Homebuyers would get a one-time tax credit on their state income tax if a bill that passed the Senate Thursday becomes law.
House Bill 261 would give a credit of either $3,600 or 1.2 percent of the purchase price, whichever is less. The purpose of the bill is to create a stimulus for home sales, supporters say. The maximum credit of $3,600 would be on homes priced $300,000 or more.
The amount of credit used could not exceed $1,200 in one year. Any unused credit could be carried forward for two years.
The bill would cost Georgia about $166.3 million, according to a letter from State Auditor Russell Hinton to the chairman of the state House Ways and Means Committee.
Opponents say the cost of the tax break is too great, and the number of sales it would generate too few, to make it worthwhile.
The House must still agree to the bill, which was amended in the Senate to allow the credit to apply to condos. It was also amended to allow taxpayers the choice of donating to the National Multiple Sclerosis Society, Georgia Chapter on their income tax forms.