CT HB05019

Establishes a tax credit equal to 10% of the purchase price for first-time homebuyers who purchase a principal residence in the state, with a maximum credit of $4,000 for married individuals filing separately or $8,000 for all other filers.

Defines a first-time homebuyer as a state resident with no ownership interest in a principal residence during the three-year period before purchase, and excludes purchases from legally related persons.

Requires the credit to be taken in the same taxable year as the purchase, and treats any excess credit over tax liability as an overpayment eligible for refund without interest.

Imposes a repayment obligation on a sliding scale if the buyer ceases to reside in the property within five years (100% repayment if within one year, decreasing to 20% if within five years), with no repayment required after five years.

Denies the credit for residences with a purchase price exceeding $800,000, and exempts transfers to spouses or incident to divorce from repayment obligations.