Barclay Sponsors Legislation that Provides State Tax Credit for New Home Owners

Assemblyman Will Barclay (R,C,I—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.

“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,” said Barclay.

“I’m pleased to sponsor this legislation (A7125B) that not only provides a tax credit but creates opportunities for contractors and the construction businesses,” 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.