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Kentucky $5,000 New Home Tax Credit Details

The $5,000 State Tax Credit for the purchase of a new home passed in the 5KstateTaxlast Special Legislative Session went into effect July 26th, 2009 and will last for all homes closed before the $25,000,000 is exhausted or July 26th, 2010.

The Kentucky Department of Revenue has a form the buyer must fill out at closing and fax in within seven days. You can access that form and additional information at www.revenue.ky.gov.

2 Comments

  1. JJ on November 18, 2009 at 10:36 pm

    Credit only applies to a tax liability. If you do not owe any tax amount on your KY State Tax Return then the credit is useless. You will not get a $5000 refund like some would have you believe.

    • Mike on November 25, 2009 at 12:54 pm

      You are correct that it applies only to your Kentucky tax liability. If your individual or joint tax liability is $0.00 then there is no benefit. If your tax liability is $3,200 your credit is $3,200. If your tax liability is $6,000 then your credit is the full $5,000. The Federal credit is for the entire $8,000 or $6,500 depending on which you qualify and provides more savings. You cannot claim the Kentucky credit if you qualify for either of the Federal credits.

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