FISCAL NOTEWest Virginia Legislature

2016 Regular Session

Introduced

House Bill 2903

2015 Carryover

(By Delegates Byrd, Skinner, Fleischauer, Manchin, Miley, Sobonya, Summers, Weld, B. White, Rowe and Guthrie)

 

[Introduced January 13, 2016; referred to the

Committee on Finance.]

 

 

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11‑21‑23a, relating to providing a tax credit for first time home buyers; establishing eligibility criteria; and setting a maximum credit.

Be it enacted by the Legislature of West Virginia:

That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11‑21‑23a, to read as follows:

ARTICLE 21.  PERSONAL INCOME TAX.

§11‑21‑23a.  Credit for first time home buyers; criteria.

(a) For the tax years beginning on or after January 1, 2016, a first time home buyer of a principal residence is allowed a refundable credit against the taxes imposed by this article equal to the amount of ten percent of the purchase price of a principal residence, up to a maximum credit of $5,000 and subject to the conditions set forth in this section.

(b)  The credit permitted by this section applies to a principal residence purchased by a taxpayer on or after April 9, 2016, and before May 1, 2020.  However, the credit is also available if the taxpayer enters into a written binding contract before May 1, 2020, and closes on the purchase before July 1, 2020.

(c) A first time home buyer is, for the purposes of this section, an individual who has not had an ownership interest in a principal residence for the five years preceding the purchase of a residence for which he or she seeks this credit.

(d) Married taxpayers who are first time home buyers who file separate returns are eligible for a maximum tax credit of $2,500.

(e) If two or more individuals who are not married purchase a principal residence, the amount of the credit allowed under subsection (a) of this section shall be allocated among those individuals on a pro rata basis, not to exceed the $5,000 limit.

(f) No credit is allowed under subsection (a) of this section for a residence whose purchase price exceeds $800,000.

 

 

NOTE: The purpose of this bill is to provide a tax credit for first time home buyers.  The bill establishes eligibility criteria and sets a maximum credit of $5,000.

 

This section is new; therefore, it has been completely underscored.