The federal tax credit offered to first-time homebuyers in 2009 and 2010 gave the state’s real estate industry a boost – albeit a temporary one. Now the state’s legislators want to see if they can provide some similar magic.
Last week, leaders of the House Appropriations Committee filed H485: New Home Purchase Stimulus. It creates a $10,000 tax credit paid out over five years, meaning homeowners can claim $2,000 credit toward their state tax liability in each of those years. But unlike the federal credit this one is good only if you buy a newly built home.
If passed, the bill would take effect July 1 and last for exactly a year. It caps the credit at $100 million with no more than $20 million paid out in a single year.
Rep. Harold Brubaker, a Republican from Asheboro, said the legislation was a jobs bill because it will create jobs in the home construction industry.
N.C. State University economist Mike Walden has estimated that the tax credit could lead to the building of 26,000 homes.
Brubaker told the News & Observer that the proposal is one of several that may be included in the budget bill intended to spark job creation. He said budget writers are also examining small business equipment depreciation rules to see whether they can encourage equipment buying. “We’re throwing all these things on the table,” he said.
The bill has been referred to the House Commerce and Job Development Committee. Read More.