Home 5 Ag Stories Iowans can now buy a home and reduce their federal income tax...

Iowans can now buy a home and reduce their federal income tax liability

by Ben Nuelle

Governor Terry Branstad and Lt. Gov. Kim Reynolds announce a 2016 first-time home buyer tax credit program. Eligible Iowans can now buy a home and reduce their federal income tax liability by up to $2,000 a year for the life of their mortgage. They can do that through the Take Credit mortgage credit certificate program administered by the Iowa Finance Authority. In a prepared statement, Governor Branstad expects 780 home buyers to benefit from the program.

“This would mean keeping $1.5 million in the hard-earned income in the pockets of Iowa families this year which is income that would otherwise be spent in federal taxes. First time home owners in 2016 will have the opportunity to settle into their new homes with cash on hand for associated expenses. In turn, Iowa communities will benefit from local economic activity,” Branstad says.

Lieutenant Governor Kim Reynolds says owning a home is a dream for many Iowans.

“Research has consistently shown the importance of the housing sector to not only the economy but long term social and financial benefits. It helps to build strong neighborhoods throughout our state. We are pleased to be joined by Iowa Finance Authority director Dave Jameson to announce the 2016 Take Credit program. A way to help first time home buyers achieve first time ownership.”

The program provides eligible home buyers with a tax credit against their federal income tax liability every year for the life of their mortgage. Eligible homeowners may take fifty percent of their annual interest paid on the mortgage loan, up to a maximum of $2,000 per year, for up to 30 years. The remaining mortgage interest may be taken as a deduction from taxable income if the home buyer itemizes.

 

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