Kentucky State Tax Credit Extended
Kentucky New Home Tax Credit has been extended Thru December 31,2010!
With the passage of the state budget the Kentucky New Home Tax Credit of up to $5,000 has been extended until December 31, 2010. This tax credit was due to expire on July 25, 2010. After being over-shadowed by the Federal Tax Credit programs, the State program may now help to spur the purchase of newly built, not previously occupied homes. Unlike the Federal tax credits, the State credit is non-refundable and the amount of the credit that you are able to use is based on the amount of tax liability owed after all allowable deductions for state income taxes. Not everyone who qualifies for the credit will be able to take advantage of the full $5,000 credit amount. Unused portions of the credit cannot be carried forward for future tax liabilities. According to the Department of Revenue, so far $5,197,500 has been used. In order to receive an extension of this credit, it was necessary to reallocate $10,000,000 back to the state, therefore the original $25,000,000 budgeted for this program is now capped at $15,000,000. There are $9,802,500 remaining to be used in this credit program, which represents enough funds for 1,960 newly built homes. For details about the tax credit, qualification requirements, and to see the amount of money left in the program, visit www.HBAL.com and click on Trends and Ideas to find a link to the Department of Revenue tax credit page.(Tax credit information supplied by the HBAL, Hills takes no responsibility for the accuracy of these statements. Visit the KY Department of Revenue for complete program details.)
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