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141.388 Nonrefundable tax credit for new home purchases.
(1)
(2)
(3)
As used in this section:
(a) "Approved time" means a period of time beginning on July 26, 2009, and
ending on December 31, 2010;
(b) "New home tax credit cap" means a maximum of fifteen million dollars
($15,000,000) allocated to qualified buyers on a first-come, first-served
basis;
(c) "Purchase" means a point within the approved time when escrow closes
between the qualified buyer and the seller of the qualified principal
residence;
(d) "Qualified buyer" means a resident who purchases a qualified principal
residence; and
(e) "Qualified principal residence" means a single-family dwelling which is:
1.
Either detached or attached;
2.
Certified by the seller as having never been occupied; and
3.
Purchased to be the principal residence of the qualified buyer for a
minimum of two (2) years.
(a) There is hereby created a one (1) time, nonrefundable new home tax
credit against the tax imposed by KRS 141.020, with the ordering of
credits as provided in KRS 141.0205.
(b) The credit shall apply to the tax liability of a qualified buyer who
purchases a qualified principal residence within the approved time.
(c) Within seven (7) calendar days after the purchase of a qualified principal
residence, the qualified buyer shall submit via fax a completed application
for the new home tax credit on forms provided by the department, except
that any qualified buyer who purchased a qualified principal residence
after November 6, 2009, but before June 4, 2010, shall have thirty (30)
calendar days from June 4, 2010, to submit via fax a completed
application.
(d) 1.
The new home tax credit allowable to the qualified buyer shall be
equal to five thousand dollars ($5,000), unless the new home tax
credit cap has been reached.
2.
If the new home tax credit cap has been reached, the qualified
buyer shall not receive a credit.
(e) The new home tax credit is not refundable and any unused amount in the
taxable year of the purchase cannot be carried forward or back to another
taxable year.
(f) Any credit that reduced the tax imposed by KRS 141.020 shall be repaid
in total if the qualified buyer does not occupy the new home for at least
two (2) years immediately following the purchase.
To administer the new home tax credit and new home tax credit cap, the
department shall:
(a) Create the application required to be filed by a qualified buyer;
(b) Promulgate administrative regulations to administer the new home tax
(4)
credit, including but not limited to:
1.
The process of recapture of the credit if the qualified buyer does not
maintain the new home as his or her principal residence for two (2)
years; and
2.
How to allocate the new home tax credit between unmarried
co-purchasers or between married individuals who file separate
returns;
(c) Create a Web site containing the amount of the total credit allocated to
date, the date the last processed application was received, and the
remaining credit available to qualified buyers;
(d) Establish a dedicated telephone line to receive faxed applications;
(e) Allow the date and time stamp from the faxed application as the order
within which the application was received; and
(f) Notify the qualified buyer of the allowable credit available to the qualified
buyer by a credit allocation letter, which shall be submitted by the
qualified buyer with his or her return.
The application for the new home tax credit shall be void if:
(a) The home has been previously occupied;
(b) The application is not received within seven (7) calendar days from the
purchase;
(c) The application is not received within thirty (30) calendar days from June
4, 2010, for purchases of a qualified principal residence after November
6, 2009, but before June 4, 2010; or
(d) The application is received after the new home tax credit cap has been
reached.
Effective:June 4, 2010
History: Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 6, effective June 4,
2010. -- Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 104, effective June
26, 2009.
Legislative Research Commission Note (6/4/2010). 2010 (1st Extra. Sess.) Ky.
Acts ch. 2, sec. 29, provides: "The amendments to KRS 141.388(1)(a) and (b)
contained in Section 6 of this Act apply to all purchases of qualified residences
within the approved time, as those terms are defined within that subsection. The
amendments to KRS 141.388(1)(d), (2), and (4) contained in Section 6 of this
Act apply to purchases of qualified residences after November 6, 2009."
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