Assemblyman Will Barclay (R,C,IÃ¢â‚¬â€Pulaski) said today he is pleased to join lawmakers on both sides of the aisle to sponsor legislation that, if passed, will give home buyers who purchase a newly constructed home a $7,000 state income tax credit for up to three years.
Ã¢â‚¬Å“The country has been hit hard by this recession. New home sales have declined, which has had far-reaching affects on the economy. This bill would encourage the purchase of a newly constructed home, which would likely spur more residential home construction. In turn, this would create more jobs as well,Ã¢â‚¬Â said Barclay.
Ã¢â‚¬Å“I’m pleased to sponsor this legislation (A7125B) that not only provides a tax credit but creates opportunities for contractors and the construction businesses,Ã¢â‚¬Â added Barclay.
Experts say new home construction has seen a dramatic decrease as building permits have declined since 2008.
This legislation complements the federal government’s attempt to spur home sales by providing an $8,000 tax credit to first-time home buyers. The federal program has been extended through April 2010. If signed into law, the $7,000 state tax credit is returned to the homeowner after purchase and can be applied to offset income taxes owed over a three-year period.
The tax credit applies to coops and condos in addition to one and two family residences and may be taken for the first three years of ownership of a primary residence.