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Category: Georgia

Georgia Eligible Single Family Residence Tax Credit

O. C. G. A 48-7-29.17 provides taxpayers a credit for the purchase of an eligible single-family residence located in Georgia.An eligible single-family residence is a single-family structure (including a condominium unit as defined in O. C. G. A 44-3-71) that is occupied for residential purposes by a single family that is:

 
  • Any residence (including a new residence, one occupied at the time of sale, or a previously occupied residence) that was for sale prior to May 11, 2009 and that remained for sale after May 11, 2009; or
  • A residence with respect to which a foreclosure event has taken place and which is owned by the mortgagor or the mortgagor’s agent; or
  • An owner-occupied residence with respect to which the owner’s acquisition indebtedness was in default on or before March 1, 2009.Acquisition indebtedness is debt incurred in acquiring, constructing, or substantially improving a qualified residence and which is secured by such residence.Refinanced debt is acquisition debt if at least a portion of such debt refinances the principal amount of existing acquisition indebtedness.

A taxpayer is allowed the tax credit for a purchase of one eligible single-family residence made between June 1, 2009 and November 30, 2009.The credit amount is the lesser of 1.2 percent of the purchase price of the eligible single-family residence or $1,800.00.The amount of the tax credit that may be claimed and allowed in a single tax year cannot exceed the lesser of the 1/3 of the credit or the taxpayer’s income tax liability. This means a maximum of $600 may be claimed each year. Any unused tax credit can be carried forward but cannot be carried back.