Utah Home Buyers Can Save Up to $14,000
Posted by Ron Ogden at Dwell Utah on Monday, April 20th, 2009 at 12:39pm.With two recently passed government incentives, Utah home buyers can save up to $14,000 when they purchase a new home. Under the terms of the American Recovery and Reinvestment Act of 2009, the federal goverment is offering first-time homebuyers an $8,000 tax credit. Not to be outdone, the State of Utah has also approved a bill offering up to $6,000 in incentives to buyers who purchase a new construction home in Utah. Here are the details of each program:
$8,000 Federal Tax Credit For First-Time Homebuyers
- Home must be purchased between January 1, 2009 and December 31, 2009
- The credit is calculated as 10% of the purchase price, with a maximum credit of $8,000
- The full credit is available to tax-filers with modified adjusted gross incomes (MAGI) of $75,000 or $150,000 if filing jointly, and is reduced for MAGI's above these amounts. MAGI's above $95,000 if filing singly or $170,000 if filing jointly, do not qualify for this credit.
- You must be a first-time hombuyer to qualify for this tax credit. A first-time homebuyer is defined as anyone who has not owned a primary residence in the last three years. Spouses must both meet this requirement to qualify for the tax credit.
- This is a tax credit and is not required to be repaid. However, if the home is sold within three years of being purchased, the credit may be subject to recapture.
$6,000 Utah Housing Incentive For New Construction
- The home must be new construction - never before lived in
- The home must be owner-occupied
- The incentive is $6,000, which may be applied toward down-payment or other closing costs, including fees to buy-down your interest rate
- The State has allocated $10 million to this program--once the funds are depleted, the incentive will no longer be offered. We estimate that approximated 1,600 homebuyers will be able to take advantage of this program before funds run out.
- To qualify, your income must be less than $75,000, or $150,000 if filing jointly.
For a first-time homebuyer purchasing a brand new home, the total benefit of these programs could be $14,000. For others, the benefit can still be large enough to make a home purchase feasible when, otherwise, it might not be financially possible. Check with your lender for further details on these two programs and, as always, consult your acccountant/tax professional for tax advice concerning these incentives.
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[...]ago about the state and federal tax credits that are available to Utahns who buy a new home (see Utah Home Buyers Can Save Up To $14000). Now the $8000 federal portion of this benefit has gotten even better, thanks to recent[...]
Posted on Tuesday, June 2nd, 2009 at 9:45 AM.