HB 1307 Summary

• Establishes a refundable state income tax credit for qualified taxpayers who purchase newly constructed principal residences with binding contracts signed between April 1, 2011 and January 1, 2013.

• Tax credit amount equals the lesser of 2% of the purchase price or $6,000, paid in two equal installments over two consecutive taxable years.

• Limits eligibility to residences with purchase prices of $625,000 or less and requires adjusted gross income limits of $75,000 for individuals or $150,000 for married couples/civil unions.

• Requires the qualified principal residence to be newly constructed from the ground up, receive certificate of completion on or after April 1, 2011, and be occupied as owner's primary residence for at least 270 days per year for two consecutive years.

• Imposes recapture of previously claimed credits on a pro rata basis if the taxpayer sells or vacates the residence within 730 days after closing escrow.