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Today, the Provincial Government announced a temporary one-time refundable personal income tax credit worth up to $10,000 for First Time New Home Buyers. Details are can be found here , and are summarized below.

From the BC Budget website:

Subject to Approval and effective February 21, 2012 to March 31, 2013, this First Time New Home Buyers' Bonus is a one-time refundable personal income tax credit worth up to $10,000. To qualify as a first time new home buyer:

-You purchase or build an eligible new home in BC

-You (and your spouse/common law partner) have never previously owned a primary residence

-You file a 2011 BC resident personal income tax return, or if you moved to BC after December 31, 2011, you file a 2012 BC resident personal income tax return (you will not be eligible if you move to BC after December 31, 2012)

-You are eligible for the BC HST New Housing Rebate

-You intend to live in the home as your primary residence

An eligible new home includes new homes (i.e. newly constructed or substantially renovated) that are purchased from a builder and that are owner built.

The bonus will be available in respect of new homes purchased from a builder where:

-A written agreement of purchase and sale is entered into on or after February 21, 2012

-HST is payable on the home

-No one else has claimed a bonus in respect of the home


The bonus will be available in respect of owner built homes where:


-A written agreement of purchase and sale is entered into on or after February 21, 2012

-Construction of the home is complete or the home is occupied before April 1, 2013

-No one else has claimed a bonus in respect of the home


A substantially renovated home is one where all or substantially all (generally 90%) of the interior of a building has been removed or replaced.


Amount of the Bonus:


The bonus is equal to 5% of the purchase price of the home (or in the case of owner built homes, 5% of the land and construction costs subject to HST) to a maximum of $10,000. The bonus will be reduced based on an individual's/couple's net income (see website for the formula).


Application Process:


Individuals must apply for the bonus through the BC Government (forms will be posted later this year). Applicants will be required to submit documentation demonstrating eligibility for the bonus.


For more information:

INCOME TAXATION BRANCH

Ministry of Finance

Province of British Columbia

(T) 250-387-3332 or 1-877-387-3332

(E) ITBTaxQuestions@gov.bc.ca

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