HCS/HB 194 - This act creates an income tax deduction for the purchase of a new home for the years 2013 to 2015. The new home must be constructed between August 28, 2013, and December 31, 2015. Manufactured homes, modular units, recreational park trailers, and recreational vehicles will not qualify for the deduction. The value of the land and any preexisting structures will not be included in determining the value of the deduction. Self constructing taxpayers may be eligible for the deduction. The deduction amount is limited to the lesser of one-third of the contract sales price or $166,667. A taxpayer can claim this deduction only once. Any amount of the deduction in excess of the taxpayer's liability may be carried forward until the deduction amount is used in its entirety. If a taxpayer that takes the deduction ceases to use the home as a principal residence before two years have passed, the taxpayer must include in their adjusted gross income the deduction amount taken previously. This act is similar to SB 179 (2013) and a provision of HCS/HB 521 (2013), HCS/SB 24 (2013), HCS/SS/SCS/SB 83 (2013). MIKE HAMMANN
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