GA Homebuyer Tax Credit

Time is of the essence georgia-state-capitol

Governor Sonny Perdue signed House Bill 261, which provides a $1,800 tax credit for home purchases. The credit, which would be taken over three years, took effect for purchases June 1 and is meant to spur activity in the housing market.

The bill provides an income tax credit for the purchase of a single family residence from June 1 – November 30, 2009. As the timeline for standard purchases has increased, you would need to be under contract respectively 45 days from the deadline (Nov 30).  In this case, you’ve got roughly 4 weeks to find your home, negotiate and get to a binding agreement. 

Inspections, appraisal, and contingencies have to be dealt with swiftly. It can be done. Timing and process management by your REALTOR and mortgage planner will be key elements to ensuring you close on your home as expected. 

The amount of the credit will be the lesser of $1,800 or 1.2 percent of the purchase price. A taxpayer 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.  The federal credit gives first-time homebuyers a credit equal to 10 percent of the purchase price, up to $8,000.  The state credit is available to all buyers from 6/1/09 to 11/30/09.

GA Dept of Revenue Information Bulletin

This informational bulletin explains the new income tax credit for a taxpayer’s purchase of one eligible single-family residence made between June 1, 2009 and November 30, 2009.

Frequently Asked Questions

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.


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