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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 credit,
(4)
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 copurchasers 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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