This act authorizes state tax credits for residential rehabilitation and construction costs for properties located in distressed communities* or defined census blocks.
Taxpayers who meet certain requirements are eligible for a state tax credit of 15% of the eligible costs for a new residence. The credit is limited to no more than forty thousand dollars per residence per ten-year period (twenty-five thousand dollars for certain locations).
Homeowners (or taxpayers) that perform non-substantial rehabilitation are eligible for a state tax credit of 25% for the rehabilitation costs of an eligible residence or qualified residence. Minimum costs must exceed ten thousand dollars for an eligible residence and minimum costs must exceed of five thousand dollars for qualifying residences. This credit can not exceed twenty-five thousand dollars per ten-year period per residence.
A taxpayer that incurs eligible costs for substantial rehabilitation of at least ten thousand dollars is eligible for a state tax credit of 35% of those costs.
ubstantial rehabilitation is a rehabilitation in which the costs exceed fifty percent of the basis of the property before rehabilitation. This credit can not exceed seventy thousand dollars per ten-year period per residence.