H.B. 406 Summary

• Establishes a nonrefundable income tax credit for taxpayers who purchase a new, previously unoccupied single-family residence in Ohio and occupy it as their principal residence for at least 24 months.

• Credit amount equals the lesser of 10% of the purchase price or $50,000, available for purchases made between the bill's effective date and January 1, 2014.

• Caps total credits authorized annually at $50 million, with the Department of Development approving applications submitted by the end of the tax year of purchase or within one week of purchase, whichever is later.

• Requires taxpayers to repay the full credit if they fail to occupy the residence as their principal residence for at least 24 months, except in cases where the taxpayer dies within two years of purchase.

• Establishes credit claim order in the state tax code, placing the new home purchase credit 33rd in the priority sequence for claiming tax credits against income tax liability.