Identical to H 485, filed 3/25/11.
Enacts new GS 105-151.33 to provide that an individual who purchases or contracts for the construction of a new home residence during the tax year may apply for a tax credit in the aggregate amount of $10,000. However; prohibits taking the entire $10,000 credit in the taxable year during which the residence is purchased; instead requires that the tax credit be taken in five equal installments beginning with the taxable year in which the residence is purchased. Specifies conditions and restrictions under which the credit may be claimed. Defines a new home residence for the purposes of this section. Provides application of the credit in the case of a new home residence purchased or contracted for jointly by a husband and wife, or purchased and contracted for by multiple owners who are not married.
Requires a taxpayer to file an application for the credit with the Secretary of Revenue (Secretary) within one week of the closing date on a house that is built and within one week of the execution of the contract for a house that is to be constructed under a contract. Provides that the application is to be made on a form prescribed by the Secretary and include any supporting documentation required by the Secretary.
Sets a ceiling for the total aggregate cost of all the tax credits allowed to taxpayers under this section at $100 million with a maximum total annual cost of $20 million. Provides that if the total amount of tax credits claimed under this section in a calendar year is more than $20 million, the Secretary is to allocate the credits on a first-come, first-served basis.
Provides additional limitations on the eligibility for this credit and conditions and events that trigger the forfeiture of the credit. Requires an individual allowed a credit under this section to provide any information required by the Secretary to substantiate the individual's eligibility for the credit and provides that the individual has the burden of proving eligibility for a credit.
Directs the Secretary to prepare and publish the number of applications for the credit that have been received by the Department of Revenue beginning July 1, 2011, and at least weekly thereafter.
Makes a conforming change to GS 105-134.6(d).
Effective for taxable years beginning on or after July 1, 2011, and expires for taxable years beginning on or after July 1, 2012.
Bill Summaries: S476 (2011-2012 Session)
Bill S 476 (2011-2012)Summary date: Mar 30 2011 - View summary