Senate Bill 2076

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS WHO ARE FIRST-TIME HOMEBUYERS OF A PRINCIPAL RESIDENCE IN THIS STATE; TO PROVIDE THE AMOUNT OF THE CREDIT; TO PROVIDE THAT FIRST-TIME HOMEBUYERS MUST APPLY FOR SUCH CREDIT WITH THE DEPARTMENT OF REVENUE; TO PROVIDE THAT THE DEPARTMENT SHALL AWARD SUCH CREDITS ON A FIRST-COME, FIRST-SERVED BASIS; TO LIMIT THE AGGREGATE AMOUNT OF SUCH CREDITS THAT MAY BE AWARDED IN ANY CALENDAR YEAR; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) As used in this section:

(a) "First-time homebuyer" means an individual who has never had an ownership interest in a principal residence.

(b) "Principal residence" has the meaning ascribed to such term in Section 121 of the Internal Revenue Code.

(2) Subject to the provisions of subsection (2) of this section, a taxpayer who is a first-time homebuyer of a principal residence in this state shall be eligible for a credit against the taxes imposed under this chapter in an amount equal to One Thousand Dollars ($1,000.00) or the taxpayer's income tax liability, whichever is less. The credit must be applied for by a first-time homebuyer on or after the date on which the sale of the principal residence is closed during the taxable year in which the sale of the principal residence is closed. The credit must be utilized for the tax liability of the first-time homebuyer incurred during the taxable year in which the sale of the principal residence is closed. Any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer's succeeding year's tax liability.

(3) First-time homebuyers shall apply for the credit with the Department of Revenue on forms prescribed by the department. Upon receipt of an application, the Department of Revenue shall determine the applicant's eligibility and award the credits on a first-come, first-served basis. The taxpayer shall not claim the credit on his return unless he has been awarded the credit by the Department of Revenue. The aggregate amount of tax credits that may be awarded under this section shall not exceed One Million Dollars ($1,000,000.00) in any calendar year and the Department of Revenue shall cease awarding credit once it determines that the One-Million-Dollar limit has been reached.

(4) In the case of married individuals who file a joint return, the credit authorized by this section is allowable only if both individuals are first-time homebuyers.

(5) If two (2) or more individuals who are not married purchase a principal residence:

(a) The credit authorized under this section is allowable only if each of the individuals is a first-time homebuyer; and

(b) The amount of the credit shall be allocated equally among the individuals.

(6) This section shall be repealed from and after January 1, 2015.

SECTION 2. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after January 1, 2012.