Good news! Governor Steve Beshear signed an updated version of the NEW Home Tax Credit into law on June 4, 2010. The New Home Tax Credit is a nonrefundable individual income tax credit that was made effective July 26, 2009 and applies to a “qualified buyer” who purchases a “qualified principal residence”.
To claim the credit, you must meet all of the requirements, submit the New Home Tax Credit application via fax within seven (7) calendar days of the escrow closing between the buyer and the seller, and receive approval from the Kentucky Department of Revenue.
Since the updated New Home Tax Credit has been extended to December 31, 2010, a qualified buyer is now anyone who purchases a NEW (previously unoccupied) home after July 25, 2009, and before January 1, 2011.
The cap for all approved, new home tax credits has been lowered from $25 million to $15 million. For more information on the new home tax credit update and to see if you qualify, click here.