| 28 | | - | Section 1. (NEW) (Effective July 1, 2013, and applicable to taxable years commencing on or after January 1, 2013) (a) As used in this section: |
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| 29 | | - | |
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| 30 | | - | (1) "First-time homebuyer" means any person who is a resident of this state, as defined in subdivision (1) of subsection (a) of section 12-701 of the general statutes, and if married, such person's spouse, who had no present ownership interest in a principal residence during the three-year period ending on the date of the purchase of the principal residence to which this section applies. |
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| 31 | | - | |
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| 32 | | - | (2) "Purchase" means any acquisition of property, provided such property is not acquired from a person legally related to the person acquiring such property, or if married, such person's spouse. A principal residence that is constructed by a person shall be deemed to be purchased by such person on the date such person first occupies the residence. |
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| 33 | | - | |
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| 34 | | - | (b) Any first-time homebuyer who purchases a principal residence in the state and is subject to the tax imposed under chapter 229 of the general statutes for any taxable year shall be allowed a credit against the tax otherwise due under chapter 229 of the general statutes. The amount of such credit shall be equal to ten per cent of the purchase price of such residence, provided such amount shall not exceed (1) four thousand dollars for a person who files under the federal income tax for such taxable year as a married individual filing separately, or (2) eight thousand dollars for any other person. If two or more individuals who are not married purchase a principal residence, the amount of the credit allowed under this subsection shall be allocated among such individuals in such manner as the Commissioner of Revenue Services may prescribe, except that the total amount of the credits allowed to all such individuals shall not exceed eight thousand dollars. No credit shall be allowed for the purchase of any residence if the purchase price of such residence exceeds eight hundred thousand dollars. |
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| 36 | | - | (c) The tax credit issued under this subsection shall be taken in the same taxable year in which the principal residence is purchased. |
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| 37 | | - | |
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| 38 | | - | (d) If the amount of the credit allowed pursuant to this section exceeds the taxpayer's liability for the tax imposed under chapter 229 of the general statutes, the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 or 12-742 of the general statutes, shall refund the amount of such excess, without interest, to the taxpayer. |
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| 39 | | - | |
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| 40 | | - | (e) (1) If a person ceases to reside in the principal residence with respect to which a credit was allowed under subsection (b) of this section at any time up to one year after the date of purchase, such person shall repay one hundred per cent of the credit allowed. If a person ceases to reside in such residence more than one year but not more than two years after such date, such participant shall repay eighty per cent of the credit allowed. If a person ceases to reside in the principal residence more than two years but not more than three years after such date, such participant shall repay sixty per cent of the credit allowed. If a person ceases to reside in such residence more than three years but not more than four years after such date, such participant shall repay forty per cent of the credit allowed. If a person ceases to reside in such residence more than four years but not more than five years after such date, such participant shall repay twenty per cent of the credit allowed. After five years, there is no repayment obligation. Any amounts repaid under this subdivision shall be deposited in the General Fund. |
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| 42 | | - | (2) Subdivision (1) of this subsection shall not apply to any taxable year ending after the date of the taxpayer's death. |
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| 43 | | - | |
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| 44 | | - | (3) In the case of a transfer of the residence to a spouse or incident to divorce, (A) subdivision (1) of this subsection shall not apply to the transferor, and (B) in the case of taxable years ending after such transfer, subdivision (1) of this section shall apply to the transferee in the same manner as if the transferee were the original purchaser. |
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| 46 | | - | |
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| 47 | | - | |
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| 48 | | - | |
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| 49 | | - | This act shall take effect as follows and shall amend the following sections: |
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| 50 | | - | Section 1 July 1, 2013, and applicable to taxable years commencing on or after January 1, 2013 New section |
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| 51 | | - | |
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| 52 | | - | This act shall take effect as follows and shall amend the following sections: |
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| 53 | | - | |
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| 54 | | - | Section 1 |
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| 55 | | - | |
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| 56 | | - | July 1, 2013, and applicable to taxable years commencing on or after January 1, 2013 |
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| 57 | | - | |
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| 58 | | - | New section |
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| 25 | + | That chapter 229 of the general statutes be amended to establish a tax credit for first-time homebuyers that mirrors the federal First-Time Homebuyer Credit. |
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