Those looking to purchase a new home in Texas will be able to enjoy a dollar-for-dollar reduction in their income tax liability up to $2,000 through a tax credit.
The Texas Department of Housing and Community Affairs announced it would make $45 million available for the Texas Mortgage Credit Program, which was implemented last May to help first-time homebuyers afford a new home. An initial $50 million investment was announced back then, and roughly $500 million in total has been allocated for the program. First-time buyers making up to 115 percent of the area's median income are eligible for the credits, though military veterans and those living in areas of the state hit by natural disasters can take advantage of the program even if they aren't a first-time buyer.
"The Texas Mortgage Credit Program is another helpful yet responsible tool that TDHCA can offer to qualifying Texas families who are prepared to be homeowners," said Michael Gerber, TDHCA executive director. "This is a terrific program, and we are excited to make it available to our fellow Texans."
Other states have rolled out similar programs, though officials in Kentucky recently announced they would end a tax credit offering in that state. Roughly 2,400 residents across Kentucky were able to take advantage of the program while it was in effect.
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