New Jersey Approves 2010 Home Buyer Tax Credit

New Jersey Approves 2010 Home Buyer Tax Credit(D-Bergen) and Assemblyman Lou Greenfield
On Thursday, the New Jersey Assembly voted for(D-Camden), reserves three quarters, or $75,000, of
and approved a bill, A-1678, that will establish the Newthe $100,000 New Jersey tax credit for purchasers of
Jersey Homebuyer Tax Credit Program under thebrand new houses and one quarter, or $25,000, for
state gross income tax and allocate $100 million worthpurchasers of existing, previously occupied houses.
of refundable tax credits to new homebuyers in NewOver the past few years, Tim Touhey, the chief
Jersey this year. New Jersey homebuyers will receiveexecutive officer of the New Jersey Builders
these tax credits on a first come-first serve basis andAssociation, has led the NJBA in being more
will amount to either $15,000 or 5% of the home'saggressive in their advocation of issues relating to the
selling price, whichever happens to be less. There willhousing market.
be no income limits to be eligible for the 2010 homeWith the passing of A-1678 by a vote of 66 to 8 with
buyer credit, which will be divided in equal amounts andthree abstentations, New Jersey has joined other
distributed to mortgage holders over a period of threestates, municipalities, and builders in offering major
taxable consecutive years, although taxpayers will beincentives for new homebuyers to compensate for
required to use the home as their principal residencethe expiration of the federal tax credit on April 30.
for the three-year period after the date of theNow the bill has been referred to the state Senate for
purchase.a final vote; according to the New Jersey legislature,
The bill, which was crafted by the New Jersey Buildersthis may occur as early as the June 10 session.
Association and sponsored by Senator Paul Sarlo