit for those who purchase a new construction home in our state!

The North Carolina Home Builders Association supported this bill,  which creates a NC STATE tax credit for North Carolina taxpayers who purchase a new home.  The bill is currently in Committee in the NC House of Representatives, and the Senate.

House Bill 485 would allow taxpayers to take a maximum credit of $2,000 per year over the next five years against tax liability owed to the state.  The Senate Bill 476 is very similar.

To achieve the maximum stimulus effect and create the maximum number of jobs, the tax credit would be available only for a new home constructed on or after July 1, 2011, or for a new home construction contract entered into on or after that date. The credit would expire June 30, 2012.

You would not be eligible for the Tax Credit if you have an ownership in the Company selling the property.

A total allocation of $100 million is being sought to provide 10,000 taxpayers with the opportunity to purchase a new home utilizing this credit. However, the state needs only to allocate $20 million per year over the next five years to fully fund this credit.