Just under 800 home buyers in Iowa are expected to benefit from a program launched today.
Lieutenant Governor Kim Reynolds says the “Take Credit” program allows first-time home buyers to reduce their federal income tax liability by up to $2,000 a year for the life of their mortgage.
“Through the program, 50-percent of an eligible home owner’s mortgage interest becomes a tax credit that can be deducted, dollar for dollar, from their federal tax income liability,” Reynolds said at a statehouse news conference.
Iowa Finance Authority Executive Director Dave Jamison says this is the fourth year the Take Credit program has been offered in Iowa.
“In the previous three years we have offered this program, it has assisted more than 2,000 families in Iowa on their federal taxes,” Jamison said. Those families, combined, saved an estimated $3.4 million in the 2015 tax season, according to Jamison. He estimates 780 Iowa home buyers will participate in the program this year. Reynolds noted that the mortgage credit certificate funding is available on a first-come, first-serve basis until the funds run out.
“Eligibility for the tax credit program requires home buyers to meet household income and purchase price limitations and meet the definition of a first-time home buyer. That varies from county to county,” Reynolds said.