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A number of states are following California's lead in adopting additional tax credits for homebuyers at a state level. California's plan gives new homebuyers a credit of 5% of the purchase price, up to a maximum of $10,000 to be paid out over a three-year period. This program essentially makes the total tax credit worth as much as $18,000 in California. According to the National Association of Home Builders' Sales and Marketing Council, plus other sources, the following states are considering tax credits for homebuyers over and above the $8,000 federal tax credit adopted by Congress in February: N. Carolina, S. Carolina: Considering replicating California's program. Utah: Considering a $6,000 grant to be used by buyers for down payments. Kentucky, Virginia, Illinois: Considering up to $5,000 in tax credits. Georgia: Considering a $3,600 tax credit spread over three years. Missouri, Delaware, Pennsylvania, New Mexico, Indiana, Kentucky, Michigan, New York, Oregon, Tennessee, Texas, Washington, Colorado, Idaho, New Jersey, Ohio: All considering an advance of the federal tax credit in the form of a short-term loan. These models essentially monetize the tax credit in advance so buyers can use it for cash needed to close on their mortgage instead of waiting until they file their tax returns. Stay tuned as developments are forthcoming daily and follow the link below to the National Council of State Housing Agencies to learn more about the details of the state by state programs. http://www.ncsha.org/section.cfm/3/34/2920
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