Quality Home Improvement

The government’s tax credit for first time homeowners is picking up steam as summer comes. That tax credit is as much as $8,000 for properly qualified homeowners. That’s a very good amount, but there are areas of the country that are offering extra incentives, as well as governmental recommendations for an increase in the amount of the tax credit itself.

For instance, earlier this year, the home builder Taylor Morrison offered an option for some home buyers where, for a short period of time, they would match the $8,000 tax credit, or whatever amount the home buyer qualified for. They ran that for one month, and it was only for new homes that Taylor Morrison would build, but, based on some fancy accounting work, some buyers were able to save upwards of $50,000 on the purchase of a new home.

Then we have the state of California, which has added to the $8,000 tax credit by giving an additional 5% tax credit to some home buyers, which means a home owner could end up with a tax credit of $18,000 overall. For this one, the homeowners only had to live in the house for 2 years, as opposed to the federal plan where owners have to live in the house for 3 years. Of course, since it’s a government program, it has a limitation. The credit is available for just one year, and it’s on a first come, first serve basis. Since the state allocated $100 million to it, once it runs out, that’s it. And, instead of getting the credit all at once, the credit is given out over a 3 year period, which means you could possibly be out of the house and still getting a credit.

In Georgia, a tax bill was signed in May that gives up an a $1,800 tax credit for first time home buyers who purchase their homes between June 1 and November 30, 2009. The amount is based on giving purchasers 1.2% of a credit for the purchase price up to that $1,800 figure.

Also, something not many people know is that there’s a special tax incentive for both new and existing home owners to go “green” on renovation of their homes, which could earn them a tax credit of $1,500, although it’s a one time credit and has to be claimed in either 2009 or 2010.

Of course, the big bonus is the introduction of legislation by Georgia Sen. Johnny Isakson that would increase the amount of the present tax stimulus from $8,000 to $15,000, as well as eliminate financial caps now in place, making it open for more than just first time homeowners. The idea here is to allow both new and existing home owners to take advantage of the high number of foreclosed upon homes that are available, homes that were formally at a very high cost but have come down as the glut of houses kept growing.

Indeed, it looks like there are not only states that are willing to help potential home owners, but the federal government is also trying to boost what they’ve already given you. This is definitely a good time to be looking into the possibility of purchasing a new home.

By: Luis Pezzini