Georgia Offers Home Buyer Tax Credits

The state of Georgia will soon join the federal government in trying to jump-start the housing industry. The state will implement an income tax credit for home buyers starting in June. A federal credit is already in place.

Twenty-three-year-old Bryan Collins said he was happy with the deal he and his wife got for their new home in the Flowery Branch area of Hall County.

Collins also received an $8,000 income tax credit from the federal government. The federal tax credit is for first-time home buyers and will be available until November 30. There are some income caps with the federal credit. The new state credit is for buyers who close on homes from June through November and has no income caps.

Real estate agents like Susan Klieson of Gwinnett County said the state credit combined with the federal incentive will help push more buyers into the real estate market.

While buyers are starting to take advantage of the credits, just how quickly the overall housing market turns around and how much that can be attributed to the tax credits remains to be seen.

The IRS has reported that more than half a million taxpayers claimed the federal homebuyer credit during the first weeks of the program.